Clear Street, a prime brokerage startup that previously postponed its own initial public offering plans, announced a new initiative designed to provide accredited investors with opportunities to acquire stakes in late-stage private companies ahead of their listings on public markets. The platform would initially focus on AI software company Databricks, which carried a valuation of $188 billion earlier in the month, according to reporting.
Chief Executive Officer Uri Cohen outlined the company’s rationale for the expansion, emphasizing that the offering sought to reduce barriers to entry and broaden participation in private investment opportunities. Cohen noted that substantial wealth generation has increasingly occurred within private markets rather than on public exchanges, driving heightened interest from individual investors and smaller institutional players seeking exposure to prominent private firms such as Databricks, Anthropic, and OpenAI before they transition to public trading.
The company’s expansion aligns with broader industry trends toward providing private market access to affluent investors. Goldman Sachs had recently established a comparable platform targeting wealthy clients and family offices pursuing direct ownership stakes in rapidly expanding private companies. Clear Street projected its platform would include as many as 30 companies by the close of the year, predominantly technology firms valued between $5 billion and $20 billion that were anticipated to pursue public offerings between six months and two years into the future.
Structurally, Clear Street’s approach involved creating special purpose vehicles through which investors would acquire interests, rather than direct share ownership. The arrangement positioned external funds as official shareholders on Databricks’ records, with Clear Street serving as the counterparty. A Databricks representative stated that the company maintained no formal engagement or relationship with Clear Street. Clear Street was also establishing dedicated equity research operations focused on private companies to enhance transparency in traditionally opaque private markets.
Clear Street’s expansion occurs as the firm navigates its own strategic positioning. Most recently valued at nearly $12 billion in a private funding round, the company had suspended its public listing plans in February amid market volatility affecting broker and fintech valuations. Despite postponing the listing, Clear Street maintained positive cash flow and secured a $400 million investment-grade bond offering to support infrastructure development. Cohen indicated the company was targeting a listing in 2027, pending market conditions.
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