Educational Alpha – S3: Conversation with Andreas Bezner, CEO and Co-Founder, Stableton

Episode Date: November 12, 2025
Host: Bill Kelly (CAIA Association)
Guest: Andreas Bezner (CEO & Co-Founder, Stableton)

Episode Overview

In this episode, Bill Kelly sits down with Andreas Bezner to explore how the evolution of secondary markets is transforming access to late-stage, private tech companies. They trace Andreas’s entrepreneurial journey—the founding of Stableton, the development of the Top 20 Unicorn Index Fund—and dive into the nuts and bolts of how individual and institutional investors can finally gain diversified, transparent access to innovation outside of traditional high-minimum, illiquid private markets.

Key Discussion Points & Insights

1. Andreas Bezner’s Background and the Genesis of Stableton

• Early Career:
  • German origin, now Swiss; background in economics with a thesis on the secondary market for private equity.
  • Professional journey includes Ernst & Young (transaction advisory), running technology-focused hedge fund, and assisting emerging alternative fund managers.
  • Experienced managing through the ’07-’08 crisis and multiple successful business exits.
• The "Access Problem":
  • Realized traditional alternatives weren’t accessible to wealth managers and banks due to high minimums, illiquidity, and operational friction.
  • Sought to "mix oil and water"—making alternatives bankable, easily deployable, and accessible at lower minimums.
• Stableton’s Evolution:
  • Initial focus: broader alternatives, using certificates for performance replication.
  • Shift in 2020 to direct secondary transactions in late-stage, VC-backed tech companies.
  • Now: A global leader in direct secondaries and managed index funds, with $400M+ in assets and a focus on direct exposure to blue-chip, late-stage ventures.
  • Quote:

    “We just took this analogy of a low-cost index fund… Now you can be invested in private markets without the hassle, in an easy-to-understand product.” – Andreas (09:12)

[02:31–05:14]

2. Rethinking Private Market Access: The Stableton Model

• Bypassing Manager Risk:
  • Directly access the underlying companies; no need to rely on GP/manager selection.
  • Removes concerns about “today’s alpha being tomorrow’s beta.”
• Structural Innovations:
  • Solutions: Bankable certificates, no capital calls, transparent valuations (secondary market marks), and low fees (AUM-based instead of committed capital).
  • Investors bet on a diversified basket (companies like SpaceX, Stripe, OpenAI), not a single manager’s picks.
  • Quote:

    “We solve [manager risk] by not betting on Stableton, but betting on our underlying companies… Effectively, they are not betting on a manager.” – Andreas (06:57)

• Transparency & Liquidity:
  • Known portfolio holdings, valuations based on real trades.
  • Products are custody-friendly and address liquidity challenges traditionally found in private markets.

[05:14–09:26]

3. Beta vs. Alpha in the Unicorn Top 20

• Philosophy:
  • Focus on providing beta-like exposure to innovation—broad, diversified ownership of the “winners.”
  • Any extra “alpha” arises from discounts secured in secondaries (e.g., buying below last round valuations, or from liquidity needs of sellers).
  • Core thesis: Long-term holding means the performance is driven by the companies’ growth, not speculative selection.
  • Quote:

    “It’s likely better on average to invest just in all companies and work on the fees. Just by removing the fees, you’re already much better off.” – Andreas (11:39)

  • Additional Alpha Sources:
    • Buying at a liquidity discount (sometimes 20%+ below recent valuations).
    • Capturing post-IPO or exit premium.
  • Longer hold = more “beta-like” return profile.

[09:26–13:47]

4. The Rise and Depth of Private Secondaries

• Trend: Companies Stay Private Longer:
  • Late-stage private companies often have no need to go public; ample private capital and alternative liquidity (via secondaries).
  • Secondary markets historically tiny (1–5% of total volume), but now rapidly expanding, especially for higher-quality/larger companies.
  • Institutional and individual investors alike require more liquidity as private allocations grow.
  • Quote:

    “A company would likely only go public if being public is an asset and not a burden… Some will never go public, but the private and public market space will converge even more.” – Andreas (14:08)

• Comparing Liquidity:
  • Public markets: highly liquid, primarily secondary trading.
  • Private markets: predominantly fundraising, but now increasing share of secondary transactions, especially for “blue-chip” unicorns.
  • New platforms, ratings, indices fostering more mature, liquid secondary ecosystems.

[13:47–17:49]

5. Mechanics of the Top 20 Unicorn Index Fund

• Design Details:
  • Structure: Equally weighted, 20 names, 5% in each.
  • Selection: Follows the Morningstar PitchBook Unicorn Select 20 index; must have both high valuation and active secondary market.
  • Sector Exposure: Naturally tech-heavy, reflecting broader trends in innovation and VC.
  • Rebalancing & Exits:
    • Index rulebook governs inclusion/exclusion (primarily based on IPO or acquisition, but also replacement if a company drops in value or new one qualifies).
    • About 69% of historical exits due to IPO/acquisition.
    • Lockup: Standard post-IPO lockup of 180 days before exiting positions.
  • Quote:

    “The beautiful thing about an index strategy is that it’s based on a rule book…69% of the cases when a company left the index was because it was acquired or went public.” – Andreas (21:42)

• Index Inclusion:
  • Purely systematic and valuations-driven—no discretionary picks.
  • Liquidity in secondaries needed for practical inclusion.

[18:25–27:45]

6. Adapting for Mega-Unicorns and Future Tiers

• Market Evolution:
  • “Unicorn” status (>$1B) is becoming less rare; some firms (SpaceX, OpenAI, Anthropic) now $100B+ and still private.
  • Potential for a “Mega Unicorn” product in future, as well as “next generation” tiers for rapidly scaling newcomers.
  • The methodology’s flexibility can accommodate market changes as necessary.
• Quote:

  “There'll be trillion-dollar companies soon that are still private.” – Andreas (29:14)

[27:45–30:02]

7. Public vs. Private Markets – The Coming Convergence

• Future Outlook:
  • The split between public and private equity exposures is becoming less relevant; investors should focus on the nature of their exposure (growth, liquidity tolerance) rather than labels.
  • More infrastructure (platforms, ratings, research) is making pre-IPO “blue-chip” tech accessible, standardized, and liquid for sophisticated investors.
• Quote:

  “It’s actually about the exposure you’re going to buy… It’s really subject to restrictions in terms of liquidity needs, et cetera.” – Andreas (31:51)

[30:02–34:42]

8. Demystifying Private Markets & Building Trust

• Education & Communication:
  • Andreas is intentionally active on content and social media—focus on education, building trust, and demystifying the asset class for investors.
  • Transparency not just a marketing tactic, but a core value proposition in stableton’s offerings.
• Quote:

  “It’s important that investors have a good feeling about [products], understand what they’re looking for and somehow align with what they’re investing… you can actually align with all these great companies shaping our futures.” – Andreas (35:24)

[34:42–36:26]

9. Memorable Quotes & Exchanges

• Bill Kelly on innovation exposure:

  “Every investor should want exposure to innovation in their portfolio. But if a lot of that innovation is happening in the early late stage VC market, I can't get that in the public market.” (13:03)

• Andreas on public/private convergence:

  “It’s the wrong approach to look at public versus private… What are you able to tolerate in terms of the liquidity of your products?” (31:26)

• Andreas on product rationale:

  “Our portfolio looks more like a growth at a reasonable price portfolio, strong growth, reasonable valuations, like a venture portfolio, for example.” (34:09)

• Bill Kelly on trust:

  “Without trust we have nothing. And who doesn't believe in trust? We all do. And most of us have it in a mission statement, but living it and breathing it for the sake of the end investor… is critically important.” (36:26)

Notable Segments & Timestamps

• [02:31] Andreas’s career journey and origin story of Stableton
• [05:14] How Stableton solves private market access and manager risk
• [10:28] Alpha vs. beta thinking in the Unicorn Top 20 fund
• [13:47] Private companies staying private longer; secondary market liquidity trends
• [18:25] Mechanics and rules of the Unicorn Top 20 Index Fund
• [21:42] Handling exits, rebalancing, and post-IPO strategies
• [27:45] The concept of mega-unicorns and tiering future offerings
• [30:02] Big picture: public vs. private convergence and what that means for investors
• [35:24] Social media activity, trust, and education as core to Stableton’s mission

Tone and Speaker Style

• Andreas Bezner: Analytical, methodical, and honest in addressing product structure and market realities. Candid about fee structures, returns, and industry trends. Strives to be demystifying and transparent—visible in emphasis on index rules and systematic processes.
• Bill Kelly: Engaged, sometimes wry or provocative (“today’s alpha is tomorrow’s beta”), and persistent in pushing for clarity on product rationale and market evolution. Repeated focus on the importance of trust, investor discipline, and reshaping asset allocation thinking.

Summary for Non-Listeners

This episode offers an accessible but deep dive on how the secondary market for late-stage private tech companies is opening up a new frontier for ordinary investors and wealth managers alike. Andreas Bezner unpacks how Stableton gives exposure to otherwise-inaccessible “unicorn” and “mega-unicorn” companies with a transparent, index-based approach, sidestepping the headaches and hazards of traditional private equity investing. The episode not only illuminates how these modern funds are structured and managed but makes a compelling case for why the old boundaries between public and private equity are rapidly eroding—and why investors should start thinking more about what exposure and liquidity they really need, rather than just how to fill boxes in a portfolio.