ab1 media, page-1715

Insiders don’t necessary need a listing for an exit event.

During any private round, if the demand exceeds the supply then the new investors can also take out some existing shareholders who wants out.
For example say raising at $3 and they are doing 100m and they get 200m in bids, they can then ask existing shareholders who they know wanted out previously if that is still the case and that 100m in excess can be offered to take out their shares.

IMO nothing worst than being forced into an IPO if the company isn’t ready for one - whether financially, performance wise or regulatory wise.