(29 November 2024 – United States) Private equity (PE) backed initial public offerings (IPOs) on US exchanges are set to stage a significant comeback in 2025.
The revival has already commenced according to Pitchbook data with US$30.5 billion in PE-backed IPO exits this year, raising US$6 billion in capital, In Q3 alone there were five exits via IPO including Platinum Equity-backed Ingram Micro Holding Corp and Partners Group’s KinderCare Learning Companies Inc.
“Stock prices being at all-time highs creates a halo effect and we fully expect 2025 to be another recovery year” PitchBook Lead Analyst for PE, Tim Clarke commented to Bloomberg.
“PitchBook’s analysis of PE-backed companies that are likely to file for an IPO next year encompasses several factors including how long the company has been buyout firm-owned, large employee bases and signs of attractive growth. Unlike in 2021, when a slew of small and questionable companies went public, this time size and quality matters.”
“You need to have enough trading volume, positive cash flow, as well as good top and bottom line growth trajectory. Our team look for bigger companies and use headcount growth as one of the metrics” Clarke added.