Proceeds from U.S. private equity and venture capital initial public offerings were down 81% and 59%, respectively, from the first quarter a year ago. In its quarterly IPO review, Renaissance Capital said only five private equity-backed companies went public in the first quarter of 2015, down from 16 a year ago and down from 20 last quarter.
“Instead of an IPO, firms have also taken advantage of alternative options through sponsor-to-sponsor exits and corporate sales,” Renaissance noted.
Seventeen venture capital-backed companies went public during the quarter, down from 40 in the first quarter of 2014 and down from 17 in the fourth quarter.
The firm said “the lack of technology IPOs may be the result of a higher number of private venture rounds at elevated valuations, which has been caused in part by increasing participation from traditional IPO buyers such as major mutual funds and growth-focused hedge funds.”
