Frenetic activity in the IPO market will likely grow even stronger, driven by private equity funds that are sitting on a large portfolio of companies that are ripe for exits, said Ajay Garg, managing director of investment banking firm Equirus Capital.
“We’ve never seen such consistent activity in the primary market the way we have seen in the last 15 to 18 months. And if you look at the data from 2007-08 to now, private equity has continuously pumped in around $25-30 billion in every year,” Garg said in an interaction with Mint.
“Cumulatively, you’re talking of over the last 13 years period, close to $350-400 billions of investments. Assuming that those companies have all matured and they’re looking from an exit perspective, then you are sitting on a trillion-dollar worth of good companies which will hit the market,” said Garg.
The liquidity-driven momentum in the equity capital markets is also feeding into other areas of dealmaking, resulting in strong pipelines for investment banks.
“Each of our teams—infrastructure, financial services, fintech, technology and healthcare—are all very active right now,” he added.
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