Current State of IPOs

The current landscape for initial public offerings (IPOs) has been disappointing, with a notable lack of momentum in the market. Despite predictions of a surge in IPOs for 2025, many companies that have gone public recently have underperformed expectations, resulting in a lackluster vibe surrounding new listings. For instance, some major deals have fallen flat, reflecting a disconnect between the valuations proposed by private equity firms and what stock market investors believe those companies are worth. This disconnect has led many private equity firms to hold onto their portfolio companies longer than usual, resulting in a backlog of firms waiting for favorable market conditions to finally enter the public market.