Venture-backed companies outperformed the market by 4.2 percent over 500 trading days, according to research conducted by the European Private Equity and Venture Capital Association (EVCA). The study shows that VC-backed companies floated on the stock exchange ‘significantly outperform other IPOs’.
It isn’t exactly news that private equity investors want returns. After all, that’s why they commit their capital to these vehicles. As the market recovers from the 2008 and 2009 depths of the global financial crisis, expectations have risen, and alternative investment research firm Preqin reports that demands on private equity portfolios are now “higher than ever before relative to public markets.”
Is the United States still the global leader in the IPO market? Yes, but that could be changing. The latest data from KCSA Strategic Communications—which surveyed 50 securities attorneys—shows that the U.S. share is declining.