Private Equity Backed Ipo Performance

Private equity backed ipo performance

The Performance Private Equity Backed Ipos

37 PagesPosted: 26 Oct 2007Last revised: 22 Dec 2010

Date Written: December 2010


The paper examines the aftermarket performance of private equity-backed initial public offerings (IPOs) based a hand collected sample of private equity-backed and equivalent samples of venture capital-backed and other non-sponsored issues on the London Stock Exchange.

What REALLY is Private Equity? What do Private Equity Firms ACTUALLY do?

The evidence suggests marked differences across the three groups in terms of market size, industry classification and key operating characteristics at the time of flotation. Private equity-backed IPOs exhibit superior performance compared with their counterparts throughout the 36 months period in the aftermarket; such performance is robust across different benchmarks and estimation procedures.

Private equity backed ipo performance

The performance of private equity-backed IPOs is positively related to their level of leverage and the proportion of equity maintained by the private equity sponsors immediately after flotation.

Keywords: IPOs, Private Equity, Venture Capital, Long-run performance

JEL Classification: G1, G2, G3, G10, G23, G34

Suggested Citation:Suggested Citation

Levis, Mario, The Performance Private Equity Backed Ipos (December 2010).

Available at SSRN: or

Private equity backed ipo performance