A healthy IPO market, along with strong M&A activity is good news for private equity and venture capital, providing attractive exit conditions. In turn strong market conditions mean better availability of capital to support high growth entrepreneurial businesses. 2014 was a good year, and the outlook for 2015 remains strong.
The 30 IPOs that completed in 2014 generated an average return of 12.4 per cent, outperforming the FTSE 100 by 14.4 percent over the year. "IPOs in 2014 have performed better than many would have expected," said John Hammond, head of equity capital markets at Deloitte. What's more, 22 of the companies which floated were backed by private equity firms, together generating an average return of 14.6 per cent. This was actually a better performance than those not backed by private equity, which had returns averaging 6.4 per cent.