Date: 11th December 2018

CFA institute has found, that investors were seeking fewer IPO investment opportunities and “could miss out on the returns provided by rapidly growing new businesses whilst they are kept in private hands”. The increasing ability of entrepreneurs to access private capital has encouraged a shift from public market capital-raising, and “much of the value [has been] already extracted” by the time the companies do IPO.

According to Sviatoslav Rosov, director of capital markets policy at CFA Institute, the fact that companies are preferring to avoid a public listing might deprive savers of the ability to participate in high-growth business models, and further promote the sense that markets are being operated for the benefit of ‘insiders’.

Full article is available here.