PE and venture capital (VC) investors have sold shares worth $2.6 billion in the nine months to end-September, the highest volume of exits through the IPO route so far, according to data from an IVCA-EY report. The number of PE-backed IPOs stood at 25 this year, also a record. The momentum in such share sales is being driven by historically low interest rates and a gush of liquidity that have driven stock markets to record highs. Right now, we are in that kind of a situation where the confluence of low discount rates and very liquid markets have lifted all boats and, hence, we are seeing strong momentum in PE/ VC backed exits. Soni added that positive macroeconomic factors and geopolitical developments have also had a significant impact on public market valuations, which could be the driving force behind the high volume of PE-backed IPOs this year.

Source: Mint October 24, 2021 23:52 UTC