How Private Equity backed IPOs are attracting investors

May 20, 2011 - by Aaron Booth

The blockbuster LinkedIn IPO is proof of the pent-up demand from investors who have waited out the financial crisis to put their money down.   In the last few years, investors have watched several private equity backed offerings succeed in the market, and the growing attractiveness of the Private Equity market to investors has led to an increase in data room activity.  Private Equity firms are using Firmex for everything from fundraising efforts to ongoing financial reporting and divestments.

Studies show that several private equity sponsors emerged through the financial crisis, with solid portfolios, and the Ernst & Young LLP US IPO Pipeline study reported that of the 125 companies representing $18.4 billion in the IPO pipeline for Q1 2011, almost a third of these companies were backed by private equity and $9.6 billion - more than half of the Q1 pipeline - was represented by just three private-equity backed companies: