Companies previously under the ownership of private equity firms perform better after their initial public offering than other newcomers to the stock exchange. Former private equity investments have increased their share value on average by almost 50 percent since 2009, while other companies have achieved an average increase of only around 44 percent in the same period following their first listing. This was the conclusion of a current study by consulting and auditing firm PwC, which looked at over 600 European stock market flotations.
According to the authors, the study results reflect, on the one hand, increasingly long-term oriented value growth approaches of private equity investors who also continue to invest in their own shareholdings following acquisition, leading to even better price performance following the initial public offering. On the other hand, the course was often set for a successful stock market listing as early as during the IPO process in the case of privately managed companies – and generally much earlier in the case of firms in private equity ownership.
The complete study can be found on the PwC website at (available only in German):