Hotly anticipated tech IPOs will no doubt impact the market for secondaries, but much depends on how those IPOs perform, corporate partner Mark Leahy recently told PitchBook.
The exits could leave a hole in the secondaries market, which has concentrated interest and capital in big names, according to PitchBook. But if the IPOs perform well, they could serve to rouse the secondary market, rather than reset it, Leahy said.
“The hottest companies are going public ... they’re coming off the table for all the secondaries,” he told PitchBook. “If their [public] offerings are successful, that will increase interest of buyers for other companies that are coming up behind them … it may end up increasing demand from buyers for shares from private companies that have not gone public yet."
Read the full article at PitchBook.