Study of Initial Public Offerings: Performance of Private Equity Backed Swedish IPOs, 2013-2022 (Swedish Private Equity & Venture Capital Association (SVCA))

Summary

• A total of 60 PE backed IPOs occurred from the 10 th of December 2013 until the 6th of July 2022 and were analyzed in the study.p.2
• Over a 1-year horizon, PE-backed IPOs generated an absolute average return of 23% compared to 8% for the market index.p.5
• Over a 3-year horizon, PE-backed IPOs achieved an excess average return vs market of 40%.p.5
• Over a 5-year interval, PE-backed IPOs achieved an absolute average return of 180% compared to 72% for the market index.p.5

Key insights

1. A total of 60 PE backed IPOs were analyzed between the 10 th of December 2013 and the 6th of July 2022.p.2
2. Analyzing the excess average return shows PE IPOs overperform market and sector indices across all time periods by about 50%.p.2
3. The absolute median return for PE IPOs over a 1-year horizon was 21%, resulting in an excess median return vs market of 20%.p.5
4. The excess median return vs sector indices for PE-backed IPOs dropped to -28% over a 5-year horizon.p.5
5. For the 1-year horizon against the market index, 60% of PE-backed IPOs demonstrated good performance.p.6
6. Over the 3-year horizon against the market index, 59% of PE-backed IPOs had good performance while 29% had poor performance.p.6
7. Compared to sector indices over a 1-year horizon, 60% of PE-backed IPOs achieved good performance.p.7