WSJ: Private Equity to Lead Tech IPOs
By Saranya Kapur
Chief financial officers expect the surge in technology-sector initial public offerings last year to continue through 2014, with private equity-backed IPOs representing the majority, according to a survey by BDO USA, a consulting firm.
Of the 100 CFOs surveyed between December and January, 93% believe that IPO activity in the technology sector will remain the same or increase, up from 86% last year. Additionally, 43% expect private equity-backed IPOs to make up the majority of tech IPOs this year, beating out venture-capital backed IPOs and owner-backed IPOs.
“Private equity firms have invested a fair amount of money in tech companies over the last 8 to 10 years,” said Aftab Jamil, a partner at BDO USA. “Now that the market is doing well and there are decent returns to be had, these firms want to cash out and find new opportunities.”
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