EY: Q1 2015 saw decline in PE IPOs

The first quarter of 2015 experienced a decline in private equity initial public offering activity, especially in the Americas, according to Ernst & Young.

EY, the global professional services firm headquartered in London, has just released data on private equity IPOs for Q1 2015 and found a 17 percent decrease to $14.3 billion (£9.30 billion; €13.12 billion) in the amount raised by private equity firm-backed companies from the same period a year ago.

The firm does expect activity to pick up through the rest of the year however. 

Thirty-seven companies IPO'd in Q1, compared with 40 in the same quarter last year and 48 in the previous quarter. Only eight IPO'd in the Americas – the lowest quarterly number since 2009.

Most IPOs occurred in Europe, where companies raised $11.2 billion for 21 offerings, up almost 50 percent from the first quarter last year and more than five times the amount raised in the previous quarter.

The rate of issuance also saw decreased activity, contrasting the “increasingly rapid pace of activity” in the past 18 months, according to the report.

Nonetheless, EY expects a strong year for IPOs, citing high levels of investor confidence and strong economic fundamentals in developed markets. There are more than 80 companies expected to make an initial public offering, according to EY, and the firm expects them to raise almost $12.5 billion total.