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So ho loft capital markets advisory partners 1-23-2012
- 1. The IPO Crisis And What Must Be Done To
Fix It: Market structure is too low cost to pay for the
infrastructure needed to support capital formation.
Improved strategies are needed. We offer some.
SoHo Loft
Reed Smith
599 Lexington Avenue
22nd Floor
New York, NY
January 22-23, 2012
David Weild
212.542.9979
david.weild@cmapartners.com
© Capital Markets Advisory Partners, LLC
- 2. Our Focus
• Change Agent (Supported by Grant Thornton)
– Studies
• Why are IPOs in the ICU?
• A wake up call for America
• Market structure is causing the IPO crisis – and more
• Killing the stock market that laid the golden eggs (pending chapter in “Broken
Markets” to be published by John Wiley & Sons)
– Citations
• Congress, Senate, SEC
• IPO Task Force Report to the US Treasury
• Jeffrey Immelt led Jobs Council Report to the White House
• Solutions for Issuers (Capital Markets Advisory Partners)
– How to significantly increase size and quality of institutional
demand.
• Cut deal execution risk
• Improve price
• Improve aftermarket performance
© Capital Markets Advisory Partners, LLC
2
- 3. The small IPO market collapsed with the OHRs and
Reg. ATS (loss of B/D incentives)
As seen in the study "Market structure is causing the IPO crisis—and more"
Percent of total U.S. IPOs
100%
Allegations of Spread Fixing (1994)
90% Manning Rule (1996) Transactions raising at least $50 million
80% OHRs (1997)
Regulation ATS (1998)
70%
60% Decimalization (2001)
50%
Sarbanes-Oxley (2002)
40% Reg. NMS (2005)
30%
20%
10% Transactions raising less than $50 million
0%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sources: Grant Thornton LLP, Capital Markets Advisory Partners and Dealogic YTD
Data includes corporate IPOs as of 6/30/11, excluding funds, REITs, SPACs and LPs
© Capital Markets Advisory Partners, LLC
3
- 4. A catastrophic fall in the number of listed
companies (43%)
As seen in the study "A wake up call for America"*
200
China
Indexed value of selected global exchange listings
150
Hong Kong
100
Australia
(1997 = 0)
50
Germany
Tokyo
0
London Toronto
(50)
United States
(100)
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sources: Grant Thornton LLP, Capital Markets Advisory Partners, World Federation of Exchanges and individual stock exchanges YTD
*March 16, 2011; House Financial Services Committee “Hearing on Legislative Proposals to Promote Job Growth, Capital Formation and Market Certainty”
statement by David Weild
© Capital Markets Advisory Partners, LLC
4
- 5. Current legislation will help but won’t do
nearly enough to fix our stock markets.
Private Disclosure
Public Standards
• H.R. 1070 (Reg. A)
• H.R. 2930 (crowdfunding)
Private Private
Public Public
• H.R. 1070 (Reg. A)
• H.R. 1965 (banks; 500-2,000 shareholders)
• H.R. 2940 (general solicitation, Reg. D)
• H.R. 2930 (crowdfunding)
• H.R. 2167 (500-1,000 shareholders)
© Capital Markets Advisory Partners, LLC
- 6. IPO success rates have been in sustained
decline for nearly two decades, despite deals
that are increasing in average size and maturity
Success rate of trailing 30 IPO filings
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
6
- 7. Unprecedented volatility (S&P 500)
Standard & Poor's 500 index moves of 4% or higher
Intraday price volatility Closing price volatility
4% 4%
3% 3%
2% 2%
Excluding 2008
and 2009
1% 1%
0% 0%
1960s 1970s 1980s 1990s 2000s 2010s* 1960s 1970s 1980s 1990s 2000s 2010s*
*Analysis through 9/30/11
Source: Grant Thornton LLP, Capital Markets Advisory Partners and Capital IQ
Original analysis from "Market Swings are Becoming New Standard," New York Times, September 11, 2011
© Capital Markets Advisory Partners, LLC
7
- 8. IPOs take > 3 times as long to get through the
SEC than they did 20 years ago
Number of days in registration
(Trailing 30-deal average)
© Capital Markets Advisory Partners, LLC
8
- 9. We would have enjoyed a venture-backed post
1990s 'IPO Echo Boom,' but Reg. ATS killed it
$120
U.S. Venture Capital Raised (In Billions)
Source: National Venture Capital Association
Data as of 6/30/11
$100
$80
$60
$40
$20
$0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
YTD
"Penny Stocks" Deal Size < $50 Milllion Deal Size ≥ $50 Million U.S. Unemployment Rate
12% 900
Sources: Grant Thornton LLP, Capital Markets Advisory Partners, Dealogic and U.S. Department of Labor
Data includes corporate IPOs as of 6/30/11, excluding funds, REITs, SPACs and LPs 800
10%
U.S. Unemployment Rate
700
Number of U.S. IPOs
8% 600
500
6%
400
4% 300
200
2%
100
0% 0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
YTD
© Capital Markets Advisory Partners, LLC
9
- 10. We believe the loss of small IPOs is a major
contributor to job loss in the United States
As seen in the study "Market structure is causing the IPO crisis—
and more"
"Penny Stocks" Deal Size < $50 Milllion Deal Size ≥ $50 Million U.S. Unemployment Rate
12% 900
800
10%
700
U.S. Unemployment Rate
8% 600
Number of U.S. IPOs
500
6%
400
4% 300
200
2%
100
0% 0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
YTD
Sources: Grant Thornton LLP, Capital Markets Advisory Partners, Dealogic and U.S. Department of Labor
Data includes corporate IPOs as of 6/30/11, excluding funds, REITs, SPACs and LPs
© Capital Markets Advisory Partners, LLC
10
- 11. We should be approaching 1,000 IPOs/year
and < 5% unemployment
U.S. IPOs (Actual) U.S. IPOs (Projected)
U.S. Unemployment Rate (Actual) U.S. Unemployment Rate (Projected)
12% 1,000
900
10%
800
700
8%
U.S. Unemployment Rate
Number of U.S. IPOs
600
6% 500
400
4%
300
200
2%
100
0% -
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Est. Est. Est.
The 'U.S. IPOs (Projected)' estimate assumes 520 IPOs per year starting in 1991 with a 3% compound annual growth rate equivalent to
the U.S. GDP growth rate. A simple linear regression model was created using historical data to predict the 'U.S. Unemployment Rate
(Projected)' based on this number of projected IPOs.
Sources: Grant Thornton LLP, Capital Markets Advisory Partners, Dealogic and U.S. Department of Labor
Data includes corporate IPOs as of 6/30/11, excluding funds, REITs, SPACs and LPs
© Capital Markets Advisory Partners, LLC
11
- 12. IPOs > $500 million have demonstrated the
steepest decline of all
Success rate of trailing 30 IPO filings
with proceeds of at least $500 million
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
12
- 13. Loss of the Ecosystem: Underwriting Groups
Microsoft’s IPO (1986) vs. LinkedIn’s IPO (2011)
© Capital Markets Advisory Partners, LLC
13
- 14. Microsoft IPO: $58,695,000 March 13, 1986
Underwriter Table from Final Prospectus 116 Underwriters (p. 1 of 3)
Source: Microsoft IPO Final Prospectus, Capital Markets Advisory Partners, LLC.
© Capital Markets Advisory Partners, LLC
14
- 15. Microsoft IPO: $58,695,000 March 13, 1986
Underwriter Table from Final Prospectus 116 underwriters (p. 2 of 3)
Source: Microsoft IPO Final Prospectus, Capital Markets Advisory Partners, LLC.
© Capital Markets Advisory Partners, LLC
15
- 16. Microsoft IPO: $58,695,000 March 13, 1986
Underwriter Table from Final Prospectus 116 underwriters (p. 3 of 3)
Source: Microsoft IPO Final Prospectus, Capital Markets Advisory Partners, LLC.
© Capital Markets Advisory Partners, LLC
16
- 17. LinkedIn IPO: $352,800,000 May 18, 2011
Underwriter Table from Final Prospectus 5 underwriters
Source: LinkedIn IPO Final Prospectus
© Capital Markets Advisory Partners, LLC
17
- 18. Two Solutions (Both address the economic
model)
• Issuer’s Choice - Board Chooses “Tick Size” - Issuers deserve choice in
how the market in their shares is made and supported (“Mass Customization”)
– Issuer Boards of Directors should be allowed to determine „tick size‟ which would cost
little to implement and provide an important tool to impact support (research, sales
and capital) and modulate speculative trading and volatility.
• Alternative Sub $2 Billion Market Cap Stock Market - Issuers (and
Americans) deserve a sub-$2 billion market cap stock market structured to
create focus on capital formation and job creation (see Wall Street Journal Op-
ed dated October 28, 2011, entitled “How to Revive Small-Cap IPOs”)
© Capital Markets Advisory Partners, LLC
18
- 20. The best investors are now self-directed. We
work with management to reach them.
Wall Street Adjusted We help Issuers Adjust
(Each change increased selling) (Each step increases placement)
• Focused on big, large cap • Methods to reach the self-
funds directed 2/3rds of the
• Focused on big, high institutional market
turnover funds • Methods to minimize
• Shut down middle-market selling pressure
institutional sales forces • Methods to promote retail
• Converted retail from stock ownership
broking to asset gathering • Campaign to improve the
stock markets for issuers
© Capital Markets Advisory Partners, LLC
20
- 21. Wall Street Not Reaching Best Investors
Distribution of fundamentally oriented U.S. institutions in 2010
Each tier = 100* institutions ranked by equity assets (e.g., 1st tier = top 100 institutions)
Market Value ≤ $2 billion Market Value > $2 billion
$8,000,000,000,000
$7,000,000,000,000
2010
$6,000,000,000,000
$5,000,000,000,000
Equity Assets
$4,000,000,000,000
$3,000,000,000,000
$2,000,000,000,000
$1,000,000,000,000
$0
Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier Tier
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
*36th tier = 43 institutions
© Capital Markets Advisory Partners, LLC
21
- 22. Market Value of Shares Held
$1,000,000,000
$1,200,000,000
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$0
Jennison Associates LLC
Fidelity Management & Research Co.
Intel Corp. Pension Fund
Artisan Partners LP
TIAA-CREF Asset Management LLC
BlackRock Advisors LLC
American Century Investment…
TCW Asset Management Co., Inc.
VMware Inc.
Waddell & Reed Investment Management…
© Capital Markets Advisory Partners, LLC
OppenheimerFunds, Inc.
Wellington Management Co. LLP
Winslow Capital Management, Inc.
Goodman & Co. Investment Counsel Ltd.
Thrivent Investment Management, Inc.
Morgan Stanley Smith Barney LLC…
Atlanta Capital Management Co. LLC
AllianceBernstein LP
Renaissance Technologies LLC
Conatus Capital
Two Sigma Investments LLC
RBC Global Asset Management, Inc.
Columbia Management Investment…
22
Norges Bank Investment Management
Criterion Capital Management LLC
Highbridge Capital Management LLC
D. E. Shaw & Co., Inc.
Piedmont Investment Advisors LLC
Geneva Investment Management of…
Partner Fund Management LP
Sumitomo Trust & Banking Co. Ltd.…
Miura Global Management LLC
Michigan Department of Treasury
Alydar Partners LLC
Deutsche Bank Investment Management,…
Neptune Investment Management Ltd.
RCM Capital Management LLC
Morgan Stanley Investment Management,…
UBS Global Asset Management
Empire Capital Management LLC
Kleinheinz Capital Partners, Inc.
Victory Capital Management, Inc.
Russell Investment Management Co.
are mostly smaller investors that are not the focus of large investment banks
Marvin & Palmer Associates, Inc.
S.A.C. Capital Advisors LP
BlackRock Investment Management (UK)…
Loomis, Sayles & Co. LP
Top 50 fundamental institutional investors ranked by market value of shares held
Legal & General Investment Management …
Henderson Global Investors Ltd.
Market Cap. $42.04 B
JPMorgan Asset Management, Inc.
Mackenzie Financial Corp.
- 23. Total Equity Assets
firms
bracket
Coverage
from bulge
$100,000,000,000
$200,000,000,000
$300,000,000,000
$400,000,000,000
$500,000,000,000
$600,000,000,000
$0
erodes here
Jennison Associates LLC
Fidelity Management & Research Co.
Intel Corp. Pension Fund
Artisan Partners LP
TIAA-CREF Asset Management LLC
BlackRock Advisors LLC
American Century Investment…
TCW Asset Management Co., Inc.
© Capital Markets Advisory Partners, LLC
Waddell & Reed Investment Management…
OppenheimerFunds, Inc.
VMware Inc.
Wellington Management Co. LLP
Winslow Capital Management, Inc.
Goodman & Co. Investment Counsel Ltd.
Thrivent Investment Management, Inc.
Morgan Stanley Smith Barney LLC…
Atlanta Capital Management Co. LLC
AllianceBernstein LP
Renaissance Technologies LLC
Conatus Capital
Two Sigma Investments LLC
RBC Global Asset Management, Inc.
Columbia Management Investment…
23
Norges Bank Investment Management
Criterion Capital Management LLC
Highbridge Capital Management LLC
D. E. Shaw & Co., Inc.
Piedmont Investment Advisors LLC
Geneva Investment Management of…
Partner Fund Management LP
Sumitomo Trust & Banking Co. Ltd.…
Miura Global Management LLC
Michigan Department of Treasury
Alydar Partners LLC
Deutsche Bank Investment Management,…
Neptune Investment Management Ltd.
RCM Capital Management LLC
Morgan Stanley Investment Management,…
UBS Global Asset Management
Empire Capital Management LLC
Kleinheinz Capital Partners, Inc.
Victory Capital Management, Inc.
48% (24 of 50) of VMware investors are below the priority line of most investment banks.
Russell Investment Management Co.
Marvin & Palmer Associates, Inc.
S.A.C. Capital Advisors LP
BlackRock Investment Management (UK)…
Loomis, Sayles & Co. LP
Legal & General Investment Management…
Henderson Global Investors Ltd.
Market Cap. $42.04 B
JPMorgan Asset Management, Inc.
Mackenzie Financial Corp.
- 24. Market Value of Shares Held
$80,000,000
$20,000,000
$40,000,000
$60,000,000
$100,000,000
$120,000,000
$140,000,000
$0
Fidelity Management & Research Co.
Wells Capital Management, Inc.
Waddell & Reed Investment Management…
Fred Alger Management, Inc.
Century Capital Management LLC
Columbia Management Investment…
JPMorgan Asset Management, Inc.
AllianceBernstein LP
Champlain Investment Partners LLC
© Capital Markets Advisory Partners, LLC
LogMeIn Inc.
Arbor Capital Management LLC (Minnesota)
Luther King Capital Management Corp.
Bluefin Investment Management
MFS Investment Management, Inc.
Artisan Partners LP
Deutsche Bank Investment Management,…
OppenheimerFunds, Inc.
Next Century Growth Investors LLC
Aberdeen Asset Management, Inc.
ING Investment Management Co.
Broadview Advisors LLC
Palisade Capital Management LLC
Ashford Capital Management, Inc.
24
Delaware Management Business Trust
Dreyfus Investment Advisors, Inc.
Chartwell Investment Partners LP
Columbia Partners LLC Investment…
Adage Capital Advisors LLC
Robeco Institutional Asset Management BV
Emerald Advisers, Inc.
TIAA-CREF Asset Management LLC
Renaissance Technologies LLC
Mutual of America Capital Management…
Bank of New York Mellon Asset…
Russell Investment Management Co.
NCM Capital Management Group, Inc.
Harvey Partners LLC
Invesco PowerShares Capital…
RS Investment Management Co. LLC
Chinook Capital Management LLC
Sigma Capital Management LLC
Azimut SGR SpA
Oberweis Asset Management, Inc.
are mostly smaller investors that are not the focus of large investment banks
Goldman Sachs Asset Management LP
BlackRock Investment Management (UK)…
Norges Bank Investment Management
Copper Rock Capital Partners LLC
Top 50 fundamental institutional investors ranked by market value of shares held
BlackRock Advisors LLC
MacGuire, Cheswick & Tuttle Investment…
Market Cap. $1.02 B
The Public Sector Pension Investment Board
Principal Global Investors LLC
- 25. Total Equity Assets
$100,000,000,000
$200,000,000,000
$300,000,000,000
$400,000,000,000
$500,000,000,000
$600,000,000,000
$0
Fidelity Management & Research Co.
Wells Capital Management, Inc.
Waddell & Reed Investment Management…
Fred Alger Management, Inc.
Century Capital Management LLC
Columbia Management Investment…
JPMorgan Asset Management, Inc.
AllianceBernstein LP
© Capital Markets Advisory Partners, LLC
Champlain Investment Partners LLC
Arbor Capital Management LLC (Minnesota)
Luther King Capital Management Corp.
LogMeIn Inc.
Bluefin Investment Management
MFS Investment Management, Inc.
Artisan Partners LP
Deutsche Bank Investment Management,…
OppenheimerFunds, Inc.
Next Century Growth Investors LLC
Aberdeen Asset Management, Inc.
ING Investment Management Co.
Broadview Advisors LLC
Palisade Capital Management LLC
Ashford Capital Management, Inc.
25
Delaware Management Business Trust
Dreyfus Investment Advisors, Inc.
Chartwell Investment Partners LP
Columbia Partners LLC Investment…
Adage Capital Advisors LLC
Robeco Institutional Asset Management BV
Emerald Advisers, Inc.
TIAA-CREF Asset Management LLC
Renaissance Technologies LLC
Mutual of America Capital Management …
Bank of New York Mellon Asset…
Russell Investment Management Co.
NCM Capital Management Group, Inc.
Harvey Partners LLC
Invesco PowerShares Capital…
RS Investment Management Co. LLC
Chinook Capital Management LLC
Sigma Capital Management LLC
Azimut SGR SpA
Oberweis Asset Management, Inc.
Goldman Sachs Asset Management LP
BlackRock Investment Management (UK)…
Norges Bank Investment Management
Copper Rock Capital Partners LLC
BlackRock Advisors LLC
58% (29 of 50) of LogMeIn investors are below the priority line of most investment banks.
MacGuire, Cheswick & Tuttle Investment…
Market Cap. $1.02 B
The Public Sector Pension Investment Board
Principal Global Investors LLC
- 26. Market Value of Shares Held
$30,000,000
$60,000,000
$10,000,000
$20,000,000
$40,000,000
$50,000,000
$70,000,000
$80,000,000
$0
Fidelity Management & Research Co.
Columbia Wanger Asset Management LLC
Waddell & Reed Investment Management…
Allianz Global Investors Capital LLC
BlackRock Advisors LLC
Champlain Investment Partners LLC
First Trust Advisors LP
St. Denis J. Villere & Co. LLC
Frontier Capital Management Co. LLC
© Capital Markets Advisory Partners, LLC
Citadel Advisors LLC
Granahan Investment Management, Inc.
The Boston Company Asset Management …
Wall Street Associates LLC
Riverbridge Partners LLC
Sentinel Asset Management, Inc.
MFS Investment Management, Inc.
Constant Contact Inc.
Federated Investment Management Co.
Lord Abbett & Co. LLC
Gagnon Securities LLC
Welch & Forbes LLC
Ashford Capital Management, Inc.
Kalmar Investments, Inc.
26
FIL Investments International
Wellington Management Co. LLP
Federated Global Investment…
Northern Trust Co. of Connecticut
Dreyfus Investment Advisors, Inc.
Scottish Widows Investment Partnership Ltd.
Bank of New York Mellon Asset…
Wells Capital Management, Inc.
Pictet Asset Management SA
Ohio Public Employees Retirement System
Ensemble Capital Management LLC
Investor AB (Investment Management)
Attractor Investment Management, Inc.
TIAA-CREF Asset Management LLC
Coatue Management LLC
New York State Common Retirement Fund
Norges Bank Investment Management
Cortina Asset Management LLC
Aberdeen Asset Management, Inc.
P.A.W. Capital Corp.
are mostly smaller investors that are not the focus of large investment banks
Geneva Capital Management Ltd.
UBS O'Connor LLC
Washington Capital Management, Inc.
Oxford Asset Management LLP
Top 50 fundamental institutional investors ranked by market value of shares held
William Blair & Co. LLC (Investment…
Kopp Investment Advisors LLC
Market Cap. $0.66B
Essex Investment Management Co. LLC
Oberweis Asset Management, Inc.
- 27. Total Equity Assets
$100,000,000,000
$200,000,000,000
$300,000,000,000
$400,000,000,000
$500,000,000,000
$600,000,000,000
$0
Fidelity Management & Research Co.
Columbia Wanger Asset Management LLC
Waddell & Reed Investment Management…
Allianz Global Investors Capital LLC
BlackRock Advisors LLC
Champlain Investment Partners LLC
First Trust Advisors LP
St. Denis J. Villere & Co. LLC
© Capital Markets Advisory Partners, LLC
Frontier Capital Management Co. LLC
Citadel Advisors LLC
Granahan Investment Management, Inc.
The Boston Company Asset Management …
Wall Street Associates LLC
Riverbridge Partners LLC
Sentinel Asset Management, Inc.
MFS Investment Management, Inc.
Federated Investment Management Co.
Lord Abbett & Co. LLC
Gagnon Securities LLC
Welch & Forbes LLC
Constant Contact Inc.
Ashford Capital Management, Inc.
Kalmar Investments, Inc.
27
FIL Investments International
Wellington Management Co. LLP
Federated Global Investment…
Northern Trust Co. of Connecticut
Dreyfus Investment Advisors, Inc.
Scottish Widows Investment Partnership Ltd.
Bank of New York Mellon Asset…
Wells Capital Management, Inc.
Pictet Asset Management SA
Ohio Public Employees Retirement System
Ensemble Capital Management LLC
Investor AB (Investment Management)
Attractor Investment Management, Inc.
TIAA-CREF Asset Management LLC
Coatue Management LLC
New York State Common Retirement Fund
Norges Bank Investment Management
Cortina Asset Management LLC
Aberdeen Asset Management, Inc.
P.A.W. Capital Corp.
Geneva Capital Management Ltd.
UBS O'Connor LLC
Washington Capital Management, Inc.
Oxford Asset Management LLP
68% (34 of 50) of Constant Contact investors are below the priority line of most investment banks.
William Blair & Co. LLC (Investment…
Kopp Investment Advisors LLC
Market Cap. $0.66 B
Essex Investment Management Co. LLC
Oberweis Asset Management, Inc.
- 29. Less than one-third of very small IPOs (< $50
million) are successful in today’s market
Success rate of trailing 30 IPO filings
with proceeds < $50 million
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
29
- 30. IPOs that raise $50-$100 million
Success rate of trailing 30 IPO filings
with proceeds of $50-$100 million
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
30
- 31. IPOs that raise $100-$250 million
Success rate of trailing 30
IPO filings with proceeds of
$100-$250 million
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
31
- 32. IPOs that raise $250-$500 million
Success rate of trailing 30 IPO filings
with proceeds of $250-$500 million
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
32
- 33. IPOs that have priced within 1 year of filing—
trailing 30 filings
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
33
- 34. IPOs that have priced at or above the low end of
the range—trailing 30 filings
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
34
- 35. IPOs that are trading at or above issue price 30
days after pricing—trailing 30 filings
Source: Capital Markets Advisory Partners, LLC, All rights reserved
Includes only corporate issuers. Excludes funds, MLPs, SPACs and REITs.
© Capital Markets Advisory Partners, LLC
35
- 36. Capital Markets Advisory Partners
About Capital Markets Advisory Partners, LLC been cited by Members of Congress and Regulators in the US and
overseas and by leading publications including, The
Capital Markets Advisory Partners is a pioneer in developing Economist, Forbes, The Financial Times, The New York Times and
methods to dramatically increase the size and quality of distribution The Wall Street Journal.
on IPOs and follow-on offerings. Collectively, we bring hundreds
of years of experience from leading institutions. Recently, this work was also cited in:
• The President’s Council on Jobs and Competitiveness (Jobs
Studies authored by two of our principals (David Weild and Edward Council) Interim Report led by Jeffrey Immelt of General Electric
Kim) and supported and published by the major accounting, tax • The IPO Task Force Report to the US Treasury, led by Kate
and advisory firm of Grant Thornton have been entered into the Mitchell, past Chairman of the National Venture Capital
Congressional Record and the Federal Register and our principals Association.
have participated in or testified in front of:
• The NYSE and National Venture Capital Association’s (NVCA) Capital Markets Advisory Partners was founded by David Weild, the
Blue Ribbon Panel to restore liquidity in the US venture capital former vice chairman and head of listed companies and related
industry (2009) businesses at NASDAQ and former head of equity capital markets
• The CFTC-SEC Joint Panel on Emerging Regulatory Issues and corporate finance at Prudential Securities. David also serves as
(2010) Chairman of the Small Business Financing Crisis Task Force of the
• The House Financial Services Committee’s Subcommittee on ISEEE (International Stock Exchange Executives Emeriti).
Capital Markets (2011)
• The U.S. Treasury’s Capital Formation Conference (2011).
These studies, supported and published by Grant Thornton, have
© Capital Markets Advisory Partners, LLC
36
- 37. The IPO Crisis And What Must Be Done To
Fix It: Market structure is too low cost to pay for the
infrastructure needed to support capital formation.
Improved strategies are needed. We offer some.
SoHo Loft
Reed Smith
599 Lexington Avenue
22nd Floor
New York, NY
January 22-23, 2012
David Weild
212.542.9979
david.weild@cmapartners.com
© Capital Markets Advisory Partners, LLC