This downward trend is driven by 64 companies opting to delist during the current financial year, with only 30 new companies joining the exchange. The report highlights a broader market sentiment favoring private investments over traditional public listings, emphasizing the growing allure of the private sector for delivering robust returns, innovation, and growth.
According to Martin Donnelly, Managing Director at EQT Client Relations and Capital Raising, this inclination is part of an international pattern seen across initial public offerings (IPOs), with funds raised in IPOs decreasing from USD$54.6 billion in early 2022 to USD$24.9 billion by the third quarter of 2024.
"We're witnessing a significant pivot toward private market assets as 2024 comes to an end," Donnelly remarked. "Companies consider private markets increasingly attractive for growth and capital access, a view supported by ongoing structural shifts at a broader level."
For investors, this means that focusing solely on public markets could result in missed opportunities. Private markets entice investors by integrating sectors and enterprises that fuel innovation and economic progress, particularly when IPOs are less prominent.
In this context, EQT launched EQT Nexus, an open-ended fund for wholesale investors, allowing participation in various initiatives such as mature buyouts, pioneering ventures, and infrastructure projects within EQT’s Private Equity and Infrastructure domains.
"EQT Nexus opens doors for wholesale investors to access opportunities that were traditionally exclusive to institutional investors, thus broadening their investment universe and tapping into EQT’s global deal flow," explained Donnelly.
The move towards private markets, as reported by Inside Story, underlines a critical shift in the investment landscape—one that positions private market strategies at the core of contemporary financial portfolios for those seeking innovation-driven growth.
- ASX delistings: 64 companies (2024/25 financial year)
- New listings: 30 companies (2024/25 financial year)
- IPOs fundraising: Decline from USD$54.6 billion to USD$24.9 billion (global perspective)