Continuing the momentum from the second half of 2009, US IPO activity pushed forward in the second quarter of 2010, according to PwC's US IPO Watch, a quarterly and annual analysis of IPOs on U.S. stock exchanges. Financial sponsors continue to provide leadership in the US IPO market, according to PwC. The second quarter saw 32 of the 39 new deals raising $4.2 billion coming from financial sponsors, representing approximately 84% of total proceeds. In terms of deal size, PwC expects small and mid-cap deals to continue dominating IPO volume.
In the second quarter of 2010 private equity fundraising from 82 closed funds totaled only $41 billion, the lowest total since 2003, and a reflection of the continuing harsh fundraising conditions for managers seeking capital. It is clear that the recovery in the fundraising market anticipated by many in the industry has yet to occur.