The pan-European stock exchange, Euronext NV, projects a robust initial public offering (IPO) market in 2025, fueled by the increasing need for private equity firms to divest their holdings and return capital to investors. This positive outlook is based on strong performance in 2024 and anticipated market trends.
Mathieu Caron, Head of Primary Markets at Euronext, stated in a recent interview that private equity funds face a significant “need to return capital” to their investors. This pressure is creating a favorable environment for IPOs.
In 2024, Euronext, which operates exchanges across major European cities including Paris, Amsterdam, and Milan, welcomed 53 new companies. These listings generated €3.9 billion ($4.1 billion) in capital, marking a substantial 55% increase compared to the previous year.
Looking ahead to 2025, Caron anticipates continued activity in sectors such as defense, technology, and green energy. He also expects to see more spin-offs, similar to those executed by Vivendi SE and Sodexo, as conglomerates streamline their portfolios. This strategic restructuring further contributes to the expected IPO momentum. Caron expressed confidence in a “better year in 2025,” both in terms of deal volume and capital raised.
The impetus for this optimistic forecast stems from the typical ownership cycle of private equity investments. The holding period for acquired businesses is reaching a point where fund managers are seeking to realize returns. The IPO market has proven to be an effective avenue for achieving this goal, evidenced by the strong performance in 2024.
Across Europe, IPOs and sell-downs in companies backed by private equity and similar investors generated over $25 billion in gross proceeds in 2024. This represents an impressive 80% surge compared to the total for 2023, according to Bloomberg calculations from mid-December. Notable transactions in 2024 included the listings of French software company Planisware SA and Swiss skincare giant Galderma Group AG, both backed by private equity.
Euronext’s positive outlook for the 2025 IPO market underscores the exchange’s prominent role in facilitating capital formation and supporting the growth of European businesses. The anticipated surge in listings driven by private equity exits positions Euronext for continued success in the coming year. The convergence of market conditions and private equity investment cycles creates a compelling case for a vibrant IPO landscape in 2025.
