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Overview
The value of all companies going public on US exchanges has passed a record $1 trillion this year driven in part by the sky-high valuations of US stocks across the board. The breadth and depth of today’s supersized public debuts of some contemporary tech giants seem pedestrian by comparison. More than a dozen companies were valued at more than $10 billion in their public offerings in 2021. During November, Electric truck maker Rivian conducted one of the year’s largest US public offerings being valued at over $56 billion.
Chart 12: US public listings surpass $1T in 2021
Source: Pitchbook
2021 has been another record year for inflows into ESG and sustainable linked investments with over $400 billion in flows into the space according to Morningstar data. Following a period of little traction for dedicated clean and renewable energy focused investment performance, it seems markets are once again waking up to the longer term opportunities for these industries following the UN Climate Change conference in Glasgow earlier this month. The Invesco Solar ETF and iShares Clean Energy ETF have gained 21% and 7% over the last six months respectively as investors digest much of the recent upgraded commitments to achieving net zero from corporations and asset owners.
Chart 13: Renewed interest in clean energy stocks
Source: Bloomberg
Private equity (PE) continued to see rapid growth in commitments to the asset class with total PE assets under management passing the $4 trillion mark for the first time as at the end of Q3 2021. Total fund raising for PE funds has passed $360 billion for the first nine months of the year and may beat 2019’s record before the year is out. Dry powder in PE has increased only marginally this year meaning the vast majority of increased value has been derived from a strong uptick to valuations of existing investments in the space.
Chart 14: Private equity total assets exceed $4 trillion
Source: Pitchbook
Stephen Dickinson
Investment AnalystDarragh Kennelly
Investment Analyst
