Matthew McClure, global co-head of investment at Goldman Sachs, said the initial public offering market is open for business.
This outlook suggests a shift in investor confidence, signaling that companies may be more willing to go public as capital becomes more accessible.
Speaking during an interview on Bloomberg Deals with Dani Burger, McClure said AI-related companies account for more than half of the capital raised [1], even though they represent about 20% of IPOs this year [2].
The concentration of funding in AI indicates a strong investor appetite for the sector, which is driving a robust environment for new listings. This trend persists despite the smaller number of AI firms actually entering the public market compared to other industries.
Beyond the AI boom, McClure pointed to a significant reservoir of funding available for investment. He said $1.5 trillion of capital is waiting to be deployed in private equity [3].
This surplus of private-equity capital provides a cushion for companies that are not yet ready for a public listing. It also suggests that the pressure to go public may be balanced by the availability of private funding, allowing firms to scale before seeking a public valuation.
The combination of high AI demand and massive private-equity reserves creates a complex landscape for new issuers. While the market is open, the competition for investor attention remains skewed toward high-growth technology sectors.
“The IPO market is open for business.”
The disparity between the number of AI IPOs and the amount of capital they attract reveals a 'winner-take-most' dynamic in the current market. While the broader IPO window is open, investors are aggressively concentrating their bets on AI, potentially leaving non-AI companies to rely on the $1.5 trillion in private-equity dry powder to sustain growth before attempting a public debut.
