IT sector produces top 3 private equity-backed IPOs in H1 2025

The information technology sector accounted for the three most successful private equity- or venture capital-backed initial public offerings of companies in the first half of 2025, according to an S&P Global Market Intelligence analysis of the 23 US private equity-backed IPOs, measured three months after their listing date.

The ranking was topped by artificial intelligence hyperscaler CoreWeave Inc., which posted a 307.65% total return in the three months after its March 27 Nasdaq debut, according to Market Intelligence data. As with the other companies in the analysis, CoreWeave's initial three-month aftermarket performance may be influenced by broader market movements and is not necessarily an indication of its longer-term prospects as a publicly-traded company.

Across all sectors, healthcare recorded the most private equity-backed IPOs with nine. Some stumbled out of the gate — two of the worst performers in the analysis were healthcare companies. But the listings reflect the optimistic outlook of their private equity sponsors, who will continue to hold stakes in the businesses during a sell-down period that lasts months and possibly years, said Patrick Quay, EY-Parthenon Americas private equity industry leader.

"Exit via IPO is the ultimate sign of confidence in the long-term health and growth of the business being listed," Quay said.

Market momentum

Overall, the US IPO market saw an acceleration in new listings through the first three quarters of 2025. The 45 IPOs recorded in Q1 represented the highest quarterly total for US public markets in three years. The number increased to 60 in Q2 and 64 in Q3.

Private equity- and venture capital-backed IPOs slightly outperformed non-sponsor-backed IPOs by US companies in the first half of the year. The median private equity-backed IPO posted a 5.82% total return performance three months after listing, compared to 2.35% for IPOs not backed by a private equity or venture capital firm, according to Market Intelligence data.

US President Donald Trump's announcement in April of broad-based tariffs on trading partners prompted a pause in IPO preparations as companies and sponsors sorted out the consequences, said Justin Yahr, a partner at Deloitte & Touche LLP. However, the pause was temporary.

"They just have to price that [uncertainty] in, and they have to move forward. What we're seeing is everybody has accepted it's the new normal," Yahr said.

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A bellwether for exits

IPO activity is correlated with strategic acquisitions and other types of M&A and can serve as an indicator of the overall health of private equity exit markets, said Greg Brown, research director for the Institute for Private Capital and a professor of finance at University of North Carolina Kenan-Flagler Business School.

Although IPOs are far fewer in number than exits via trade sales and secondary sales, they have played a key role in a private equity market that has grown more active in every quarter of 2025 so far.

"The IPO is not the primary market for exits, but it's a bellwether for exits," Brown said.

Quay added that strengthening IPO markets were a sign private equity-backed IPO activity, and exit activity more broadly, will carry momentum through Q4 and into 2026.

"You're going to see a continued robust IPO window," Quay said.