More companies are staying private, and staying private for longer. While the recent pickup in IPO activity could slowly increase the number of public companies, the bigger surprise is just how large the private-company market has become. There are actually more $1B+ private companies than public ones, with 11% of companies private versus 7% public. The same trend extends to smaller companies generating more than $100M in revenue. Companies may choose to stay private for many reasons, including avoiding public scrutiny, reducing costs, and maintaining greater control.
Source: S&P Capital IQ, Apollo Chief Economist
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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