US Capital Formation’s 2020 Journey

How Different Vehicles Took Center Stage at Different Points of the Cycle

SIFMA Insights - Capital Formation

As COVID-19 rolled through 2020, different capital formation vehicles took center stage at different points in the cycle. Looking at initial public offerings (IPO), secondaries, and special purpose acquisition companies (SPAC), we note the following path for capital raising this year:

  • Pre COVID (January-February): Secondaries led at roughly 75% of the total, IPOs 15%-18%
  • COVID Peak (March-May): starting in the second half of March, all deals decline, with IPOs essentially halting
    • Secondaries pick up in May as companies raise money to shore up balance sheets
  • Remainder of Year: IPOs rebound in June and pick up share of total deals; SPACs begin to take off in July
    • By the end of the year IPOs and SPACs represent the majority of deals (typically secondaries represent the highest percentage of deal value totals)




Katie Kolchin, CFA
Director of Research
SIFMA Insights