Goldman Sachs CEO David Solomon on the coming mega IPOs

The upcoming mega IPOs are driven by companies' urgent capital needs, not by choice. The regulatory and market structure makes going public unattractive until necessary. This trend is good for the US as it keeps the biggest companies here, and investors still have access to opportunities despite fewer public companies.

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Goldman Sachs CEO David Solomon on the coming mega IPOs

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The interviewee supports mega IPOs of large tech companies (like Anthropic) coming to public markets, which would add to the Nasdaq-100. He views this as good for the US, implying a positive outlook for these companies and the index.

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The discussion focuses on mega-cap IPOs joining large indices, not small caps. The interviewee notes fewer public companies overall, suggesting the Russell 2000 may not benefit from this trend and could remain rangebound.

This year will be a year of mega IPOs, with private capital markets so liquid that successful companies could theoretically never go public. Public investors miss the ride from the 500th to the 20th biggest company in the S&P 500. Questions whether this breaks capitalism or is bad for the US.

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This will not break capitalism and is good for the US. The decline in public companies is due to long-term policy and market structure decisions. Companies like Microsoft went public because no other capital was available, but most companies fail anyway.

The regulatory and market structure makes it unattractive to go public until necessary. Companies are going public now because they have voracious capital needs that cannot be met 100% privately, and they need a public currency.

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