Goldman Sachs CEO Solomon says IPO market is 'going to pick up' along with dealmaking

IPO Market Outlook - Goldman Sachs CEO David Solomon predicts an end to the multi-year IPO drought, stating that the capital markets are showing signs of life ahead of President-elect Donald Trump's inauguration [1] - The tech IPO market has been largely dormant since late 2021 due to inflation and rising interest rates, but Solomon expects momentum in both M&A and IPOs [2] - Solomon notes a significant backlog from sponsors and an increased appetite for dealmaking, supported by an improved regulatory environment [3] Market Performance and IPO Activity - The S&P 500 posted its biggest gain since November, driven by a tame inflation report and Goldman Sachs' strong results, with Goldman's stock rising 6% on Wednesday [3] - Despite a strong two-year run in the stock market and record highs for the S&P 500 and Nasdaq, IPOs have yet to see a resurgence, with ServiceTitan's December debut being the first significant venture-backed IPO since April [4] - Some companies, such as chipmaker Cerebras and online lender Klarna, have indicated readiness to go public, though regulatory reviews have slowed the process [5] Structural Challenges for Public Companies - Solomon highlights structural reasons for companies not going public, noting a decline in the number of public companies in the US from 13,000 25 years ago to 3,800 today [6] - Higher disclosure standards and the availability of private capital at scale make being a public company less attractive [6]