IPOs have launched in 2026 with much fanfare, but into a very different environment than the previous IPO cycle of 2020 to 2021. Higher interest rates, the availability of private capital and secondary markets, and investor expectations have shaped who IPOs and what stage of growth they choose to IPO. Clients may get caught up in the hype, and advisors must guide them to rational decisions.
To give advisors a glimpse into the near future for IPOs and what financial advisors and their clients need to know about them for the rest of 2026, we spoke with Andrew Krei, Co-Chief Investment Officer of Barrett Upton Capital Partners, which was launched as an alternative investment platform designed for high net worth and institutional investors in August 2023.
WSR asked Krei how the current IPO cycle differs from recent past cycles, which companies are good candidates to IPO in the second half of this year, how private capital and secondary markets changed the nature of modern IPOs, what factors are needed for a successful IPO market in the back half and what advisors should be telling their clients about the IPO markets during that timeframe.
His responses follow.
WSR: How does the current IPO cycle differ from recent past cycles? Which companies are good candidates to IPO in the second half?
Krei: This is shaping up to be a winner-take-most IPO market, and one that looks quite different from the last cycle. In 2021, near-zero interest rates and widespread liquidity allowed a broad range of venture-backed companies and special purpose acquisition companies (SPACs) to go public. Investors were far more willing to back “story stocks” and pre-revenue businesses with compelling growth narratives, even when they had yet to demonstrate financial sustainability.
Today, the IPO calendar is much thinner and increasingly concentrated among a small group of marquee listings.
Today, the IPO calendar is much thinner and increasingly concentrated among a small group of marquee listings, largely AI-related and across the biotech space. This dynamic has the potential to crowd out smaller listings.
The bar for going public is also considerably higher. Investors are primarily supporting companies with a clear path to profitability or truly differentiated assets. A compelling AI narrative can help attract attention, but it still needs to be supported by sustainable economics.
WSR: How have private capital and secondary markets changed the nature of modern IPOs?
Krei: One of the biggest differences in today’s IPO market is that companies are far less dependent on public markets for financing. Deep pools of private capital allow businesses to remain private longer and reach valuations that once would have required a public listing. Tender offers and secondary transactions have also created meaningful liquidity for employees and early investors, reducing the pressure to go public.
Companies often enter the public markets at a more mature stage, but with much higher expectations already embedded in their valuations.
All of this has changed the role of the IPO today. Public listings are increasingly used to provide liquidity for late-stage investors holding shares at elevated private-market valuations, rather than a pure financing event. The tradeoff is that companies often enter the public markets at a more mature stage, but with much higher expectations already embedded in their valuations. That leaves less room for execution mistakes once quarterly reporting begins.
WSR: What factors are needed for a successful IPO market in the second half?
Krei: Economic and geopolitical stability will be critical in shaping the IPO market through the rest of the year. Historically, IPO issuance tends to rise when volatility remains contained and sudden market disruptions can quickly close that window.
Just as important is how companies perform after going public. The next group of IPOs needs to trade well beyond the first day and remain supported through the lockup period. That has been missing from much of the recent class, where post-listing performance has often disappointed. Strong results from several marquee offerings could validate private-market valuations and encourage more companies to pursue a listing.
WSR: What should advisors be telling their clients about the IPO markets for the second half of the year?
Unless investors can access an earlier private round at a more attractive valuation, the risk/reward at the IPO stage may be less compelling.
Krei: Our general advice is to approach new listings with caution. Unless investors can access an earlier private round at a more attractive valuation, the risk/reward at the IPO stage may be less compelling. Several high-profile offerings this year have shown how quickly enthusiasm can outpace the underlying fundamentals. In our view, investors should focus less on how a stock trades on its first day and more on whether the company can grow into its valuation over time.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
