Credit Suisse examines the collapse in U.S. public listings and what it means for investors navigating a market increasingly dominated by larger, older companies. The paper argues that rising regulation M&A activity, and private equity growth helped create a 5,800 company listing gap versus expectations.
The Incredible Shrinking Universe of Stocks: The Causes and Consequences of Fewer U.S. Equities
Credit Suisse
Michael Mauboussin
Research
29 Pages
Key Takeaways
Listings Collapse: U.S. listed companies fell from 7,322 in 1996 to 3,671 in 2016, even as GDP expanded nearly 60% during the same period.
Private Equity Expansion: Buyout fund assets surged from less than $1 billion in 1976 to roughly $825 billion in 2016, while private equity represented nearly 25% of delistings in 2006.
Market Concentration Rising: The Herfindahl Hirschman Index climbed from roughly 800 in 1996 to about 1,200 in 2016, reflecting increasing industry concentration and larger average company size.
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