Business Development Company with Pre-IPO Focus
Keating Capital, Inc. (KIPO) is a publicly-traded Business Development Company (or BDC) that specializes in making pre-IPO investments in innovative, emerging growth companies that are committed to and capable of becoming public. We are non-controlling investors and do not require board seats and observation rights. Keating Capital is managed by Keating Investments, LLC, an SEC-registered investment adviser founded in 1997.
A Distinctive Form of Pre-IPO Investing
We provide investors with the ability to participate in a unique fund that allows our stockholders to share in the potential value accretion that we believe typically occurs once a company transforms from private to public status. Keating Capital’s shares are listed on Nasdaq under the ticker symbol "KIPO."
Most of our portfolio company investments will typically represent about 5% of our total assets at the time we invest.
Growth Capital for Private Companies Seeking to Go Public
Private companies raise a final round of pre-IPO financing to strengthen their balance sheet and demonstrate continued investor commitment. And that’s where Keating Capital fits in: Keating Capital is an equity partner to private companies primed to become public.
Keating Capital is a later stage fund that targets private companies (typically with equity values between $100 million and $1 billion) seeking to complete an IPO within 2 years.
IPO Market Conditions
During Q1 2012, 44 IPOs raised $5.8 billion in gross proceeds, the highest first quarter volume since 2007, and an increase of 33% from the year earlier period. We believe this strong IPO activity built on the momentum carried over from Q4 2011. During Q1 2012, 48 companies began the IPO registration process, seeking an average of $274 million in gross proceeds per filing.
On April 5, 2012, the Jumpstart Our Business Startups Act (“JOBS Act”) was signed into law. The JOBS Act was designed to facilitate emerging growth companies to raise capital and complete the IPO process