Renaissance Capital (US company)

Renaissance Capital LLC
Type	Limited liability company
Industry	Finance
Founded	1991
Founder	William K. Smith; Kathleen Shelton Smith; Linda R. Killian [1]
Headquarters	Greenwich, Connecticut
Area served	Worldwide
Products	IPO ETFs (Symbols: "IPO" & "IPOS"); Pre-IPO Resarch; IPO Pro membership portal; IPO Investment Management; IPO Index Series
Services	Institutional research
Website	renaissancecapital.com

Last updated July 12, 2019

Renaissance Capital LLC is the global leader in providing IPO-focused ETFs (Exchange Traded Funds), pre-IPO institutional research ("IPO Intelligence") and an IPO information platform ("IPO Pro") for organizations and individuals interested in investing in the IPO (initial public offering) market.^[2]

Institutional research is a broad category of work done at schools, colleges and universities to inform campus decision-making and planning in areas such as admissions, financial aid, curriculum assessment, enrollment management, staffing, student life, finance, facilities, athletics, and alumni relations.

Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors; an IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used: to raise new equity capital for the company concerned; to monetize the investments of private shareholders such as company founders or private equity investors; and to enable easy trading of existing holdings or future capital raising by becoming publicly traded enterprises.

The firm's pre-IPO “IPO Intelligence” research clients include the world’s largest and most active institutional IPO investors (buy side). In addition, its Wall Street underwriter clients (sell side) typically raise over 90% of the IPO dollars in the United States each year. “IPO Intelligence” covers newly public companies worldwide. Coverage is initiated before the IPO (initial public offering) and continues beyond the IPO during the period when underwriters are restricted from providing research.

Background

Renaissance Capital was founded in 1991 in the town of Greenwich, Connecticut. Its founders were three friends from the Wharton School of the University of Pennsylvania who met in the 1970s – Linda Killian, William Smith, and Kathleen Shelton Smith. The latter two are husband and wife.^[3] All three founders had extensive experience on Wall Street (investment banking and money management) before founding Renaissance Capital. Past firms include Merrill Lynch, Citi, Bear Stearns, Kidder Peabody, and Prudential Bache.

The Wharton School of the University of Pennsylvania is the business school of the University of Pennsylvania, a private Ivy League university in Philadelphia, Pennsylvania. Established in 1881 through a donation from Joseph Wharton, the Wharton School is the world's oldest collegiate school of business. Furthermore, Wharton is the business school that has produced the highest number of billionaires in the US.

Money management is the process of expense tracking, investing, budgeting, banking and evaluating taxes of ones money which is also called investment management.

Services and products

IPO ETFs (US and International)

Renaissance Capital manages two Exchange Traded Funds. Both are listed on the New York Stock Exchange and use FTSE (owned by the London Stock Exchange) as the calculating agent.

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.

“Renaissance IPO ETF” (symbol: “IPO”) – for U.S. IPOs
“Renaissance International IPO ETF” (symbol: “IPOS”) – for International IPOs

The ETFs tracks rules-based Renaissance IPO Indexes, which add sizeable new IPO companies on a fast entry basis and the rest upon scheduled quarterly reviews. Companies that have been public for two years are removed at the next quarterly review.

IPO Intelligence

“IPO Intelligence” is Renaissance Capital’s flagship Pre-IPO research service for institutional investors interested in profiting from IPO investing. “IPO Intelligence” provides institutional investors with top-down tracking of the global IPO market and bottom-up fundamental research and valuation models on every IPO. It also has a Private Company Watchlist which tracks companies pre-IPO.

The firm's pre-IPO “IPO Intelligence” research clients include the world’s largest and most active institutional IPO investors (buy side). Also, its Wall Street underwriter clients (sell side) typically raise over 90% of the IPO dollars in the United States each year.

IPO Pro (membership portal)

In 2017, Renaissance Capital launched IPO Pro. This membership site is designed for professional and individuals interested in staying ,on top of the IPO market (e.g., accountants, lawyers, venture capitalist, investment bankers, family offices) and for individual IPO investors. IPO Pro contains everything professionals need to know about IPOs in one platform.

RenaissanceCapital.com

RenaissanceCapital.com, formally ipohome.com, is a free web portal for IPO traders and investors allowing them to track the performance of IPOs after their launch. Among the sections featured by the site is Breaking News, Upcoming IPO Calendars, Pricings, IPO Poll, IPO stats and IPO University.^[4]

IPO Index series

In 2005, Renaissance Capital and FTSE Group launched the FTSE Renaissance IPO Index Series. FTSE is a wholly owned subsidiary the London Stock Exchange. As the series expanded to encompass a growing number of developed and emerging markets, its name was changed to the FTSE Renaissance Global IPO Index Series. According to a FTSE fact sheet, "Qualified IPOs are added to the indices at the end of their first trading day and removed after approximately two years when they become seasoned equities."^[5]^[6]

Book: "IPOs for Everyone: The 12 Secrets of Investing in IPOs"

In 2001 Renaissance cofounders Linda Killian, Kathleen Smith and William Smith published IPOs for Everyone: The 12 Secrets of Investing in IPOs (John Wiley & Sons), a comprehensive guide to the IPO market for new investors.^[7]^[8]

Related Research Articles

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The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located in Mumbai. The NSE was established in 1992 as the first demutualized electronic exchange in the country. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.

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Formally known as an "over-allotment option", a greenshoe is the term commonly used to describe a special arrangement in a share offering, for example an initial public offering (IPO), which enables the investment bank representing the underwriters to support the share price after the offering without putting their own capital at risk. The option is codified as a provision in the underwriting agreement between the leading underwriter - the lead manager - and the issuer or vendor.

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References

↑ "Our Professionals" . Retrieved 13 April 2010.
↑ Steiner, Sheyna (2 March 2012). "Three Reasons You Can't Buy IPO Shares". Fox Business . Retrieved 15 May 2012.
1 2 Tergesen, Anne (10 December 1998). "Dealing Yourself into the IPO Game". BusinessWeek . Retrieved 15 May 2012.
↑ Penn, David (December 2006). "www.IPOHome.com". Technical Analysis of Stocks & Commodities . Technical Analysis Inc. 24 (13). Retrieved 17 May 2012.
↑ "Factsheet: FTSE Renaissance Global IPO Index Series" (PDF). FTSE Group. 2011. Archived from the original (PDF) on 31 July 2012. Retrieved 17 May 2012.
↑ "FTSE Renaissance IPO Index Series expanded". ETFI Asia. 27 September 2011. Archived from the original on 30 July 2012. Retrieved 17 May 2012.
↑ Reeves, Scott (14 January 2005). "Stalking The Killer IPOs". Forbes . Retrieved 16 May 2012.
↑ "IPOs for Everyone: 12 Secrets to Investing in IPOs". CMA Management. Society of Management Accountants of Canada. 1 July 2001. Archived from the original on 22 May 2013. Retrieved 16 May 2012. IPOs for Everyone is a comprehensive look inside this specialized market, offering investors the 12 secrets to investing in IPOs.

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[1] "Our Professionals" . Retrieved 13 April 2010.

[2] Steiner, Sheyna (2 March 2012). "Three Reasons You Can't Buy IPO Shares". Fox Business . Retrieved 15 May 2012.

[tergesen-3] 1 2 Tergesen, Anne (10 December 1998). "Dealing Yourself into the IPO Game". BusinessWeek . Retrieved 15 May 2012.

[davidpenn-4] Penn, David (December 2006). "www.IPOHome.com". Technical Analysis of Stocks & Commodities . Technical Analysis Inc. 24 (13). Retrieved 17 May 2012.

[5] "Factsheet: FTSE Renaissance Global IPO Index Series" (PDF). FTSE Group. 2011. Archived from the original (PDF) on 31 July 2012. Retrieved 17 May 2012.

[6] "FTSE Renaissance IPO Index Series expanded". ETFI Asia. 27 September 2011. Archived from the original on 30 July 2012. Retrieved 17 May 2012.

[7] Reeves, Scott (14 January 2005). "Stalking The Killer IPOs". Forbes . Retrieved 16 May 2012.

[8] "IPOs for Everyone: 12 Secrets to Investing in IPOs". CMA Management. Society of Management Accountants of Canada. 1 July 2001. Archived from the original on 22 May 2013. Retrieved 16 May 2012. IPOs for Everyone is a comprehensive look inside this specialized market, offering investors the 12 secrets to investing in IPOs.