We're joined now by venture capitalist Lo Tony of Plexo Capital. He's also a CNBC contributor. It's good to see you. Good to see you as well.I wish you were here. Uh because it's been such a big day for this offering. When you see something like that, you I mean your smile is wide.Uh what what are you thinking about. Well, bullish debut was nothing short of a milestone for for digital assets. overs subscribed 20 times, raising 1.1% billion and opening 140% above the IPO price.So I don't think that's hype. I ...

Yeah, there's been a big resurgence in the IPO market and that has the Renaissance IPO ETF hitting highs not seen since February of 2022. Joining me now is Matthew Kennedy, senior strategist at Renaissance Capital. Uh, Matthew, thank you for being here.What do you think is behind this kind of return of enthusiasm that we've seen behind these IPOs themselves. Sure. So, uh, you know, we're calling it the great IPO rebound and, uh, it'll be a return to maybe three to five deals per week.It'll start off as kind ...

Group 1 - Heartflow, a medical imaging and diagnostic software company, successfully went public on NASDAQ, raising $317 million by issuing 16.7 million shares at $19 each [1] - On its first trading day, Heartflow's stock price surged to $28.75, representing an increase of over 51% from the IPO price, resulting in a market capitalization of approximately $2.6 billion [1] - Despite not being profitable and experiencing an increase in losses for Q1 2024 and 2025, Heartflow shows strong revenue growth, with a projected 44% year-over-year sales increase in 2024 and a 39% increase in the first three months of this year [1] Group 2 - The strong performance of Heartflow is seen as a signal of renewed investor interest in the IPO market, following the successful debut of Firefly Aerospace, which saw its stock price rise over 35% on its first day [1] - Other companies such as Figma, AIRO Group, and Circle are also gaining significant attention on Wall Street, with Bullish and Miami International Holdings planning to start trading next week [2]

Financial Data and Key Metrics Changes - Adjusted net revenues for the second quarter of 2025 were $405 million, with an operating margin of 18.1% and adjusted EPS of $2.95, all higher compared to the same period last year [6][20][21] - Advisory revenues reached $206 million during the quarter, up 12% year over year, driven by a higher average fee and a total of 71 transactions completed [6][7] - For the first half of 2025, net revenues totaled $789 million, with an operating income of $142 million and an operating margin of 18% [20][21] Business Line Data and Key Metrics Changes - Advisory services accounted for 54% of total net revenues, increasing 24% year over year, with strong performance in M&A and non-M&A advisory services [21][22] - Corporate financing revenues were $35 million, down 31% from the previous year, with 26 financings completed, raising $10 billion for corporate clients [10][11] - Municipal financing revenues increased by 66% year over year to $42 million, driven by strong demand and favorable market conditions [14] - Equity brokerage revenues were $58 million, up 12% year over year, with robust trading activity [16] - Fixed income revenues reached $54 million, up 21% from the first quarter and 37% from the previous year, driven by strong activity with depository clients [17] Market Data and Key Metrics Changes - The economic fee pool for companies with sub-five billion dollars of market cap decreased by 19% year over year, with a significant 61% decline in the biopharma sector [11] - The IPO market is showing signs of improvement, particularly in med tech, although biotech IPOs remain slow [43][44] Company Strategy and Development Direction - The company is focused on expanding its M&A business and technology capabilities, as evidenced by the acquisition of G Squared Capital Partners [26][28] - There is a strategic emphasis on managing headcount and driving productivity while enhancing sector and product expertise [12][13] Management's Comments on Operating Environment and Future Outlook - The macro environment has shown improvement, with increased client engagement and a robust pipeline of transactions expected to continue into the third quarter [5][9] - Management expressed optimism about the advisory services outlook, despite some volatility impacting deal processes earlier in the quarter [9][10] Other Important Information - The company repurchased approximately 85,000 shares for $21 million and paid $17 million in dividends during the quarter [24][25] - A $0.05 increase in the quarterly cash dividend to $0.70 per share was announced, effective September 12 [24][25] Q&A Session Summary Question: What does a more normal bank consolidation market mean for revenue? - Management noted that conditions for depository M&A have improved, with quicker regulatory approvals and an increase in transaction announcements expected to impact revenues positively [32][33] Question: How is the Avidity acquisition enhancing client connectivity? - Management reported that the acquisition has met expectations, enhancing relationships with senior partners and improving overall transaction activity [36][38] Question: What is the outlook for the IPO market, particularly in biotech? - Management indicated that while the IPO market is improving, biotech remains slow, with a need for continued improvement before significant activity resumes [43][44] Question: How do the fixed income trading and bank M&A outlooks align? - Management clarified that the strong second quarter in fixed income does not contradict the positive outlook for bank M&A, as both areas are experiencing different dynamics [46][50] Question: What is the current state of conversations with sponsor clients? - Management observed increased activity and a positive outlook for transactions in the second half of the year, although caution remains [55][56] Question: What is the trajectory for compensation and non-compensation expenses? - Management expects the compensation ratio to remain stable, while non-compensation expenses may trend higher due to increased occupancy and legal fees [76][78]

Financial Data and Key Metrics Changes - Adjusted net revenues for Q2 2025 were $405 million, with an operating margin of 18.1% and adjusted EPS of $2.95, all higher compared to the same period last year [5][19] - Advisory revenues reached $206 million during the quarter, up 12% year over year, driven by a higher average fee and an increase in completed transactions [5][6] - For the first half of 2025, net revenues totaled $789 million, with an operating income of $142 million and an operating margin of 18% [19][20] Business Line Data and Key Metrics Changes - Advisory revenues for the first half of 2025 were $423 million, up 24% compared to the previous year, with significant growth in M&A and non-M&A advisory services [6][20] - Corporate financing revenues were $35 million, down 31% year over year, with 26 financings completed, raising $10 billion for corporate clients [9][10] - Public finance revenues increased by 66% year over year to $42 million, driven by strong market conditions and demand [13] - Equity brokerage revenues were $58 million, a 12% increase year over year, with robust trading activity [15] - Fixed income revenues reached $54 million, up 37% from the previous year, driven by strong activity with depository clients [16] Market Data and Key Metrics Changes - The economic fee pool for companies with sub-five billion dollars market cap decreased by 19% year over year, with a notable 61% decline in the biopharma sector [10] - The municipal financing market saw a 15% growth in par value issuance, with Piper Sandler exceeding this growth with a 66% increase in revenues [13] Company Strategy and Development Direction - The company is focused on expanding its M&A business and enhancing its technology investment banking group through strategic acquisitions, such as the planned acquisition of G Squared Capital Partners [25][26] - Investments in non-M&A advisory capabilities are gaining traction, with total revenues from these product lines growing faster than overall advisory revenues [6][7] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in market sentiment and improved client engagement, leading to a robust pipeline of announced and in-process transactions [4][9] - The outlook for advisory services is positive, with expectations for third-quarter advisory revenues to be consistent with the second quarter [9] - Management expressed confidence in the recovery of the IPO market, particularly in sectors like med tech and insurance, while noting challenges in the biotech IPO space [40][42] Other Important Information - The company repurchased approximately 85,000 shares for $21 million and paid $17 million in dividends during the quarter [23][24] - A restructuring charge of $5 million was included in GAAP results due to headcount reductions and vacated office space [18] Q&A Session Summary Question: What does a more normal bank consolidation market mean for revenue? - Management indicated that conditions for depository M&A are improving, with quicker regulatory approvals and an increase in transaction announcements expected to impact revenues positively [30][32] Question: How is the Avidity acquisition enhancing client connectivity? - Management reported that the acquisition has met expectations, enhancing relationships with senior partners and improving overall transaction activity [34][36] Question: What is the outlook for the IPO market, especially in biotech? - Management noted a general improvement in the IPO market but highlighted that biotech IPOs remain slow, requiring continued improvement before significant activity resumes [42][43] Question: How do the fixed income trading and bank M&A outlooks align? - Management clarified that the strong Q2 results in fixed income do not contradict the positive outlook for bank M&A, attributing the fixed income performance to large transactions [44][46] Question: How are conversations with sponsor clients evolving? - Management observed increased activity and a positive outlook for transactions, although caution remains in the process [55][56] Question: What is the confidence level in achieving the $2 billion investment banking target? - Management expressed confidence in achieving the target, citing diverse growth opportunities across various industry teams [57][61]

Market Conditions & IPOs - VC 支持的 IPO 正在出现，部分原因是过去一年满足了三个条件 [1] - 利率趋于稳定，美联储暗示将停止加息并可能降息 [2] - 公开市场相对稳定，VIX 指数接近 12 个月低点 [2] - Circle、Core、eToro 和 Armada Health 等公司在公开市场表现良好 [3] Investment Strategy & Metrics - 投资目标是寻找下一代伟大的上市公司，并在它们还是私有公司时进行投资 [8] - 公司推迟 IPO 上市，投资公司可以帮助这些公司从伟大的私有公司转变为伟大的上市公司 [9] - 关注具有持久性和防御能力的公司，即在未来 5-10 年内可持续发展且不易被复制的公司 [12] - 企业软件如何从 AI 中受益并真正利用 AI 是一个关键的观察点 [13] AI Impact - AI 正在以前所未有的速度推动收入增长 [10] - Anthropic 这样的公司在模型领域的 ARR 据传在六个月内从 10 亿美元增长到 40 亿美元 [11] - 受益于 AI 的高知名度公司，如 Figma，其定价预期将继续提高 [7]

Market Trends - The report discusses the sluggish IPO market for VC-backed firms [1] Company Initiatives - SoFi is launching a new initiative to bring public companies to the masses [1]

Market Performance - S&P 500 and Nasdaq Composite closed in the green on June 9, 2025 [1] - Dow Jones Industrial Average was flat at market close [1] - S&P 500 is approaching a record high [1] IPO Market - New listings reached their highest level since 2021, indicating a potential recovery in the IPO market [1] Market Influencers - Trade talks could influence the market [1] - Tariff and trade policy uncertainty continue to concern retail investors [1] Retail Investing - Charles Schwab discusses retail investing strategies [1]