After a sluggish market, advisers see renewed signals that a revival may be on the horizon

The prolonged drought in London’s IPO market has tested the patience of investors, companies and advisers alike. Yet a quiet shift is now under way among law firms and consultancy practices, which are steadily recruiting new talent in anticipation of an eventual rebound.

The second in our series on London’s IPO drought explores how these professional advisers are positioning themselves ahead of what many believe will be a wave of listings in the coming year. While the London Stock Exchange has experienced one of its leanest stretches in decades, behind the scenes a different story is taking shape: advisers are preparing for the moment when pent-up demand is finally released.

A Long Freeze
The numbers speak for themselves. In 2023 and 2024, London trailed rival exchanges in New York, Hong Kong and even Amsterdam when it came to attracting new issuers. High interest rates, geopolitical volatility and a sluggish domestic economy combined to deter companies from seeking a public listing. Private equity sponsors, meanwhile, extended their holding periods, waiting for more favorable market conditions.

By early 2025, the pipeline of would-be issuers had grown conspicuously long. “We have seen portfolio companies in private equity funds staying private for six, seven or even eight years,” said one analyst at a leading investment bank. “At some point, the exit routes narrow, and IPOs become unavoidable.”

The Hiring Spree
That recognition has prompted a subtle but meaningful response among law firms, financial advisers and consultants. Across the City, firms are recruiting specialists in equity capital markets, corporate governance, and regulatory compliance. Several mid-tier practices that had scaled back their capital markets teams in the downturn are
quietly reversing course.

“Clients are coming to us with exploratory questions,” explained Sarah Malik, a partner at a London-based law firm. “They want to know what the listing process would look like if they were to pull the trigger in 2026. That means we need to be staffed and ready, even if deal flow is still thin.”

Recruiters confirm that there has been a rise in mandates for associates and junior partners with IPO expertise. Consultancies, too, are investing in teams that can advise on investor relations, environmental and social governance reporting, and market positioning. The logic is straightforward: once sentiment shifts, the volume of work could surge quickly.

Pent-Up Demand Meets Strategic Patience
Market observers highlight three factors driving this optimism. First, the “pent-up demand” among private companies waiting for the right window. Second, private equity firms eager to recycle capital after unusually long holding periods. And third, the growing volume of inquiries from corporates seeking early-stage listing advice.

This combination suggests that while 2025 may not deliver a flood of IPOs, preparations are accelerating. “Think of it as a coiled spring,” said David Carter, head of capital markets strategy at a global consultancy. “When the moment comes, there will be a rush. The advisers who have built capacity ahead of time will be best placed to capture that business.”

The International Dimension
London’s IPO market is also competing with international exchanges for listings. New York continues to lure large-cap technology firms, while regional hubs such as Frankfurt and Paris have carved out niches in industrial and luxury goods. Hong Kong, despite political tensions, remains attractive for China-focused companies. Against this backdrop, London advisers argue that the City still offers advantages, particularly for firms with a European or emerging-market profile.

Government officials, meanwhile, have sought to encourage a rebound by pushing through regulatory reforms, including changes to listing rules and governance standards. The hope is that a more flexible regime will help London re-establish itself as a premier listing venue.

A Gradual Road Ahead
Still, few expect a dramatic turnaround overnight. The consensus view among analysts is that any recovery will be gradual, building momentum into late 2025 and beyond. But the mere fact that advisers are staffing up is a signal of confidence not seen in years.

“It’s about being ready,” Malik emphasized. “If you wait until the first deals are announced, you’re already behind. Clients want to know that we’ve anticipated their needs.”

For now, London’s IPO drought remains a reality. Yet beneath the surface, law firms, consultants and other company advisers are preparing for the rain that they believe is inevitably coming. When the skies do open, those preparations may well determine who prospers in the long-awaited revival.

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This is the second part of our series examining London’s IPO landscape. The final installment will assess the role of investors and the strategies they are adopting as they anticipate new opportunities.