Anchor Investors

  • Definition: Institutional investors who are allocated a portion of shares in an initial public offering (IPO) before the offering opens to the public. Anchor investors typically include mutual funds, insurance companies, pension funds, and other institutional investors with significant investment capacity. They provide stability to the IPO process by committing to purchase shares at a predetermined price, signaling confidence in the company and attracting other investors.
  • Alternate Term: Strategic Investors, Pre-IPO Investors