Do you know what is going on? Firms are running out of cash because executive salaries are too high. So what they do is issue an IPO to the middle class. Underwriting firms are acting as lead runners on these offerings, and what I suspect is the firms are just buying their own garbage and burying the IPO shares in some fund.
Think about it. What is $25M of toxic IPO shares with no hope in the medium term to a fund that has $5B in AUM? Its just like the toxic debt on unsecured mortgages. A big hot potato they are all passing around. In the end, these funds are in 401k's of working class Americans, so if anyone suffers its the middle class.
Rinse and repeat. Transfer of wealth ( middle class 401k contributions) into funds that are burying toxic IPO's. The exec's continue to take in their $300K salaries and above all, the underwriters wring out another commission.
People who do this should be very ashamed at their lives and what they have become.