The Price of Power: The Big Three and IPO Underpricing

The meteoric rise of asset management giants over the last two decades has ignited intense scrutiny among legal scholars and economists. The control wielded by these behemoths over vast capital pools and their outsized influence over corporate America is argued to pose myriad economic, social, and corporate governance challenges. In this Article, we uncover a critical yet overlooked arena in which the concentration in the asset management industry and the rising dominance of giant institutional investors manifest additional deleterious consequences: capital markets, specifically in the context of Initial Public Offerings (IPOs).