The pace of spinoffs in the US is set to accelerate in 2025, and if history is any guide, the newly created companies are poised to deliver solid returns for investors, according to a report from Trivariate Research.
Shares in companies that are spun off from existing firms tend to outperform the S&P 500 by an average of 10% over the subsequent 18-24 months, data complied by Trivariate show. Meanwhile, the entities that remain after the split perform in line with the S&P 500 over the subsequent year after the spinoff closing date, according to the report published last month.