An anchor investor is an institutional investor. They enter the game right before an IPO (Initial Public Offering) and they are seen as a booster for companies looking for a successful listing. One or multiple entities can join forces and become such an investor.
Anchor investors acquire shares before the IPO process begins. By doing that, they build the confidence of other interested investors, boost the company's valuation, and improve the total shareholder returns (TSR). They are strategic players that can promote higher equity value and add more resilience by purchasing or selling shares on the capital market, based on observing the issuer's performance.