We examine the extent to which long-term investors are favored in IPO allocations by using data on first reported holding by an institutional investor at the end of the offering quarter as our proxy for the initial allocation that the institution received. Our results show that underwriters more frequently allocate shares and make larger allocations to investors who have a record of maintaining or even increasing their holdings of past IPO allocations. We examine several alternative measures of long-term investors with qualitatively identical results. In addition, we show that investors who specialize in subscribing to industry IPOs and those with whom underwriters have past IPO relationships also receive higher allocations. Our results support the view that a key objective of underwriters in share allocations is to direct allocations towards investors who are likely to be long-term holders of the stock.