Private equity titans consider IPO market return
Giles Turner and Dan Dunkley
Blackstone's US offices
The news is especially significant given the scale of the private equity portfolios controlled by the three companies, Blackstone Group, KKR and Advent International, each of which has dozens of holdings. In late 2009, the last time buyout firms began preparing a push for IPO exits, Blackstone’s chief executive Stephen Schwarzman told investors the firm was considering listing as many as eight of its portfolio companies.
One head of equity syndicate at a rival bank, said: “They are readying their prospectus. You may even see some in Q4.”
It is the first sign of commitment after a prolonged period of inactivity in Europe. One IPO adviser said: “They will have to pay a few hundred thousand dollars for the lawyers, accountants and regulatory fees. If they postpone it and dust off the documents later on, they will have to pay a bit more but only incrementally so.”
A partner at a magic-circle law firm said clients had begun to ask him to start working on dual-track processes again in the hope that the IPO market may return.
The developments come after a string of failed IPOs over the past 24 months and an overall scarcity of private equity-backed flotations in recent years.
Deals have been postponed due to weak equity markets and the continuing eurozone crisis. Evonik Industries, a German industrial conglomerate, withdrew its IPO in June, citing market conditions. German civil-law foundation RAG and private equity firm CVC Capital were hoping to list the firm.
Blackstone, KKR and Advent declined to comment.
