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Private equity groups revise their exit strategies after they have accepted that a long-term downturn in the first public offers will not end soon.
Buyout executives at the annual European conference of the industry this week stated that they prioritized other options for the issue of their investments, including the dissolution of companies to sell them in smaller parts or to sell companies through “continuation of funds”.
“I can’t remember IPO Open the window for this type of time, ”said General Atlantic co-president Gabriel Caillaux at the Berlin SuperReturn event.
Buyout company have a Record on the backlog Of aging and unpaid assets, because higher interest rates and market turbulence have made it more difficult to float companies or sell at acceptable prices, which put them under pressure to find other ways to return their investors.
The volume of the IPO of private equity backed has dropped since the noise of 2021, with only nine throughout Europe and the United States in the same period in the same period in 2021.
The head of the private equity at a large international company said that IPOS has now been classified as an exit option behind separation and sales of minority sticks.
“The IPO is number three on the list these days,” they said.
Permira sold a minority stake in the 2.2 billion euro luxury sancer company Golden Goose in January after giving up an IPO. EQT, which was reported last year, are considering a list for the north Anglia shop in schools, and finally collected his older fund by selling to a consortium that contained one of his newer funds.
The sellers increasingly secured sales by offering buyers greater protection against risks, including through earnouts – where part of the price is associated with future performance. “The toolbox is now really open,” she added.
The managers had hoped that the election of the US President Donald Trump would lead to a revival of the stock exchange proceedings, but instead its polatality of the guidelines closed the capital markets to most potential issuers.
In March Permira and Hellman & Friedman postponed a planned IPO of the US software group of Genesys, while Bain Capital and Cinven did the same with their listing of the German Pharma Firma Stada.
The head of private equity with a large global asset manager said that after Trumps April 2nd Tariff announcementsListings were “gone”.
A top dealmaker said at another of the world’s largest private capital company: “The only thing that is worse than the current IPO market was” the perception of how much it should be compared, as it turned out “.
Structural changes in the markets also made it more difficult to put on companies, adding them, including the rise of passive stock market funds, which normally do not buy any stock exchange.
Daniel Lopez-Cruz, head of private equity at Investcorp, said that the IPO market was closed for private equity companies.
The secondary market on the buyout company sell assets with so-called continuation funds or investors in private equity funds in their missions on these funds will become “a great help”, he said.
Continuation vehicles have become popular in recent years as a means of returning cash for the financing of investors. Private capital companies sold $ 75 billion assets According to Jefferies last year last year, by 44 percent compared to the previous year. The vast majority of this went into continuation funds.
However, some managers remained positive about the possibility of celebrating IPOS a comeback.
“Things can change very, very quickly,” said the head of a large European Buyout company. “We have companies in our pipeline, for which we consider IPOs in nine or twelve months. It’s about being well prepared and doing it if you can.”
