Europe Private Equity IPO Update

European Privately-Held Companies Preparing for IPO

European companies held by private equity firms are preparing for an initial public offering this year. Private equity firms are eager to take these portfolio firms public to finally gain the profits from selling the shares. It has been a quiet two years for private equity firms but it is expected that buyout firms will dominate the IPO market this year, with 20-30 private equity-owned companies considering an IPO in 2010. Read more about the expected wave of private equity-held companies launching IPOs in 2010 here.

Bankers say 20 to 30 private equity-owned companies in Europe are contemplating IPOs this year. Some buy-out executives say this expected wave of flotations could be a crucial factor in their industry’s recovery from the crisis.

Stephen Schwarzman, Blackstone’s chief executive, has told investors that his group plans to float eight companies this year. In the UK, Permira has promised to return a “wall of cash” to investors by floating or selling a number of its portfolio companies.

Private equity is expected to dominate the IPO market this year, after two quiet years. Private equity-backed IPOs raised $16.4bn globally last year, up from $11bn in 2008, but a fraction of the $55.8bn in 2007, according to Dealogic, the financial data provider.

Most of the flotation action by private equity last year was in the US, where 25 companies raised $8.5bn, and in Asia, where 25 companies raised $7.1bn. Europe, the Middle East and Africa produced only three private equity IPOs raising just $779m. Source

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