Activists Have Edged out PE in Take Privates


December 4, 2014

Activist investors, such as Carl Icahn and Bill Ackman, have nearly “killed” the private equity strategy of taking private public companies through an LBO, says CNBC, explaining that either the company gets put up for an auction to attract the highest bidder, or the activists try to make changes themselves while keeping the company public.


There has been speculation on this trend and the data used in the article (from dealogic) provides some data-based clarity. The reporter says that the effect of the dearth of take private opportunity has increased competition for other types of buyouts, particularly PE to PE deals, which drives up prices and creates an artificial “boom”.


There was one such large sized deal just this week, involving Apollo and American Securities, a New York City-based private equity firm (here). (Image source: CNBC)

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