It looks like PE-backed initial public offerings are returning after a long period when buyout firms faced skepticism from investors and in the meantime sought exits via sales to rivals, reports eFinancial News.
The IPO wave was kicked off by the HellermannTyton floatation, a UK cable-tie company that was backed by Doughty Hanson. It also says that BC Partners is expected to float Foxtons, the London estate agent.
While these two are in the UK, the report suggests it’s a European trend too. Apparently, PE backed IPOs have been among the best-performing IPOs in the past two years. It is a change in sentiment, not necessarily a structural change in the market, according to the report.