Private equity firms overhaul exit strategies as IPO market slams shut

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The stock groups repair their exit strategies after accepting them unlikely that the recession period will end for a year in primary public offers soon.

Executive officials at the annual European Industry Conference said they were prioritizing other options to get out of their investments, including companies’ dismantling to sell them in smaller parts or sell companies to themselves through “continuing boxes.”

“I can’t remember within 20 years of investing in growth shares, and not to open the general subscription window for this type of long time,” said the co -chair of the Atlantic General Gabriel Kaylau at the Berlin Supern event. “It is clear that this calls us to rethink the strategy, but some tactical aspects.”

The acquisition companies have a standard accumulation of aging and unnoticed assets, as they have made high interest rates and market turmoil difficult to float companies or selling at acceptable prices, which makes them pressure to find other ways to restore cash to their investors.

The volume of subscribers -backed subscriptions has decreased since 2021, with only nine across Europe and the United States this year compared to 116 in the same period in 2021, according to Dealgo.

The head of the private shares of a large international company said that the subscription subscriptions that were now classified behind the disintegration and sales of minority shares as an exit option.

And they said: “The public subscription is the number three in the list these days.”

In January, Permira sold a minority stake in the luxury company Golden Goose, at a value of 2.2 billion euros after giving up the public subscription. EQT, which was said last year is considering a list of her work in Nord Anglia, eventually her older box was independent by selling to a consortium that included one of his latest boxes.

The Executive Director of Private shares said that the sellers were increasingly providing sales by providing greater protection for buyers against risk, including through profits – as part of the price is associated with future performance. They added, “The tool box is really opened now.”

Executive officials were hoping that the election of US President Donald Trump would revive the subscription subscriptions, but instead, policy fluctuations closed the capital markets for most potential exporters.

In March, Permira, Hilman and Faridman postponed the planned public subscription to the American software group, while Payne Capital and Senevin did the same while inserting them into the German pharmaceutical company Stade.

The head of the Special Stocks of the Grand World Asset, said that in the aftermath of Trump’s introductory ads on April 2, the menus were “gone.”

“The perception of its strength, which was supposed to be compared to how it was transformed.”

They added that the structural changes in the markets make it difficult to include companies, including the rise of funds circulating on the negative stock exchange that usually does not buy subscription subscriptions.

“The public subscription market” for all intentions and purposes is closed to private stock companies. “

He said that the secondary market-where the acquisition companies sell assets for themselves with the so-called continuity funds, or that investors in private stock boxes sell their shares in these funds-become “great help”.

The continuous vehicles in popularity have increased in recent years as a means of re -criticism to the financing of investors. Private capital companies sold $ 75 billion of assets in the secondary market last year, an increase of 44 percent from the previous year, according to Ceving. The vast majority of this went to continuing boxes.

Some executives have been positive about the possibility of the operating subscriptions to return.

“Things can change very quickly,” said a major European purchase company. “We have companies in our pipeline that we think about subscriptions within nine or 12 months. It is about preparing well and going to it when you can.”