Private equity (PE) houses in Europe are increasingly
turning to a specialised tool that originated in the US
to aid them in exits.
While an initial public offering (IPO) may be the most
desired route, just 17% of all European PE divestments were
achieved in this way in 2016.
"IPOs are usually the preferred goal, but they are not for
every company,"
Chiomenti partner Luca Andrea Frignani said at
IFLR’s M&A Forum in London this week.
"Particularly in Europe, where the majority of companies are
small to medium-sized enterprises, they have not been the most
common method. Secondary buyouts via trade sale have become a
more common exit route for PE investors."
The...