EQT testing private stock sales as IPO markets ‘dysfunctional’
In the latest move highlighting the pressure asset owners are feeling when it comes to making disposals, the Nordic private equity fund manager EQT announced earlier in October that dysfunction in IPO markets was forcing it to look for other options to crystalise value in its private asset holdings.
EQT is looking at holding a series of private auctions to enable monetisation without having to opt for a full-scale IPO. An Financial Times article highlighted that a slowdown in dealmaking and poor IPO prospects had seen fund managers embrace more creative financial engineering techniques in order to return capital..
As EQT’s CEO stated in the FT article, “As long as the price is set in a fair way at a fair market value, it doesn’t really matter that the transaction is private. Why go public if we actually don’t need to?”
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