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
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."