Markets More Rational With IPOs: Warren

Your next video will start in

Recommended Videos

  • Info

  • Comments


May 28 (Bloomberg) -- Alasdair Warren, Head of European Financial Sponsors Group at Goldman Sachs, discusses the appetite for IPOs. He speaks with Manus Cranny on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Are the concerns overblown?

Joining us now is alastair worn and -- warren.

Great to have you with us.

Have we got fatigue?

Is the rush to the ipo market overdone?

I think that the last few deals that have come to market -- the market environment will be tougher.

We have had a couple of deals pulled.

We have more deals priced in the bottom of the range and trade in a more difficult after market environment.

I think the market has become more rational.

Investors are becoming more price sensitive, more selective.

It does not mean the market is not working.

I think they need to approach it in a more rational way.

Correct me if i'm wrong, but i think that is a good thing.

You see it little bit more demand for detail from the people that are issuing prospects to us.

There is naturally a focus on ensuring that the disclosure is right.

I think your point is a good thing.

I think it makes a more sustainable.

We have moved from a market where everyone was engaged around every situation where 21 where people are aching and choosing what they invest in.

I think that makes it a more rational market.

Europe leads the pack.

I'm not the best with the project, but according to the $32 billion, -- -- europe having gone to a slow.

Over the years, a lot of backlog of business is done.

The inflow of dollars has flowed out.

We were seeing $10 billion a month put into the market.

Last month, it was down to about a billion.

Will that stay with the billion?

I think it is an open flow and the u.s. is an important sort -- source of demand for the ipos.

That takes me off in the direction of what impact it has for the currency.

Say they decide not to come to the market.

What does it mean for private equity?

With a look for more traders?

They don't want to take the risk of the market and have employed at the last minute.

Does it create a better opportunity for trade value?

In terms of valuations, they have adjusted downwards.

I think the consequentce is the cap of what can be achieved in a trade ipo.

As that gap has narrowed, you will see other straight into more responsive.

It is a good thing for sponsors.

Wealth has been a great market for exits.

It has been tough to deploy capital and getting that balance will be better overall.

That is good for investors because you have an alternative market.

You can go to pe rather than public market.

We have had a wave of mna.

Week after week, they tussle to make them happen.

Where and how does deal flow play into the money that is available to play for private equity?

As it has been well documented, there is a huge wall of so-called dry powder equity powder -- equity from private equity that is willing to be put to work.

One of the challenges has been finding opportunities.

Primary deal flow, that is new opportunities coming out of corporate spirit with the pickup in strategic mna, the strategic will also pick up for sponsors.

Partly as a result of doing big deals, people decide to rationalize their portfolios, partly because there are antitrust deals required.

Overall, there will be more opportunity coming for private equity as a result of that last mna happening.

We will leave it there.

6-9 month timeline.

You will have a very busy back and of the everett thank you very much for coming in.

"the pulse" is coming up in 12 minutes.

What is big for you, olivia?

We have a great show coming up on "the pulse." we will go back to kiev.

We have another exclusive.

He will be speaking to the new ukrainian foreign minister after reports that dozens of rebels have been killed.

We will find out what his strategy is to combat the growing insurgency in the south and east and we will be going to paris where we will be talking about ge's $17 billion bid to

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change