Right Now IPO Market Is Healthy: Evercore’s Altman

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July 31 (Bloomberg) -- Evercore Founder and Executive Chairman Roger Altman previews today's markets and discusses his investment ideas with Betty Liu on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Far this year.

They seemed to have done well.

Do you think the markets will stay attractive enough for more ipos?

Right now, the market is healthy.

The ipo backlog is at the highest level it has been all year.

This is a very important sign.

It is a landmark transaction, i think, in the types of businesses that can go public.

I don't think you could have been done this way even 2, 4, six months ago.

I'm very impressed by it.

If you think about the nature of the business, i don't think the public markets would have been hospitable to this business six months or 12 months ago.

I'm impressed at the amount that was raised, the valuation.

It is quite impressive.

I think it is a sign that the health of the ipo market -- a sign of the health of the ipo market.

For the time being, you will see quite a steady flow.

August is typically a period where there are not many ipos, but for the rest of the year the outlook is good.

Speaking of valuations, alibaba may be making an investment.

The valuation of that company has gone to $10 billion as a result.

We are wondering how it fits in with other private tech startups.

Uber is first with $17 billion -- that would be its valuation.

Dropbox and others tied at $10 billion.

Virtually all of these rounds have, in the last 12 months.

There is a lot of money chasing after these startups.

It is not just private equity or venture capital.

One person's frothy is another person's good value.

Some of the private transactions in these pre-ipo situations have proved to be pretty smart.

You have to look at these on a case-by-case basis.

I'm not an expert on snapchat or number or any of them -- or uber or any of them.

You could argue it is a sign up process.

On the other hand, some of these seemingly very high pre-ipo valuations have turned out to be good.

Pretty smart.

Stepping way back, the big mystery -- perpetual mystery on markets is when turns occur.

In all my career cup -- career, i've met very few people who are good at that.

It may be frothy by historical standards.

On the other hand, it could happen for the next two or three years.

Do you feel like you are seeing the same repeats of the dot-com bubble at all here?

Companies being funded on a piece of paper and an idea?

We are not seeing pets.com and so forth.

We are not seeing that degree of muggle-like behavior.

Whether valuations look extraordinarily rich three years from now, five years from now remains to be seen.

I'm not smart enough to say that.

I'm reflecting on what i read about uber, but you've got to be impressed with that business model.

That and airbnb.

It is quite an ingenious business model.

I would not say that those valuations do not make sense.

What i know about those business models impresses me.

Let's go to a place where there is decidedly not frothing this -- not frothiness.

You've done a lot of consulting with various companies, their leadership'. target has a lot of problems.

For somebody coming outside of the company, what sort of advice do you give?

I'm not wise enough to advise this guy who is coming in to be ceo of target.

If you are an incoming ceo, it is often a good thing if you come in at a time when expectations are low.

Certainly he has that advantage.

Anybody who looks at it will say it will take a while to turn target around.

But i would not write them off.

Incomes are eventually -- meaning the next year or so -- going to start rising as the job creation numbers provide the basis for that.

The overall retail environment should improve.

Exactly how target does, i don't really know, and i'm not really in position -- going back to synchrony, because synchrony does a lot of business with private label, department store credit cards.

Do you think it is a sign of the health not only from the ipo market, and perhaps the hunger for finance investments, but also the consumer?

Is it a good sign for the consumer that there is so much demand for synchrony?

Or is that too much of an extrapolation?

I think that is too much of a leap.

It is slowly improving.

Three steps forward, two steps back.

There is a raging debate about the health of the consumer.

If you look at household net worth figures -- month-to-month retail sales are spotty.

If you take the macro framework that i have, the outlook for the consumer will slowly improve, fourth retail -- the outlook for retail will slowly improve.

Whether it is a harbinger of great things to come, that is a little too much.

One thing i learned here was that i am not an a-lister either.

[laughter] roger needs to download the app as well.

We could all learn a few business lessons from her.

Roger altman, thank you so much for staying with us through the

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


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