JPMorgan Says IPO Market for PE-Backed Companies Is ‘Very’ Open
- StandardAero opens door to more portfolio company listings
- More deal activity key for sponsors with $3.2 trillion tied up
While the IPO market is outpacing last year, annual proceeds will still likely be 20% to 25% below what the bank considers normal.
Photographer: Michael Nagle/BloombergThe market for initial public offerings of companies that are owned by the likes of private equity firms is picking up, buoying the outlook for such first-time share sales heading into next year, says a top JPMorgan Chase & Co. banker.
At least four such US listings are slated for this month, including StandardAero Inc. The aircraft maintenance services provider, backed by Carlyle Group Inc., raised $1.44 billion in an IPO Tuesday. The burst of business will be welcome news for investors sitting on $3.2 trillion of companies that have been stuck in private equity firms’ portfolios after a choppy three-year stretch for new entrants.