Private equity flotations at seven year high
Private equity houses have this year added more companies to the stock market than they have taken private ? for the first time since 1997.
Figures released by the Centre for Management Buy-Out Research (CMBOR), which is sponsored by Barclays Private Equity and Deloitte, show that there have been 28 flotations in 2004, up from just 10 in 2003. In contrast the public to private market has slowed down this year with just 18 de-listings completed.
Tom Lamb, managing director UK at Barclays Private Equity, said that improved stock market sentiment had resulted in a shift away from private equity houses as net buyers of quoted companies towards being net contributors to the stock market.
?Whilst it may look like the public to private bubble has burst, it could be that the future lies in the large funds clubbing together in order to buy much larger quoted companies,? he said. ?Sooner or later, someone will bag a FTSE 100.?
According to Deloitte private equity partner Mark Pacitti, while the number of public to private deals has reduced by 50% since 2003, values have remained stable at £3.5