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EQT testing private stock sales as IPO markets ‘dysfunctional’

EQT chief executive Christian Sinding said private auctions among its 1,100 limited partners could provide a novel way for its backers to monetise their illiquid holdings without the need to sell shares in initial public offerings. A slowdown in dealmaking and lack of IPO prospects have prompted fund managers to embrace more creative financial engineering techniques to return capital to their LPs.


 

“As long as the price is set in a fair way at a fair market value, it doesn’t really matter that the transaction is private,” said Sinding. “Why go public if we actually don’t need to?”

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capital markets