The tactic underscores the difficulties that buyout groups have had exiting their portfolio companies via the public markets, historically an important way of monetising their largest assets. In 2021, with public markets trading at record highs, buyout houses floated a record 287 companies worth just shy of $140b.
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Private equity resorts to buying back companies after IPO flops
“IPOs sometimes bring their own challenges. There are those examples where the public markets haven’t taken to companies in the way the sponsor would have liked, there has been volatility in the share price or there hasn’t been liquidity for sponsors to sell out."
