Displaying items by tag: privates

The IPO market may see a resurgence in 2025, with Wall Street banks gearing up for increased activity as private equity firms look to the equities market to divest high-profile assets. Companies like Medline and Genesys, backed by private equity, have already filed for IPOs, signaling the potential for a busy year ahead. 

Analysts anticipate a surge in IPO announcements during the year’s first half, driven by a robust stock market, anticipated regulatory rollbacks, and tax cuts under the Trump administration. In 2024, IPO performance was promising, with most major listings ending the year above their debut prices. 

Experts, including Eddie Molloy of Morgan Stanley, expect significant activity in private equity-backed IPOs, particularly in tech, where demand for investment opportunities is strong. 

Finsum: Companies such as Chime and Klarna in the FinTech space are also poised to capitalize on this revived market environment.

Private equity payouts to investors have significantly dropped, with firms cashing out only half the usual value of investments in 2024, marking a third consecutive year of declining returns. Rising interest rates since 2022 have hampered deal-making, leading to difficulties in selling assets at favorable prices and creating a $3 trillion backlog of ageing deals. 

Innovative approaches like continuation funds, where firms sell stakes between their own funds, have gained traction but remain a partial solution. Skepticism persists among investors regarding whether firms can achieve valuations close to those recorded during the investment boom of 2021. 

Many assets are now seen as overvalued, with sales often happening at a discount of 10-15% rather than the traditional premium. 

Finsum: With falling rates and expected increases in mergers and acquisitions, private equity could have a strong turnaround in 2025

Capitol Meridian Partners, a defense investment firm established by former Carlyle Group executives, is ramping up efforts to capitalize on private equity's increasing influence in advancing U.S. defense technologies. 

The firm recently brought on Michael Puopolo, with experience at Blackstone and Carlyle’s aerospace and defense team, as managing director, alongside Curtis Uehlein, a former leader of multiple Carlyle-backed companies, as an operating executive. 

Having raised over $1 billion in its debut fundraising effort this year, Capitol Meridian is directing funds toward aerospace, defense, and government technology sectors. Notable projects include Parry Labs, which develops drone operating systems, and LMI, which supports the Department of Defense in transforming extensive data resources into actionable insights. 

Finsum: There is probably little doubt that a new administration will be more favourable to this type of private equity investments.