There is an old City adage about one occurrence being a fluke, two a coincidence and three a trend. If the platitude is true, the financial markets can feel fairly confident of at least one thing at present: they are seeing a consistent pattern.
Flotations of companies owned by private equity firms are flooding to the market, after the enticing preview given last November with the pounds 3.4bn float of the Madame Tussauds and Legoland owner,
But over the past few weeks scores more floats of private equity-owned businesses have been announced, ranging from the estimated pounds 1.2bn valuation being put on the pet shop chain
But there are even more. Added to that list are a pounds 225m float of the convenience store giant McColl's (its backer is
So, is this rush to offload these investments a sign that private equity investors have sensed the markets have reached their peak? Some believe so.
"But the equity market does tend to live on planet equity and they always see everything through rose-tinted glasses. They have pretty much ignored the shift back into bonds, which is the classic 'risk-off' trade."
Meanwhile, the billionaire hedge fund manager
Still, equity markets have defied widespread scepticism and have had much to be bullish about over the past 12 months. Last year the S&P 500 soared by almost 30% on
One such influx is about to take place over the coming days.
Much of that money will be ploughed back into equity markets, and City analysts reckon that as most current shares are fully valued, new issues will seem relatively attractive to investors - a mood noted by private equity firms.
Certainly, the private equity sector is delighted that this selling opportunity has arrived after years of its members holding on to investments following the financial crisis. That said, the industry can argue that those who have punted on private equity's flotations have been rewarded with steady performance.
Shares in private equity-backed companies listed last year rose by 25% globally, according to data by the accountants EY. In
Most Popular Stories
- 5 Notable Hispanic Technology Executives
- Top Hispanic Tech Companies Push for the Top
- Rand Paul Tops Presidential Straw Poll at Conservative PAC Conference
- Tesla's Alt-Energy Future Aims for Massive Lithium-Ion Battery Production
- New Chat App, Yik Yak, Causes Problems for Students
- China Urges Malaysia Flight Emergency Response
- Gas Prices May Jump from Calif. Emissions Law
- Obama Meets with Ukraine Prime Minister Wednesday
- Russia, Crimea Discuss Referendum
- Visa, MasterCard Team Up to Focus on Payment Security