Actionable Ideas for Companies and Sponsors

Private Equity Firms Creating and Increasing Positions in Listed Companies

Private equity firms have taken advantage of the volatility in equity markets to increase existing positions and establish new positions in listed stocks, often on the back of weak share prices, including companies that have completed an IPO in recent years. There are several recent precedents in EMEA and the U.S. from top tier private equity firms.

When considering a purchase of listed shares, there are strategies that can be implemented to address a combination of the following:

  • Leverage the purchase of the shares
  • Accommodate any regulatory hurdles
  • Accelerate the delivery of shares and manage disclosure to the market
  • Manage the market risk over the execution period, including capping the purchase price