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NYSE capital markets chief Michael Harris shares insights on IPOs; Thoma Bravo in German take-private deal

Good morning, Hubsters. MK Flynn here with the Wire.

The path to public – and back to private – is on my mind today.

With IPO opportunities for PE-backed companies few and far between this year, what should private equity owners do with their portfolio companies that are ready to go public?

For answers, I turned to Michael Harris, global head of capital markets at the New York Stock Exchange. I share highlights from the interview below.

Going the other direction, Thoma Bravo announced this morning that it’s taking a Munich-based enterprise software company private. While the tech-focused firm has loads of experience in take-privates, the deal marks its first investment in a German company.

And earlier this morning, PE Hub was the first to reveal that the Riverside Company has made its 50th franchise acquisition. We’ve seen a slew of PE investments in franchises lately, and we’ll take a look at that phenomenon.

Let’s start at the NYSE.

Waiting for IPO

Exits have been especially elusive in 2023, with mismatched pricing expectations thwarting M&A deals and a tough market for going public. I asked Michael Harris, global head of capital markets at the New York Stock Exchange, for his thoughts on the IPO market for private equity-backed companies and for his forecast for 2024.

Subscribers to the premium version of the Wire may read the Q&A with Harris, which is part of an ongoing series of PE Hub interviews with thought leaders on private equity dealmaking.

Megatrends

Earlier today, Thoma Bravo said it has agreed to buy EQS Group AG, a Munich-based corporate communications and compliance provider, for €400 million ($435 million).

Read all about the deal in the premium version of the Wire.

Fabulous fifty

PE Hub’s Rafael Canton broke the news earlier this morning that The Riverside Company completed the add-on acquisition of Frenchies Modern Nail Care, the PE firm’s 50th franchise deal.

Find out why PE firms like the franchise model in the premium version of the Wire.

That’s a wrap for today. Obey Martin Manayiti will be with you tomorrow, and I’ll be back on Monday.

Happy dealmaking,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Georgian, a low-profile software investor with a unique value-creation model, raised nearly $900 million for a sixth flagship growth equity offering, sources told Buyouts.

Macquarie Asset Management is expanding into fund finance, with a plan to offer NAV facilities to direct lenders, Private Funds CFO understands.

Massachusetts Pension Reserves Investment Management’s investment committee approved a new policy recommended by its staff that delegates authority to the system’s executive director and CIO to approve commitments to continuation funds on a case-by-case basis. (Buyouts)

BlackRock has reached a first close of almost $1 billion for its core, open-end infrastructure fund focused on energy transition and energy security. (Infrastructure Investor)

Institutional investors are juggling with their private equity exposures as they navigate various dynamics including the denominator effect, with some making significant cuts in their allocations. A private wealth firm is seeing a different picture. “Despite the recent market reassessment or change, we’re very happy to see that our clients’ interest hasn’t gone down,” Maurizio Arrigo, global co-head of private equity at Pictet Alternative Advisors tells Private Equity International.