Fidelity and KKR eye IPOs

Filed under: Private equity

At the height of the buyout boom in 2007, private equity firms amassed expansive portfolios. Some of the drivers of the trend included: a growing economy and easy debt markets.

Of course, dealmaking has ground to a halt over the past couple years. However, private equity firms still need to find ways to get liquidity from their portfolios, so as to produce returns for limited partners.

How? Well, the IPO market will be crucial.

So, to this end, Fidelity Investments and Kohlberg Kravis Roberts & Co. (KKR) have agreed to form a venture to distribute IPOs to retail investors. Keep in mind that such offerings typically go to institutions and wealthy individuals. But private equity firms will need to expand their reach.

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Fidelity and KKR eye IPOs originally appeared on BloggingStocks on Mon, 08 Jun 2009 08:30:00 EST. Please see our terms for use of feeds.

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