PE-Backed IPOs

Private equity firms often sell companies to the public through IPOs. Here is how these offerings differ from startup IPOs, what to check before buying one and how the largest PE-backed IPO ever has traded.

Selling to the public

An IPO lets a private equity firm sell part of its stake and set a public price for the rest, which it can sell over time. Unlike many startup IPOs, PE-backed companies are often large and profitable, but they may carry significant debt from the original buyout.

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