Private Equity News & Analysis

A crack in the market

Could it be? Private equity-backed companies seem to be in demand on the public markets

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IPO WATCHThe following companies, all backed by private equity investors, have either recently listed or are moving toward public listings

RECENTLY LISTED
Company Description PE backer(s) Notes
OpenTable Online restaurant Benchmark Capital This closely watched dotcom, around
reservation service Partners, Impact Venture since the late 1990s, thrilled VCs when it
(NASDAQ: OPEN) Partners traded above its offering price of $20,
closing at $31.89
Avago Semiconductor KKR, Silver Lake IPO values company at around $3.5bn;
manufacturer and intellectual property portfolio of more
distributor based than 5,000 patent applications
in Singapore
(NASDAQ: AVGO)
Emdeon Healthcare payment General Atlantic; The company received General Atlantic's
systems provider, Hellman & friedman largest-ever equity cheque – some
spun out of the cor- $485m. Its listing on the NYSE repre-
porate parent of sents a huge, unrealised value increase
WebMD. Based in for its sponsors. The IPO raised $367m
Nashville, Tennessee and valued the company at $1.8bn
(NASDAQ: EM)
PLANNED LISTINGS
Company Description PE backer(s) Notes
RailAm erica Shortline rail fortress Investments Taken private in 2006 for $1.1bn; IPO will
operator based in raise up to $300m on NYSE
Jackson, florida
Dollar General Discount retailer Kohlberg Kravis Roberts Taken private in 2007 for $7.3bn. The
based in company is thriving in the market down-
Goodlettsville, turn. Sales increased in 2008 by 10.9
Tennessee percent, totaling $10.5 billion
InfrastruX Group Seattle-based Tenaska Capital Tenaska is affiliated with power producer
provider of services Management Tenaska Energy; plans to raise $290 mil-
to gas and electricity lion in IPO; company reported a net loss
companies of $36.6 million in 2008
(“Vitamin and direct marketer (formerly Bear Stearns value: $143,750,000
Shoppe”) of vitamins and other Merchant Banking)
health and wellness
products
fortinet Sunnyvale, Redpoint Ventures; The company has received more than
California-based Meritech Capital $100m in VC funding; proposed maxi-
provider of network mum aggregate offering price: $100m
security appliances
Ancestry.com
Subscription-based Spectrum Equity A Spectrum portfolio company spent
heritage website, Investments, Sorenson $300m for a majority interest in 2007;
headquartered in Media, MGI@Ventures, Ancestry.com has seen revenues
Provo, utah EsNet Group (owns 67%) increase to $197.6 million in 2008 from
$122.6 million in 2004; aiming to raise
$75 million with IPO