Dollar General IPO Speculation Reaching Feverish Levels
Regardless of whether you believe the market bottom is real or red herring, the year's IPOs have performed well -- a fact not lost on exit-hungry private equity firms. This year, the rare PE-backed IPOs have come from the middle markets (Bridgepoint Education, Rosetta Stone), even though it's the mega-buyouts that need them most. With portfolio company valuations starting at $5 billion, an IPO is often a mega-firm's only way out. If any PE-backed company is positioned to go public, it's KKR's discount retailer, Dollar General. Speculation on the transaction began in January, when Breakingviews argued that the company was worth $7.5 billion (minting KKR better than a 33% return, according to the story).
15 June 2009•2 mins read
