Reuters Italia – A number of European fund management firms, led by hedge funds, are listing on stock markets this year, giving investors more public information to judge performance and industrytrends.
They are adding to what has been only a small number of listed fund companies, analysts say.
Among recent examples, hedge fund company Charlemagne Capital is expected to list in April. Swiss alternative asset manager Partners Group plans to float in the second half of March.
Hedge fund companies are setting the IPO pace, because this industry is maturing and needs capital to stay ahead of the game, said Ian Woodhouse, co-leader of the investment management and private banking practice at IBM Business Consulting.
“Hedge funds are needing to become more mainstream, and as that happens, performance from the industry has started to vary. IPOs identify those companies that have been successful, and you can’t have an IPO without a consistent track record.”
Woodhouse cited a variety of reasons that firms are seeking listings.
“Competition for talent is tougher … part of the reason to hold an IPO is to hold onto staff. It is also usual at this point in time to get a valuation for the business … it allows you to consider selling out to larger players,” said.
