‘IPOs are not the only vehicle’: KKR heads for record exits even as firms stay private for longer
Control deals and infrastructure investments in South-east Asia have grown, says the firm’s Henry McVey
KKR, the global investment firm, is poised for a record year of exits, despite an increasing number of companies opting to remain private, according to Henry McVey, the firm's partner, head of global macro and asset allocation, and chief investment officer. McVey emphasized that initial public offerings are merely one method of returning capital to investors; alternative exits include sales to strategic partners and industry consolidation.
He noted that companies, especially those in the artificial intelligence sector, are increasingly choosing to stay private, contrary to the practice in the 1990s when many firms went public at an earlier stage of development. McVey also highlighted that staying private no longer comes with a valuation discount, making private companies more attractive.
While acknowledging that public markets still offer vital liquidity and enable global allocators to build substantial positions, McVey pointed out that the Asian market landscape has significantly evolved, with investors increasingly favoring pan-Asian exposure. He highlighted Japan as a key region for corporate governance reforms and shared examples of successful control deals and infrastructure investments in South-east Asia.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
