Wall Street’s Latest Pitch Is a Contradiction: Private IPOs – WSJ

Private-equity firms are desperate to cash out of investments. But enthusiasm for initial public offerings is low after several stock-market debuts flopped.

Enter so-called private IPOs.

The concept is being bandied about on Wall Street as investors and bankers search for ways to keep the money flowing. The contradictory moniker refers to stock sales in which early backers privately sell to longer-term investors such as mutual funds or sovereign-wealth funds, sidestepping the traditional IPO process.

Source: Wall Street’s Latest Pitch Is a Contradiction: Private IPOs – WSJ