General Atlantic Files for US IPO

General Atlantic, the investment firm whose bets have included Facebook Inc. and Airbnb Inc., has confidentially filed for an initial public offering, people familiar with the matter said. 

The firm is considering listing as soon as next year depending on market conditions, according to the people, who asked not be identified because the information is private. 

A General Atlantic IPO would test investor sentiment toward alternative asset managers as the industry grapples with the end of the era of cheap debt that fueled easy dealmaking. Despite those headwinds, publicly traded peers such as Partners Group Holding AG and Bridgepoint Group Plc have each gained about 30% in the past year. 

Companies sometimes file for an IPO to allow them to move quickly when a listing window opens, and General Atlantic’s submission doesn’t mean it is planning to sell stock imminently. The investment firm could still opt to remain private for longer, the people said. 

A representative for General Atlantic declined to comment. 

CVC Capital Partners has also been preparing an IPO, while private credit firm HPS Investment Partners confidentially filed for an IPO more than a year ago, Bloomberg News has reported. 

General Atlantic, led by Chief Executive Officer William Ford, considers itself a pioneer in so-called growth equity, which generally means making minority investments in well-established, growing companies that have yet to go public. Established in 1980, the firm now has $77bn in assets under management, according to its website. 

While perhaps best known for its successful track record backing tech firms that also included Uber Technologies Inc., General Atlantic is also active in consumer, health care and financial services. The firm closed its sixth growth equity fund at $7.8bn in 2021. Bloomberg News reported last year that it was considering going public. 

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While General Atlantic has yet to finalize its target valuation or a specific timeline for its IPO, the company is considering listing as early as next year, contingent on market conditions. The IPO is anticipated to generate billions of dollars for General Atlantic, and its investors comprise some of the world’s most prominent pension funds and sovereign wealth funds.

The company’s decision to go public comes amid a challenging time for the alternative asset management industry, which has been grappling with rising interest rates and a slowdown in dealmaking. However, General Atlantic has a strong track record of investing in high-growth companies, and it is seen as a potential leader in the ESG investing space.

Source: BNN Bloomberg

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