Three fundraisings at the same time? You could be forgiven for thinking that the good times are rolling in the City again. Forgiven, but also mistaken.
The trio we chronicle here are bound together by little more than coincidence — sadly for idle brokers who are tapping their fingers on desks across the Square Mile.
Such are the market conditions right now Direct Line wouldn’t float unless it was forced to by Brussels regulators. Despite some interest from retail punters, its sale is expected to be at the bottom of the price range.
Ongoing eurozone jitters mean few bosses of private companies think now is the ideal time to press the button on a share sale. Nor have fractious relations been smoothed out between fund managers and private-equity firms — a fertile source of flotations. With the smell of singed flesh still in the air from disappointments such as Promethean World, funds bosses are wary of sticking their cash into what is being touted as the next big thing.
Meanwhile, private-equity owners know the days of the quick flip are long gone. Instead of floating, they are bedding down for the long term with some of their investments, preferring to recapitalise them themselves and pull out a dividend.
