IPO Investment | Private Equity Firm London - New Capital Link UK (2024)

FAQs

How to invest in IPO in the UK? ›

If a company has filed for an IPO and you want to invest in the stock, you can subscribe to the IPO ahead of the offering. By doing this, you'll receive a stock allocation at the same time and for the same price as institutional investors, without needing to wait for the secondary market to open to take your position.

IPO: It's like opening the floodgates to all kinds of investors, from big financial institutions to regular folks looking to invest. · Private Equity: This usually involves a smaller group of investors who directly inject money into the company.

Which private equity firms are publicly traded? The four largest publicly traded private equity firms are Apollo Global Management (APO), The Blackstone Group (BX), The Carlyle Group (CG), and KKR & Co. (KKR).

Going public allows your business to raise large sums of money from new investors. Because there are lots of investors with a small percentage of ownership, but no majority stakeholders, you can retain control of the business. An IPO is sometimes referred to as either 'listing' or 'floating' on the public market.

What needs to happen to buy shares? To buy shares in a company either an existing shareholder has to give up or sell their shares, or the company will need to create new shares. However, the creation of new shares will impact the shares already in existence as the total always has to be 100%.

Key Takeaways

IPOs give companies access to capital while staying private gives companies the freedom to operate without having to answer to external shareholders. Going public can be more expensive and rigorous, but staying private limits the amount of liquidity in a company.

It is extremely rare for private equity funds to achieve total exit at IPO, as public market investors would be wary of buying shares from existing shareholders who are selling out completely.

Only two private equity-backed IPOs over $100 million have been completed so far, raising about $1 billion, data from PitchBook shows. The meager number of private equity-backed IPOs is a sharp fall from the 110 recorded in 2021, according to PitchBook's data.

What is the biggest private equity firm in the world? ›

The Blackstone Group

Since it was founded in 1985, it has become the biggest private equity firm in the world, managing assets worth over $648 billion. It has raised an impressive $58.3 billion over the past five years.

CVC Capital Partners - AUM: $146 billion

CVC Capital Partners - the largest European private equity company by AUM - had planned to list on the Paris Stock Exchange in 2022, but subsequently pulled plans for the listing saying that it now had 'no plans' to list.

Anyone from any country can buy a UK company – there are no limitations on foreign ownership. There are two main ways to buy a business (UK): a share purchase or an asset purchase. With a share purchase, you buy all of the shares in the company and become its new director and beneficiary.

You can purchase IPO shares with your Demat or bank account. Some banks offer to open trading, Demat and bank account under the same bunch. Once you have activated your trading and Demat account, you can make investments in IPOs with ease.

Buying an IPO first starts with having a brokerage account. From there, you must ensure you meet the eligibility requirements of the IPO. You will then need to request the shares from your broker. A request does not ensure that you will have access to the shares as brokers typically get a set amount.

You cannot invest in US stocks without completing a W-8BEN form. As a UK resident, you're required to fill in the W-8BEN form because you're not a US taxpayer. Upon completing the form, you'll be eligible to receive reduced withholding tax rates on dividends earned from the US shares you buy.