Richards Kibbe & Orbe partners Scott Budlong and Eric O'Meara published their article "Hedge Fund Managers Undertaking a Portfolio Company IPO: A Primer" in Bloomberg BNA.
The strong capital markets have recently led to record numbers of initial public offerings. On occasion a key pre-IPO investor will be a hedge fund that has deployed capital to the portfolio company as part of the fund's illiquid or "side pocket" investment program. In contrast to a classic PE sponsor the hedge fund manager may have only infrequent contact with the IPO process and thus be less conversant in the key issues surrounding such a transaction.
This article is a brief primer for the hedge fund manager who is invested in a portfolio company undertaking a Securities and Exchange Commission-registered IPO, but for whom the transaction is not business as usual.