Private Equity

Daily Mail, 24 Nov 2020, Roadside Recovery Firm AA Banks on £218m Private Equity Rescue

https://www.thisismoney.co.uk/money/markets/article-8979017/AA-banking-218m-private-equity-rescue.html quotes ShareSoc Director Cliff Weight who questions whether PE funds opportunistically sell their assets at inflated prices: Cliff Weight, director of small shareholders campaign group ShareSoc, said the AA's performance would raise further questions about private equity-backed floats in future. He said: 'In 2014 the private equity firms decided that they were better off selling the AA rather than holding on to it, after loading it up with almost £3bn in debts. It was floated with all the encouragement of the financial services ...

Lessons From a Failed Investment

This is a premium article, available to ShareSoc full members and SIGnet members. Recent troubles at the AA (AA.) and Petropavlovsk (POG) brought to mind another problematic investment that I am more familiar with and which shares some characteristics of those companies. That investment is Gulf Marine Services (GMS). IPOs by Private Equity Vendors Like the AA, GMS was floated by its original private equity owners, with a premium listing on the LSE main market, in March 2014. GMS is a relatively straightforward business: ...