Private equity firms are re-entering the US IPO market with portfolio companies carrying significant debt, as seen in recent filings by Advent International-backed NIQ Global Intelligence and Platinum Equity’s McGraw Hill, according to a report by Bloomberg.
Both firms filed for initial public offerings on 27 June and could list as early as next week.
NIQ and McGraw Hill are expected to pursue sizeable offerings, with NIQ reportedly targeting a raise of approximately $1.25bn, while McGraw Hill, which generated $2.1bn in revenue last year, is also poised for a substantial IPO.
However, both companies are highly leveraged. NIQ holds nearly $4bn in net debt — over five times its adjusted EBITDA — while McGraw Hill reports $2.8bn in net debt, roughly four times its adjusted EBITDA. IPO proceeds will be used in part to reduce these debt loads, potentially bringing leverage ratios down to levels more acceptable to public market investors.
Despite the debt profiles, the IPO window remains open and investor appetite for growth-oriented, private equity-backed companies appears resilient. Analysts expect more muted first-day price movements compared to recent high-profile listings such as Circle Internet Group, but note that the return of leveraged PE-backed IPOs is a clear sign of renewed confidence in public markets.
The filings mark a return for McGraw Hill, which previously attempted to go public before its $4.7bn acquisition by Platinum in 2021. For NIQ, the IPO follows Advent’s 2021 acquisition of Nielsen’s consumer data division and a leadership reunion with former TransUnion CEO Jim Peck, under whose guidance Advent previously led TransUnion through a successful public market journey.
