Warburg Pincus, a leading private equity firm managing approximately $86bn in assets, has no immediate plans to pursue an initial public offering (IPO), according to a report by Reuters quoting CEO Jeffrey Perlman at the Reuters NEXT conference in New York on Tuesday.
The report cites Perlman as indicating that remaining private aligns with the firm’s strategic priorities.
“We would revisit [the idea of going public] if we felt we were at a competitive disadvantage, but I think the opposite is true right now,” Perlman said, highlighting the advantages of staying private compared to peers like TPG and CVC Capital Partners, which have gone public in recent years.
Perlman shared an optimistic outlook for private equity deal-making, forecasting a significant increase in activity in 2025 and 2026. As large buyout firms face growing pressure to return capital to investors, sellers are expected to adjust their price expectations, making transactions more feasible.
“The industry bought a lot in 2021. It was a tough vintage,” Perlman said. “A bit more time for growth allows those assets to mature, making it easier for firms to transact with more confidence than they had 12 to 24 months ago.”
A rebound in leveraged buyout volumes is expected to be driven by falling interest rates, an improved financing landscape, and the rising influence of artificial intelligence. Lower borrowing costs are set to ease the challenges that have hindered large transactions in recent years.
Blackstone’s recent $8bn acquisition of Jersey Mike’s Subs highlights how improving conditions are enabling big deals. Meanwhile, US private equity and venture capital deal volumes reached $423 billion in 2024 through November, nearing 2023’s full-year total of $440 billion, according to Preqin.
