Private Equity Needs Exit

WSJ reports that UGS, owned by Siemens, Bain Capital and Silverlake, is about to be sold to Siemens, for $3.5 Billion. The company was purchased 3 years back for $2 Billion.

Deals have become much larger since.

The WSJ articles hints at an issue the industry is facing: Exit. While there may be players who can buy $3-$4 Billion companies, those in the $10-$15-$20 Billion range will have no other option but to go back to being public again. Conceivably, that would mean that the number and size of IPOs will go up in the next few years, given that the Private Equity activity is so high at the moment.