Bridgepoint, the former owner of Pret a Manger and backer of Itsu and Deliveroo, is teeing up a £2bn listing in London.
The group will seek to raise around £300mln to build a war chest for acquisitions and =to expand into property and infrastructure.
Any funds raised would allow it to acquire other investment firms, it said and comes as UK firms are facing a wave of interest from private equity buyers.
Morrisons is the latest big name to be on the end of a private equity bid when Clayton, Dubilier & Rice launched a £5.5bn offer last week, which was turned down.
CD&R though had more success with UDG Healthcare, which today accepted a £2.7bn offer.
Bridgepoint, which was formerly NatWest’s Equity Partners arm, focuses on businesses worth up to around £1.5bn and has around £23bn of assets under management across Europe, Asia and the US.
The partnership structure is expected to be tweaked when it lists with shareholders receiving fees from the funds it manages along with a share of profits made by realising investments.
These gains have traditionally has been shared by the partner instigating a deal and the private equity house.
Investors in its funds currently are institutions, pension funds and family offices.
Total operating income rose to £192mln in 2020, from £145mln in 2018. with underlying profits of £66mln against £43.3mln two years ago.
William Jackson, executive chairman, said: “The company has been on its own journey of growth and diversification, increasing its total assets under management from €9bn in 2011 to €27.4bn as of 31 March 2021.”
Bridgepoint said that institutions are looking to increase their investment allocations to private markets both in the short and long term
The move to go public is unusual for an industry that normally likes to keep its business away from the public gaze, said commentators.
Russ Mould, at AJ Bell, said: “However, investor interest in private markets is growing.
“This means Bridgepoint could raise its profile by being a listed entity and give the public a chance to share in its success and put itself on the radar of businesses which might be ripe for a deal.”