Private-equity firms KKR & Co. and Bain Capital Partners are prepping initial public offerings for three of its larger holdings—retailer Toys "R" Us Inc., hospital chain HCA Inc. and semiconductor business NXP Semiconductors, according to people familiar with the deals. If the stock market continues its ascent, or at least remains stable, those IPOs are expected to price in the coming months, these people said.
KKR and Bain, two of the most aggressive private-equity firms during the buyout boom, are now as aggressively looking to cash out. They are leading what is expected to be a season of IPOs as long as the markets continue to stabilize or climb. The IPOs would allow the firms to partially cash out their stakes and return money to investors. They also could use the proceeds to pay down the sizable debt used to finance the takeovers.