June 24 (Reuters) – Neiman Marcus Inc filed registration papers on Monday for an initial public offering as its private equity owners eye an exit for their long-held investment in the luxury department store operator.
The Dallas-based retailer has been in the hands of private equity since 2005, when TPG Capital and Warburg Pincus LLC led a group that bought the Dallas-based retailer for $5.1 billion.
The IPO registration may signal little more than Neiman Marcus’ desire to keep its options open. Private equity-owned companies routinely try to sell themselves to other companies or funds while they are also preparing for an IPO in a practice referred to by investment bankers as “dual-track.”
Last month for example, Warburg agreed to sell eyecare company Bausch & Lomb Holdings Inc to Valeant Pharmaceuticals International for $8.7 billion after it had registered it for an IPO.
Private equity funds typically have a lifespan of ten years. Owned by private equity for eight years already, Neiman Marcus is considered a mature investment by industry standards.
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