Europe's buyout firms eye IPOs

By Daisy Ku and Simon Meads

LONDON (Reuters) - European private equity firms are keen to start bringing their best-performing portfolio companies to market, encouraged by early successes on the other side of the Atlantic.

Last week KKR successfully listed semiconductor business Avago Technologies Ltd (AVGO.O) and is considering listing a number of other companies as markets warm to new arrivals.

"It is not clear yet whether there will be an IPO window but we believe that there may be an opportunity for strong resilient businesses to float in the first half of next year," said Kurt Bjoerklund, co-managing partner of Permira.

German cable operator Unity Media, owned by BC Partners and Apollo Management LP, could launch a 1 billion euro IPO early next year, banking sources said.

Frozen food group Birdseye Iglo, budget fashion chain New Look NWLOF.PK and Italian gaming firm Sisal, all owned by Permira, are also potential IPO candidates, bankers said.

Poor performances from companies in which they invested has plagued private equity houses -- who buy companies, look to improve their performance and then sell them at a profit -- while investor wariness has blocked possible stock market exits.

Private equity firms listed 217 companies in the banner years of 2006 and 2007, according to Thomson Reuters data, helping them return $309 billion to investors over the two years, figures from consultancy firm Preqin showed.

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