IPO treatment for PE firm SBT portfolio coverage calculations

Could you please clarify how listed equity should be treated from a private to public (IPO) perspective. We are a PE firm with a number of listed portfolio companies, typically where private companies have been taken public via IPO, with the intention of a gradual sell down to exit.

Please can you clarify whether these listed assets should be treated under the PE or FI SBT guidance. If the latter we would need to set another target for these (eg via a temperature rating process). This fails to recognise that pe firms will have grown the companies and worked with them to set SBTs, only to have them removed from the firms SBT portfolio coverage calculations when they become listed. It would also makes the process overly complex - running two different calculations and targets.

Hi, @PEFund,

This question will be addressed in an upcoming FAQ for the PE guidance. Unfortunately, we don’t have an ETA for this FAQ just yet.