KKR and three private equity companies have sold shares of NXP Semiconductors NV in an initial public offering, raking in 46 percent less than they paid to buy the company at the height of the private equity boom, reports Bloomberg. That called for selling shares at $14 each, which was significantly below their $18-$21 target. But at least it was sold.

Some firms may have no choice but to sell at huge discounts; they are no doubt feeling lucky they are able to exit at all. KKR, along with Bain, Silver Lake in Menlo Park, California, Apax Partners and Amsterdam-based AlpInvest Partners bought the company in September 2006. Since then, the semiconductor firm has struggled amid a weak global economy.

Other portfolio firms are on tap. The prospective IPO market (IPO news) is dominated by financial sponsors aiming to exit at all costs. (GM looms as something of a special case). Some of these deals may not happen. The ones that do may follow the NXP example. But this at least moves the industry toward a post-crash era and paves the way for better buyouts at lower prices, making exits five years from now that much more profitable.

For more:
- here's the article

Related Articles:
KKR finally makes it to the NYSE
Study highlights problems with private equity industry
KKR founders' stake in company tops $800 million each
Private equity firms to give up on RadioShack