T. Rowe Price to roll out into Europe

T. Rowe Price Associates, the Baltimore-based asset management firm, has reported that it is expanding its venture distribution service into Europe, after more than 14 years of managing distributions on behalf of clients in the US. The group will manage distributions on behalf of institutional clients through the retention and informed sale of distributed shares. According to the firm, many institutions are under-resourced to cope with increasing numbers of distributions received ‘in-kind’, rather than in cash, from venture capital or LBO partnerships. Many institutions are accepting watered down proceeds by selling securities immediately through the distribution broker, while historically, the price of venture distribution has tended to drop 3-5% the day following the distribution. Due to the volatile conditions, this decline has, according to T. Rowe Price, grown to around 7%. Although the exit market has been slow recently, hitting distributions, the firm still feels that the time is right to enter the European market. The thinking is that European LPs should be preparing now for the next IPO upturn, rather than waiting for the cycle to turn.

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