Blackstone and Permira-backed IPOs deliver muted market debut

Private equity firms Blackstone and Permira received a subdued reception from public market investors on Thursday as portfolio companies Jersey Mike’s and Reformation made their stock market debuts, according to a report by the Financial Times.

Shares in restaurant chain Jersey Mike’s fell around 6% on their first day of trading after pricing at $23 per share, while fashion retailer Reformation finished broadly unchanged after listing at $15.08, highlighting continued caution towards consumer-focused IPOs despite improving issuance activity.

The offerings mark significant private equity-backed exits in a market where sponsors have been seeking renewed opportunities to monetise long-held assets. Consumer businesses have faced several years of pressure from elevated inflation, weaker household sentiment and higher operating costs, making investor demand for the sector less certain than for technology and financial services listings.

Jersey Mike’s, acquired by Blackstone in 2024, intends to use the majority of its IPO proceeds to reduce approximately $2.1bn of debt incurred following the buyout. Chief executive Charlie Morrison said the company had listed broadly in line with expectations and remained focused on long-term value creation rather than first-day share price performance.

The sandwich chain has expanded to around 3,300 locations, making it the second-largest sandwich brand in the US, and has outlined plans to increase its global footprint to 15,000 restaurants over the longer term. Because the business operates predominantly through a franchise model, management said future expansion will require relatively little capital from the public markets.

Reformation, which has been owned by Permira since 2019, will also direct most of its IPO proceeds towards debt reduction. The fashion retailer, known for its sustainability-focused clothing, has remained profitable since 2021 despite earnings coming under pressure last year as tariffs and distribution centre relocation costs weighed on margins.

The company expects profitability to remain resilient in 2026 while pursuing international expansion across markets including the UK, Canada and France.

The listings come as private equity firms continue to work through a substantial backlog of unrealised investments after slower exit activity in recent years. According to Bain & Company, the industry’s inventory of unsold portfolio assets reached almost $4tn in 2025, increasing pressure on sponsors to reopen exit channels through IPOs and strategic sales.

Although the first-day trading performance of both companies was subdued, the transactions add to a growing pipeline of sponsor-backed flotations. Other private equity-owned consumer businesses, including Roark Capital-backed Inspire Brands and the parent company of Men’s Wearhouse, have also filed to go public this year as firms test improving equity market conditions.