Evercore Fund Halts Its Plan to Go Public

Evercore Investment Corp. on Monday withdrew a plan to raise as much as $460 million in an initial public stock offering, the third U.S. investment fund in the last six weeks to delay or cancel a proposed share sale.

The Santa Monica-based fund, formed by buyout firm Evercore Partners, said in a Securities and Exchange Commission filing that it would no longer pursue an IPO because of market conditions.

Blackstone Group and Porticoes Capital Corp. last month called off IPOs for funds known as business development companies that buy loans, preferred stock and subordinated debt that is convertible into equity. Shares of Apollo Investment Corp., a fund similar to Evercore Investment, are down 9% since Apollo’s IPO in April.

The proposed IPOs are attempts by buyout firms, which are traditionally backed by institutions and wealthy individuals, to reach out to the average investor.

The SEC has said in a written order to the New York Stock Exchange that it was reviewing regulations that govern the buyout fund ventures to determine whether their “unique characteristics and risks” have been addressed.

Evercore Partners, an investment and advisory firm, was co-founded by former U.S. Deputy Treasury Secretary Roger Altman in 1995. Evercore Partners has invested $590 million in 26 companies.

This month, at least 21 companies have canceled or withdrawn plans to conduct initial share sales.