Goldman Loans $75 Million to IPO Hopeful Nutanix

Goldman Sachs Group Inc. has found a smart way to make a buck while initial public offerings of tech companies are at a standstill.

The Wall Street bank is already an equity investor and lead IPO adviser of Nutanix Inc., a Silicon Valley software company that filed to go public six months ago. Now it is also #Nutanix ’s debt holder after recently lending the company $75 million at terms offering Goldman a tidy return, according to an amended IPO registration statement.

The financing, rare for a tech company in IPO registration, underscores the struggle for highly valued startups like Nutanix to reach the public markets at the share price they want. Nutanix filed for an IPO in December amidst a dry spell that has seen a steep decline in tech companies going public. Research firm Dealogic counts three tech IPOs in the U.S. through May, down from seven during the same period in 2015 and an average of 15 through May the prior five years.

http://www.wsj.com/articles/goldman-loans-75-million-to-ipo-hopeful-nutanix-1464708647