LONDON/FRANKFURT (Reuters) -Blackstone has kicked off the sale of Clarion Events, four people familiar with the matter said, in a test of demand for takeovers after weeks of market turmoil stymied dealmaking.

Blackstone bought Clarion, which runs international trade shows in electronics, gaming, energy, security and defence, in 2017 for 600 million pounds ($802 million) and supported it through the COVID pandemic, when the events industry came to a sudden halt, hammering the company's revenue and earnings.

The U.S.-based private equity fund distributed information memoranda earlier this month and has drawn interest from funds including CVC, KKR, PAI Partners and Ardian, the four people said, speaking on condition of anonymity.

Asian private equity firm Hillhouse Investment is also interested in Clarion, which hosts trade shows in China via its Global Sources business, one of the people said.

Clarion could fetch around 12 times earnings before interest, tax, depreciation and amortisation, that person said, potentially valuing the company around 2 billion pounds. Reuters reported last year that Blackstone had started exploring options for the business.

Spokespeople for Blackstone, KKR, Hillhouse, CVC, PAI Partners and Ardian declined to comment. Clarion did not immediately return requests for comment.

The business would be one of the biggest private equity assets to come to market after weeks of volatility triggered by U.S. President Donald Trump's tariff policies, which led to the biggest decline in dealmaking globally for 20 years.

Blackstone has been waiting for clarity on the economic outlook and the impact of Trump's tariffs before launching the process, the people said. Clarion has been managing its cost base and cashflows and monitoring economic pressures, it said in a review of the first half of its 2024-2025 financial year, adding that cashflows were outperforming budget.

There is no guarantee that a deal will emerge, the people said.

Investor sentiment has picked up in recent weeks after the U.S. and China agreed to temporarily slash tariffs. Share benchmarks in Europe and the U.S. have recovered from their tumbles after Trump's April 2 tariff announcement.

Prada's $1.38 billion purchase of smaller rival Versace from Capri Holdings ( CPRI ), DoorDash's ( DASH ) $3.6 billion offer for Deliveroo ( DROOF ), and KKR's $3.1 billion deal for post-trade services business OSTTRA are among deals that have reached the finish line.

Clarion, which organises the London International Horse Show among other events, saw revenue jump to 432.9 million pounds in the 12 months through January 2024 from 257 million pounds a year earlier, as the industry returned to normal in China and Hong Kong, according to its most recent results.

($1 = 0.7484 pounds)