Investors Question "Public" Private Equity
Private equity and hedge funds going public have not had a smooth ride, and as more weigh navigating the choppy waters, investors in such funds are questioning the benefits. Others waiting in the wings to follow the path of Blackstone Group (BX.N) and Kohlberg Kravis Roberts & Co (KKR.N) include Apollo Global Management, which is planning to move its listing from a private exchange to the NYSE at some point. Carlyle Group has also been weighing going public for some time, sources familiar with the matter said. A spokesman for the firm said it had "no plans to go public at this time". Going public can help firms retain and hire staff, potentially give an exit route for retiring founders and boost the ability to raise money to make acquisitions. Still, investors in private equity funds are concerned that if a firm decides to go public, management will become consumed with generating fees, quarterly earnings and the company's daily stock price.
