Black bemused with Goldman over TPG

Leon Black of Apollo Management has expressed his displeasure to Goldman Sachs over the investment bank’s role as an advisor in an expected Texas Pacific Euronext listing.

Apollo Management, the New York private investment firm that recently raised $1.5 billion for an anticipated Euronext Amsterdam listing, is upset with an advisor to the listing, Goldman Sachs, because of the investment bank’s role in preparing a similar Texas Pacific Group vehicle.

In particular, Apollo head Leon Black has voiced his displeasure with what he views as a conflict of interest at Goldman Sachs amid Apollo’s ongoing listing effort.

Texas Pacific currently is not in the market with a Euronext Amsterdam vehicle, but market sources expect the firm to soon hit the road with an offering that will target a significant amount of capital.

Once source said Texas Pacific will seek an amount “in the range” of that raised last month by Kohlberg Kravis Roberts, which drew $5 billion through a Guernsey partnership that was listed on the Euronext Amsterdam exchange.

Goldman Sachs is an advisor to Apollo Management on its Euronext placement and listing, and it is advising Texas Pacific on a similar effort. A source described Texas Pacific as being in “pre-marketing” mode with its Euronext effort, meaning investors are being approached about what level of interest they might have in such an offering.

A spokesperson for Goldman Sachs declined to comment for this story.

By making investors aware of an impending Texas Pacific listing, a pre-marketing effort may have had the effect of dampening demand for Apollo’s listing as investors set aside capital for Texas Pacific’s offering.

That said, other private equity firms, including The Blackstone Group and The Carlyle Group, are also widely expected to eventually come to market with similar vehicles if demand for such offerings proves strong.

Apollo is reportedly disappointed with its $1.5 billion raised, although that amount was the stated target of the vehicle.

Some potential investors in the Apollo vehicle were wary of the lag time between its private placement and eventual listing, according to sources.