It's widely acknowledged that buyout fever has to come to an end at some point, but few people in the press seem to be advocating this end coming soon. I guess I'm a contrarian on this issue -- I think there are clear signs that the private equity craze is wearing down. Well, a contrarian to everyone except the private equity firms' leaders.
Today, news that Apollo Management is hoping to go public through the "back door" hit the wires. This type of offering (called a 144A) allows Apollo to "sell shares of itself quickly while avoiding for several months the disclosure involved in a public offering," according to a New York Times piece on the story. This filing essentially allows Apollo to sell only to institutional and other "sophisticated investors," rather than any investor who can trade on the New York Stock Exchange. However, Apollo hopes to be trading on the New York Stock Exchange by the first quarter of next year, according to the Times.
For some reason, investors still want to buy into Blackstone Group (NYSE: BX), KKR's upcoming offering, and probably Apollo's future offering. I don't know how many times it needs to be said, but I'll say it again: these executives aren't selling to the public to share from their bounty -- they are selling out because they realize things can only get worse from here. Apollo isn't rushing to sell its company for no reason -- it believes bad times are coming.
Today, news that Apollo Management is hoping to go public through the "back door" hit the wires. This type of offering (called a 144A) allows Apollo to "sell shares of itself quickly while avoiding for several months the disclosure involved in a public offering," according to a New York Times piece on the story. This filing essentially allows Apollo to sell only to institutional and other "sophisticated investors," rather than any investor who can trade on the New York Stock Exchange. However, Apollo hopes to be trading on the New York Stock Exchange by the first quarter of next year, according to the Times.
For some reason, investors still want to buy into Blackstone Group (NYSE: BX), KKR's upcoming offering, and probably Apollo's future offering. I don't know how many times it needs to be said, but I'll say it again: these executives aren't selling to the public to share from their bounty -- they are selling out because they realize things can only get worse from here. Apollo isn't rushing to sell its company for no reason -- it believes bad times are coming.
