class="textPage">Recently there was news of the possible listing of private equity companies such as Blackstone. Questions remain such as, are owners of very successful private equity companies listing their companies to cash in chips at the top of the private equity market or are they simply turning over to new sources of capital. Listing could prove to be beneficial as the private to public move can put buyout firms on firmer footing ensuring that they have a financial buffer during economic downturns.
class="textPage">Fortress Investment Group the private equity manager and hedge fund floated in March 2007. There are disadvantages however. When a private equity firm will list itself it has to reveal a lot of secretive information, which could hamper its strategy. Furthermore shareholders can pressure management to look for more short term returns and generate dividends, rather than undertake long term investment projects.
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