Private Equity Firm To Go Public On Private Exchange

from the mind-bender dept

Whether it's shareholder lawsuits, political interference or Sarbanes-Oxley, there are plenty of reasons for companies to want to avoid the public markets these days. Still, public markets represent a good way to both raise money and give a company's principals liquidity. Private equity firm Apollo Management has announced that it will sell its shares on a private stock exchange established and managed by Goldman Sachs. The exchange is only open to institutional investors, which will allow Apollo to avoid unwanted regulatory scrutiny, while generally relieving it of many other burdens that face public companies. While Apollo will still have to communicate information with investors, it should have a lot more flexibility than the current public system allows for. If Goldman Sachs' exchange can garner a critical mass of listed companies and institutional traders, it, and others like it, should represent an interesting alternative to traditional markets.

Filed Under: markets, private equity, stock exchange
Companies: apollo, goldman


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  1. identicon
    Lutomes, 17 Jul 2007 @ 8:03pm

    Re: What's In It For The Investors?

    They get the advantage of higher profits due to lower compliance costs. Yes there is an increased capital risk. But many of the institutional investors are willing to take that burden.

    Not only that but the investors don't have to worry about making "mum & dad" investors happy. They can make/encourage the company to tie deals to things that could be mutually advantageous which isn't possible if you have to answer to thousands of other investors.

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