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
    Sean, 18 Jul 2007 @ 12:57am

    And the cycle begins anew...

    the reason why there's such a regulatory burden is that it's a proven fact that companies won't disclose unhappy news unless they're forced to - and C-level officers will in fact lie through their teeth to get big fat bonuses and paychecks.
    Investors go along with this because only-good-news investments make them feel warm and fuzzy inside.
    Until it all goes Enron, and then these fskers will be screaming for the govt. to bail them out again.

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