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
    Anonymous Coward, 18 Jul 2007 @ 5:58pm

    Re: Re: Compliance Costs

    Thats a lot of hooey! Compliance costs do not reduce profits THAT much.

    Institutional investors are willing to take that risk because it is other people's money.

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