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, 23 Jul 2007 @ 11:37am


    The compliance issues would only get around listing and trading practices set forth by the exchange boards (NYSE, CBT, NASDAQ, etc). If they are based in the US they all have to still abide by SEC regulation, and if they want to allow the public/brokers/investment firms to trade on them they still have to obey the six big investment acts. Earnings filings, SOX logging, fraud, etc are enforced by the government.

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