Corporate takeover, leveraged buyout, alternative asset management, private equity — whichever the popular term-of-the-day happens to be (presently the latter), the current push for private equity (PE) firms to list in the securities market has caused many public investors to turn heads and take notice.
Once famously known for being secluded and enigmatic, the PE industry finds itself now at the front doors of potential shareholders with a welcome cake in its hands and a Cheshire cat-sized smile upon its face. This may very well be innocent enough, but as newly transformed publicly traded companies, it begs the question: Will these private equity companies change their model to suit the needs of their shareholders or will they continue to do what is best for the limited partners, as they have traditionally done? Or is it possible to appease both types of investors considering their polarizing investment objectives? (more…)