Skip to main content

The Biggest LBO Ever: Does The Blackstone REIT Deal Mark the Beginning of the End of Public Companies?

  • Author:
  • Updated:

Okay. That headline is a little hyperbolic. There will always be public markets because there will always a demand for investment opportunities from the capital markets. But it's not impossible to imagine a shift in the public markets—one where we'd see fewer and fewer operating companies trading on stock exchanges, and more and more investment banks, private equity firms, hedge funds and pseudo-investment companies like Sears and Berkshire-Hathaway dominating. The question is not so much whether we want this intermediation between the capital markets and operating corporations to happen but why it's happening?
Also, while we've got nothing but admiration for Blackstone's Jonathan Gray, we do wish he wasn't lifting his press quotes directly from our compodium of empty investment banking cliches, the Deal Lingo Lexicon.

“We believe that the skills and strengths of Equity Office will greatly enhance our existing office platform,” Jonathan D. Gray, senior managing director of Blackstone, said in a statement.

Blackstone Acquiring Trust in Richest Buyout [New York Times]