The First US Hedge Fund IPO

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Today the Financial Times revealed that Fortress Investment Group is preparing to file for an IPO that might value the firm at up to $8 billion. It would be the first time a hedge fund manager has gone public in the US, and a test of whether hedge funds can prosper under the increased scrutiny that is the admission ticket to the public capital markets.
On a side note, here’s an ironic possibility. While increased regulation of US corporations may have pushed many firms to go or stay private in recent years—increased regulation of hedge funds may push them to go public. After all, if you are already subject to an intrusive and costly regulatory regime, the marginal costs of additional regulation in public markets might not be that high. So greater regulation may actually deliver smaller investors more access to hedge fund risk.
Fortress plans first hedge-fund IPO in US [Financial Times on MSNBC]

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