Even as private equity giant KKR announced the latest giant bid to take a company private, more hedge funds seem poised to make the opposite move and jump into the public markets with equity offerings.
The Fortress Investment Group’s public offering earlier this year set a precedent, a model if you will, for how to take pools of private capital into the public capital markets. And, perhaps more importantly, created several new billionaires among its principals, inspiring would-be copycats through the hedge fund and private equity world. Less than two months after the Fortress IPO, Blackstone announced its own plans to sell partnership equity to the public and rumors persist that another large private equity firm—perhaps KKR—is getting ready to follow suit.
An article on Fortune’s CNN feed today explores the question of which hedge fund might be next up on the IPO block. The three most likely candidates it names are Avenue Capital, Perry Capital and the Citadel Investment Group.
Perhaps most tantalizing of all, however, was this little detail in the articles lede.
On the night before Fortress Investment Group became the first hedge fund to trade on the New York Stock Exchange, Wesley Edens and the other four principals celebrated in a manner that befits the firm's intentionally low-key profile. They gathered at a bar on the Upper West Side of Manhattan.
Of course, DealBreaker wants to know more. Which bar? Where do you go the night before you become a billionaire? Any guesses? Leave a comment or send an email to tips(at)dealbreaker(dot)com.
Predicting the next big hedge fund IPO [Fortune on CNNMoney.com]