August 22, 2007 | Leave a Comment
With the exception of KKR Financial Holdings LLC’c (ticker: KKN) latest $230 million capital raise (which was actually not an IPO, but a follow on offering), the hedge fund IPO and public market activity seems to have come to a grinding halt. Word on the street from a number of investment bankers specializing in this sector is that private market valuations are much more compelling and are likely to become even more attractive over the coming weeks. As such, it’s pretty tough for the big boys to justify tying their money up in public offerings right now when there are a plethora of private market bargains to be had. It seems there is at least one high profile hedge fund liquidation per week and no shortage of hedge funds and private equity players willing to come in and take over assets or inject capital. Let’s not overlook the obvious: why not go to market with an IPO that’s sole purpose is to purchase assets and/or inject liquidity into floundering hedge funds? Seems like the best of all worlds. This would have to be a multi-billion dollar doozy of an IPO, however, in order to be executed with any success. Could it be time for Blackstone’s IPO record to fall?