The Blackstone Group, the world’s leading private equity firm, is reportedly planning for an initial public offering that could value the company at more than $30 billion, according to the firm’s executives briefed on the plan. However, a final decision in this regard is yet to be taken. If the firm decides to go ahead with the plan it would mark the first time a private equity firm has sought a public listing. It can be an indication of similar offerings by the other big firms.
Blackstone Group has reportedly is on the verge of giving green signals on an initial public offering that would enable the US private equity group to raise billions of dollars. The move will not only massively enrich its top executives but it would help immensely the booming buy-out industry further into the public spotlight. In addition to it, a market entrance by Blackstone is expected to be taken as a sign of confidence in the wake of recent weakness in global equity market. Details of the offer are not clear at the moment, but Blackstone is believed to be in advanced stages of preparation.
Blackstone has appointed Goldman Sachs to draw a prospectus for a public listing. According to the reports it will be announced within the next two weeks. Blackstone’s public offering is believed to be for a minority of the shares, 10 percent as reports suggest, in the management firm that runs its funds.
Blackstone and Goldman Sachs have refrained from commenting on the report. However, Blackstone CEO Stephen Schwarzman has in recent times repeatedly said that he is not interested in an IPO of the firm or its various divisions. As a matter of fact, Private investment funds are increasingly interested in pursuing public offerings as it would allow them to raise money swiftly without having to rush out to institutional investors on a long and costly fund-raising process.
