May 4, 2006
Joining the Private Equity Club
From the NYT:
The exclusive private equity club, long restricted largely to financial institutions and high-rolling individuals, is looking a bit more egalitarian this week. That is because a unit of Kohlberg Kravis Roberts, the world’s largest buyout firm — as such investment companies were called before the term “private equity” came into vogue — has sold $5 billion in shares to the public through a stock listing in Amsterdam.
But is this a club that small-time investors should be rushing to join?
KKR’s offering was three times larger than originally expected, which demonstrates that the demand is certainly there. Many would also argue that individual investors, often called retail investors, should enjoy access to the impressive returns that many private equity investors have enjoyed in recent years.
LINK to NYT article
Related: International Tribune Herald picks up Bloomberg News' report, which entails more about meetings with Angela Merkel, Co-chancellor of Germany in NY today, who courting for more private equity investors:
Chancellor Angela Merkel of Germany will meet senior representatives of U.S. private equity groups in New York this week, as Europe's biggest economy lures investment from funds that were likened to locusts by some politicians last year.
Henry Kravis, a founder of Kohlberg Kravis Roberts, and John Edwards (former Senator and 2004 vice-Presidental candidate), senior adviser of Fortress Investment Group, will be among 12 company chiefs holding talks with Merkel on Thursday, said a German government aide. KKR, the world's biggest buyout firm, and Fortress have both invested in German companies.