Thursday, May 10, 2007

Private equity, privately traded

Now this is a twist. We've been reading about private equity funds raising money in the public markets through offerings and such, but Oaktree Capital Management is trying a new idea: raise $700 million, but to so through a private trading market being developed by Goldman Sachs and called the "GS Tradable Unregistered Equity Market" or GSTrUE. Nice move by OCM. Raise money, give up basically no control, and no dealing with the BS of a public offering while offering the possibility of liquidity. Heck, I'd consider buying a little of that action. (Note to self: find $100 million, the minimum you'll need to get into the action.)

While I am bringing up this here, in a real estate blog? Two reasons. This private market could be a trend that other firms might build on to raise capital with less hassle, and Oaktree has a small but rather significant real estate portfolio. In fact, OCM just hired John Brady of Colony Capital to head their real estate operations following the departure of Russel Bernard (before you ask: my spelling is correct, that of the story in the link is not) and all the senior folks save one last year to start up Westport Capital Partners LLC. Russ and his team are raising money for their first fund, and I'd be shocked if they do not do phenomenally well.

1 comments:

ilanit said...

Riverside business investment firm is focusing on growth-oriented businesses. It invests alongside management teams and operating executives to sponsor management-led buyouts, recapitalizations and growth financings and which is only focusing on Los Angeles, Riverside and Orange County.

 
-