Private equity may soon be going very public!The Blackstone Group, the world’s largest private equity firm, is preparing for an initial public offering that could value the firm at more than $30 billion. According to executives briefed on the plan, a final decision to proceed has not yet been made. If Blackstone goes ahead, it would be the first time a titan of private equity has sought a public listing. It may herald similar offerings by the other big names — the Carlyle Group, Kohlberg Kravis Robert & Company and the Apollo Group — which have all studied the possibility in recent months.A public offering by Blackstone would be a remarkable about-face for an industry that has long extolled the virtues of being private. Executives in private equity have criticised the public markets for being overly regulated and shareholders for focusing too much on short-term earnings. Indeed, the firms promote themselves as a haven from a finicky public. Just last month, Blackstone’s co-founder, Stephen A Schwarzman, told an audience of investors that “public markets are overrated”.As a public company, Blackstone would be subject to the same kind of scrutiny that it has tried to avoid. The compensation and perks of its executives, some of whom are routinely paid more than $50 million a year, would also have to be disclosed. Schwarzman, who owns as much as 40 per cent of the firm, is said to regularly pay himself in excess of $300 million annually, according to people close to the firm.-A R Sorkin & P Edmonston
