NEW YORK (TheStreet) -- Can the average stock market investor make money investing in Wall Street's exclusive private equity and debt trading clubs?
As investors are tempted once again to tap rarified trading profits that were once available to only the smartest Wall Street minds and the world's richest investors, the tepid response to the initial public offering from the industry's largest distressed debt manager, Oaktree Capital, suggests more investors answered this question in the negative than bankers expected.
Investors are right to be skeptical of this IPO crop -- Carlyle Group is hoping to follow Oaktree and begin a road show next week.
Oaktree -- with $75 billion in assets under management -- placed 8.8 million shares -- lower than its original goal of 11 million shares -- at the bottom end of its price range, or $43. Thursday's deal raised $380 million for Oaktree, as it lists shares on the New York Stock Exchange under ticker "OAK". Shares fell lower than the IPO price in Oaktree's debut morning of trading. In an ironic footnote to the Oaktree deal, one of its restructuring investments, Aleris International, a once bankrupt steel manufacturer, scrapped a planned IPO on the same day that Oaktree priced its lackluster deal.
|Will debt specialist Oaktree Capital pan out for stock investors?|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV