After all the kerfuffle over
lackluster public offering,
private equity is hashing up novel ways to tap public capital.
Steve Cohen's hedge fund SAC Capital, which boasts more than $14 billion under management, is considering selling 20% of itself to minority investors, including Asian companies such as Singapore's Temasek. According to the
, SAC has hired Lehman Brothers to evaluate its options.
Similar to the Blackstone deal and the planned public offering of Kohlberg Kravis Roberts, the SAC sale would allow Stevie and longtime investors in the hedge fund to cash out.
The plan follows yesterday's announcement that Leon Black's Apollo Management will attempt to list itself via
GSTrUE -- a new platform for private placements of so-called 144A securities.
Apollo and SAC are making moves that allow them to avoid the intense scrutiny of public markets. After Blackstone's push to bang out billions in its offering , U.S. lawmakers have proposed a raft of bills that would see publicly traded alternative investment managers taxed at a higher rate in the future.
SAC would essentially allow a big investor to take a big stake in the company in exchange for large payout, while Apollo's private placement offers the private-equity shop an opportunity to list on a trading platform with less regulatory stress than the
New York Stock Exchange
Quasi-public offerings like Apollo's and SAC's are likely to be mimicked, especially given that the public market has so far proved less than welcoming for the likes of Blackstone. Its shares have fallen 16% below their initial offering price over the course of a month.
Blackstone's shares rose 19 cents Wednesday to $25.90, a day after they touched a new low of $25.51. CEO Steve Schwarzman has seen the paper value of his stake fall by more than a billion dollars.