Blackstone Group's much-publicized announcement of its plans to go public has released a flood of commentary (here and here, subscription required) about its intentions.
Blackstone's leaders -- no dummies, those folks -- appear to have figured out how to tap the market at its peak while still maintaining the veneer of the private-firm structure. The Wall Street Journal describes it well:
It will typically defer to limited-partner investors in its funds over its common stockholders ... and reward its founding shareholders.
WSJ goes on to predict other private equity firms will follow Blackstone's lead: Carlyle Group, Kohlberg Kravis Roberts & Co. and Apollo Management.
OK, so flash forward a few years. The big guns who took the firm public have retired now (they got their rewards). The new big guns are left with an uncomfortable reality: having to defend to their shareholders how much they'll be paid.
What will happen next? Well, duh! These guys will move to take the firm private again.
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