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I have very little exposure to our financial oligarchy simply because much of it revolts me. I can make money in other ways - and sleep at night. The obvious Russian mafia play is Goldman Sachs (NYSE:GS) but I don't want to go there - instead I chose the king of private equity, BX, - lesser of 2 evils I suppose. That said, both the investment banking and private equity culture is helping to enact reverse Robin Hood upon the American masses (take from the many to give to the few).

So as I take off my "I give a care about the US economy or its people" hat, and I put on my "I love speculating and using the masses money to advance the causes of the financial oligarchy" hat, a short story on Blackstone Group (NYSE:BX). The stock has bounced very well since we added some extra exposure Friday but then again.... what hasn't done well?

  • Team Health Holdings Inc, a hospital staffing company owned by a unit of private equity firm Blackstone Group (BX), has filed to raise as much as $100 million in an initial public offering.
  • Knoxville, Tennessee-based Team Health, 92 percent owned by funds affiliated with Blackstone, provides staffing and other administrative service to 550 U.S. hospitals, according to a prospectus filed on Tuesday with the U.S. Securities and Exchange Commission.
  • Team Health revenue rose 6.9 percent to $711.7 million in the first six months of 2009, with net income totaling $41.7 million, compared with a prior-year profit of $27.1 million on $665.5 million of revenue.

No shocker here - a growing company in one of the worst recessions in modern history... but it's in a sector that is immune to the reality of costs in U.S. society: healthcare.

I suppose its a net positive that capital markets are opening up to the point that private equity can now sell off companies they've "managed" privately. Of course I assume Blackstone, like all PE firms, layered the company up with debt to help pay for the fees for their expertise... that's the private equity way!

  • Potential use of proceeds from the IPO include debt repayment.

[Sep 10, 2009: Blackstone Group Rallies on Goldman Sachs Addition to Conviction Buy List]

[Aug 27, 2009: Blackstone Group Becomes Top "Fund of Fund" Player]

[Aug 6, 2009: Blackstone Group Beats, But Already Ran into Earnings]

[May 7, 2009: Blackstone Group Narrows Loss]

[Mar 31, 2009: Bookkeeping - Starting Blackstone Group]

Long Blackstone Group in fund; no personal position

Source: Blackstone's Team Health Holdings IPO: A Play on the Financial Oligarchy