Apollo Management Said to Be Considering IPO

Leon Black's private equity firm Apollo Management is rumored to be considering an IPO -- though senior management remains cagey about its intentions. The company has retained Goldman Sachs and J.P. Morgan to help it consider its options. The Apollo IPO rumor is circulating about two weeks after buyout company Blackstone Group became the first such firm to offer shares to the public -- an IPO in which Goldman and J.P. Morgan were conspicuously absent. The Apollo IPO, if it takes place, would involve only a small percentage of the company and be valued at about $1.5 billion; Blackstone is offering $4 billion in stock. Investment banks that stand to gain from the underwriting of transactions are said to be prodding private equity firms to follow in Blackstone's footsteps while investor appetite remains keen. Fortress Investment Group, which in February became the first hedge fund to go public, is trading at $28.99, 57% above its offering price of $18.50. Apollo has conducted 18 deals totaling $58 billion since the start of 2006.

Sources: Wall Street Journal, Bloomberg, Reuters, TheStreet.com
Commentary: Blackstone Files For $4 Billion IPO, Reveals Untold Secrets • The Private Equity Party Might Be Over • Fortress Goes Public: A Rational Look At Valuation
Stocks/ETFs to watch: Blackstone Group (BX), Fortress Investment Group LLC (FIG), American Capital Strategies (ACAS), Apollo Investment Corp (AINV). ETFs: Private Equity Listed Portfolio (PSP)

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