Research 2.0

Wednesday, May 24, 2006

Private Equity Full Circle?

When KKR "went public" recently to raise another huge buyout fund a little bell went off in our head.

We have noted the multi-year shift away from public markets that started with hedge funds and then these massive increases in private equity activity around the world. It has been a situation that simply reflects the reality of the marketplace and the power large cash buyers have to dictate terms away from public markets.

Then KKR went to the public markets with enough success that there appears to be a line forming for the other major players to do the same thing.

This completion of the circle combined with announcements about upcoming $25B technology company buyouts and $100B funds just seems surreal.

Are the markets that broken?