More than half of GP 100 Panel members believe they would get more transparency from their private equity manager if the firm was publicly traded.
The results come after Alan MacKay, chief executive of Hermes GPE, claimed the recent initial public offering announcement by Apollo was a boon to the private equity industry, as it would help “demystify” the market.
Some 55.56% of respondents said there would be improved transparency with a publicly listed PE manager, while 22.22% disagreed. A further 22.22% believed transparency levels would remain the same.
In filings with the Securities and Exchange Commission, Apollo said it could raise up to $417m through the sale of shares priced between $17 and $19 each. Apollo joins the ranks of US-based, publicly traded, private equity firms including KKR and Blackstone.
“I think it’s great for the private equity asset class, that some of the major participants in it – and I’m sure others will follow – are now fully transparent, fully analyst covered, fully reported market participants. It removes any anxieties or fears people have about private equity,” said MacKay in an interview with Global Pensions.
“All the pension funds and retail investors can have a share in them, and it demystifies private equity as an asset class and that’s great,” he added.
He said the move among large public equity firms to go public is a natural evolution towards the institutionalisation of their businesses.
Click here to read the full Q&A with Alan MacKay
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