Meanwhile, the transformation of capital markets proceeds apace. Last week, the press reported that Oaktree Capital Management LLC, an alternative investment firm that had US$40 billion in assets under management, had sold around 14% of itself for more than US$800 million. There were fewer than 50 buyers.
Oaktree is only one more firm cashing in on the surge in private equity. There was Fortress Investment Group’s public offering before it, with Blackstone’s yet to come.
Oaktree’s shares will trade on a new private market developed by Goldman Sachs, “GS Tradable Unregistered Equity OTC Market.” GSTrUE, as it’s fashionably known, has not been publicised by the secretive Goldman, but reports suggest that it is on track to become an alternative exchange for hedge funds and other big players.
It seems that you only need US$100 million in spare change for investment and a hankering to elude SEC oversight…We think we smell the exciting aroma of a new trend here.
Markets and Money