Laureate Education (NASDAQ: LAUR) is getting a lesson in private equity. That is, the company is going private. On the news, the stock surged 11.74% to $60.80.
One of the investors is Kohlberg Kravis & Roberts Co. Also, Goldman Sachs Group (NYSE:GS) and Citigroup Inc. (NYSE:C) will raise the debt.
But there is something that is odd: Steven Cohen's hedge fund, SAC, is an investor in the Laureate deal.
Typically, hedge funds focus on non-controlling positions. And, the holding periods tend to be short term. In fact, Cohen is known to be a quick-fire trader.
But, perhaps, he doesn't want to be left out of the private equity party. What's more, in light of his great track record, I'm sure his investors have no problems with this move.
Actually, we may be seeing signs that the distinctions between private equity and hedge funds are starting to blur. Keep in mind that recently KKR made a minority investment in Sun Microsystems (NASDAQ: SUNW). Yes, this is a hedge fund kind of move.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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