GSTrue, which is operated by Goldman Sachs (NYSE: GS), is a new-fangled marketplace to trade privately-held interests. One of its high-profile listings is Apollo Management LP., a top-tier private equity firm.
Unfortunately, the shares have lost more than 40% over the past year. Of course, this has been the treatment for many other private equity players because of the severe credit crunch.
According to the latest quarterly report, Apollo suffered a loss of $96 million, compared to a net profit of $144 million in the same period a year ago. The internal rate of return (IRR) fell from 42% to 21% over the quarter.
Moreover, Apollo is involved in litigation on its botched deal for Huntsman Corp (NYSE: HUN). And there was a 20% write down on the investment in Harrah's.
Despite all this, Apollo still appears to be on track for an IPO – to be listed on the New York Stock Exchange. Don't expect it to be easy.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
8-15-2008 @ 12:45PM
John said...
Apollo, Blackstone, KKR, Cerberus. A toilet by any other name still smells like turds. Anyone stupid enough to invest in any of these schemes deserves to lose their "investment". The public entities are merely ways for the insiders to monetize their allegedly good reputations for making money. The trouble is, when the public light is shone on their dealings, they are often found to be mediocre performers at best, big losers most of the time (e.g., Blackstone). Certainly, none of the private equity shops have come close to Berkshire in investment performance long term. Think RJR. Be smart. Just say "No".