Not long ago, institutions and sovereign wealth funds salivated over the opportunity to invest in private equity operations. But, as seen by the lowly stock prices of the Blackstone Group LLP (NYSE: BX) and Fortress Investment Group (NYSE: FIG), things are much gloomier now.
Interestingly enough, TPG has spent some time trying to drum up interest in an equity stake. And, it looks like there were serious talks with the Kuwait Investment Authority, the California Public Employees' Retirement System and the California State Teachers' Retirement System. However, according to a report in the Financial Times, it appears that negotiations have ended.
Now, this is probably not a case where there was no interest in deal. But, in the world of private equity, the dealmakers want to get a premium price, right? And, in the current environment, it's practically impossible to do so.
Of course, TPG is also forgoing a public offering. This market, too, has gone mostly dead. Instead, TPG now must focus on repairing its own portfolio -- and wait for sunnier times.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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