In the world of individual investors, "Blackstone IPO" is a phrase that ranks right up there with "Amanda Beard photos" in overall sexiness and mystery. Will it be everything that we hope? we wonder, and the fact is, it probably won't. The IPO is due to price today after the market closes, and will start trading tomorrow under the symbol "BX" on the NYSE.
The thing that is problematic, as Peter Cohan has pointed out, is that the term "monetization" weighs heavier (and, for us, far, far less sexy) on the company's prospects than anything. The fact is: the firm isn't forecasted to make a profit for years so it can pay off its partners, for instance, chief despot and CEO Steve Schwarzman. Not just that, but individual investors will be subject to a variety of strange tax impacts, including the rather less-than-detailed reporting the company plans to issue and the possibility that legislation might create adverse tax consequences for the little guy.
It's funny, too, that Schwarzman called the public markets overrated, and mentioned that rival Kohlberg Kravis Roberts had "destroyed the market" for anyone else.I guess, in a few moments, we'll see. The IPO priced at $31 per share, the top end of the range expected and setting Blackstone's valuation at $33.6 billion.
The thing that is problematic, as Peter Cohan has pointed out, is that the term "monetization" weighs heavier (and, for us, far, far less sexy) on the company's prospects than anything. The fact is: the firm isn't forecasted to make a profit for years so it can pay off its partners, for instance, chief despot and CEO Steve Schwarzman. Not just that, but individual investors will be subject to a variety of strange tax impacts, including the rather less-than-detailed reporting the company plans to issue and the possibility that legislation might create adverse tax consequences for the little guy.
It's funny, too, that Schwarzman called the public markets overrated, and mentioned that rival Kohlberg Kravis Roberts had "destroyed the market" for anyone else.
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