The quest for more capital through initial public offerings by private
investment vehicles such as Fortress Investment Group LLC has been a trend that
seems to be on the upswing. But why? Speaking at "The Quest for More Capital"
panel at The Deal's Private Capital Symposium, Julie Spellman Sweet, a partner
at Cravath, Swaine & Moore LLP, said the trend is a result of private equity
companies such as Fortress intending to institutionalize their brand name, to
monetize partners of the existing private company, to seed new funds and to use
capital to buy other asset managers. The latter suggestion by Sweet raised some
eyebrows in the audience at the Sheraton Hotel in New York City. Sweet declined
to mention any possible asset managers she feels Fortress, in particular, may
look to gobble up. "Private equity companies are looking at many markets and as
many ways as possible [to raise capital]," said co-panelist John Barber,
managing partner at Citigroup Private Equity.
—Gerald Magpily
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