Blackstone's pending $4 billion initial public offering may be tempting for individual investors, but shareholders beware: the firm's growth will be tough to maintain, and its business difficult to grasp, IPO analysts said Friday.
Blackstone, a New York-based private investment fund and advisory firm, filed on Thursday to take around 10% of itself public. The filing was a landmark event, as Blackstone is the only major U.S. private equity firm to offer a piece of its general partnership to the public.
The offering will allow both financial institutions and individual investors in the U.S. a piece of the Blackstone Holdings IPO, with a New York Stock Exchange listing planned to come in the next 80 days, sources close to the process say.
That differs from other offerings issued by such U.S. private equity firms as Kohlberg Kravis Roberts and Apollo Management, which listed public overseas that were limited to certain investors.
Thanks to a few huge Blackstone deals -- the $23 billion buyout of Equity Office Properties Trust among them -- and a thriving private equity climate seizing headlines, individual investors are likely to clamor for Blackstone shares.
Room for Caution
Yet some analysts cautioned that although the firm's success is tough to dispute, the ability to maintain its sky-rocketing growth is less clear.