After watch shares in fellow PE guys that went public plummet, KKR has wisely pulled plans to list it's shares. Both Blackstone (BX) and Fortress (FIG) are now trading almost 30% below their IPO prices. Why?
Democrats. Democrats are looking to take power in 2008 and are already sharpening their tax pencils with cigarettes, your dividends, your capital gains, oil companies and now private equity in the cross-hairs. Currently PE can classify earnings in a way that provides them with a 15% tax rate. Democrats want to change the rule and make it 35%. Why would anyone want to buy shares in a company whose tax liability may jump 125% in a year?
They wouldn't, and aren't.