Back in June 2007, Blackstone dazzled the alternative investment world when it went public, but the honeymoon was short lived. The stock didn't fare well in the aftermarket, and was often seen as one of those "signs of the times." Few other private equity firms (private equity news) were able to quickly follow suit.

But another way to look at it--as Breakingviews does-- is that Steven Schwarzman and Pete Peterson were savvy enough to sell at the top. "They locked in permanent capital provided by lesser mortals, while Peterson cashed out to the tune of nearly $2 billion and Schwarzman pocketed almost $700 million." Shareholders are still suffering of course. The firm's listed units have tumbled 69 percent since the IPO (IPO news), compared with a 31 percent decline for the S&P 500 index. But Breakingviews suggests that the stock is undervalued by about 20 percent.

We'll see if the firm's investor relations team can get the message out and to what extent the private equity industry rebounds. Given the markets right now, many can lay claim to being undervalued. We'll just have to see if Mr. Market concurs. 

For more:
- here's the article

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