One of the best opportunities in the public equity market right now
is in, as strange as it may sound, investing in private equity.
About a decade ago, a slew of the largest and best-run private equity
firms starting going public. This was due in good part to let the
founders — including investing legends such as Leon Black, Henry Kravis
and Henry Schwarzman — create personal liquidity but also benefit by
raising capital when stock market performance was strong.
Lately though, the market has been struggling royally, and the PE
space has been no exception. Anything related to finance has become a
four-letter word, and the stocks of the largest private equity firms
have suffered disproportionately. While the market is down around 10% in
2016, the best and brightest PE firms are down much worse — percentages
range from the mid-teens to the low 20s.
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