The Bankwatch

Tracking the consumer evolution of financial services

Goldman Takes ‘Private’ Equity Goldman Sachs takes ‘Private’ equity to a new level

Interesting shifts in the equity markets characterised by rise of hedge funds and investment alternatives for very wealthy only, and closed to individual investors.

Goldman Takes ‘Private’ Equity To a New Level – WSJ.com

These markets will generally be closed to individual investors. For instance, Goldman’s market is open only to large institutional investors with assets of more than $100 million. That is because the stocks traded on GS TRuE aren’t registered with the Securities and Exchange Commission and issuers aren’t subject to SEC regulations designed to protect individual investors.

It represents the latest step in the creeping exclusion of individual investors from a growing proportion of financial-market activity. For instance, giant private-equity firms are busy buying public companies and delisting them from stock exchanges. The growing importance of hedge funds — which are generally limited to wealthy investors, institutions and endowments — also excludes individuals.

Written by Colin Henderson

April 10, 2008 at 23:22

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