Worst Deal of the Year

It is sad when you read something like this in a famous magazine. In the article, they rated the IPO of Blackstone Group as one of the Worst Business Deals of 2007.

Before the IPO, everyone in the industry knew that the founders of Blackstone wanted to cash out from the highest point of the private equity hype. But, apparently, the Chinese Government or the one who recommended this deal (Antony Leung) thought it was a good deal. It is hard to believe a government is chasing some trendy investment products… They really thought that Private Equity firms can leverage all their deals forever? Come on…

The Chinese government invested $3 billion in this deal and Blackstone’s stock price has already dropped around 35%. I believe this quote on TIME magazine summarize the whole incident very well: “A classic case of selling at the top to the suckers”... what can you say…Of course, you are only a loser if you don’t try it again. Hopefully, they have learned a very valuable lesson this time.

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