Private equity firms are expanding into hedge funds, fund of funds, underwriting stock and bond offerings, infrastructure and real estate due to a lack of investing opportunities and capital raising. They are following Blackstone's example of becoming a publicly traded firm where they have to make themselves more attractive to institutional investors by diversifying their revenue streams. The stock performance of these firms have been disappointing. Blackstone's share price is 45% below the IPO price in 2007. Apollo Management is down 4% since March. Of course, private equity firms are known for buying low and selling high. So, if they are selling...
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