MSN MoneyCentral – Fortress Investment Group, which on Thursday will become the first US hedge fund and private equity group to go public, is generating intense demand for its shares among investorsanxious to grab a slice of the flotation, which values the company at about $7.4bn.
A source close to the deal said demand for the shares was “insane and ridiculous” saying it had far surpassed expectations of the deal’s book-runners and Fortress’s management.
The listing roadshow has been in progress for a week and the deal is now up to 25 times subscribed.
A meeting took place in New York yesterday at which many allocation decisions were due to be made. Allocating the shares in the face of such steep demand is now the main challenge facing the book-runners for the deal, according to sources close to the process.
Wesley Edens, Robert Kauffman and Randal Nardone, the company’s three co-founders, all of whom previously worked at BlackRock Financial Management, are expected to ring the opening bell as the stock debuts on the New York Stock Exchange on Friday morning.
