Credit-crippled was how we on Monday described private equity. And here’s one that’s limping.
NakedShorts notes that the weekend saw the first anniversary of the float of Fortress, the private equity and hedge fund group. In the heady days of February 2007, “when sub-prime meant finding gristle in a filet at Smith & Wollensky”, Fortress came to market, opened at $35, traded up to $37, and closed at $31.
It was the stock that prompted one online commentator to ask, “40x earnings? Are you stoned?”.
It turns out we all were.