P10 Industries Inc. (PX)

[paideia]

Here's an interesting excerpt from Insitutional Investor about the conflict of interest that arose in the Fortress Investment Group when a private hedge fund goes public. PIOE would seem to be avoiding that inherent conflict, since the majority of the shareholders are the owners...

To many observers the Fortress saga proves that publicly traded alternatives firms aren’t a good idea. One problem, attorney Kaplan says, is the conflicting demands of running a hedge fund and operating a public company: “When you’re running a hedge fund, you’re trying to maximize value and return for investors in the fund, but if you’re a public shareholder, your interest is fees being as big as possible. Instead of running a fund strictly for the benefit of investors, now you’ve got shareholders to be responsible to.” Fortress doesn’t seem to have done well by either.

As Kaplan puts it, “It’s pretty clear now that public ownership is not the future of hedge funds.” And this time around, the principals can’t take the money and run. They will have to reinvest 50 percent of their sale proceeds in either their own funds or those of SoftBank. With the sale of Fortress to SoftBank, the cycle appears to have come full circle.

https://www.institutionalinvestor.com/article/b1505p66vq06cy/the-fall-of-fortress

Who knows, maybe Softbank will want to buy PIOE!