BY GREGORY ZUCKERMAN
When private-equity and hedge-fund firms go public, the deals usually bring them loads of cash.
For some longtime clients, public listings often bring something else: heartburn.
Public pension funds and other private-equity clients worry that managers they entrust with their money could become too preoccupied with short-term results, may lose their focus on deal making or, thanks to an offering windfall, could have one foot out the door.
Public listings can lead to a fundamental tension between large investors who select the funds for strong returns long term and shareholders who clamor for quarterly earnings increases and constantly monitor the ...
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