1. Deretailization: Force Behind “Going Private”?
Alan Palmiter
Wake Forest School of Law
“Going Private” Conference
Brooklyn Law School
Feb. 29, 2008

2. Pendulum? Trading Going (staying) private
“Eclipse of public corporation”
Ownership
Institutional investors
“Deretailization”
Copyright © 2007, Securities Industry Financial Markets Association

3. Source: Federal Reserve Flow of Funds Accounts
* Households includes nonprofit organizations
Source: Federal Reserve Flow of Funds Accounts

4. Source: Federal Reserve Flow of Funds Accounts
100% institutional
in 2033
* Households includes nonprofit organizations
Source: Federal Reserve Flow of Funds Accounts

5. Requiem for the retail investor?

6. Sources: SEC Office of Economic Analysis US Census Bureau

7. Sources: Federal Reserve Flow of Funds Accounts Bureau of Economic Analysis

8. Vanishing public markets?

9. Sources: Federal Reserve Bulletin, NYSE

10. Sources: Federal Reserve Bulletin, NYSE
SOX
Sources: Federal Reserve Bulletin, NYSE

11. Source: Thomson Financial (excludes best-efforts deals)
* Includes straight corporate, convertible, asset-backed, MBS debt
** Includes preferred stock, common stock
Source: Thomson Financial (excludes best-efforts deals)

12. Source: Thomson Financial (excludes best-efforts deals)

13. Source: Thomson Financial (excludes best-efforts deals)
SOX
Source: Thomson Financial (excludes best-efforts deals)

14. “Dark matter”?

15. Source: Thomson Financial

16. Source: Thomson Financial
Leveraging
Source: Thomson Financial

17. Institutionalization (and future of private markets)

18. Source: Federal Reserve Flow of Funds Accounts
2006
Source: Federal Reserve Flow of Funds Accounts

19. “Reports of my death ….”

20. The end