Apollo working with banks on IPO: source

NEW YORK (Reuters) - Private equity firm Apollo Management is working with investment bank Goldman Sachs Group Inc. (GS.N) and JP Morgan (JPM.N) on a possible initial public offering, a source familiar with the matter said on Tuesday.

CNBC reported late on Tuesday that Goldman is working with Apollo on a potential IPO. The report comes after the widely noted absence of the two investment banks as underwriters for the $4 billion IPO underway by private equity giant Blackstone Group.

"Apollo would not surprise me," Scott Sweet, managing director for IPO research firm IPOboutique.com.

"Assuming Blackstone trades very well, people are going to be asking 'when is the next private equity offer coming,' and they will not miss the second one," Sweet said.

Apollo, Goldman and JP Morgan declined to comment.