Institutional investors say they’re concerned that sponsors are applying too much leverage to companies, and many also believe exit conditions will deteriorate in the next two years. Nevertheless, a healthy percentage plan to raise their target allocation to private equity over the next year.
3 min read · 15 December 2014
Recent LP Commitments
1 min read · 13 December 2014
A New Jersey bankruptcy court judge approved an unopposed request to terminate the sale of the Revel casino in Atlantic City to Brookfield Asset Management at a hearing on Friday, Reuters reported. Brookfield, which had made a US$110 million bid for the casino, backed out of the deal because it failed to reach an agreement with bondholders who owned Revel's power plant.
2 min read · 12 December 2014
WSP Global Inc (TSX: WSP) has bought Dessau CEI SAS, the Colombian engineering subsidiary of Dessau International Inc. The acquisition's value was not disclosed. WSP, a Canadian professional services business, said the deal supports its South American growth strategy and enhances its expertise in the transportation and energy sectors. Based in Montréal, WSP is backed by Canada Pension Plan Investment Board (CPPIB) and the Caisse de depot et placement du Quebec. Following its October purchase of Parsons Brinckerhoff, CPPIB and the Caisse owned around 17.3 percent and 17.5 percent, respectively, of the company's common shares.
4 min read · 12 December 2014
Canada Pension Plan Investment Board (CPPIB) has agreed to join an investor group to back a medical platform of China's Neusoft Corp. CPPIB, Chinese private equity firm Hony Capital, Goldman Sachs Group, Neusoft Holdings and Chinese venture capital firm Frontline BioVentures will invest 1.6 billion RMB (US$258.5 million) in Neusoft Medical Systems Co Ltd, and buy 1.13 billion RMB (US$182.6 million) of shares in the company from Neusoft Corp. Several investors also plan to invest US$170 million in Neusoft Xikang Healthcare Technology Co Ltd. The deals are intended to accelerate growth of the companies in the global healthcare market.
7 min read · 12 December 2014
The California Public Employees’ Retirement System reports in its latest annual performance review that its private equity portfolio has lagged its public-equities-based benchmark over the last 10 years. An analysis of the portfolio by data provider Bison using a proprietary calculation provides clues as to why.
4 min read · 11 December 2014
CRS CraneSystems Inc announced in a website blog post that Canadian private equity firm Regimen Equity Partners recently became its majority shareholder. The deal, the financial terms of which were not disclosed, was done in partnership with Jim Caldwell, who now assumes the role of president, and Mark Lodge, a managing director. Based in Edmonton, Alberta, CRS is an overhead bridge crane service, maintenance and manufacturing company. Its partnership with Regimen will focus on the company's plans to expand in Canadian and U.S. markets.
2 min read · 11 December 2014
MAAX Spas Industries Corp, a portfolio company of the private equity group of Brookfield Asset Management, has bought L.A. Spas, a U.S. designer and manufacturer of hot tubs. The acquisition's value was not disclosed. Its second purchase since it was bought by Brookfield in 2008, MAAX Spas said the deal creates one of North America's largest hot tub and swim spa manufacturers. Based in Chandler, Arizona, MAAX Spas was previously affiliated with Lachine, Québec's MAAX, a provider of bathroom products. Prior to 2008, the company was owned by an investor group that included J.W. Childs Associates and the Ontario Municipal Employees Retirement System (OMERS).
4 min read · 11 December 2014
Ivanhoé Cambridge has sold the Fairmont Hotel in Washington, D.C., to MetLife Inc (NYSE: MET). MetLife paid US$180 million for the 415-room hotel, and is now its sole owner. Going forward, the property will be managed for MetLife by Fairmont Hotels & Resorts. Ivanhoé Cambridge, the real estate investment arm of the Caisse de dépôt et placement du Québec, said the deal brings it closer to the completion of its long-term hotel sales program.
3 min read · 11 December 2014
Thunderbird Films Inc, a portfolio company of Canadian specialty finance firm Difference Capital Financial, has purchased Great Pacific Media Inc, a factual television producer with headquarters in Vancouver. The financial terms of the transaction were not disclosed. Thunderbird Films, a television and film production business, said the acquisition will accelerate its growth in the unscripted television space. In September, the company bought the London, U.K.-based Soda Pictures Ltd.
3 min read · 11 December 2014
