Big thanks to the more than 150 of you who came out last night for our peHUB Shindig in Washington DC, and for choosing to donate the ticket proceeds to Fisher House, a builder and operator of homes away from home for military families, to be with their loved one during hospitalization for an injury, disease or illness. Kind of like a military version of Ronald McDonald Houses, and particularly appropriate for the Veterans Day holiday. We’ll certainly return to DC next year. But tonight it’s onto New York City, which is quite sold out. Then it’s onto Boston for tomorrow night, where there are just a handful of tickets remaining . And, by demand of certain readers, in Boston I’ll be wearing the Boston Bruins jersey recently deemed best conference chachke ever. As always, special thanks to our regional sponsors Dechert LLP and Square 1 Bank, and also to local Boston sponsors Atlas Venture and Polachi & Co.
1 min read · 12 November 2008
1 min read · 12 November 2008
* Congressman Elijah Cummings calls on AIG chief Edward Liddy to step down. Maybe his leave from buyout firm CD&R will be short-lived... * James Henry & Jim Manzi: Forget the bailouts, invest in innovation. * A new TARP requirement that recipients must first prove able to raise private capital? In other words, PE firms are about to find a new source of "leverage." * Sign of the times: Exclusive ski and golf community Yellowstone Club files for bankruptcy. * Morning Call: U.S. Futures down (although they seem to have since flattened out), Europe up on pharma and telecom, Hong Kong and Japan both fall. * Henry Blodget: Facebook shares are changing hands at $4 billion valuations, while the company's CFO searches for new cash in Dubai.
1 min read · 12 November 2008
Yesterday we reported that Rob Hamwee had joined New Mountain Capital, after having spent the past 14 years with GSC Group and its various affiliates. New Mountain isn’t commenting (save for its receptionist passing me through to Rob’s voicemail), but we do have a few additional details: Hamwee is officially a managing director with New Mountain, and is expected to focus on debt opportunities (particularly on the distressed side). Kind of interesting for a firm that prides itself of eschewing leverage on its buyouts… The firm has some strategy flexibility in its $5.1 billion third fund, but it probably will launch a separate fund-raise for Hamwee’s activities. No major staff-up planned, although a few junior hires are possible...
1 min read · 11 November 2008
We often lose track of earn-outs, those milestone-based payments that can come years after a company is formally sold. So thanks to Silicon Alley Insider for pointing us toward this SEC filing, indicating that Harmonix scored $150 million last quarter from parent company Viacom. Harmonix is the maker of Guitar Hero and Rock Band, the games that have caused millions of teenagers (ok, and me) to see fake guitar tabs when it’s time for shuteye. It raised around $7.7 million in VC funding between 1998 and 2001, with a top post-money valuation of $38 million. It was then bought by Viacom subsidiary MTV Networks in 2006 for a reported $175 million. That sale figure now rises to $325 million with the Q3 earn-out, and is expected to go even higher.
2 min read · 10 November 2008
1 min read · 10 November 2008
3 min read · 10 November 2008
1 min read · 10 November 2008
It's that time of year again, when we team up with the Association for Corporate Group for a survey of dealmaker opinions. So if you are a private equity GP, LP, lender or other service provider -- please take five minutes to let us know what you think about the current and future market. It only takes about five minutes to complete, and participants will receive the results straight to their inbox in early December. We'll also post them here a day or two later. Take it here.
1 min read · 07 November 2008
Yesterday, I wrote that Obama’s victory signaled the coming end of carried interest being treated as capital gains. It’s a change that I have publicly supported for more than a year, but I still wanted to check in with its most vocal opponent, Congressman Tom Reynolds (R-NY). Reynolds did not stand for reelection this time around, and will be one of several GOP departures from the House Ways & Means Committee (Phil English, Jerry Weller, Jon Porter, Ron Lewis). He said that the shakeup will make it more difficult for Republicans to effectively fight Democratic efforts to change tax policy, but that the Committee still has “fine leaders” like Eric Cantor and Paul Ryan. "I think everything is now on the table,” Reynolds says. “The private equity carried interest issue was out front, and any time you have exposure to potential revenues, it never goes
2 min read · 06 November 2008
