Private Equity
Turnaround consultancy Conway MacKenzie had a cocktail reception scheduled for last Thursday, as a belated introduction to New York City (it opened shop there two years ago). But it also had a big problem: Lawrence Taylor. You see, Conway Mackenzie had booked Taylor to appear at the event, to sign autographs for attendees, etc. It even featured Taylor's name on the invitation (see below). Unfortunately, last Thursday also is the day that Taylor was booked for statatory rape, after allegedly hiring an underage prostitute to join him in a Rockland County hotel room. "I landed in New York City at around 11am, and got all call about various contingency plans," says CEO Van Conway. "I said, 'Contingency for what?'" Conway MacKenzie had used a sports booking agency, and soon managed to secure NY Jets head coach Rex Ryan (seen in photo with Van Conway). To be honest, he probably would have been a better
1 min read · 13 May 2010
Venture capital sentiment continued to improve last quarter, according to a study of deal terms by law firm Cooley LLP. "In the first quarter of 2010 investment terms continued to be favorable -- a trend that began in the second half of 2009," said Craig Jacoby, head of Cooley's emerging companies practice. "While not all indicators are positive, we believe the trends are moving in the right direction and point to a healthier investment climate." The most positive indicator was that the percentage of up-rounds hit 58%, which is the highest level since Q3 2008 (its nader was a 16% mark in Q1 2009). Also increasing were the median pre-money valuations of Series A ($6.9m) and Series D or higher ($76.8m) rounds. Median pre-money valuations for Series B ($19.8m) and Series C ($32m) rounds fell from Q4 2009, but still came in higher than the year-ago period. Approximately 7% of all Q1 2010 deals had a pre-money valuation of $100 million or higher.
1 min read · 13 May 2010
The annual City Year Serve-a-Thon takes place next Saturday (5/22) in Boston, and one of the teams will be made up of venture capital and private equity pros (plus yours truly). We'll be working on two projects at the Condon Elementary School in South Boston: Revitalizing the school's overgrown baseball field (photo on left), and painting a large mural on its gymnasium wall. If we get participant overflow, we may also do some painting/landscaping outside a housing project down the street. If you are interested in joining us, please visit: www.cityyear.org/bostonserveathon Registration costs just $30, which helps raise money for City Year and cover the event's overhead. When registering, be sure to select the "PEVC" team. I hope to see a bunch of you there...
1 min read · 13 May 2010
Last fall, NYPPEX Private Markets issued a report about how secondary market investors were overvaluing VC-backed juggernauts Facebook and Twitter. Not only were they paying more for their shares than were venture capitalists, but they were getting common stock instead of preferred stock. Now, NYPPEX is planning to release a new report suggesting that only two things have changed: (1) Secondary market investors are overpaying by even more; and (2) Facebook and Twitter have been joined by Tesla Motors. "In effect, they are betting on further significant revenue growth and a highly successful IPO," says Larry Allen, managing member of NYPPEX. "If one of those two events do not materialize, then today's secondary investors may be providing the exit." Let's take a quick look at each of the three companies:
3 min read · 12 May 2010
The Blackstone Group plans to close its latest mega-fund by the end of next month with around $12 billion, according to multiple sources. The vehicle was originally pitched with a $20 billion target in October 2007, and then later downsized to $15 billion. For nearly the past year, it’s been stuck at around $9 billion. The $12 billion figure isn’t definitive, as there still are a bunch of potential LP commitments that need to be hard circled. But it should be pretty close. My initial thoughts were twofold: (1) That’s still a pretty good raise given fundraising market conditions, and (2) It means Blackstone will need to club up for those $10 billion+ mega-deals it likes to do (more Fidelity Nationals, fewer Hiltons).
1 min read · 12 May 2010
Tullis Health Investors (fka Tullis-Dickerson) last week informed limited partners that Tom Dickerson and Joan Neuscheler had resigned as general partners of the firm’s second and third funds, peHUB has learned. The firm confirmed the resignations in a brief statement, adding that “Both had previously indicated in January 2008 that they would not participate in future Tullis-Dickerson funds and had resigned from Tullis-Dickerson & Co., Inc. in January 2009 and September 2008, respectively.”
2 min read · 12 May 2010
Craig Cooper has stepped down as head of Saban Ventures, peHUB has learned. He will continue to work with the group in an advisory role, but also will pursue unrelated ventures. For example, Cooper's LinkedIn profile lists his current role a managing partner of something called Cooper Capital Partners (unclear if it's a real firm, or just a personal investment vehicle). Cooper is a veteran venture capitalist and entrepreneur, having been a venture partner with VantagePoint Venture Partners, a partner with Softbank Capital and co-founder of Boost Mobile. In early 2008 he was recruited by Haim Saban, the Israeli media mogul whose companies produced such things as Mighty Morphin Power Rangers and the theme music to Inspector Gadget. Saban already had a Los Angeles-based investment firm focused on acquisitions and later-stage deals, but asked Cooper to help launch an early-stage practice focused on digital media. Saban also hired Blueprint Ventures alum Richard Yen as a San Francisco-based director.
2 min read · 11 May 2010
My weekly video spot with Reuters Insider is about KKRs decision to sell $500 million worth of shares on the New York Stock Exchange. The offering either will come simultaneous to KKR transfering its listing from Amsterdam to New York, or shortly thereafter. Per usual, I'm filming just a few yards away from the home office...
1 min read · 11 May 2010
Yesterday I asked you not to sign an NVCA petition asking Congress to retain current tax treatment of carried interest (i.e., keep it as capital gains instead or ordinary income). But tons of folks obviously did so anyway. Most of the signees are venture capitalists, but there also are some entrepreneurs and service providers in there. Here is a copy of the letter sent today to every U.S. Senator, including more than 1,700 signatures.
1 min read · 11 May 2010
The National Venture Capital Association is circulating a petition that asks senators to maintain existing carried interest tax treatment for venture capital returns. In other words, the NVCA wants general partners investment profits to keep getting taxed at a rate around half that of ordinary income. The trade group has gotten more than 1,500 signatures so far, with today being the last day to add your John Doerr. I sincerely hope you don't do so. To explain why, I've posted the petition after the jump with my thoughts in regular type:
4 min read · 10 May 2010
