Dan Primack

Expect KKR To Begin Next Fundraise in Q3

I was off duty last week when KKR filed the S-1 for its un-IPO, and neglected to take an actual look until yesterday. Not too much new info, save for the following fund performance data (through 12/31/09) that I haven’t seen reported elsewhere: * European Fund (1999): 100% called, 19.9% net IRR * Millennium Fund (2002): 100% called, 17.7% net IRR * European Fund II (2005): 100% called, -13.4% net IRR * 2006 Fund (2006): 74% called, -2.8% net IRR Since its founding, KKR funds have a 19.2% net IRR. My first thought upon seeing the numbers was that the 2006 Fund is beginning to look a bit light on dry powder, particularly given that mega-buyout funds from that vintage may need to hold a bit more reserve capital than usual (due to possible refinancings, etc.). Plus, KKR keeps being tied to possible multi-billion take-privates like Harley-Davidson.

Last Chance To Join peHUB's March Madness Extravaganza

The NCAA tourney begins in just a couple of hours, and more than 450 peHUB readers have already filled out their brackets for our annual pool. The top finisher to receive three prizes: (1) Premium Membership to peHUB, which includes one year of complimentary access to our editorial archive; (2) A complementary one-year online subscription to Buyouts or Venture Capital Journal; and (3) The opportunity to write a lead column for peHUB Wire, which could mean anything from an essay to a company advertisement to a plea for work. Oh, and bragging rights. Just ask last year's winner, Dan Doman. Get details on how to play after the jump...

Trada Opens Up To The Crowd, Announces VC Funding

Following nearly 15 months of beta testing, Trada today will open to the public and announce that it has raised $2.2 million in VC funding from Foundry Group. The Boulder, Colo.-based company is focused on the paid search optimization space, and has created a crowd-sourced marketplace in which small and mid-sized businesses can get certified search experts to help improve their keyword campains.

VCs Stuff More Companies Into IPO Pipeline

Financial Engines priced its IPO above range last night, and just closed its first day of trading up nearly 44 percent. It was the fifth VC-backed IPO to price in 2010, and the third to do so since we last looked at the VC-backed IPO pipeline (the others were pharma companies AVEO and Anthera). There also have been four new additions to the pipeline in the past month, including the recent filing from Broadsoft. That works out to a net total of 38 VC-backed companies in registration to go public on U.S. exchanges, representing more than $4.5 billion in targeted raise. View the entire pipeline after the jump...

Laundry Room Chronicles: Talking KKR's Un-IPO

My weekly segment with Reuters Insider was about KKR's pending IPO, which isn't really an IPO at all. Per usual, filming took place from an 8x8 room filled with dirty clothes and video equipment:

NYPPEX Chimes In On Dodd's Proposed Change To Private Placement Rules

NYPPEX, a private equity secondaries exchange, has chimed in on a part of Chris Dodd's financial reform bill that could make life much more difficult for startups that raise capital from sources in multiple states. Read it after the jump:

The Myth of Form D Requirements for VC-Backed Startups

Earlier this month, I expressed disapproval over a proposed repeal to the federal preemption of state laws regulating securities offerings under Regulation D. Basically, I said that the current system works fine, and the proposed change would make it more difficult for startups to raise capital across state lines. In response, a reader sent over the following: “But shouldn't you mention that you have a conflict of interest, since a centralized repository of filings helps the press (but most particularly you and VentureBeat) to report on financings that used to be hidden from public view? You question Dodd's motivation for repealing the Reg D requirement but don't mention your motivation for wanting that centralized repository?” First, my objection was not based on self-interest. As you may (or may not) recall, I actually supported the creation of the centralized electronic depository, even though it was better for peHUB that the Form D filings remain in paper form (since my corporate overlords had someone at SEC HQ who scanned them into a fire-walled database, thus giving us near-exclusive access). But my goal this morning is not to reply to a single reader. Instead, it’s to share a secret with you that is so outside of my self-interest that it could cause consternation among my peers. Here goes: Many VC-backed startups do not need to file Form Ds with the SEC.

What Dodd Bill Would Mean for Venture Capital and Private Equity

Senator Chris Dodd today unveiled the latest version of his financial regulatory reform bill which, if passed, would have some implications for the venture capital and private equity markets (despite some media suggestions that PE/VC escape scrutiny). It's a lot like the original bill from last fall, but with exactly 200 more pages (we'll consider this the unabridged version). Here are the relevant highlights: 1. Dodd retains the original Senate bill's registration exemption for venture capital and private equity funds. He also retains the original bill's edict that the SEC is responsible for constructing a definition for "venture capital" funds and "private equity" funds -- so as to differentiate them from "hedge funds" (which will be required to register). As a reminder, an earlier House bill had only exempted venture capital funds of $150 million or less. Industry trade groups had insisted that any registration would be unwarrented, given that neither VC nor PE firms helped contribute to the financial meltdown. They're right, but hedge fund reps could have made the same argument...

EVCA Survey: LPs Will Bail If EU Proposal Is Implemented

The European Venture Capital Association recently surveyed 28 institutional investors, to learn possible consequences if the proposed EU Alternative Investment Fund Managers Directive is instituted as currently written. The trade group found that "67% would either withdraw from venture and growth investment completely or substantially reduce their allocations (by over 30%)." Read the press release here.

PE Community Helps Launch City Year London

Long before I knew the difference between a general partner and a limited partner, I was a Boston corps member with City Year. It's a nonprofit organization that served as the model for Americorps, and now mostly focuses on reducing the dropout rates in urban schools (back in 1994-1995, I was primarily involved in physical services like demolishing an abandoned crack house). In the years since, I've learned that private equity is an integral part of the City Year equation. Longtime board members include PE pros like Josh Bekenstein (Bain Capital) and Steve Woodsum (Summit Partners), and nearly 100 PE pros showed up last November for a City Year breakfast headlined by David Gergen. The latest example came this morning, when the UK-based Private Equity Foundation and TowerBrook Capital Partners announced that they are committing £1.42 million to help City Year launch a London corps.