Private Equity
Private equity fundraising fell off a cliff in 2009, according to figures released this morning by research company Preqin. Nothing shocking here, although it's always good to have data backing up a narrative we pushed for the past 12 months. Preqin reports that 482 global funds raised $246 billion last year, which is down 61% from the $636 billion raised in 2008. It's also the weakest yearly total since 2004. The fourth quarter was actually the 2009 lowpoint, with just $35 billion raised by 75 funds.
1 min read · 07 January 2010
Monomoy Capital Partners is back in fundraising mode, raising $250 million for its second turnaround vehicle focused on the smaller end of the middle market. The New York-based firm was formed in early 2005, when four investors with turnaround giant KPS Capital Partners left to hang their own shingle. "There's just not as much capital chasing the small-middle market. We saw an opportunity and decided to pursue it," co-founder Stephen Presser explained at the time.
2 min read · 06 January 2010
My weekly video spot for Reuters Small Business, this time discussing the carried interest tax issue (vis-a-vis venture capitalists, since PE pros seem to have given up this particular ghost). Not really anything I haven't written before, but this time you can see me say the words. Not sure if that makes them carry more weight, or less....
1 min read · 06 January 2010
Roger Chabra has left Canadian venture capital firm GrowthWorks after a three year run, in order to become a partner with Rho Canada. In an email sent yesterday to friends and colleagues, Chabra wrote: "I am excited to be joining such an experienced and successful group of venture investors at Rho. Rho Canada is a leading venture capital firm and is dedicated to backing high-potential, early-stage companies. Formed in 2006, Rho Canada is closely affiliated with Rho Ventures in the US and leverages off Rho Ventures' 25+ years of experience in investing in venture-stage companies. Rho Canada and Rho Ventures are actively investing out of their respective funds today and we continue to seek new deals that fit our investment mandate." Chabra added that he expects to shuttle between Rho Canada's Montreal headquarters and its Toronto outpost. The firm also has a New York office, and raised just over US$100 million for a fund in 2006. I hear that the fund still has plenty of dry powder, but that Rho Canada is pre-marketing a new vehicle with hopes of holding a final close late this year. No official word yet on a target, but it will likely be close to the $100 million mark.
2 min read · 06 January 2010
Larry Schloss has agreed to become the next chief investment officer for New York City, peHUB has learned. He currently is chairman and CEO of private equity firm Diamond Castle Holdings, and previously ran CSFB Private Equity and DLJ Merchant Banking. The CIO position is one of several not yet officially filled by new NYC Comptroller John Liu, who took office earlier this month. It is unclear if Rita Sallis -- CIO under former NYC Comptroller William Thompson -- will remain in any capacity. Schloss did not return calls from peHUB, while a Liu's spokeswoman declined to comment. We did reach one of Schloss' Diamond Castle partners, but he simply said: "You'll have to talk to Larry." While we wait for official word, it's worth briefly discussing what this move could mean for both Diamond Castle and New York City:
3 min read · 05 January 2010
My weekly video spot with Reuters, this time discussing PE fundraising in light of Clayton Dubilier's recent $5 billion raise. Only thing I misstate is Madison Dearborn's current fundraise, which is currently just a tick above $4 billion (I mistakenly said $3.5b):
1 min read · 05 January 2010
Portland, Oregon's Marquam Hill is known to outsiders for its Sky Bridge, a 666-foot wonder that is believed to be the longest suspended pedestrian walkway in North America. To locals, however, the simply known as "Pill Hill." It's that latter reference that a new VC firm called Marquam Hill Capital is hoping to exploit (in a good way, of course). MHC was launched earlier this year by John Hull, a former partner with OVP Venture Partners, and Javier Fernandez, a former partner with Guggenheim Venture Partners and TL Ventures. Their goal is to invest in oncology-related startups, presumably including spinouts from the Oregon Health & Science University (which is located on Marquam Hill, alongside a couple of hospitals).
2 min read · 04 January 2010
I promise that not every post today is going to be about 2009 numbers, but since they keep rolling in... VCCircle.com has released its first annual deal roundup, showing that total private equity investment in India fell around 63% last year, from $11.9 billion in 2008 to $4.4 billion in 2009. This includes a 52% drop in angel and venture capital investment. On the upside, the Indian private equity market experienced 96 exits worth $2.2 billion, compared to 44 exits worth $930 million in 2008. View the full report after the jump...
1 min read · 04 January 2010
Thomson Reuters and the National Venture Capital Association this morning released Q4 and year-end 2009 data on VC-backed IPO and M&A exits. Not surprisingly, the results were underwhelming. The fourth quarter's five VC-backed IPOs brought the yearly total to just 13. That's more than twice the number of VC-backed companies that went public in 2008, but still played the backend of the slowest consecutive yearly total since 1974-1975. There were 67 VC-backed M&A exits last quarter, which generated $7.77 billion in disclosed value. The 2009 tally was 262 VC-backed M&A exits at a disclosed value of $12.55 billion, compared to 348 deals worth a disclosed value of $13.68 billion in 2008.
1 min read · 04 January 2010
Just running some IPO data, and noticed something kinda creepy (at least if you're semi-religious and/or watched lots of Headbangers Ball): There were 666 VC-backed IPOs over the past decade, which raised $66.6 billion. Not exactly a great omen for investors who are banking on an IPO rebound in the near future. Or maybe the endtimes refers to just the recent IPO market -- just 19 offerings in 2008-2009 -- which most everyone would be okay with obliterating. Or, most likely, this is just a wonderful piece of statistical symmetry. Moving on: What follows is a slideshow of the decade's ten largest VC-backed IPOs, including brief updates on where the issues currently stand. Each offering caused cork-popping at the time, but only a few retained their glory...
3 min read · 30 December 2009
