It’s been nearly a week since SEC chair Mary Shapiro issued her statement about a federal ban on PE/VC firms using placement agents to raise fund capital from public pensions. What remains elusive, however, is the actual proposal. As such, the private equity market still doesn't have answers to such questions as: (a) Would public universities be included? (b) Would firms be grandfathered in if they began fundraising before the rules were put in place? (c) Would all public pensions be required to standardize reporting of intermediaries? (d) Would there be a capital floor, or is it “one size fits all?” (e) Is the SEC out of its frickin’ mind? An agency spokesman yesterday told me that there is no specific timetable for when the rules will be released, but told me to keep my eyes on this section of the SEC website. In other words, the proposal could be there within the next hour, or within the next month. Probably closer
1 min read · 28 July 2009
Quick info on a pair of private equity deals that haven’t been otherwise announced: *** Marlin Equity Partners has acquired the Battery Systems business of Tyco Electronics Inc., for $25 million. Tyco had disclosed the sale in a May 10-Q filing, but without naming the buyer. No word yet on if Marlin paid the entire $25 million in cash, or if it secured leveraged financing. The newly-independent company has been renamed Palladium Energy, and is based in Naperville, Illinois. It makes and tests custom battery packs for use in portable
1 min read · 27 July 2009
KKR's un-IPO took a procedural step forward this morning, when its Amsterdam-listed affiliate launched a consent solicitation for a planned combination with its parent company. If successful, KKR would effectively trade on Amsterdam for several months, and then transfer its listing to New York. Worth noting, however, that the New York listing could theoretically be on the Nasdaq, although that's probably just some posturing to get better terms out of NYSE. Below we've posted the entire 400+ page soliciation statement. Here's a quick excerpt on Q408/Q109 valuation changes on its largest PE portfolio holdings: As of March 31, 2009, investments which represented greater than 5% of the net assets of consolidated private equity funds included: (i) Dollar General valued at $1,612,190; (ii) First Data valued at $1,476,141; (iii) Alliance Boots valued at $1,386,906; (iv) Legrand S.A valued at $1,368,324; (v) HCA Inc. valued at $1,117,194; (vi) Biomet valued at $1,015,303; (vii) Energy Future Holdings valued at $1,008,625; and (viii) Legg Mason valued at $988,502. As of December 31, 2008, investments which represented greater than 5% of the net assets of consolidated private equity funds included: (i) First Data valued at $1,514,986; (ii) Legrand S.A. valued at $1,501,887; (iii) Energy Future Holdings valued at $1,412,075; (iv) Alliance Boots valued at $1,410,686; (v) Dollar General valued at $1,398,016; (vi) Biomet valued at $1,054,149; and (vii) Legg Mason valued at $1,053,059. Get full consent solicitation after the jump...
1 min read · 24 July 2009
Still here at the Fortune Brainstorm Tech conference, and David Roux (Silver Lake) and Jonathan Nelson (Providence Equity Partners) are being interviewed on stage. Here's a live-blog after the jump:
1 min read · 23 July 2009
New AOL chief executive Tim Armstrong just finished speaking here at the Fortune Brainstorm Tech conference, and gave a bit more color on the reinvigorated "AOL Ventures" initiative. Sounds like AOL Ventures will basically be a bifurcated program. On the one hand, it will be used like a traditional corporate VC arm, investing in companies that AOL believes could be of eventual strategic value. Or, as Armstrong puts it: "AOL Ventures is not as much a strategy as a membrane around the company to bring in innovation." Of greater interest, AOL Ventures also will be where the company puts past strategic acquisitions that have not yet worked out. Kind of a way station of sorts, with companies given a P&L and then left to chase their
1 min read · 23 July 2009
Newly-minted VC Marc Andreeesen is currently being interviewed on stage by Fortune's Adam Lashinsky, as part of Fortune's Brainstorm: Tech conference. Live-blog after the jump...
1 min read · 23 July 2009
Is Mary Shapiro jealous of all the pub that Andrew Cuomo has been getting? The SEC today proposed new rules that would prohibit private equity funds (broadly speaking) from using placement agents, when trying to secure capital from public pension systems. This is basically the federalization of what's been doing in New York, and is equally misguided (albeit well-intentioned). This is basically the federalization of what’s been going on in New York, and is equally misguided (albeit well-intentioned). “Placement agents” didn’t cause the pay-for-play scandal in New York. Corrupt public pension officials did. All the scummy fixers in the world can’t make a dent in an honest retirement system. That’s why it’s pay-for-play, rather than just pay.
2 min read · 23 July 2009
Venerable venture capital firm Matrix Partners is in the midst of raising two new funds, according to regulatory filings. The larger pool of capital would be for Matrix Partners IX, which is targeting the same $450 million that was raised for Matrix Partners VIII back in 2006 (technically $445m, but you get the point). Typical VC fund, and an LP source tells me that the final close is all but a formality at this point. The other fund is a bit more mysterious. It's called Matrix Partners Special Opportunities Fund, and is targeting $150 million.
2 min read · 21 July 2009
Yesterday, we reported on the details of The Blackstone Group's confidential annual meeting documents, which were distributed to its private equity fund investors two months ago. Today, I chatted a more more about it with the Reuters Insider crew, with a particular emphasis on the issue of leverage. As always, I'm coming live from the laundry room, just a few paces from the peHUB home office:
1 min read · 21 July 2009
Stop me if you've heard this one before: Venture capital investing increased in the second-quarter of 2009, even though investment activity was still much lower than in Q2 2008. Oh yeah, we wrote about it over the weekend (and have been What's different this time is that the data comes from MoneyTree, a joint venture of the National Venture Capital Association, PwC and Thomson Reuters. That last one just happens to publish peHUB, which means we trust these numbers a bit more, have access to the actual database and are able to display a gluttonous smorgasborg of charts (see below). The topline number is $3.7 billion invested in 612 U.S.-based companies. This compares to $3.19 billion raised by 601 U.S.-based companies in Q1 2009, and $7.55 billion raised by 1,048 U.S.-based companies in Q2 2008. To use a semi-apt sports analogy, VCs took a baby step off the sidelines, but are nowhere near the line of scrimmage (particularly given that barely over $300 million has been invested thus far in Q3). In terms of industy sectors, IT managed to (barely) keep its unbeaten streak alive against life sciences ($1.72b vs. $1.53b). This is different than what the earlier data from Dow Jones showed, and MoneyTree does show biotech as its fattest cash cow in a more segmented analysis.
2 min read · 21 July 2009
