1 min read · 08 June 2009
Earlier today, KKR and Fidelity Investments announced a deal whereby Fidelity's retail and institutional brokerage clients would have the opportunity to participate in IPOs and follow-on offerings underwritten by KKR’s capital markets group. Basically a win-win for both sides, with KKR getting buyers and Fidelity's clients getting rare IPO access (yes, rare even when IPOs are bountiful). Sure there could be losses if the deals are dogs, but buyout-backed IPOs are typically a smart bet. KKR's most anticipated IPO, however, is not for one of its portfolio companies. Instead, it's for KKR's own management company -- prompting one of my Reuters colleagues to write the following: A deal between KKR and Fidelity would give the mutual fund giant’s customers access to an IPO by the private equity firm itself – if KKR were to do one, a source familiar with KKR said. Would make sense, except that the KKR IPO proposal does not include the sale of any new shares for Fidelity clients to buy. Instead, it's designed to work as a sort of reverse
2 min read · 08 June 2009
peHUB is returning to Chicago next Monday night, June 15, for our second Windy City Shindig. Join us for an evening of cocktails and conversation, with local private equity pros, venture capitalists, bankers, attorneys and assorted hangers-on. It will run between 5:30-8:30pm, and will take place at English (444 N La Salle Blvd.) Tickets cost just $10 each, with proceeds going to a charity that will be chosen by event attendees (be sure to nominate one when you register). Go here for tickets and more info We had a great time in Chicago last time around, and can't wait to see you there...
1 min read · 08 June 2009
* Jon Friedman: What would Louis Rukeyser say? * Hugo Lindgren: A worrier's guide to our economic future. * Eric Eldon: Could social gaming run afoul of gambling laws? It's a great question, and one I've been pondering since WorldWinner launched earlier this decade. Many companies (andtheir VC backers) seem to take advantage of the game of skill/game of chance dichotomy, while others simply seem to keep their fingers crossed that the law won't catch up to them. * Morning Call: U.S. futures signal gains ahead of jobs data (coming at 8:30am), London rises early, European shares gain on Rio Tinto and BHP, the Nikkei climbs 1% and Hong Kong is buoyed by energy stocks. * American Capital's CEO says it has "vey good odds" of reaching a pact with its lenders. * Time Mag puts Twitter on the cover. Story doesn't cover any new ground, but new media folks still seem to get jazzed by old media attention (judging by the number of tweets about it yesterday). * A Massachusetts boarding school -- and Dick Fuld's alma matter -- builds a "trading floor classroom." Really.
1 min read · 05 June 2009
Yesterday, my colleague Alastair Goldfisher reported that NFL kicker Billy Cundiff has joined VC firm Pacific Southwest as an associate. In the spirit of massaging a dead horse, I'd like to add that Cundiff's former Dallas Cowboys teammate Drew Bledsoe has also gotten into the private investment game. Bledsoe -- who made his bones with the beloved New England Patriots -- is namesake and co-founding principal of Bledsoe Capital Group, whose investment mandate includes emerging technologies, entertainment, luxury services and real estate. Sounds opportunistically broad, but is counterbalanced a bit by BCG's commitment to a limited portfolio. Sure that second part hasn't worked out yet for Chris Flowers, but why judge yourself by the lead standard? "When Drew retired, he and I had hundreds of business plans to look through, and the one guiding principal he insisted on was that we invest in companies and projects aimed at fostering
2 min read · 04 June 2009
Next Tuesday is our inaugural LP Congress, at which institutional investors will privately discuss such things as market conditions, strategies for future success and the highlights/lowlights of recent annual meetings. One issue sure to come up is how to identify a distressed general partner, and then what to do about it. Below is a presentation we'll use to help guide the discussion. It was written by Mark DiSalvo, CEO of Semaphore, and presented during a recent meeting of the national Small Business Investment Alliance in New York. For those who don't know, Semaphore is a firm that steps with advice and management services when an LP/GP relationship goes very bad. SBIA Forum PEHub Ppt Publish at Scribd or explore others:
1 min read · 04 June 2009
Attorney Sarah Reed has rejoined Charles River Ventures, seventeen months after leaving to open a Boston office for venture/tech law firm Lowenstein Sandler, peHUB has learned. No word yet on Reed's new title at CRV, which does not yet list her on its revamped website (one which finally includes a distinction between active partners and partners "emeritus"). She had been the firm's general counsel but, as of last check, that role had been filled by former Monster Worldwide lawyer Lisa Bonner Haines. [Update: CRV spokeswoman says Reed will be general counsel, and that Haines as moved on to parts unknown] Also unclear is what this move means for Lowenstein Sandler in Boston. The firm no longer has any practicing attorneys in the city, and a source tells us that the 1 Bowdoin Square office will be shuttered. I put the question to a firm spokesman, who said that the firm was "assessing the strategic direction" of its Boston effort.
1 min read · 03 June 2009
Shortly after banning certain New York City pension systems from investing in funds that use placement agents, NYC Comptroller/mayoral candidate William Thompson said the following in a CNBC interview: “In some cases, are doing everything from the doing the PPM toalmost the presentations to helping market around the country. Because a lot of these private equityfunds, particularly the smaller ones and the mid-sized ones don’t have marketing sides, don’t know how to reach out. So in some instances, you could say it helps. We’re just going to beef up our staffs and work alone with our outside consultant to try to create better access.” Since then, however, Thompson’s office has yet to post any new job openings related to private equity on its website. It's got a "director of private markets" job up there, but that's more than a year old (and, from what an insider tells me
1 min read · 03 June 2009
GM still isn't identifying the prospective buyer of its Hummer unit, but the NYT is reporting that it's Chinese manufacturing company Sichuan Tengzhong Heavy Industrial Machinery Co Ltd. (apparently they want to diversify). Reuters had previously reported that at least one private equity firm was in the running, and I had wondered if the stars were aligning after Platinum Equity yesterday agreed to buy auto parts maker Delphi out of bankruptcy. In fact, I was secretly hoping that Cerberus would try doubling down -- just for the sight of UAW members and institutional investors protesting in lockstep.
1 min read · 02 June 2009
1 min read · 02 June 2009
