Private Equity
2 min read · 10 November 2008
A Wall Street Journal special report called “The 50 Women to Watch” outlines the most important female decision makers in business. It reveals that, despite a groundbreaking year for women in politics, Hillary Clinton’s “18 million cracks" in the glass ceiling does not apply to the corporate world. I believe the writer uses the encouraging term, “pipe dream.” Fewer women hold corporate-officer jobs at Fortune 500 companies than did in 2005, and even then, a mere 16.4% of those jobs were held by women, the article reports. In finance, the list is lacking without the likes of Erin Callan, former CFO of Lehman Brothers (now at Credit Suisse), Sally Krawcheck, formerly of Citigroup, and Zoe Cruz, formerly of Morgan Stanley. Despite that, ladies like Barbera Desoer at Bank of America, Terri Dial of Citigroup, and Ruth Porat of Morgan Stanley held it down for Wall Street. But private equity? Forget it. The only PE representation comes from outside of the U.S., with a whopping two women, at numbers 43 and 47. If you’re not yet acquainted, I’d like to introduce Maha Al Ghunaim and Phuti Malabie. Also noteworthy on the LP side: Jane Mendillo, the recently appointed CEO and President of Harvard Management Co, the company that manages Harvard’s $36.9 billion endowment.
2 min read · 10 November 2008
Below, four previously unreported updates on the fundraising efforts of VC and PE funds, based on regulatory filings. Alinda Capital Partners, based in New York, has raised $1.63 billion toward its new, $3 billion infrastructure fund. peHUB first reported the fundraising in August, noting its proximity to the firm's first infrastructure effort. The fund has a $3 billion target, the size of its first effort, with a $5 billion hard cap. Citigroup and PTP Securities are the serving as placement agents. New Silk Route Private Equity has raised $1.34 billion for New Silk Route PE Asia Fund LP, according to a regulatory filing. The private equity firm, based in
1 min read · 07 November 2008
A Tip: From Solomon Owayda of PE firm SVG Advisors. PE firms, its time to lower your fees, if you want cash-strapped LPs to continue to invest. Mr Owayda said the "2 and 20" model, whereby private equity groups charge an annual fee of 2 per cent of funds raised and take 20 per cent of any profits - was a relic from a time when most buy-out funds were much smaller. France Has A SWF: And it's done its first deal, thanks to Sarkozy's plans for "reigniting the country's economy." Did You Know: Probably, but I didn't. Rahm Emanuel, the White House Chief of Staff-Elect, was once a Wasserstein Perella banker. Also, the character Ari Gold, a high strung, macho Hollywood agent on Entourage, is supposedly based on his brother, Ari Emanuel. Wildly Wildly Unbased Rumour: From a commenter, on a tabloid Web site, saying Goldman Sachs could go private. Now I Get It: The Big Money gives us a better understanding of the Whole Foods situation, and Leonard Green Partners' recent investment in the not-very-recession-proof company.
2 min read · 07 November 2008
Deal Professor: The Second Wave of Deal Failures. Way to go, private equity, you’ve emerged unscathed. Dealbreaker: Asks, with Blackstone’s IPO, did the firm call the top or were they late to the game? Excel Spreadsheets, Probably: How will Obama prioritize his towering economic to-do-list? Daily Beast: An Obama Administration flowchart. (Potential, of course.) Thank You: Now that the election is over, can we please, please drop the clichés like Main Street, Wall Street and Joe Sick Pack? A few weeks ago the NY Times’ style editor railed against some of the worst of them, many of which are business-related. Guilty parties include “on the hook” and “doubled down.” In turn, I promise to tone down the election-news deluge on a private equity site. Deal?
1 min read · 07 November 2008
Blackstone Group COO Tony James and CEO Steven Schwarzman delivered the buyout behemoth’s results. Below, a summary of comments from a media call before the official analyst call. Below that, a transcript of Steven Schwarzman's comments. Despite a massive loss, James and crew displayed unflappable positivity on Blackstone’s position while dropping bombs of bearishness on the economy. The loss “reflects declines in values across almost all asset classes,” James said. However, he insisted, “despite a pretty awful market environment, we are still in a strong position.” On Buyout Funds: Returns and Deployment One third of portfolio companies took write-downs this quarter, while two thirds had write-ups or remained flat. There are 40 companies in Blackstone’s current portfolio.
6 min read · 06 November 2008
Here's a Side Hustle: Go scalp today's newspaper. Seriously. They're sold out everywhere. Death Toll: Layoff watch, Christmastime 08, is looking grim, again. NY Post is predicting 5% more finance jobs will go. That's on top of the 150,000 pink slips that've already been handed out. Mild Amusement: An NY Post online poll says the song Ball of Confusion by The Temptations best describes the current mood of Wall Street. Other options? I Wanna Be Sedated by the Ramones, Mo Money, Mo Problems by Notorious B.I.G., After the Gold Rush by Neil Young, and Wave of Mutilation by The Pixies. Endorsements: Footnoted has a suggestion for a new head of SEC: "Movie Mom" Nell Minnow. Here's why.
2 min read · 05 November 2008
Just like with Christmas, all the good companies went on the clearance rack after the buyout boom. Meaning, the stock market is about 4,000 points below where it was a year ago, and there are some steals to be had on solid public companies. Companies that could easily be taken private by a PE firm… if they only had the money. Too bad they maxed out their credit cards. Seeking Alpha created a list of 100 strong take-private targets, based on steady cash flows, good balance sheets, a low valuation, and the ability to pay 9% interest on debt. Peruse the list if you’re in the mood for window shopping at stores that are now, sadly, out of everyone’s price range. (Don’t worry, there are a few sub-$500 million market cap targets listed. Cross Country Healthcare anyone?) Seeking Alpha: 100 Companies That Can Take Themselves Private
1 min read · 05 November 2008
2 min read · 05 November 2008
Secondary brokers may be wary of HarbourVest Partners after the firm backed out of a signed deal, but investors aren't. The firm has surpassed its fundraising target on Dover Street VII, a vehicle designed to invest in LP stakes of private equity funds, according to sources familiar with the effort. HarbourVest began raising the fund in May with a $2 billion target, peHUB reported. The firm has secured commitments greater than $2 billion but has not set a final closing date for the fund. The firm has dry powder to invest in a market that has been flooded with
1 min read · 05 November 2008
