Private Equity
On Monday, peHUB reported that there are at least three private equity firms capable of taking control stakes in banks, because they're structured as bank holding companies. One of them, Castle Creek Capital, happens to be in fund-raising mode. I've learned that the firm is seeking $500 million for its fourth effort. Fund-raising launched in June, and its first close is scheduled "by the end of the year," a source said. With its distressed/turnaround focus, and strict financial services sector mandate, Castle Creek could not be better positioned to take advantage of the current environment. A position that, I argued on Monday, could afford it opportunities to partner with some larger PE firms. The idea is the PE firms may want to buy into distressed financial companies, but are stuck in the minority stake ghetto because of federal regulations.
2 min read · 09 October 2008
2 min read · 09 October 2008
Scandalous: AIG spent almost half a million on a luxurious party just days after the firm asked for its bailout. Not great news to surface on the day it asks for more bailing out. And certainly not good news for diminishing that whole "Wall Street Fat Cat Thing..." Just Wow: The Times Square national debt counter has run out of spaces. See how they squeezed the one in with the dollar sign? Chris O'Brien: We should be happy the IPO market is what it is. If not, the valley could be as bad off as Wall Street, right now, he argues. "So it's bad. And getting worse. But it would be an even bigger disaster if IPO mania had returned," he writes. Talking Taxes: Obama and McCain's Tax plans, broken down in specific terms like I haven't seen before. Thanks, Business Pundit. PEC: Apparently the Government Accountability Office issued a report yesterday, which stated that private equity, is, in fact not evil, and strengthens the financial performance of companies. Naturally, PEC approves.
2 min read · 08 October 2008
2 min read · 08 October 2008
Dealscape: Welcome to Great Depression 2.0. Here come the boutique advisory and buyout shops. PR Wars: The civil kind, not ones waged against the press. I wonder if Kekst & Co. was hurt by its sale to Publicis? Or did it sell because they were slumping? Probably neither, but they've been ousted as the number one M&A PR firm by value. Brunswick pushed ‘em out, thanks to their representation on Inbev/Anheuser. But no worries, Kekst maintained the top spot for deal volume (and I'm sure that like a good PR firm they'd spin that as more important). Ha: Dealzone brings the economic humour. Question: Define a Balance Sheet. Answer: There are two sides to a Balance Sheet: the Left & the Right (Liabilities and Assets respectively). On the Left side there is nothing right. On the Right side, there is nothing left. False Optimism: Investment Pros Whisper Bottom Is Near? Really?
2 min read · 07 October 2008
2 min read · 07 October 2008
The Energy Private Equity Group of Kayne Anderson Capital Advisors has planned a first and final close for its fifth fund. The effort has a $1.6 billion target, a jump from the firm's prior $950 million fund. The effort is loosely slated to close on November 20. Dollar-wise, the majority of Kayne Anderson's energy fund LPs are university endowments. The firm also takes investments from a wide swath of high net worth individuals. As I noted yesterday, other energy-focused firms in the market include First Reserve, Quantum Energy, and EnCap Investments.
1 min read · 07 October 2008
Quantum Energy Partners' fifth fund has closed on $2 billion in commitments to date, according to a source. Dan had flagged the firm's fundraising efforts in July, when the firm had just under $1 billion in commitments. The energy-focused buyout firm will issue rolling closes on commitments until it reaches its target of $2.75 billion. MassPRIM, Nebraska Investment Council, New Mexico PERA and CPP Investment Board are on board, along with a variety of endowments and corporate and international LPs. Champlain Adivisors is the firm's placement agent.
1 min read · 07 October 2008
And two more make 39. Catterton Partners today saw two portfolio companies file for Chapter 11: Archway & Mother's Cookie Co. and Sleep Innovations. (Snack makers beware, that's the second cookie company to go down...) I've counted 39 bankrupt buyouts year to date, which could very soon be a nice round 40 if Avista Capital Partners' defaulting company, Star-Tribune, files. There are six new additions since I last posted the list, so follow the jump to download the updated one.
1 min read · 07 October 2008
2 min read · 07 October 2008
