Private Equity
Payback Time: The Wall Street Journal looks what pension funds want, what they think they deserve, and how they're going about getting it. Hint: It has to do with suits, and not the kind you wear. Overpaying: At the very least, even if valuations and seller expectations haven't officially come down yet, some firms are trying to force em down. How is it possible that a PE firm would even *think* of overpaying on a deal these days anyways? According to colleagues at Reuters, Apax, Blackstone and Providence are trying to avoid just that, a potential overbid for a stake in India's FirstSource Solutions. Depressing News: Sixty Percent of Americans believe an economic depression is "likely." Looking at the requirements for such a state is really, really scary. First Timers: Anyone out there boldly trying to raise a first time fund? (Ahem, Guardian Capital, Prophet Equity...) Though it seems like a foolish mood, Buyouts' guest columnist has some advice. (sub req.) Three Years: That's the last time PE fundraising has been this slow.
2 min read · 06 October 2008
2 min read · 06 October 2008
Guardian Capital Partners, a new buyout firm based in Philadelphia, is close to announcing its first investment, peHUB has learned. The firm has purchased a controlling stake in a teleservices and call center company named Corporate Call Center. The target, which has 400 employees, is based in Blue Bell, Penn. The deal comes as Gaurdian is in fundraising mode for its first vehicle. The firm is raising cash to invest in lower middle market manufacturing and services companies with revenues between $15 million and $75 million. The firm is led by Scott D. Evans, formerly of Cerberus Capital Management, Peter H. Haabestad, formerly of Susquehanna Financial Group LLLP, and Hugh Kenworthy III, formerly of Brynavon Group, Inc.
1 min read · 06 October 2008
Corporate Dealmaker: Strategic plus PE = credit crunch deals done right? Best quote: ""Private equity and corporate buyers pairing up is like a Catholic marrying a Buddhist -- it happens, but there are some real differences in how each one does things."" Stamp Of Approval: The Private Equity Counsel is feeling congratulatory on the passing of the bailout bill. I'm not sure we were ever worried the PEC did not like the bailout bill, but at least now we know everyone's happy. Wrong Crisis: Kedrosky believes that we're comparing the current state of affairs to the wrong banking crisis. Forget 1929, this is more like 1872. Dealbook: Posts the Citi-Wachovia exclusivity agreement.
1 min read · 03 October 2008
2 min read · 03 October 2008
3 min read · 03 October 2008
peHUB Second Opinion 10.2.08 Reuters: More bad financial industry investments for TPG. (This time, its TPG-Axon, its hedge fund.) Dealzone: Oh Playboy, always the opportunist. Dealscape: For Lehman Merchant Banking, it's is business as usual. Although I can't imagine their deal flow is amazing right now... Dealbook: Other aspects of Lehman are... not so business as usual. Hedge funds that used Lehman as their prime brokerage are basically frozen.
1 min read · 02 October 2008
2 min read · 02 October 2008
2 min read · 02 October 2008
USA Today: There is, apparently, a scientific reason for the financial crisis: Testosterone. According to Scientific American, too much of it leads to irrational risk taking, ergo, housing crisis. Right. Cancelled: Harvard Business Finance Club’s self-proclaimed “best party of the year,” the unfortunately named Predator’s Ball, has been canceled. At some point today the Web site for the event (which could be rebranded as something like Depressing Networking Event For Out Of Work Predators) was removed. Dealzone: Speaking of poor taste, colleagues at Reuters want to know, where are all the good puns for this financial crisis? Apparently we journalists were knee deep in them for the Japanese bank failure. (We should really be posing that question to our friends in Japan, after the string of horrible puns Dealzone lists, I’d guess they’ve had jokes lined up for years.) And anyways, wasn’t Dealzone around for the Barclehs and Bank of AMerrillca comments? Business Pundit: Outlines quite mathematically the way that college kids are smarter investors than we thought.
2 min read · 01 October 2008
