Private Equity
* Running a Company, but Can't Open an Attachment. Dick Fuld is blaming the Repo 105 mess on the fact that he can't open an email attachment on his phone. (FINS) *The club deal lawsuit rages (or should I say sputters) on through its 3rd appeal. (Deal Journal) * Barclay's Defines the word "Jerks" Loosely. (Daily Intel) * Top ten works of journalism from the decade. (NYU) *Avatar will make $400 million for News Corp. It'll also net a tidy profit for Dune Capital, a private equity firm. (Bloomberg)
1 min read · 15 March 2010
Here are some potential M&A ideas, rumored or official, to jumpstart your deal pipeline. Our sources are various news reports and the Buyouts “Seeking Buyers” list. For prior lists, see below. Mobile content provider "Jamster," doing business as Jamba, is being sold by its parent company, News Corporation, mergermarket reported. Swoozie's Inc., a maker of luxury gifts and stationery that filed for bankruptcy just weeks ago, will put itself up for sale at an auction on March 25, the company said on Monday. (Reuters)
2 min read · 15 March 2010
Contrary to conventional wisdom, brands really can travel uphill. Apax Partners' successful ownership of apparel company Tommy Hilfiger is living proof. When the buyout firm took Tommy Hilfiger private in 2006, Tommy-branded apparel was being sold by warehouse outlet stores at deep discounts. Apax saw value in its international operations, and plunked down $450 million in equity for a total deal value of $1.6 billion. The firm promoted Fred Gehring from head of Europe to CEO, and embarked on two years of intense turnaround execution. Apax and Tommy's management sold its distribution business, acquired of licensees and aggressively expanded stores. Furthermore, Apax helped return Tommy Hilfiger to its status as a higher-end apparel brand by cutting back lower-end distribution and improving product quality. Ebitda increased by 42 percent under Apax's ownership, and debt fell from 4.3x Ebitda to 1.5x. That all happened in a matter of two years.
5 min read · 15 March 2010
Here's a look at the last week's worth of scoops, data, and analysis from the peHUB team. Catch up on what you missed before it goes behind our paywall... All First Reads | All Second Opinions Joanna Rees Gets an Introduction to San Francisco Voters peHUB Returns To Boston - Shindig on March 31 Is New York's Startup Scene Surpassing Boston's? Not So Fast Spark Capital Backs Postabon New Yorker to Washington: Please Do Away with PE Tax Breaks? The New Dork: An Entrepreneur State of Mind Canada Posed To Scrap Impediment to U.S. Investment Chris Dixon: The Ultimate Founder's Founder Look, Forget the Yacht; Think Camper Trailer He's Back: Dan Rosensweig on Becoming CEO of Chegg - and How He Feels about Yahoo Today Amazon Shrugs in Colorado Inside One Very Private Equity Firm PwC: Expect A "Robust" IPO Market in 2010 Time To Put The Carried Interest Debate To Bed Laundry Room Chronicles: Placement Agents & FINRA Chris Dixon on Arugula-Eating Liberals, the Downside of Destination Sites and the Future of Hunch Sesame Street Jumps Into Social Networking; Fans Notice VC Bookworm
2 min read · 13 March 2010
Uh Oh: Will Meg Whitman's investments pose a conflict of interest problem? The former eBay CEO and current Republican gubernatorial candidate has invested in private equity and hedge funds. (Dealbook) Kabletown: It didn't take long for 30 Rock to parody the NBCU merger with Comcast, and last night's episode was excellent. (Dealbook) Is it a sign? Deal rumours are running rampant, particularly in the retail chain arena. As Reformed Broker says, "This market is circulating more rumors than Fleetwood Mac's record company." Cheap Cigars: There was a "who's who" of Wall Street meeting in January to hash out the financial reform that's on the table today. Here's the story behind it. (Reuters) FYI: KKR's NYSE listing values the firm at $7.5 billion. (FT)
1 min read · 12 March 2010
1 min read · 12 March 2010
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Moody’s Investors Service. This week Moody’s has some distaste for the Intergraph dividend recap, downgrading the company’s corporate family rating and calling the payment, which increases the company’s leverage by one and a half turns, “aggressive.” Company: HCA Inc. Sponsor: Bain Capital, KKR. Action: Moody's Investors Service assigned a Ba3 rating to the company’s proposed offering of $1.0 billion of first lien senior secured notes due 2020. Moody's also affirmed the existing ratings of HCA, including the B2 corporate family and probability of default ratings. Highlight: "Much like the secured note offerings completed in 2009, the current transaction continues to chip away at the considerable amount of bank debt scheduled to mature in the 2012 and 2013 time frame," said Dean Diaz, Vice President -- Senior Credit Officer at Moody's.
2 min read · 12 March 2010
Hacking America: Wired Profiles Andrew Breitbart. (Wired) Police are the New Tax Collectors: Virginia hands out almost 7000 traffic tickets in one weekend to raise money for the government. (Economic Collapse via Clusterstock) Regret Nothing? John Kay says it's a bit disarming that Warren Buffet and George Soros are the only financiers to take personal responsibility for the financial collapse and bad performance numbers, rather than blaming it on "unprecedented" things like a "perfect storm." (FT) Need Those Soft Skills: If there is anyone in finance right now who feels the pain of lacking "soft skills," its Harry Markopolis. (FINS)
1 min read · 12 March 2010
Dodd: "We don't need Republicans." (NY Times) Excited for Wall Street 2? Well you'll have to wait. The movie, which was slated to come out in April, has been pushed back to the fall now that it may get invited to Cannes. (Variety) Tricky Tricky: Is the Kabel Deutschland IPO an ambitious IPO or a cunning ploy to smoke out trade buyers? (Reuters) In the weirdest news you'll see today: Wondering what to do with leftover breast milk? This guy decided to make cheese out of it. Just, wow. (Reuters via WSJ) Who Hates Avatar the Most? I felt a little robbed after seeing Avatar (shouldn't it have been Pocahontas II?), but I certainly didn't hate it as much as these whiny mining executives. Reuters reports: "Let me put it this way, my kids saw the movie, and my kids know I'm a miner, and they didn't say anything to me," said Peter Kukielski, head of mining operations for ArcelorMittal, the world's largest steelmaker. (Reuters) Happy Birthday: VC-Backed Foursquare turns one today. Use that as a cheap excuse to try for the "Sweet 16" badge. I did! (Foursquare)
1 min read · 12 March 2010
Boston-based HarbourVest Partners is preparing to hold a final close on its new cleantech fund. The firm has raised $139 million in commitments to date and is waiting to hear on one or two potential commitments before holding a final close, a source familiar with the situation said. Harbourvest launched fundraising just over a year ago with a target of $150 million and hard cap of $250 million. peHUB first flagged the fund in March 2009. The management company, called HarbourVest Cleantech Associates, was formed in April 2008. Harbourvest declined to comment.
1 min read · 11 March 2010
