Private Equity
Sterling Partners of Northbrook, Ill., and Baltimore is raising a $500 million co-invest fund, a source familiar with the situation said. The new fund will supplement Sterling’s $1 billion fifth fund, called SCP III. That pool of capital closed in June 2007. The firm originally planned to raise a side fund to SCP III, but scrapped it in favor of the co-investment fund, the source said. The reason is simple: Sterling Investment Partners wants to do deals faster.
2 min read · 23 September 2008
Dealflow: BusinessWeek wrote in May 2007 that Avaya was the near-perfect private equity target. That might be changing, as the same blog reports on potential cracks in the $8.2 billion TPG and Silver Lake deal. “My strong belief is that the company will struggle,” Paul Bowen of Bowen Advisors says. Wall Street Folly: Pointing out Wall Street’s vices. In times like this, (apparently) Wall Streeters turn away from the strip clubs and toward the bottle. Crain’s has the scoop on New York’s uptick in scotch and wine sales, while New York Magazine reports on the pending downturn for upstanding institutions such as Rick’s Cabaret. Dealbook: Pointing out Investment Dealer’s Digest’s talk with someone who might know what its like to be Dick Fuld right now: Frederick Joseph, of the former Drexel Burnham Lampert. (He’s now at Morgan Joseph, which has apparently seen some upside in this debacle.)
2 min read · 22 September 2008
An article in today's Wall Street Journal highlighted something that’s been touched on here at peHUB, but not in the mainstream press until now. Its something PE and VC pros have been worried about all week: What does all this mean for my IPO?! Lucky for you, dear reader, I attended a panel of the same name last week and can dutifully report back that indeed, things are not looking great, but there’s hope. Follow the jump to read essential Qs and As about APOs (alternative public offerings), which strategics are on the prowl, why Google is returning to the negotiating table, and how the venture model has to change.
3 min read · 22 September 2008
Last week I brought you a live report of "All The News Fit To Blog" from day one of the Dow Jones Private Equity Analyst Conference. Today I’m back with a retrospective round two—highlights of the conference’s second, less action packed day. To recap—we’ve learned that Mr. Schwarzman isn’t too worried about the crisis’ effect on his firm. We learned that at least one oil baron don’t believe oil alone is sustainable. And we learned distressed investors know how to make a rainy day into a storm. On the second day, I got an earful about a fund raising effort, a mystery auction, IFRS, wine, beer, and shots, and the War For Funds. Follow the jump to experience hear what I heard and see what I saw. Featuring contributions from my colleague at Buyouts, Bernard Vaughn.
3 min read · 22 September 2008
Continuing my coverage of ridiculous press releases, today’s email reveals one that may top “Mekong Capital Overcomes Exhaustion!” The pitch is titled “No Country For Old Men. Mature Male Executives Taking Extreme Measures to Keep their Jobs,” courtesy of 5WPR. Ignoring the hint of “manufactured trend,” it seems innocent enough, right? Not really. I read on to learn, to my horror, that the pitch is really suggesting I cover the “story” of middle-aged executives getting Botox and hair transplants to keep their jobs. To quote directly from the grammatical nightmare of a pitch,
2 min read · 22 September 2008
Reuters: We saw the PE consortium back out of its purchase of Informa. I can't imagine Informa being surprised. But think about it, this is probably happening across the board. Which other big-ticket PE deals disintigrating becuase of uncertainty and distractions? Huawei anyone? Dealzone: The Paulson plan backlash. Not listed in this particular rundown of backlashers is John McCain. Though, as Dealbreaker and Breaking Views point out, its not clear if either candidate is all that qualified to weigh in so heavily on these topics. Dealscape: Why is this happening? The tech boom, of course. A Dartmouth professor explains that speculators traded in their holdings in stocks for real estate after the fallout of the tech bubble, and that, my friends, is why our drunken, exotic, new fangled, however-you-want-to-characterize-CDOs-and-CLOs came to be. FT: Lex writes TGIF in celebration of a market recovery. That three banks – Merrill Lynch, Lehman Brothers and HBOS – were wiped off the planet earlier in the week seems like a dull memory. Tell that to the unemployed, who are probably humming Tonight we’re gonna party like its 1929 a la Prince’s “1999” in their heads after this painful week.
2 min read · 19 September 2008
No, I am not referring to the storied Insight Ventures Partners. (We’ve beaten up on them plenty lately.)Insight Equity is a turnaround private equity firm based in Southlake, Texas. The firm is almost doubling its fund size in its sophomore effort. Insight is seeking to raise $500 million, up from its first fund, a $280 million 2005 vintage. The firm is on the road now, marketing Insight Equity II LP with UBS as its placement agent, a source familiar with the situation said. In an interesting development that's been springing up more and more lately,
2 min read · 19 September 2008
2 min read · 19 September 2008
After a two day hiatus, (conferences take a lot out of you) I’m back. Breitbart: Coming soon, the internet, in 3D. The Deal: Call it a class reunion, or incest, or remarriage, whathaveyou. This is certainly an “anything goes” environment for rumors, and the latest from The Deal is Morgan Stanley plus J.P. Morgan. Fishbowl: John Carney is leaving Dealbreaker to report for Silicon Alley Insider, abandoning the Wall Street gossip blog’s editorial content to Bess Levin and now frequent contributor Equity Private.
1 min read · 18 September 2008
1 min read · 18 September 2008
