Private Equity
2 min read · 23 February 2010
If you can get past the annoying hedge fund mischaracterization, there are a few tidbits of useful info in this Defamer post about MGM. Author Edward Jay Epstein got his hands on the company’s sale memorandum and explains where its buyout barons (TPG, Providence Equity Partners, DLJ Merchant Banking Partners and Quadrangle Group) went wrong. The main flaw in the LBO firms’ investment thesis, apparently, was its big bet on Blu-Ray. The firms took the gamble that DVD revenue would spike as people replaced their DVD players, and DVD collections, with high definition Blu-Ray players and collections. That simply hasn’t happened, and MGM’s DVD revenues actually fell thanks to fewer new releases from the studio, a worldwide decrease in DVD sales, and “price erosion” caused by video piracy and services like Netflix and Redbox. In other words, TPG, Providence, and the others missed the macro-trend boat, big time.
1 min read · 23 February 2010
UK Government Affairs: The Government Needs to Learn the Lessons of Private Equity, Fast. (Touchstone Blog) Editorial: The New York Times isn't too keen on new NY Comptroller John Liu's decision to bring back placement agents this quickly. (NY Times) Financial iPad: Howard Lindzon is a bull about the possibilities of technology in the financial industry. (Howard Lindzon) The Worlds Most Addictive Sounds: As explained by Martin Lindstrom. More than half of them are branded (Intel, MTV, McDonald's...), but none can top a baby giggle! (Fast Company) A Growth Business: Feeding the world is a growth industry, according to Economist, and that is feeding fertilizer M&A. (Economist)
1 min read · 23 February 2010
Best law Schools: Here are the schools with the highest percentages of grads hired by the top law firms. (National Law Journal) Don't Overthink it: Wharton is not trying to trick you on its admissions application. And other "myths" busted. (BusinessWeek) Foot In the Door: The perfect private equity resume. (FINS) Scroll to the bottom: NY Times issues its most amusing correction thus far this year. It involves pimping and President Obama. (NYT) M&A Scoops: Blackstone is looking to exit Gold Toe Socks, seeking around $450 million. (NY Post)
1 min read · 23 February 2010
Making its way around the Internet today is a lesson in how to school self-important MBA students with a poison pen, unearthed by Deadspin. After being denied admission to a class for arriving an hour late, an NYU Stern student sent Professor Scott Galloway an angry email, arguing that he had no way of knowing he'd be kicked out for tardiness. Prof. Galloway retaliated with the email equivalent of a white gloved slap on the face, sharply telling the student to "get his shit together" with references to both urination and show tunes in the same sentence. Basking in the pride of his email burn (something I assume professors particularly relish), Professor Galloway then forwarded the exchange (name redacted) to the entire class. Read it below:
4 min read · 22 February 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. Delta Petroleum Corp., the money-losing U.S. oil and gas producer whose largest shareholder is billionaire Kirk Kerkorian, rose 10 percent on takeover speculation, an analyst said. (Denver Post) Aryx Therapeutics Inc. hired investment bank Cowen & Co. to advise it on strategic alternatives after a potential deal for a long-term licensing agreement fell through. (WSJ) Sea Island Co., a resort owner and real estate developer based in Georgia has retained Goldman Sachs to explore strategic alternatives.
2 min read · 22 February 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 Clear Channel Bankruptcy No Longer Imminent Bright Spot in News Corp's Digital Media Group? IGN Entertainment, Seemingly It's Alive... Sequoia Capital's Heritage Fund Returns Kellogg Conference Notebooks In Memoriam: Edd Hendee Hey CalPERS: Where's That Investment Report? M&A Monday (On a Tuesday) A Startup Tries To Inject Better Odds Into Fertility Industry
1 min read · 20 February 2010
Advance Reviews of Wall Street 2: "A surprisingly satirical movie." (Clusterstock) Under pressure: European private equity firms aren't getting their bread-and-butter. (WSJ) Where did all the laid off bankers go? Not out of finance, according to LinkedIn. The network has tracked the changes in employer of its users and found that they mostly went to Barclays and Credit Suisse. More details here. (LinkedIn) How Does It Feel To Be Beat by a Pension Fund? The Ontario Teachers' Pension Fund is doing an end run around private equity-and racking up better returns (BusinessWeek)
1 min read · 19 February 2010
Hugo Boss, an upscale men's apparel retailer controlled by European buyout shop Permira, recently shuttered its last remaining U.S. plant. This isn't a struggling company lopping off a dying branch in an effort to save itself. Instead, it's a successful company trying to save a few bucks by shopping Rust Belt jobs to Eastern Europe. Not the best way to improve private equity's battered image. First, both the plant and publicly-listed Hugo Boss are profitable. Moreover, Permira increased the company's dividend in 2008, and added €750 million in new debt to pay a special dividend.
2 min read · 19 February 2010
2 min read · 19 February 2010
