Private Equity
It's only 14 days into the new year and TA Associates has already done more deals than most firms do in a quarter. The firm this week acquired a majority stake in eCircle, a Munich, Germany-based provider of email marketing solutions, for more than €60 million. A day earlier, TA invested $45 million for a minority stake in Micromax Informatics Ltd., the third-largest mobile handset provider in India (a deal aided by the firm's recently opened Mumbai office). That's in addition to the firm's January 2 exit of Logistics Health. TA originally backed Logistics Health back in 2003, with a $72.5 million investment, selling it for an undisclosed amount for Gunderson Lutheran. Earlier this week TA managing director Michael Wilson commented on his firm's pickup in activity at a conference hosted by Gridley & Co. "Sellers are coming out of their fox holes to do deals now," he said. "They're saying, ‘We saw our lives flash before our eyes, and now things are starting to go back to normal. It's not back all the way but its safe enough to think about doing something."
2 min read · 14 January 2010
CalPERS has just released a ton of docs related to placement agents used by their general partners. We're uploading them below- There are literally hundreds. Help us read through them for interesting items. Placement agent disclosure release Placement agent compensation We're posting the second half below; read the first half here.
2 min read · 14 January 2010
Big Story of the Day: Congress is grilling the bank CEOs on compensation. Here's some of the best coverage: WSJ: Banks Admit Missteps Amid Grilling, Elliot Spitzer on HuffPo: 10 Questions The Financial Crisis Commission Must Ask, Dealbook: More Questions for the Finance Chiefs, Dealbook: Wall St. Must Pay ‘Mad Scientists' Well, Lobbyist Says, Newsweek: The subsidy that won't die. Management's Ticket to Ride: Deal Professor breaks down the management roll-over deal in Apollo's buyout of amusement park operator Cedar Fair. (Dealbook) The AIG Shortfall Agreement: Using the word `Redacted' about 840 times in a single 16-page document is begging for trouble. (FT Alphaville via Dealscape) Here comes an M&A boom. Better to be early than late. (Michael Mauboussin via Abnormal Returns) Dolla dolla: Bain Capital has cashed in on more of its Dollarama chips after being public for only 3 months. (The Deal Pipeline) $87,000 Rug: CIT's executive offices may be getting a makeover. John Thain is in the running for the firm's CEO position. (WSJ)
1 min read · 13 January 2010
2 min read · 13 January 2010
1 min read · 13 January 2010
Everyone Hates Goldman: Everyone, except for MBA students, who all still want to end up there. (Bloomberg) And maybe the firm's senior management, if they are in fact required to give to charity. Ups and Downs: Wellington Fund declares that Canada's private equity industry is on fire. Meanwhile, the U.S. market is anemic. But Mergers & Acquisitions says we need to put things in perspective. Wall Street Bonus Mad Libs: Canned outrage, basically. Mildly funny. (LolFed) Tale of Two Entrepreneurs: Ah, the lemonade stand metaphor of life. (Seth Godin) Reminds me of this lovely lemonade stand metaphor for the finanicial crisis. Back to DIY: All eyes are on VC-backed Etsy as its founder pulls a Steve Jobs, returning to the CEO role after some time away from the company. (Dealscape)
1 min read · 12 January 2010
NewStar Financial Inc. last week sold the largest U.S. collateralized loan obligation in more than a year. The Boston-based firm, which lends to middle market buyouts, will use $225 million of the $275 million in proceeds to fund an existing portfolio of loans, allotting the remaining $50 million for originating new financing. The new money will be weighed toward leveraged buyouts, a source familiar with the facility said. That a CLO would sell in this market is encouraging, but the deal wasn't cheap. NewStar got Libor plus 375 on the AAA-rated tranche of its loan, which is expensive, but still lower than the market rate of between Libor plus 550 to 650 for new loans. The AA-rated tranche is priced at Libor plus 750.
2 min read · 12 January 2010
A Q&A with an Anonymous Facebook Employee: "I'm not sure when exactly it was deprecated, but we did have a master password at one point where you could type in any user's user ID, and then the password. I'm not going to give you the exact password, but with upper and lower case, symbols, numbers, all of the above, it spelled out ‘Chuck Norris,' more or less."(The Rumpus) Walking Away: Voluntary defaults by homeowners are a new phenomenon. It's being called irresponsible. Businesses - in particular Wall Street banks - make such calculations routinely. What's the difference? New York Times sums up the debate nicely. (NYT) That's Mr. Comptroller to You: John Liu, New York's new comptroller, is being called a prima donna, thanks to some new presidential-like formalities he's implemented. (Ny Post) Wonder Women: The 49 Most Notable Female Internet Heroes of 2009. (The Next Women) Indefensible? The Street.com says that defense companies' best days are over. (The Street) Servicey: Best places to power lunch in New York. (Clusterstock)
1 min read · 11 January 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. The CEO of Jumptap Inc., a mobile advertising company which competes with the recently acquired Quattro Wireless, said it “has been approached by potential buyers and is open to being acquired if the price is right.” The company is not actively seeking a buyer. Sierra Geothermal Power Corp. continues to explore strategic alternatives that include a sale of the company and equity financings amid a proxy war with a “concerned shareholder.” Sierra is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power based in Vancouver, British Columbia and listed on the TSX Venture Exchange. Phoenix Technologies, a software company based in California, hired GrowthPoint Technology Partners to “explore strategic alternatives” for its FailSafe, HyperSpace and eSupport businesses.
3 min read · 11 January 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 Exclusive: Larry Schloss To Be Named NYC Chief Investment Officer Mmmwaahahaha: VCs Carefully Plot Their CES Strategies Ex-FCC Chair Kevin Martin Launching PE Firm PE Fundraising Falls 61%, Lowest Total Since 2004 DoE Lays Out New Rules for Geothermal Drilling Ten VC Predictions for 2010: Outrunning The Bear PE Deals Down 43% in 2009, Lowest Year Since 2002 VC-Backed IPOs Up, M&A Down in 2009 Indian VC/PE Investment Drops in 2009 Hello There, Handsome Devils Venture Capitalists Climb "Pill Hill" Schwarzman Not Exactly Helping PE's "Gun Slinger" Image Former AIG Investments Coming To A Fundraising Market Near You The VC-Backed IPO Pipeline Events of the Valley Behind the Screens: Q&A with the Technical Lead of Zynga's Mafia Wars Tax Story: VC Carry vs Founder Equity Cressey & Co. Creeps Toward Lowered Target With Latest Close Q&A on Riverside's Big Fundraise
2 min read · 09 January 2010
