Private Equity
Ten Years of M&A: It is like walking through the tombstones on a battlefield. WSJ takes a comprehensive look at the past decade of dealmaking. (WSJ) Hmmm: Goldman's M&A fees are a lot higher than that of other firms. (WSJ) Searching For Alternatives! Good news-pension fund allocations to alternatives are increasing, despite what it seems like. (Reuters) PE is BACK! I write this phrase around thrice a week, it seems, so here's another pile-on. Private equity is back-with a vengeance-and doing things that were "unthinkable" six months ago. (Seeking Alpha) Target Time: PE Firms continue to salivate over Dubai World Assets. (Maktoob Business) Starting with the New York W Hotel in Union Square. (Dealbook)
2 min read · 08 December 2009
2 min read · 08 December 2009
/a>Beware of Social Media Snake Oil: Hordes of marketing "experts" are promoting the value of wikis, social networks, and blogs. Not that anyone needed to tell the world of finance that, they are lightyears away from using social media. (Businessweek)If You're Reticent to "Go Green" Perhaps this car will twist your arm. (Autoblog Green)Pride: Merrill execs have rejoiced in that they get to keep their beloved bull logo on their business cards, in a reversal of a prior Bank of America decision. (WSJ)MBAs Still Dig Finance: Despite the economic collapse, MNAs have "only slightly less ardor for the field of finance than last year." (Infectious Greed)
1 min read · 07 December 2009
Could Sun Capital be on a roll, after two years of absorbing body blows? I'm not ready to pronounce a turnaround quite yet, but the Boca Raton, Fla.-based firm has scored two impressive exits in the past month and written up its portfolio. It's even ready to do new deals.Sun began brightening in October, when it reported modest write-ups for the first half of 2009. Across its portfolio, the firm's holdings increased in value by 3%, including an 8% write-up for its latest fund. That's hopeful, although needs to be kept in the context of that last fund being held at 60% of its value at year-end 2008.That same month, Sun Capital earned back a little respect from investors by allowing them to decrease their commitments to its $6 billion fifth fund. The firm offered to cut commitments by $1 billion, allowing investors to decrease their stakes each by 16.7% and up to 33%, depending on how many chose to do so. That news was welcome to investors and a breath of fresh air to those that felt the firm was deaf to their concerns.
4 min read · 07 December 2009
Even though Christmas isn't a competition, Twin Bridge Capital Partners won. For the holidays, the firm has gone above and beyond the standard holiday fruit basket. They've gone beyond even a nice Hickory Farms sampler set or a blanket-they've sent a blanket with sleeves. Yep, this week one lucky Buyouts editor received a Private Equity Snuggie.Not only has the firm sent us this gem of American pop culture, but Twin Bridge went ahead and blew our minds by embroidering its logo on the sleeve. We didn't even know you could order custom Snuggies, but consider this a game-changer in the realm of gift-giving. After all, nothing screams warmth-while-keeping-your-arms-free like leveraged buyouts.So when you're wearing your Snuggie at a high school football game (as recommended) and someone asks, "Oh hey, where's that Snuggie from?" you can go ahead an answer, "Oh, its from Twin Bridge Capital Partners, like this here logo says. Ever heard of ‘em?" Then your friend can say, "No, I haven't. By the way, I was thinking of selling my sector-leading company with mission-critical products and sticky revenue. Know any qualified buyers?" And the conversation goes from there.
2 min read · 07 December 2009
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 Trust, But Verify MDV Caps 3 Annex Funds, Raises Total of $127M Entrepreneur Success Story Canopy Financial: More Indictments Coming Broidy is Guilty - What Does It Mean For Markstone? Q&A with an SBIC Expert Here's The SEC Complaint Against Canopy Cuomo To Announce Pension Fund Development Venture is Back, Baby 5 Qs with Tax Attorney Shahzad Malik Blackstone Group, the Misunderstood Teen Foundation Medical Raising $150 Million For Device Companies Midweek M&A Madness Happy Holidays - Smith & Tinker Cuts Staff American Capital Plan Approved by 95% of Lenders StockTwits Raises $3 Million, Looks To Evolve Into Full-Fledged Financial Media Company Smart Meter Lawsuit: 2009 Was Not That Hot
2 min read · 05 December 2009
Job Opportunity: Wall Streeters, your dream job has arrived. Steven Land Clothing is looking for a few new faces to represent the brand, and it's decided to turn to the city's pool of unemployed Wall Streeters to fill the positions. (Cityfile) 5 tips to make people care about "your stupid little startup." (Matt Brezina) Read Up: Best books of 2009, according to the Economist. (Economist) Turnover: Analysts and lower level hires at Silver Lake and TA Associates might not want to get too comfortable. PE Database provides a picture of the lower level turnover at each of the firms. (PE Database) The recession is still with us: Yahoo cancels its Christmas party (and there will be no lapdancers either) (Clusterstock) Here's one way to spend your weekend: To mark the 40th anniversary of the Internet, DARPA wants to see how many of you can figure out how to use social networking to find 10 red balloons that DARPA has placed in obvious locations around the country. Colorblind contestants may have trouble, but good luck. (Network Challenge) Down the Rabbit Hole: and Inside Dick Fuld's bunker. (Daily Beast)
2 min read · 04 December 2009
When your existing LPs refuse to commit capital, you know you're in for a rough ride. Coller Capital's latest survey of LPs shows that more than three fourths of LPs will refuse re-ups in 2010 over terms and conditions. It's not shocking but it means things have gotten worse in the last year, where just 57% said the same thing. Read more details on the survey below.
5 min read · 04 December 2009
Thomson Reuters' weekly M&A scorecard is out. This week's topics: Asia Pacific M&A activity totals $367.5 billion for year-to-date 2009, an 11% decrease from 2008 levels. Consolidation in the financial, high technology and energy and power sectors accounts for 45% of announced deal volume this year. The volume of new asset-backed and mortgage backed securities total $498.9 billion for year-to-date 2009, a 3% increase over 2008 levels. After a nearly 85% decline in 2008, the market for securitizations of residential mortgages, credit card receivables and auto receivables has slowly returned aided by US government guarantee programs. Download the full report below.
1 min read · 04 December 2009
As usual, we have a week’s worth of ratings actions (mostly downgrades) on the debt of LBO-backed companies from ratings agencies S&P and Moody’s. This week brought some good news from the debt raters. S&P sees encouragement in the performance of Dana Holding Corp., the giant auto parts maker that Centerbridge bought out of bankruptcy. Meanwhile Moody's feels comfortable enough about the performance of Bain Capital's Sensata Technologies B.V. to upgrade the company's ratings. The ratings agencies served up two more downgrades as well, for companies owned by Kohlberg & Co., Versa Capital Management, Apax Partners and Trimaran Capital Partners. Company: Dana Holding Corp. Sponsor: Centerbridge Capital Partners LP Action: S&P raised its corporate credit rating on Dana to 'B' from 'B-' and raised the debt ratings. The outlook is stable. Highlight: “Dana's earnings and cash flow for the third quarter were better than we expected, reflecting benefits from aggressive restructuring actions after emerging from Chapter 11 in early 2008, despite weak auto sales. In addition, Dana reduced debt by $254 million in the first nine months of 2009 through a Dutch auction, market purchases of debt, and raising funds through a common equity offering. As a result, the company's covenant cushion has improved.”
3 min read · 04 December 2009
