Private Equity
Rumourtown: Business Insider is reporting that Yahoo wants to buy Foursquare for $100 million. Somehow I'm skeptical. And here's one blog post that agrees with my skepticism. Private Equity's Merger Vanguard: Funds of Funds are bulking up. (WSJ) Everybody Panic! There was a zany power outage today during Alan Greenspan's testimony. "Several gasps were heard." Sounds like a scene from a cheesy murder mystery. (Dealbook) MBAs with a Social Conscience: More business school applicants say they want jobs in sustainability and social enterprise. The implications are potentially huge. (BusinessWeek) Dimon:Schwarzenegger::Blankfein:DeVito What really gets Jamie Dimon's goat? Being lumped in with Lloyd Blankfein. (Dealbreaker)
1 min read · 07 April 2010
Here are some potential target ideas, rumored or official, to jumpstart your deal pipeline. Our sources are various news reports and the Buyouts “Seeking Buyers” list. Petroplus Holdings AG, an independent refiner based in Europe, is evaluating strategic alternatives at its Reichstett Refinery. Infratek ASA, a Norwegian electrical contractor, hired Carnegie ASA to advise it on the exploration of strategic alternatives. Anchor BanCorp Wisconsin Inc., a Nasdaq-traded bank based in Wisconsin, hired Sandler O'Neill Partners to advise it on the exploration of strategic alternatives. AOL is deciding on an exit strategy for Bebo, a social networking service it acquired for $850 million two years ago. The company will either sell or close the company. AOL is also selling ICQ, an instant messaging service reportedly worth $300 million. Three companies have submitted binding offers for the company.
4 min read · 07 April 2010
1 min read · 07 April 2010
PitchBook Data has released its preliminary data covering U.S. private equity investment and fundraising during the first quarter of 2010, which you can download below. Here are some highlights: Private equity firms completed 300 investments in U.S. companies during the first quarter, the highest total since the fourth quarter of 2008 and slightly more than the 287 PE investments closed in 1Q 2009. The top industry for private equity investment was Business Products and Services with 99 deals, followed by Consumer Products and Services with 57 deals and Healthcare with 40 deals. The lower-middle and middle-market ($250 million and below) continued to represent the vast majority of PE investment during the quarter, accounting for 85% of the deal flow. Private equity exits surged to their highest level in over a year with 71 completed exits totaling $7.85 billion. 19 U.S. private equity funds reached a final close during 1Q, totaling $14 billion in commitments, a significant decline from the 39 funds closed in 1Q 2009 with $61 billion in commitments, showing that the fundraising climate remains difficult as PE firms deal with the current $400 billion capital overhang and limited partners contend with allocation issues and large portfolios of unfunded commitments.
1 min read · 07 April 2010
Nixon Peabody's latest report on private equity tax law explores the effects of the new medicare taxes on private equity funds. According to the report, the new healthcare reform law includes a number of revenue-raising provisions that will adversely affect private equity investors and fund managers. Download it below.
1 min read · 07 April 2010
2 min read · 07 April 2010
Charts: Why California Pension Managers Shouldn't Be Allowed Near Money. (Paul Kedrosky) Investors ♥ Junk: They can't get enough of high yield bonds. (FT Alphaville) Feature: Private Equity ventures into China. (China Daily) Carried Interest 2.0: If most GPs strongly believe they're top-quartile performers, then does that mean we should change our performance fee equation to 10% carry below 2x? (Private Equiteer) No FUN for Apollo: The firm's deal to acquire Cedar Point has fallen apart on price. Shareholders asked for more; Apollo said no. All this is to say that one of the best stock ticker symbols out there-FUN-will remain afloat, for the time being at least. It remains to be seen if KKR's rumoured buyout of HOG (Harley Davidson) will steal away another good one. (peHUB)
1 min read · 06 April 2010
2 min read · 06 April 2010
CIT Partners has quietly sold Edgeview Partners back to its employees, peHUB has learned. CIT acquired the Charlotte, N.C.-based mid-market boutique consultancy in mid-2007. CIT's 2009 bankruptcy left Edgeview Partners in limbo, causing three of its partners to leave the firm, we reported in October. Before leaving, Co-founders Drew Quartapella and Matt Salisbury offered to buy Edgeview back from CIT, but the lending giant was unresponsive until recently. Yesterday Edgeview's partners closed the deal to acquire the firm. CIT sent peHUB the following statement:
2 min read · 06 April 2010
Plans Plans Plans: Apax Partners has pledged to exit from 10 of its portfolio companies during the course of 2010 and return 5 billion euros to investors. (FT) Davos Report: Of Women, Sleep Deprivation and Financial Meltdown (Dealbook) Servicey: Making a good first impression at your finance interview. (FINS) Traders Made More Than CEOS: Many Wall Street chief executives took a big pay cut for 2009. But their real value may have been in deflecting attention from their troops-who enjoyed the largest collective payday on record. (WSJ) Finally? Secondary deals surged in Q1. (Preqin)
1 min read · 05 April 2010
