Private Equity
Well... Platinum Equity is not happy that the details of a sexual harassment case against it has been reported in the press. (San Diego Reader) How Bad Is CIT's Loan Portoflio? Bad, Michael Corkery writes. (Deal Journal) Is Wells Fargo Suing Itself? Technically, yes. Wall Street Folly has the details on the case of Wells Fargo vs. Wells Fargo. (WSF) Speaking of Wells Fargo: The San Francisco-based regional bank is rumored to be preparing to report second-quarter earnings well above market expectations. (dR)
1 min read · 15 July 2009
UPDATE: CIT has said it will not receive a bailout from the government. The company is "evaluating alternatives." After trading on CIT was halted today, we have been on the edge of our seats waiting to hear whether the troubled lender will get a federal bailout. The debate over whether CIT is big enough to deserve a bailout or whether it's too far gone to be saved continues to rage, but rather than weigh in there, we decided to look at who will be affected by a collapse of the liquidity-starved lender. Buyouts Senior Editor Ari Nathanson and I compiled a list of buyout-backed companies which have used CIT as a lead arranger on its credit facility over the last three years, courtesy of Thomson Reuters data. We came up with 38 companies.* Of those 38, CIT provided a revolver loan to all but two. For companies that haven’t drawn down their revolver (including this week’s run, which has only added to the company’s demise), the sudden disappearance of CIT could mean the sudden disappearance of all liquidity. The interesting part is the amount of repeat business on the list. It brings new meaning to the “strong lender relationships” often touted by buyout pros. The one thing they don’t brag about is how a "strong relationship" with a failing lender could wind up being worse than no relationships!
2 min read · 15 July 2009
In case anyone wondered if CCMP Capital was serious about retail investing after the firm's stalking horse bid for bankrupt Eddie Bauer, today's news reaffirms it: The firm has hired Richard Zannino, former Dow Jones CEO, Saks Fifth Avenue CFO and Liz Clairborne EVP. Zannino will be busy helping the firm identify targets as CCMP seeks to deploy the remaining 75% of its $3.4 billion fund, which closed in 2007. I spoke with Zannino and Managing Director Jonathan Lynch on CCMP's enthusiasm for distressed retail deals and why Zannino is "not a fan" of traditional media assets.
5 min read · 15 July 2009
1 min read · 15 July 2009
Advent International has begin marketing its fifth fund to invest in Latin American companies. The effort, called Advent Latin America Private Equity Fund V (LAPEF V), has closed on $70 million to date, according to a regulatory filing. No target capitalization was disclosed. Advent International’s prior Latin America fund closed on $1.3 billion in commitments in 2007, topping its target by 30 percent. It also was the largest private equity fund ever raised for investment in Latin America, the company said at the time. The fundraising process may take a bit more elbow grease this time around. On top of the already-difficult fundraising environment, a first half report for 2009 show M&A in Latin America has taken a hit comparable to the developed markets. Deal volume was down by 36% compared with the first half of last year with a 45% drop in value, according to
2 min read · 15 July 2009
Old Media is Doomed: Is BusinessWeek really only worth $1? (FT) CIT is Small Enough To Fail: "The rest of the financial sector should be lobbying for it not to get bailed out." (Baseline Scenario) Goldman Sachs Agrees. (Clusterstock) Speaking of CIT: Breakingviews is drawing some parallels between the beleaguered lender and another lender that went through some nasty layoffs earlier this year: GE Capital. (Telegraph) The Party MUST Go On: Merrill Lynch's famous "Bulls in a China Shop" party was not deterred by the disappearance of Merrill Lynch. (Dealbook)
2 min read · 14 July 2009
The Sun'll Come Out Tomorrow? Today was a rough news day for the already beat-up Sun Capital Partners. First, the Journal reported that Kellwood, its largest investment may file for bankruptcy. Then the Post reported that its second-largest investment, which already filed for bankruptcy, will lose an imperative deal because Sun Capital "starved the company of research dollars" under its ownership. Then we have this stinger: Sun Capital founder Marc Leder has seen his dirty laundry aired in the Palm Beach Post, which reports that his wife, who admits to having an affair with her tennis coach, wants more than the $100 million he has offered her in a settlement, claiming he is worth more than $400 million. The New Criterion for MBA Admissions: Amid a tight MBA labor market, B-school admissions decisions increasingly hinge on applicants' ability to land a job upon graduation. (BW) McKinsey's Cracked Crystal Ball: Its 2009 predictions about the future of private-equity and hedge funds might be as inaccurate as its 2007 predictions. (Moneybox) Fundraising Gossip: Updates on some Australian funds from the Carried Interest blog... (CI)
1 min read · 13 July 2009
1 min read · 13 July 2009
Here's a look at the past two weeks of scoops, opinions and analysis from the peHUB blogging team. Andreessen Horowitz Closes on $300 Million Venture Fund Marc Andreessen on Why He Passed on Facebook, Twitter vs. Bing and the Companies He Wishes He'd Backed Why Several High-Profile VCs Sponsored Andreessen 5 Questions for Bill Chisholm, Symphony Technology Group VC Deal Scoop: Qik, Terracotta & More... 5AM Ventures Passes Target on Fund Three New Cleantech Firm Alert: Black Coral Capital Quantcast Raising New Cash at $300 Million Valuation VC Fundraising Collapses in 2009 Preliminary VC Deal Data Shows Mixed Bag VCs See Over 9x (Paper) Return on LogMeIn For Emission Cuts, Zero in on the Rich, Suggests Study Murdoch: No Interest in Twitter Yikes, Andrew Cuomo Suing Tagged.com Wilbur Ross: FDIC Meeting Was "Highly Productive" Sheila Bair on PE Bank Investments: "Unmoved" or "May Relax" Treasury Dep't: No PPIP Applicants for You
2 min read · 11 July 2009
Silicon Valley's Beleaguered Moneymen: Forbes jumps on the "a few strong IPOs means we're moving past the downturn" wagon. (Forbes) Snap: Dealbreaker notes that the SEUI is getting sassy about the AIG bonuses. (DB) The brightest and the rest: In venture capital, "Too much money has been chasing too few great start-ups" (Economist) Capitalism: A Love Story. That's the name of Michael Moore's new movie. (BW) Measure That Market: A surefire way to get private equity pros to start talking nonsense. (Private Equiteer)
1 min read · 10 July 2009
