The U.S. leveraged loan market is showing no signs of a seasonal slowdown. A flurry of opportunistic leveraged loans from issuers backed by strong demand from institutional investors suggests that the market may have recovered from a bout of weakness earlier this year just as geopolitical risk is increasing.
4 min read · 01 August 2014
U.S.-based venture capital firms raised $18.3 billion for 146 venture capital funds in the first six months of 2014, with mega-funds leading the charge.
2 min read · 30 July 2014
Limited partners are fond of ranking the funds they invest in. We thought we’d turn the tables a bit and rank the LPs themselves based on how well their funds have performed.
2 min read · 28 July 2014
Do you want to land a private equity job or are you a private equity associate who wants to advance your private equity career? Read on for expert advice.
6 min read · 26 July 2014
Paul Carbone of Pritzker Group threw a bit of cold water on enthusiasm for co-investments in private equity, arguing that direct investments offer a better fit outside conventional fund structures, at least for family offices. . Family offices “like the asset class” but have run up against limited access to the best funds and other issues, said Carbone, managing partner at Chicago-based Pritzker Group Private Capital, at the PartnerConnect Midwest 2014 conference in June. . Citing a study by advisory firm Altius Associates released in March, Carbone said co-investments may contain a substantial risk of poor returns, even with a reasonably sized portfolio. While co-investments do avoid the conventional “2 and 20” fee structures of private equity funds, investors face “adverse selection” because they do not necessarily get access to the best deals. Their investment portfolios also become concentrated in too few investments, he said. . Direct investing is a superior strategy because it outperforms fund investments and significantly outperforms co-investments, he said. More than half of family offices with private equity holdings are taking part in direct investing and “more are interested,” he said. . --By Steve Gelsi, Senior Editor, Buyouts . A longer version of this story first appeared in Buyouts magazine. Subscribers can read the original version here. Not a subscriber? Click here to subscribe.
1 min read · 23 July 2014
Madison Dearborn Partners plans to begin fundraising for its next fund later this year, probably in the second half, said Chairman John Canning. . Chicago-based Madison Dearborn will seek no more than $4 billion for its seventh fund, said Canning, who spoke at the Buyouts Midwest conference being held in Chicago. “We will definitely be in the market shortly,” Canning said. . The $4 billion is roughly the same amount as that raised by Madison Dearborn’s last pool, Fund VI, which collected $4.1 billion in 2010. Fund VI is generating a net IRR of 19.1 percent as of Sept. 30, according to the Regents of the University of California. . Fund VI, which is 80 percent committed, is more indicative than its predecessor of how Madison Dearborn is doing now and what the firm hopes to do with its seventh pool, a source added. . “Our investors know we are about to raise a fund,” Canning told peHUB on the sidelines of the conference. . Madison Dearborn got away from its roots of investing in mid-market companies, Canning said during the conference. The firm has returning to its “knitting” and will seek to invest $100 million to $400 million equity per deal, Canning said. The average investment will be $300 million, he said. Fundraising for the seventh pool will likely begin in the second half, he said. . The buyout shop has scored some notable exits recently. In March, Madison Dearborn agreed to sell Fieldglass, a provider of technology for procuring and managing contingent labor and services, to the big software company SAP. Madison Dearborn made 5x its money with the sale of Fieldglass, a Fund VI investment, Canning said. TIAA-CREF also inked a $6.25 billion buy of Nuveen Investments in April. The sale is expected to close by year end. . Madison Dearborn has been criticized for Fund V, which collected $6.5 billion in 2006. Fund V took part in several large transactions during the buyout boom, including the $7.3 billion buy of technology retailer CDW Corp in 2007, the $5.75 billion buy of Nuveen that same year and the $4.1 billion buy of Asurion, an insurer of tech devices, also in 2007. MDP’s fifth pool also invested in the $13.7 billion club buy of Univision Communications in 2006 and the $3.8 billion buy of VWR International LLC, a distributor of laboratory equipment, in 2007 for about $3.8 billion. . “We’ve owned up for the mistakes made with Fund V,” Canning said. He estimated that three deals—CDW, Nuveen and VWR—made up almost 45 percent of the pool. Fund V is generating a 6.79 percent net IRR as of Sept. 30, according to the Washington State Investment Board. . Madison Dearborn has been slowly exiting many of Fund V’s deals. CDW went public last year. The firm continues to own a stake but is selling shares. In May, CDW announced a secondary offering of 15 million shares. About half is coming from Madison Dearborn, which will have a roughly 25 percent stake after the sale and greenshoe overallocation option, according to regulatory filings. Univision is also reportedly in talks to be sold. . One deal Madison Dearborn isn’t interested in? Portillo’s Hot Dogs. Canning said he “likes” Portillos but is not interested in the Oak Brook, Illinois-based company. . Well known throughout Chicago for its hot dogs and Italian Beefs, Portillo’s Restaurant Group reportedly went up for sale earlier this year. The company has hired Jefferies to advise on the sale, press reports said. . News of Madison Dearborn’s fundraising was previously reported by Bloomberg News. . By Luisa Beltran, peHUB . This story first appeared on peHUB on June 24, 2014
1 min read · 11 July 2014
Spectrum Equity beat the target for its seventh fund by more than $150 million, according to an SEC filing.
1 min read · 04 July 2014
Spectrum Equity beat the target for its seventh fund by more than $150 million, according to an SEC filing.
1 min read · 04 July 2014
TheBlaze said in an SEC filing today that it has raised just $6.4 million of a planned $40 million since it revealed its fundraising plans last year.
1 min read · 03 July 2014
TheBlaze said in an SEC filing today that it has raised just $6.4 million of a planned $40 million since it revealed its fundraising plans last year.
1 min read · 03 July 2014
