Arcapita related stories
All articles and analysis
peHUB RewindHere's a look at the past week's scoops, opinions and analysis from the peHUB blogging team. Social Networking Startup May Become Black Eye for High-Profile Valley Investors http://feedproxy.google.com/%7Er/pehub/blog/%7E3/U693I9wflAM/ [Controversy?] Tagged CEO Greg Tseng On Accountability, TechCrunch and Leading the Third Biggest Social Networking Site in the U.S. http://feedproxy.google.com/%7Er/pehub/blog/%7E3/3a3ucBzFUhs/ [Q&A] SoftBank's Hippeau Joins HuffPo...It Was Inevitable http://feedproxy.google.com/%7Er/pehub/blog/%7E3/Dx2HaAJLhJM/ [HR] National Association of Realtors Forms VC Fund http://feedproxy.google.com/%7Er/pehub/blog/%7E3/E76RimFjfCM/ [Fund Scoops] When VC Paul Holland Builds a House, He Doesn't Mess Around http://feedproxy.google.com/%7Er/pehub/blog/%7E3/-bBLGzBmtUc/ [Its Green] Unithrive: Connecting Cash-Strapped Harvard Students with Wealthy Alumni http://feedproxy.google.com/%7Er/pehub/blog/%7E3/tx9izO57pTk/ [Startups] New Startup: VocabSushi http://feedproxy.google.com/%7Er/pehub/blog/%7E3/wTuKNNCFIXA/ [Startups] LogMeIn Could Become First Tech IPO of Third Quarter http://feedproxy.google.com/%7Er/pehub/blog/%7E3/WfmQF3DHc88/ [Green Shoots?] What Up, Canada? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/2Djs8qqEC2o/ [Word] Must-Read Tribute to Rajeev Motwani, One Week After His Fatal Accident http://feedproxy.google.com/%7Er/pehub/blog/%7E3/qKMXL40LAoE/ [Eulogies] Study: If You're Over 25 and a Tech Geek, You're Probably Using an iPhone http://feedproxy.google.com/%7Er/pehub/blog/%7E3/-kVxgqGhyk4/ [FYI] Billionaire CEO Larry Ellison Cleared in Securities Suit http://feedproxy.google.com/%7Er/pehub/blog/%7E3/UKnOlyKDWbc/ [Whew] Thompson's Statement Was A Bunch Of Bull ../../../../../../42616/thompsons-statement-was-a-bunch-of-bull/ [Trust Politicians] Is Private Equity Poised For A Quick Bounce-Back? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/adWYQPCOh4w/ [Probably Not] Fundraising Updates: Resource Capital, Richardson, Walton St. http://feedproxy.google.com/%7Er/pehub/blog/%7E3/VqNA0GRGF4k/ [Scoops] Picking Up After "Large Loan" Verrone http://feedproxy.google.com/%7Er/pehub/blog/%7E3/4085-tTEmGw/ [Just Desserts?] Kind Of A Big Deal: ZM Capital Strikes First Deal With "Father Of Infomercials http://feedproxy.google.com/%7Er/pehub/blog/%7E3/wjXc-1rLnH8/ " [As Seen On Tv] A Modest Proposal http://feedproxy.google.com/%7Er/pehub/blog/%7E3/5banmfpt_hc/ [Suggestions] LPs Say "No Mas" To Future Funds, But What About Existing Ones? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/VXc11Vig250/ [More Suggestions] Ford Foundation Names New Private Equity Chief http://feedproxy.google.com/%7Er/pehub/blog/%7E3/MOjJKenZ1gQ/ [HR] Dollar General IPO Speculation Reaching Feverish Levels http://feedproxy.google.com/%7Er/pehub/blog/%7E3/EFfmdgykQw0/ [Do it already] How Will Tomorrow's Financial Regulation Announcements Affect Private Equity? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/T1qKJHh3geE/ [New New Deal] Private Equity and Venture Capital To Be Regulated http://feedproxy.google.com/%7Er/pehub/blog/%7E3/EVzZsmDpaPs/ [New New Deal] PEC Supports Obama Plan For SEC Registration http://feedproxy.google.com/%7Er/pehub/blog/%7E3/n8Es7pWLdWA/ [New New Deal] Underperform in Europe, and Heads Roll. In The U.S.? Business As Usual http://feedproxy.google.com/%7Er/pehub/blog/%7E3/uhdo4leozWU/ [Legacies] Steve Young of Huntsman Gay on Deploying a New Fund In a Slow Market http://feedproxy.google.com/%7Er/pehub/blog/%7E3/tt5LZzm2EPQ/ [Q&As] 5 Eddie Bauer Questions for Jonathan Lynch http://feedproxy.google.com/%7Er/pehub/blog/%7E3/m5QpfqJY0rw/ [Ch 11s] Sun Capital and Golden Gate, Here's Your Second Shot at Eddie Bauer http://feedproxy.google.com/%7Er/pehub/blog/%7E3/-WLQc_M-f8k/ [Ch 11s] Lynn Tilton of Patriarch Partners on Speigel, AriZona Iced Tea, Not-Bankrupt Stila Cosmetics, and a Possible New Fund http://feedproxy.google.com/%7Er/pehub/blog/%7E3/2DnODwTG4jQ/ [Q&As] Thanks, Sale-Leaseback! Arcapita Takes 2x Return on Church's Chicken http://feedproxy.google.com/%7Er/pehub/blog/%7E3/L4q3u9iYF5k/ [Q&As] Midweek M&A Madness [Regulars] http://feedproxy.google.com/%7Er/pehub/blog/%7E3/_v3KInvztv8/ Weekly Downgrade Wrap-Up: Where Does Portfolio Company Debt Stand? [Regulars] http://feedproxy.google.com/%7Er/pehub/blog/%7E3/xI261Pfds10/ Inside the startup office from hell http://feedproxy.google.com/%7Er/pehub/blog/%7E3/-NETAm5WNAc/ [Links Lists] Things A VC will never say [Links Lists] http://feedproxy.google.com/%7Er/pehub/blog/%7E3/-a6S-GO20r8/ Things a founder will never say [Links Lists] http://feedproxy.google.com/%7Er/pehub/blog/%7E3/Dv4bYpWs3TQ/http:/feedproxy.google.com/%7Er/pehub/blog/%7E3/Lc_Yk2d9XOE/ The largest bankruptcies in history http://feedproxy.google.com/%7Er/pehub/blog/%7E3/Lc_Yk2d9XOE/ [Links Lists] Former Management Buyouts http://feedproxy.google.com/%7Er/pehub/blog/%7E3/bvje7PLraVU/ [Links Lists] Bill Clinton for Fed Chairman? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/SSwYoHggLXE/ [Links Lists] Ten Ways to Provoke a Geek Argument http://feedproxy.google.com/%7Er/pehub/blog/%7E3/TnELaavyFdU/ Does VC post systemic risk? http://feedproxy.google.com/%7Er/pehub/blog/%7E3/ATSzUxnaFQc/ [Links Lists] Social networking for quant traders http://feedproxy.google.com/%7Er/pehub/blog/%7E3/Vj1-YwjBXIs/ [Links Lists] Private equity is pretty dedicated to maintaining offshore abuse by private equity http://feedproxy.google.com/%7Er/pehub/blog/%7E3/9zaMfW1letI/ [Links Lists] The Human Gulf in Private Equity Secondaries http://feedproxy.google.com/%7Er/pehub/blog/%7E3/J_D1TFPF9pM/ [Vox Populi]
- Thanks, Sale-Leaseback! Arcapita Takes 2x Return on Church’s Chicken
Selling a company for less than you bought it for is typically a sign defeat. But thanks to a lucrative sale-leaseback, that's not the case for Arcapita's sale of Church's Chicken to Friedman Fleischer & Lowe. The firm made 2x its money net of all carried interest and fees. News of the sale itself shouldn't be a surprise to peHUB readers, since we first reported it on June 8 ../../../../../../41614/churchs-chicken-friedman-fleischer/ However, we didn't have the exact math. So here's how Arcapita earned twice its investment: The firm purchased the southern food chain from parent company AFC Enterprises in 2003 for $390 million. Immediately the firm sold the company's real estate in a sale-leaseback transaction, making $162.5 million. That technically makes the "true price" $227.5 million. The firm put in $82 million in equity and Suntrust Robinson Humphrey provided $160 million of debt financing.
- Church’s Chicken Selling To Friedman Fleischer – Source
Arcapita has agreed to sell restaurant operator Church’s Chicken to Friedman Fleischer & Lowe, according to a source close to the situation. The deal, advised on the sell side by Bank of America, represents a rare exit of a stable, growing company. Church’s Chicken has annual revenues that have grown between 8% and 10% through the recession as consumers trade down to less expensive dining. Within the past two weeks, San Francisco-based Friedman Fleischer was selected as the winning bidder from an auction that started with as many as ten buyout suitors, the source said. In April peHUB reported the sellers had narrowed the bidding pool to three or four parties. At the time, Atlanta-based Arcapita was seeking a full valuation of up to 8x Ebitda for the company.
eircom on the block againBy Paul Sandell
- Midweek M&A Madness
As the weather (slowly) warms up, plenty of M&A bankers are hoping the market for deals will as well. We've noticed a few more targets coming to market in recent weeks and have compiled a list of some of those we've come across. Our sources are various news reports and the Buyouts "Seeking Buyers" list. Midweek M&A Madness: The following companies (among many, many others) are either formally considering "strategic alternatives," reported to be on the block, or rumored to be in sale talks. I can't be comprehensive, but I can try. Send any additions my way mailto:erin.griffith@thomsonreuters.com Granite City Food & Brewery: The company hired KeyBanc Capital Markets to sell itself in January. Corus Bankshares is exploring strategic alternatives including a sale. The company has more than $7 billion in assets http://uk.reuters.com/article/marketsNewsUS/idUKBNG7086920090501 Church's Chicken: Arcapita put its portfolio company on the block a month ago after an unsuccessful go at it more than a year ago. Wabash National: BB&T Capital Markets has been retained as the company's financial advisor to assist in the consideration of various corporate strategic alternatives.
- peHUB Rewind
Here’s a look at the past week’s scoops, opinions and analysis from the peHUB blogging team. Housekeeping first: We launched the internship rodeo, so MBAs, check out this guide http://feedproxy.google.com/~r/pehub/blog/~3/ffFHrYdr1rA/ Dan started out the week by telling venture capital investors to pay attention to ten-year performance numbers http://feedproxy.google.com/~r/pehub/blog/~3/axTfTyAUkJA/ While at the NVCA conference, he contemplated a prescription to fix VC-backed IPOs http://feedproxy.google.com/~r/pehub/blog/~3/1UAXLQcEzIY/ Larry provided a Ph.D. analysis http://feedproxy.google.com/~r/pehub/blog/~3/3_synMIxJhQ/ of the same problem. Joanna Glasner examined http://feedproxy.google.com/~r/pehub/blog/~3/kcbO2E6BiaE/ it, too. While at the conference, Dan liveblogged two panels: "Legends http://feedproxy.google.com/~r/pehub/blog/~3/QpfFRu9zIRc/ " and "Cleantech. http://feedproxy.google.com/~r/pehub/blog/~3/l2DopC-jm1I/ " At Nantucket, he liveblogged an interview with Rich Miner of Google Ventures http://feedproxy.google.com/~r/pehub/blog/~3/NjfjcJ4a_9M/ We reported Jay Koh is leaving http://feedproxy.google.com/~r/pehub/blog/~3/WJW2sSEWfws/ R3 Capital Partners, among a number of staff changes http://feedproxy.google.com/~r/pehub/blog/~3/Dn0z_8_iQyw/ at the firm. Connie wrote that one VC is feeling the effects http://feedproxy.google.com/~r/pehub/blog/~3/Z3PHTqRfFuk/ of the real estate bubble. Also, Tac Anderson http://feedproxy.google.com/~r/pehub/blog/~3/DIsfOQsmMT8/ will leave Idaho. One more personnel change: Tom Crotty won't be in Battery Ventures' 10th fund http://feedproxy.google.com/~r/pehub/blog/~3/NMKrBQqt88Q/ In a scandal unrelated to the New York Pension kickback scandal, we reported on Wilson Sonsini's conflict of interest case http://feedproxy.google.com/~r/pehub/blog/~3/Ojcm2jq8HIo/ But don't worry, there was plenty of pay-for-play news last week. On Thursday, Aldus Equity and co-founder Saul Meyer were charged as actors in the scandal. Dan posted the SEC and New York complaints here http://feedproxy.google.com/~r/pehub/blog/~3/QSIc9W1duxw/ Aldus' attorney spoke out, calling the charges "appalling and careless http://feedproxy.google.com/~r/pehub/blog/~3/A97v39aNZvs/" And after some digging, we learned that Meyer's alma mater didn't have a spotless record, either http://feedproxy.google.com/~r/pehub/blog/~3/RJeBcL6CHI8/ Lastly, we unearthed a few unfortunate quotes http://feedproxy.google.com/~r/pehub/blog/~3/Xyx6gBvuVPQ/ from Meyer in past interviews. On the lending side, Buyouts pointed out that leveraged lending in Q1 was so cold S&P http://feedproxy.google.com/~r/pehub/blog/~3/sknY3q8usco/ couldn't even analyze it. But that won't stop one firm from trying to exit. We got wind that Arcapita is holding an auction for Church's Chicken http://feedproxy.google.com/~r/pehub/blog/~3/IcdOYQP-Oyo/ Dan asked if Chrysler was the Worst private equity deal ever http://feedproxy.google.com/~r/pehub/blog/~3/bUpBOxCwtC0/ (hint: probably not). We saw yet another LBO-backed bankruptcy and thought it looked familiar: Oh yes, it won a Buyouts Deal of the year award. Which prompted to me to examine other raspberry award winners and realize why we now focus awards on exits http://feedproxy.google.com/~r/pehub/blog/~3/l-kdaiQnXRw/ Fresh off a secondaries conference, I provided a handy list of the 25 or so secondary funds in the market http://feedproxy.google.com/~r/pehub/blog/~3/MFl7mHCuxAw/ today. Beyond that, I wrote there are four real estate secondary funds http://feedproxy.google.com/~r/pehub/blog/~3/XzBemR3nHss/ in the market. That's as yet another buyout firm shelves its fundraising process http://feedproxy.google.com/~r/pehub/blog/~3/bHw6L-avMKI/ Bernard wrote. Meanwhile, TPG took home yet another top honor as the largest fee-paying private equity firm http://feedproxy.google.com/~r/pehub/blog/~3/Z3PHTqRfFuk/ One final secondaries note: Talk of negative premiums http://feedproxy.google.com/~r/pehub/blog/~3/SsghpmsfNl0/ has come to the fore. Wilbur Ross declared his interest in toxic assets http://feedproxy.google.com/~r/pehub/blog/~3/zw9pOSgOzQk/ (not a secret, but the size of his interest was news). Speaking of distressed investing, Siguler Guff may begin distressed BRIC investing http://feedproxy.google.com/~r/pehub/blog/~3/TGdIlDHhxJw/ Speaking of distress, psychologists to the rich have noticed some changes http://feedproxy.google.com/~r/pehub/blog/~3/TQHfvKbAYkk/ recently. Connie pointed out the limitations of startups http://feedproxy.google.com/~r/pehub/blog/~3/rMwfDg-v2zU/ like ReputationDefender. Meanwhile, Workday has now raised more than $150 million http://feedproxy.google.com/~r/pehub/blog/~3/eqjidhoGkHI/ Associated Content raised $6 million http://feedproxy.google.com/~r/pehub/blog/~3/eJoEQQqhoT4/ Yet another entrepreneur has started a venture fund: The University Funds http://feedproxy.google.com/~r/pehub/blog/~3/oX1uRbK2pc0/ In other VC news, Brad Feld acted as a guest chef at a french fry joint for charity http://feedproxy.google.com/~r/pehub/blog/~3/3cVPa9CU_Yc/ Also, after its surge of popularity and interest, we learn that Twitter has a quitter problem http://feedproxy.google.com/~r/pehub/blog/~3/Ty4gdX9BeAo/ and its been hacked again. http://feedproxy.google.com/~r/pehub/blog/~3/lKjXpgrP_Lk/ In our Vox Populi section, Howard Anderson wrote, "The Management Gospel According to The Godfather http://feedproxy.google.com/~r/pehub/blog/~3/Z3PHTqRfFuk/" Jeff Bussgang looked at Obama's first 100 days and declared D.C. to be the New New York http://feedproxy.google.com/~r/pehub/blog/~3/u8y2U4kBZUI/ And of course, First Read and Second Opinion covered lots of ground, including the MBA support system http://feedproxy.google.com/~r/pehub/blog/~3/Wz_E3Kmat1s/ the return of Gordon Gekko http://feedproxy.google.com/~r/pehub/blog/~3/5P6dGD7oiAA/ the VC math problem http://feedproxy.google.com/~r/pehub/blog/~3/3KCSEVIy0Ao/ shiny happy Dow predictors http://feedproxy.google.com/~r/pehub/blog/~3/6qiJ0izP8sc/ confusion over whether a firm actually owns http://feedproxy.google.com/~r/pehub/blog/~3/7Vml5PIcU9Y/ its own portfolio companies, bloggers uncovering ponzi schemes http://feedproxy.google.com/~r/pehub/blog/~3/JAS26Euej6o/ and the end of dumb money http://feedproxy.google.com/~r/pehub/blog/~3/7iBmJGQE6gk/ Previous Weeks: peHUB Rewind April 17, /37492/pehub-rewind-2/ peHUB Rewind April 10 /36818/pehub-rewind/ peHUB Rewind April 27 /38274/pehub-rewind-3/
- The Curse Of The Deal of the Year Award
This is why we now give awards based on exits and not deals. Yet another recipient of a Buyouts Deal of the Year awards has soured. Sterling Investment Partners' award-winning take-private target, U.S. Shipping, filed for bankruptcy ../../../../../../38767/sterling-partners-backed-us-shipping-sinks/ (See below for a list of other cursed winners.) The deal was named small market deal of the year in 2002, the year Sterling purchased the oil transportation services business of Amerada Hess Corp. for $198 million. U.S. Shipping paid approximately 5.5 times pro forma EBITDA and had a number of co-investors to its $40 million equity stake, according to the accompanying story. Buyouts deemed this deal a winner because of the special five-year revenue guarantee it had locked in with the seller. It seems like a good plan, except Sterling probably didn't expect things to turn sour after that five-year period ran out.
- Take-Out: Arcapita Selling Church’s Chicken
Atlanta buyout firm Arcapita is in the midst of selling Church’s Chicken, according to a source familiar with the situation. The firm has retained Bank of America to run the auction. Seeing a healthy company go on the auction block is a bit of uplifting news for M&A bankers, who haven’t gotten much action lately. But the term “healthy” is limited to the company’s performance—the offerings of the southern fast food chain won’t keep your cholesterol down. Texas-based Church’s Chicken has shown stable growth of between 8% and 10% through recession as consumers trade down to less expensive dining. In first round discussions, the company attracted interest from a select group of ten middle market private equity bidders. The pool of suitors has since been narrowed to three or four, and its unclear whether second round bids have been submitted, the source said.