Bain Capital related stories
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Bain Capital Offers To Cut Size of Co-Invest FundBain Capital is offering investors the chance to reduce their commitments to a $1.8 billion co-investment fund, peHUB has learned. Each limited partner would be allowed to cut back by up to 50%, assuming that a majority of investors ratify an amendment to the original fund documents (which they almost certainly will). LPs also would have the option to increase their commitments by acquiring someone else's discarded position (which they almost certainly will not). Bain closed the co-investment fund in late 2007, as a sidecar to what became an $11.5 billion general fund (Bain Capital Fund X). The idea was that it would be used for North American deals in which Bain’s equity check exceeded $650 million, with the general and co-invest funds to split the remainder 50/50. It also could theoretically be used for deals out of Bain’s European and Asian funds, although the initial waterfall for those vehicles flowed into Bain Capital Fund X. Since the co-investment fund was raised, however, it has only been tapped twice: First for the $17.9 billion buyout of Clear Channel Communications in July 2008, and then for the $3.5 billion buyout of The Weather Channel in September 2008 (using a combined $100m from the co-invest fund). All of Bain’s subsequent deals have been
- peHUB First Read
* The science of economic bubbles and busts http://www.scientificamerican.com/article.cfm?id=the-science-of-economic-bubbles * Bain Capital on GOME http://blogs.wsj.com/privateequity/2009/06/26/bain-on-gome-its-certainly-a-hairy-situation/ : "It's certainly a hairy situation." * Bill Taylor decodes Steve Jobs: Trust the art, not the artist http://blogs.harvardbusiness.org/taylor/2009/06/decoding_steve_jobs_trust_the.html * Morning Call: U.S. futures are flat http://www.reuters.com/article/usMktRpt/idUSLT66485620090629 London rises early http://www.reuters.com/article/londonMktRpt/idUSLT72877020090629 European shares extend gains http://www.reuters.com/article/eurMktRpt/idUSLT73177520090629 the Nikkei slips 1% http://www.reuters.com/article/tokyoMktRpt/idUKT34213920090629 and Chinese shares keep gaining http://www.reuters.com/article/hongkongMktRpt/idUSHKG30045220090629 * Back to the (recent) Future: "Material Adverse Change" is The Big Money's word of the week http://www.thebigmoney.com/blogs/sausage/2009/06/26/word-week-material-adverse-change * How the NY Times worked with Wikipedia http://www.nytimes.com/2009/06/29/technology/internet/29wiki.html?_r=1 to keep news of David Rhode's kidnapping a secret. * Daniel Indiviglio: Is Goldman Sachs the root of all evil? http://business.theatlantic.com/2009/06/is_goldman_sachs_the_root_of_all_evil.php * Epicurian Dealmaker on the Harvard MBA oath http://www.economist.com/specialreports/displaystory.cfm?story_id=13888102 * J. David Foster: How drought fosters entrepreneurship http://aguanomics.com/2009/06/how-drought-promotes-entrepreneurship.html (h/t Kedrosky).
- Deal of the week: BC Partners invests $350M in Office Depot
London PE firm to take minority 20% stake in struggling office supplies company
- Q2 IPOs end on positive note
Medidata launches last week as LogMeIn expects to debut this week
- peHUB Wire: Tuesday, June 23, 2009
Random Ramblings
- peHUB Wire: Tuesday, June 23, 2009
Random Ramblings
- LBO-Backed Bankruptcy List: On Pace to Double Last Year’s Total
The first two quarters of this year witnessed 46 bankruptcy filings from companies backed by private equity firms. That places 2009 on pace to double last year's total of 49, which is right in line with some predictions from the end of last year. Download the full spreadsheet after the jump. A few notes on the list this quarter: 1. The second quarter list includes our first mega-buyout bankruptcies: Extended Stay Inc., backed by Lightstone Group, and Chrysler, backed of course by Cerberus Capital Management. These deals could be the tip of the mega-bust iceberg, but I think most would agree that they're isolated incidents. We're still waiting, with bated breath, for 2011, when the real flood of mega-buyout debt begins to mature. Until then, the mega-market bankruptcies (ones with deal values greater than $5 billion) will be limited to the most underperforming companies with the most ridiculous capital structures.