Kinder Morgan

Goldman Sachs, Carlyle Group, Highstar Capital and Riverstone Holdings took the pipeline and storage terminal operator private in a $22bn deal.

7 KINDER MORGAN THE RIGHT PIPES 2009-10-01 Staff Writer This steady-flowing company is worth more now than then THE DEAL

The Goldman-led, $22bn take-private of energy logistics company Kinder Morgan, officially agreed today, involves a roughly $8bn equity cheque from the private equity consortium and management.

Co-founder Richard Kinder’s management-led buyout of the pipeline operator would be the second largest private equity deal of all time. GS Capital, AIG, Carlyle and Riverstone are providing equity to the proposed deal.

The equity will come from the $2.5billion Carlyle International Energy Partners fund which closed in March

The $86bn alternatives manager has agreed to acquire the infrastructure fund manager for an undisclosed sum. Both firms are based in the US.

A glossy report from Barclays Private Equity (BPE) was sent to PEO recently, discussing numbers compiled by the Centre for Management Buy-out Research at Nottingham University Business School (BPE is a founding sponsor of the Centre along with professional services firm Deloitte). It is one of the more pessimistic research notes to originate from within the industry in recent years – at least if you happen to be a large buyout specialist (which BPE, a successful pan-European mid-market house, is not).

As limited partners continue to debate the merits of large buyout funds, evidence grows that they may not turn out to be the poor performers some had assumed.

Private equity professionals are a competitive bunch. But many were likely toasting Cinven’s sale of Phadia this week as further evidence that boom-era buyouts can prove profitable.

A widened US court case against some of the buyout industry’s biggest names is raising questions over the legality of joint-bidding.

The US IPO market, analyzed in this month’s edition of Private Equity International, has slowed considerably after coming out of the gate with a bang during the first half of 2011.

Private equity professionals are a competitive bunch. But many were likely toasting Cinven’s sale of Phadia this week as further evidence that boom-era buyouts can prove profitable.