Providence Equity Partners related stories
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- BCE sues would-be buyers over break-up fee
The saga continues for the largest proposed Canadian buyout deal, which collapsed earlier this month
Solvency issues scupper buyoutsTwo US deal collapses reflect the fact that sellers are at the mercy of buyers in today’s market, with solvency opinions increasingly likely to play a role in transactions, writes Sarah Young.
- Don't Trust S&P Reports on Private Equity, PEC Says
The Private Equity Council has a bone to pick with S&P's recent string of reports, which tracks the "Traces of Private Equity DNA" in defaulting companies. The problem, according to PEC, is that a list compiled by S&P looks at non-control stakes, which make up the majority of the PE-backed defaulters. Whether or not to blame a minority shareholder for a default is one thing, but S&P actually included at least one company that didn't even have PE investment at the time of default. PEC called the analysis "strained." S&P's latest report, which got media attention here ../../../../../../24276/default-update-percentage-of-pe-backed-bankruptcies-falls-sp-reports/ and elsewhere, shows that 53 out of the 86 S&P rated defaulters are "related to private equity." According to PEC's investigation, only 22 companies had PE control stakes. I think this is a valid complaint, evidenced by an in-depth document (view it here http://www.privateequitycouncil.org/wordpress/wp-content/uploads/sp-default-analysis-pec.pdf ) outlining S&P's "promiscuous" definition of the word private equity. The PEC list of 22 defaulters is available here http://www.privateequitycouncil.org/wordpress/wp-content/uploads/pec-analysis-of-sp-list.pdf
LPs Rush For Exits, Overwhelming Secondary MarketWhat looks like a record sell-off of private equity interests has begun.