Warburg Pincus related stories
All articles and analysis
Were Tech Buyouts Better?Erin Griffith lists 49 PE deals /27547/the-final-list-tk-pe-backed-bankruptcies-in-2008/ that went Chapter 11 in 2008, up from just two in 2007. Wow! But, not one technology deal made the list. (Wow again?) Leveraged buyouts in the technology sector are not new, as firms like Welsh Carson, TA Associates, GA and Warburg Pincus have been at it for over 25 years. But when the tech bubble burst and the IPO market became terminally ill back in 2000, these old-line firms were joined by a rush of overfed VCs (Battery, NorthBridge, Insight), generalist buyout shops and several new tech-focused PE firms – all of whom went on a remarkable fund-raising and shopping spree. The new breed of tech-focused PE firms were lead by names like Silver Lake, Francisco, Golden Gate, Vista and Vector. Many of these firms were built on tech banking talent that spent the 1990’s taking companies public. With the public markets dominated by hedge funds, day traders and regulators – these PE firms focused taking their old banking clients private. Like all LBO activity – the velocity and amplitude to tech buyout deals were dramatically enhanced by free credit and peaked in Q2 of 2007, when Kronos was taken private by Hellman and JMI for $1.8b, or 17x EBITDA.
- Moody's Downgrades CCS Medical
Moody's Investors Service has cut CCS Medical Inc.’s corporate family rating from Caa1 from B3. It also has downgraded the company’s first lien senior secured credit facilities to B2 from B1, but affirmed the Caa2 rating on the second lien term loan. CCS Medical is a Clearwater, Fla.-based portfolio company of Warburg Pincus.
- PE Week Wire: Wednesday, December 10, 2008
Random Ramblings
- PE Week Wire: Wednesday, December 10, 2008
Random Ramblings
- 2008's Most Active Deal-Doers
The ability to source a deal isn't much to brag about these days, with only the rarest of deals actually getting completed. Look no further than Carlyle Group, which is laying off 100 employees /25228/report-major-layoffs-at-the-carlyle-group/ a including a number of its deal team members, for proof. The decline in deals is apparent in a report released by PitchBook Data: For the first three quarters of 2008, there were 1,302 completed deals, a 33% decline from the 1,936 deals over the same period a year ago. Still, 1,302 deals is nothing to sneeze at, and there are plenty of firms out there striking deals, just at a much, much slower pace than, say, two years ago. I believe the phrase I keep hearing is "Ten times more work for one tenth of the results." In the report, PitchBook lists the top 50 most active private equity firms year to date. Guess what? Layoff-burdened Carlyle Group is listed as number three! (However I think they've now been passed by Sun Capital, as the firm told me it's done 23 deals this year, not 19 as PitchBook reports.) Follow the jump to see them all.