Commentary

Goldman Waiting To Launch New Fund

Goldman Sachs’ 2007 fund is almost fully deployed, but the investment bank is waiting on regulation before it makes its next move. Richard Friedman, global head of merchant banking, sister Web site peHUB reported.

With Credit Markets Frothy, Signs Of Inflection Point

Buyout activity from U.S. sponsors picked up in the third quarter, fueled by a robust credit market and by ebbing fears of a financial crisis in Europe and another recession here in the United States.

Chart of the Week: A Majority Of Buyout Shops Allow Recycling Rights

Given that even in the best of times it’s never easy to raise money, buyout shops may want to pay more attention to recycling provisions in the months ahead.

Chart of the Week: Buyout-backed M&A Deals Recover From 2008 Trough

Exits through M&A have been recovering nicely for buyout shops since 2008, good news for buyout professionals hoping to collect more carried interest.

Just 17 Portfolio Companies Flirting With Default

Standard & Poor’s classified slightly more entities as at risk of a debt default last month, compared with its view in late May. By our count, the number with financial sponsors dropped by one to 17 over the same period

Market At A Glance

Buyout and mezzanine firms based in the United States have raised $120.17 billion so far this year, reflecting a number of interim and final closings including the $2.5 billion close of Blackstone Energy Partners LP, which had a $2 billion target.

Chart of the Week: U.S. High-Yield Debt Market Shows Strength

The high-yield corporate debt market is showing signs of strength in the United States, where proceeds are up 12 percent from a year earlier, helping to fuel a minor buyout binge.

Chart of the Week: How Popular Are Management Fee Waivers?

The New York attorney general, Eric Schneiderman, is investigating a tax strategy that buyout firms employ whereby LPs agree to waive a percentage of management fees upfront in exchange for an equivalent amount to be paid later from partnership profits.

Chart of the Week: Silver Lake Partners III Tops All Mega Funds of 2006, 2007 With 19.7% IRR

Silver Lake’s Fund III may hold the top IRR return at 19.7 percent among the mega funds of 2006 and 2007, but Apollo Global Management LLC has two of its investment vehicles in the top five.

Market At A Glance

U.S. buyout and mezzanine shops have collectively secured $116.6 billion this year. The latest tally reflects efforts by Advent International Corp. and other shops.