Private Equity
One of the immutable laws of private equity is that firms have a limited period of time in which to invest their funds, often five years (see table below). Another is that buyout firms don’t like investing during credit crunches or before a downturn has bottomed out. Given that the last five years saw both a credit crunch and major downturn, many buyout firms have had to ask their limited partners for extensions of their investment periods. It will be interesting to see if more firms negotiate six-year investment periods (turnaround shop KPS Capital Partners has one) in the months ahead.
1 min read · 24 August 2012
Buyouts, as a whole investment category, generated a cumulative pooled IRR of 11.34 percent from 1978 until the end of March.
1 min read · 17 August 2012
U.S. buyout and mezzanine shops have collectively secured about $105.5 billion so far in 2012.
1 min read · 13 August 2012
As chief investment officer, Joe Dear oversees $237 billion in assets for the California Public Employees’ Retirement System, the largest and most influential public pension in the United States. More than 1.6 million state workers and retirees look to Dear to make sure their retirement is secure.
9 min read · 13 August 2012
Over a 20-year period buyout funds have delivered just less than a 10 percent annual IRR, but it hasn’t always been a smooth ride. Five-year annual returns are just over 5 percent, partly a result of vintage 2006 and 2007 funds running headlong into the Great Recession. More recent returns have been strong thanks to health in the credit markets and a quick recovery in equity valuations.
1 min read · 10 August 2012
With management fees coming under pressure, you’ll need to keep tabs on what percentage of those fees rivals are devoting to payroll.
1 min read · 03 August 2012
2 min read · 30 July 2012
Domestic buyout and mezzanine shops have secured about $92.2 billion so far this year. The latest count reflects Oak Hill Advisors LP’s final close of OHA European Strategic Credit Fund LP above the $1 billion goal. The investment vehicle secured $1.35 billion in capital.
1 min read · 30 July 2012
NewWorld Capital, out with a debut fund targeting $300 million, is one of a growing number of buyouts firms offering to return all contributed capital to limited partners (plus a preferred return) before receiving carried interest.
1 min read · 27 July 2012
The managing partner of Crescent Capital Group and owner of the Milwaukee Brewers talks mezzanine loans, distressed debt and special situations.
1 min read · 26 July 2012
