Sin is In: Golden Gate Eyes Playboy
Update: Golden Gate will soon issue a brief statement over the wires, saying that it "is not and will not be involved in any way with any potential acquisition of Playboy Enterprises Inc.” Golden Gate Capital reportedly is mulling a bid for acquire Playboy Enterprises for approximately $300 million, in concert with former company executive Jim Griffiths. This is separate from Playboy's reported talks with Iconix Group, although the two sides might ultimately partner up. The possibility of this deal just goes to show that the private equity industry's antipathy toward "sin" investing is basically buried. It wasn't too long ago that many firms would avoid anything having to do with pornography, liquor or weapons. In fact, such restrictions were often includes in limited partnership agreements. But now we've got Golden Gate interested in Playboy, Cerberus taking a rifle maker public and just about everyone buying beer companies. A handful of LPs still insist on exemptions for such deals -- mostly small religious organizations -- but the other investors just pick up the difference. In short, sin is in.
