Investment firms are being spun out of banks left and right, some to keep companies in compliance with the new requirements imposed on banks via Dodd-Frank. peHUB has been tracking some of the spin-outs seeking capital, and some others that have not yet needed to fundraise but might soon. While the fundraising market has been generous to some private equity firms, other PE shops could face difficulty bringing in capital without their big-brother LPs. Only time will tell which LBO pros can’t hang without their big backers; already, some spin-outs have proven themselves capable of standing alone.
The Inside Story: Go on, try and fit any more acronyms into a headline. CCMP, which is mostly through its vintage 2006 $3.4 billion predecessor fund, is expected to begin raising its third LBO fund in the next year, our sister pub Buyouts reported. However, CCMP will have to do so absent their affiliate JPMorgan, which means their executives will have to establish a relationship with sovereign wealth funds.