|
What Dodd Bill Would Mean for Venture Capital and Private Equity
|
|||||
 It's a lot like the original bill from last fall, but with exactly 200 more pages (we'll consider this the unabridged version). Here are the relevant highlights: 1. Dodd retains the original Senate bill's registration exemption for venture capital and private equity funds. He also retains the original bill's edict that the SEC is responsible for constructing a definition for "venture capital" funds and "private equity" funds -- so as to differentiate them from "hedge funds" (which will be required to register). As a reminder, an earlier House bill had only exempted venture capital funds of $150 million or less. Industry trade groups had insisted that any registration would be unwarrented, given that neither VC nor PE firms helped contribute to the financial meltdown. They're right, but hedge fund reps could have made the same argument... Read more »
|
|
peHUB Second Opinion 3.15
|
|||||
|
* Running a Company, but Can't Open an Attachment. Dick Fuld is blaming the Repo 105 mess on the fact that he can't open an email attachment on his phone. (FINS)
*The club deal lawsuit rages (or should I say sputters) on through its 3rd appeal. (Deal Journal) * Barclay's Defines the word "Jerks" Loosely. (Daily Intel) * Top ten works of journalism from the decade. (NYU) *Avatar will make $400 million for News Corp. It'll also net a tidy profit for Dune Capital, a private equity firm. (Bloomberg) Read more »
|
|
M&A Monday
|
|||||
 Mobile content provider "Jamster," doing business as Jamba, is being sold by its parent company, News Corporation, mergermarket reported. Swoozie's Inc., a maker of luxury gifts and stationery that filed for bankruptcy just weeks ago, will put itself up for sale at an auction on March 25, the company said on Monday. (Reuters) Read more »
|
NEWS |
|
||
|
MagnaChip Semiconductor LLC, a South Korean maker of analog and mixed-signal semiconductor products for high-volume consumer applications, has filed for a $250 million IPO. It plans to trade on the NYSE under ticker symbol MX, with Goldman Sachs, Barclays Capital and Deutsche Bank Securities serving as co-lead underwriters. The company |
||
|
|||
|
The formal decision will be made in the next few days, most likely on Tuesday or Wednesday, they told Reuters on Monday, adding Siemens Healthcare chief executive Herman Requardt will inform staff in the course of the week. Company sources have previously said Siemens was not willing to consider any bid below 2 billion euros ($2.75 billion). The move means Si |
|||
|
|||
|
Jon Skelly has joined Cleveland-based investment bank Vetus Partners as a managing director. He previously focused on the wholesale distribution sector of PCE Investment Bankers, before which he served as a director of business development for Home Depot and director of M&A for Hughes Supply Inc. Read more » |
|||
|
|||
|
GTCR has acquired Athletic & Therapeutic Institute, an Illinois-based operator of 44 outpatient physical therapy centers, from KRG Capital Partners and Norwest Mezzanine Partners. No financial terms were disclosed. peHUB reported on the deal earlier this month. Read more » |
|||
 |
|
Apax Banks 4.5x on Tommy Hilfiger, Invests in PVH Again
|
|||||
 When the buyout firm took Tommy Hilfiger private in 2006, Tommy-branded apparel was being sold by warehouse outlet stores at deep discounts. Apax saw value in its international operations, and plunked down $450 million in equity for a total deal value of $1.6 billion. The firm promoted Fred Gehring from head of Europe to CEO, and embarked on two years of intense turnaround execution. Apax and Tommy's management sold its distribution business, acquired of licensees and aggressively expanded stores. Furthermore, Apax helped return Tommy Hilfiger to its status as a higher-end apparel brand by cutting back lower-end distribution and improving product quality. Ebitda increased by 42 percent under Apax's ownership, and debt fell from 4.3x Ebitda to 1.5x. That all happened in a matter of two years. Read more »
|
NEWS |
|
||
|
Key Principal Partners, a lower middle market private equity firm based in Cleveland, has promoted Patrick Rond to vice president. Rond joined the firm, in 2002 as an analyst. KPP is the private equity arm of KeyCorp. Read more » |
||
|
|||
|
Garrett Walls has agreed to join Angelo Gordon & Co. as head of marketing. He previously was with TCW Group, as a managing director responsible for strategic relationships. Read more » |
|||
|
|||
|
Senior Care Centers of America, a Clearview Capital portfolio company, has acquired Wilkes Barre, Penn.-based Valley Crest Adult Day Care. The transaction closed on January 8, and is the fifth acquisition made by Senior Care since Clearview Capital's initial investment in 2005. Read more » |
|||
|
|||
|
LONDON (Reuters) - Montagu Private Equity agreed to sell French medical diagnostics business Sebia to rival Cinven, the latest in a series of buyouts focused in niche areas of healthcare. The deal announced on Monday values Sebia at about 800 million euros including debt, 12.5 times its 2009 earnings, sources familiar with the situation said. It gives Montagu a three-times return on its original equity investment. Montagu has been mulling options for the business but Cinven, which had been eyeing the company for over a year, made a pre-emptive strike by tabling an offer for the business on Thursday, one of the sources said. “We were deeply impressed by Sebia, which we see as a robust organisation with exciting prospects. Under the strong leadership of Benoit A |
|||
|
|
|
San Francisco Shindig Tickets Now On Sale
|
|||||
 Per usual, cocktails and conversation with the area's venture capitalists, private equity pros, entrepreneurs, bankers and assorted hangers-on. Plus, the Taco Truck will be there to satisfy your hunger. Get tickets and more info at: http://sfshindig.eventbrite.com Tickets are just $10, with proceeds to be donated to a charity chosen by event attendees. Be sure to nominate one upon sign-up. BIG thanks to our sponsors: Capital Dynamics, Rothstein Kass, Flag Capital Management, SecondMarket and True Ventures. Read more »
|
NEWS |
|
||
|
ONCAP Management Partners, the mid-market private equity unit of Onex Corp., has agreed to acquire Sport Supply Group Inc. (Nasdaq: RBI), a maker and distributor of sporting goods and branded team uniforms to the institutional and team sports market. The deal is valued at approximately $169 million, or $13.55 per share in cash. Read more » |
||
|
|||
|
Denham Capital has agreed to sell the assets of Excel Telecommunications to Matrix Telecom Inc., a portfolio company of Platinum Equity. No financial terms were disclosed. Excel is an Irving, Texas-based provider of integrated voice and data communications products and services to residential, commercial and carrier customers. Read more » |
|||
|
|||
|
Shiseido Co. Ltd. (Tokyo: 4911) has acquired San Francisco-based cosmetics company Bare Escentuals Inc. (Nasdaq: BARE), via an $18.20 per share tender offer. Sellers included Berkshire Partners, which held around a 16% stake. Read more » |
|||
|
|||
|
CPI Card Group, a Littleton, Colo.-based manufacturer of financial payment cards, has acquired certain assets of Roseville, Minn.-based Premier Card Solutions. No financial terms were disclosed. CPI is a portfolio company of Tricor Pacific Capital, while PCS is a portfolio company of Valor Equity Partners. Read more » |
|||
|
|||
|
IMIX, a Swedish provider of digital radiography systems for hospitals and specialist clinics, has raised an undisclosed amount of private equity funding from Sunstone Capital. IMIX also has agreed to merge with ARCOMA AB, an OEM supplier of medical and radiology systems and sub-systems. Read more » |
|||
|
|
|
peHUB First Read
|
|||||
 * Nick DiUlio: What economists are learning from cyber economies * The Greek tragedy of Wind Hellas: "Private equity and banking can be very constructive functions of the economy, but they will destroy this industry if the leading players do not regulate themselves." * Morning Call: U.S. futures point lower, London falls early, European shares slip, the Nikkei rises and China shares hit 5-week low. * Recent MBA grads head (far) east * Is another bankruptcy wave on the horizon? * Roger Ehrenberg: It's time to end the FASB (and shake up the SEC) * NYC taxi drivers overcharged riders by more than $8.3 million last year. * NPR's Ian Chillag uses all 119 of Tribune Co's banned words in a single sentence. * More than 370 tickets already sold for our Boston Shindig, which is taking place on March 31. Get yours today. Read more »
|
NEWS |
|
||
|
[UPDATE: The deal has been announced] The cash and stock deal could be announced as soon as Monday morning, the Times reported. But the newspaper |
||
|
|||
|
LONDON (Reuters) - British fashion group French Connection (FCCN.L) is selling its loss-making Nicole Farhi brand and closing most of its U.S. stores, completing a restructuring aimed at returning it to profitability. The group, which has previously exited businesses in Japan and Northern Europe, said on Monday its after tax losses widened to 24.9 million pounds ($37.8 million) in the year to Jan. 31, from a loss of 16.4 million in the previous year. But businesses being kept made an operating profit of 1.3 million pounds on a 1 percent rise in revenue to 200.3 million. French Connection shares were up 14.3 percent at 47.65 pence at 1006 GMT, valuing the busi |
|||
|
|||
|
This is a reduction in the company’s plans, as it originally filed last December to raise $300 million. It had previously filed for, and withdrawn, a $200 million offering. SS&C plans to trade on the Nasdaq under ticker symbol SSNC, with J.P. Morgan serving as lead underwriter. www.ssctech |
|||
|
|||
|
LONDON (Reuters) - Private equity firm KKR and Warner Music Group (WMG.N) are in talks to launch a break-up bid for Warner’s indebted British rival EMI, the Sunday Times newspaper said. The paper said KKR is interested in acquiring the music publishing arm of EMI, which it says bankers value at around 1.2 billion pounds ($1.8 billion), while Warner Music wants EMI’s recorded music division, which it says is more difficult to value. EMI is owned by private equity group Terra Firma Capital Partners Ltd but is in dispute with its lender Citigroup (C.N), whic |
|||
|
|||
|
CAIRO (Reuters) - Egyptian private equity firm Citadel Capital (CCAP.CA) has invested 1 billion Egyptian pounds ($183 million) in three Nile river ports and wants to invest in two more in the country, the daily al-Mal reported on Sunday. The firm is also eyeing investments in Sudanese river ports, and plans to link its port network to Juba in southern Sudan from Egypt’s northern seaport city of Alexandria within the next four or five years, al-Mal added. State news agency MENA on Saturday quoted Egypt’s transport minister as saying Egypt hopes to boost cargo transported via the Nile to 40 million tonnes within the next five years from 2.5 million tonnes currently. The government said in 2008 it expects an extra $8.9 billion in private investment in Egypt |
|||
|
|
|
peHUB Second Opinion 3.12
|
|||||
|
Uh Oh: Will Meg Whitman's investments pose a conflict of interest problem? The former eBay CEO and current Republican gubernatorial candidate has invested in private equity and hedge funds. (Dealbook)
Kabletown: It didn't take long for 30 Rock to parody the NBCU merger with Comcast, and last night's episode was excellent. (Dealbook) Is it a sign? Deal rumours are running rampant, particularly in the retail chain arena. As Reformed Broker says, "This market is circulating more rumors than Fleetwood Mac's record company." Cheap Cigars: There was a "who's who" of Wall Street meeting in January to hash out the financial reform that's on the table today. Here's the story behind it. (Reuters) FYI: KKR's NYSE listing values the firm at $7.5 billion. (FT) Read more »
|
NEWS |
|
||
|
Milwaukee-based Mason Wells heavily premarketed the fund, called Mason Wells Buyout Fund III LP. The firm had been “beating the trees” with word of their third fund for more than a year before “officially” coming to market in October of last year. Mason Wells’ prior vehicle was oversubscribed, with $300 in commitments topping its $250 million target. Read more » |
||
Private equity firm Mason Wells has held a strong first close on its third buyout fund. According to a regulatory filing, the growth equity firm has closed on $325 million in commitments from 18 investors. A source familiar with the situation said the fund has a target of $400 million with a hard cap of $500 million.|
|
|
PE Debt Watch (Upgrades & Downgrades)
|
|||||
 This week Moody’s has some distaste for the Intergraph dividend recap, downgrading the company’s corporate family rating and calling the payment, which increases the company’s leverage by one and a half turns, “aggressive.” Company: HCA Inc. Sponsor: Bain Capital, KKR. Action: Moody's Investors Service assigned a Ba3 rating to the company’s proposed offering of $1.0 billion of first lien senior secured notes due 2020. Moody's also affirmed the existing ratings of HCA, including the B2 corporate family and probability of default ratings. Highlight: "Much like the secured note offerings completed in 2009, the current transaction continues to chip away at the considerable amount of bank debt scheduled to mature in the 2012 and 2013 time frame," said Dean Diaz, Vice President -- Senior Credit Officer at Moody's. Read more »
|
NEWS |
|
||
|
Cinemark Holdings, a publicly traded movie house operator, completed a $660 million fundraising from a joint venture between AMC and Regal Entertainment Group, led by JPMorgan and Blackstone Advisory Partners. The company's backers, Madison Dearborn Capital Partners, Syufy Enterprises LP Mitchell Special Trust, will sell some of their shares, leaving Madison Dearborn with a 32.1% stake, Syufy Enterprises with 5.3% and the Mitchell Special Trust 4.9%.
Read more » |
||
|
|||
|
(Reuters) - Private equity fund CVC Partners has agreed to sell Paperbox Holdings Ltd to Japan’s Oji Paper Co Ltd for an undisclosed amount, Oji said on Friday. CVC acquired Paperbox, a unit of Malaysia’s GS Paper & Packaging, in 2007 from Malaysian gaming group Genting (GENT.KL) for $212 million. The deal comes amid a series of private equity exits in Asia, helped by an improvement in market sentiment. Asia-focused buyout fund Affinity Partners has appointed advisers to sell Australian pallet maker Loscam, in a deal estimated to be around $450 million. On Thursday, U.S. buyout firm TPG Capital [TPG.UL] sold out its minority stake in Singapore’s Parkway Holdings (PARM.SI) to Indian hospital chain Fortis Healthcare Ltd (FOHE.BO) for $68 |
|||
|
|||
|
Private equity firm Kohlberg Kravis Roberts & Co KKR.UL has filed to list its shares on the New York Stock Exchange, moving forward with its two-year effort to become a publicly traded company. Read more » |
|||
|
|||
|
MCM Capital Partners and Blue Point Capital have sold portfolio company Amprep, Inc., Marietta, Georgia-based manufacturer of specialty chemicals, to Zep, Inc. Total enterprise value for the transaction approximately $74 million. Read more » |
|||
|
|||
|
Mubadala Development Company has agreed to acquire a 9 percent equity stake in The Raine Group LLC, a firm which they seeks to capitalize on emerging investment opportunities in the media, entertainment and sports sectors around the world. Mubadala Development Company and William Morris Agency will be investors in Raine alongside private equity pioneer Ted Forstmann. Raine, a boutique merchant bank, was founded by Joe Ravitch, former senior partner and global head of media at Goldman Sachs, and Jeff Sine, former Vice-Chairman and global head of Technology, Media & Telecom at UBS.
Read more » |
|||
|
|||
|
The British rock band Pink Floyd won its court battle with EMI on Thursday, with a ruling that prevents the record company from selling single downloads on the Internet from the group’s concept albums. But the effect of the ruling by a judge in London on the level of royalties the band receives remained unclear, however, as that part of the judgment was held in secret, the Press Association reported. A source close to the band said those talks were “ongoing.” Lawyers said it was the first time a royalties dispute between artists and their record companies had been held in private, after EMI successfully applied for a news blackout for reasons of “commercial confidentiality.” The ruling is the latest blow to EMI, the smallest of the four major record compa |
|||
|
|||
|
Willbros Group, Inc. agreed to acquire InfrastruX Group, Inc., a utilities services company backed by Tenaska Capital Management, for $480 million in cash and stock. The company had previously filed to undergo a $290 million IPO. Tenaska acquired InfrastruX from Puget Energy Inc for $275 million in 2006. Read more » |
|||
|
|||
|
SunGard has acquired 365 Hosting Limited, a Dublin, Ireland-based cloud computing and data centre services company which trades as ‘Hosting 365’. Terms were not disclosed. SunGard was acquired for $11.4 billion in 2005 by Bain Capital, Blackstone Group, GS Capital Partners, KKR, Providence Equity Partners, Silver Lake Partners and TPG Capital. Read more » |
|||
|
|||
|
Hopes for a recovering auto industry buoyed car parts maker Sensata Technologies Holding (ST.N) in its market debut on Thursday, sending its shares up as much as 5.6 percent. Read more » |
|||
|
|||
|
(Reuters) - Kabel Deutschland’s premium pricing for its $1 billion IPO could invite a similar fate to other recent failed private equity-led offerings, and some still think it’s a ploy to smoke out trade buyers. On Wednesday, the price range emerged on the offering, valuing KDG at an enterprise value of 6.75-7.25 times earnings before interest, tax, depreciation and amortization (EV/EBITDA), about a 10 percent premium to European cable peers. Asking equity investors to pay a premium when they typically expect a 10-15 percent IPO discount is ambitious. “They need the market to be very robust for next week,” said a London-based fund manager who is considering the offering. KDG’s offering is being closely watched by other IPO candid |
|||
|
|||
|
Courts Asia, a Singapore and Malaysia-based furniture and electronics retailer, is planning to raise more than $100 million in a Singapore initial public offering, Reuters reported. Courts was taken over in 2008 by Asia Retail Group, an entity partly owned by Barings Private Equity. Read more » |
|||
|
|||
|
E-learning software maker SkillSoft Plc (SKIL.O) said the $1.1 billion offer made by a group of private-equity firms was the only option left at the end of its go-shop period, disappointing investors who were expecting better.
The news sent the American depositary shares of the company down more than 5 percent on heavy volumes on Thursday. The cash offer of $10.80 per share was made last month by SSI Investments III Ltd, a company formed by funds owned by Berkshire Partners, Advent International and Bain Capital. Read more » |
|||
|
|||
|
SinoLatin Capital, a Latin American natural resources private equity fund, has been approved by the Shanghai-Pudong Government to raise and manage an RMB-denominated private equity fund. The firm is the first only Latin America-focused firm to have been approved to manage RMB-denominated private equity funds in China. Press release: In a meeting last week, authorities from the Shanghai-Pudong Government announced that they had granted SinoLatin Capital ( http://www.sinolatincapital.com ) the approval to raise and to manage RMB-denominated private equity funds. “We are deeply appreciative and proud to have been granted this license, which signals the Chinese government’s support for our efforts to promote and expand the country’s investment relatio |
|||
|
|||
|
Florida Mezzanine Fund has been launched by former partners of Gator Mezzanine Fund with backing from CapitalSouth Partners of up to $450 million. The fund will invest from $500,000 up to $30 million in debt and equity in small and mid-sized Florida companies. The firm made two investments in tandem with its official launch, in Great HealthWorks, Inc., a Fort Lauderdale-based marketing and distribution company, and Association Financial Services, a Miami-based financial services company for condo and homeowner associations. Press release: In a press conference today at one of the companies - Gr |
|||
|
|||
|
Top tier European venture capital firm DFJ Esprit has announced today the appointment of Mikko Suonenlahti, who joins the team as a Senior Adviser, focusing on investments in the B2B and B2C software, med-tech, Bio-IT and energy efficiency. Read more » |
|||
|
|||
|
U.S. buyout firm Advent International has appointed advisors to assess a possible sale of budget store chain Poundland, the Financial Times reported on Friday.
The private equity group, which also owns German fashion retailer Takko, has hired Close Brothers as it assesses its options for the single-price retailer, which could include a sale to a rival firm or another buyout house, the FT said. Read more » |
|||
|
|||
|
(Reuters) - LyondellBasell said late on Thursday that it plans to raise $3.25 billion in debt, including an offering of senior secured notes, as the chemical company charts its course to emerge out of bankruptcy. The net proceeds from the sale of senior notes, coupled with borrowings under the term loan and proceeds from a $2.8 billion rights offering, would be used upon emergence from bankruptcy to repay and replace certain existing debt, the company said in a statement. According to a disclosure statement filed on Monday, private equity firms Apollo Management LP [APOLO.UL] and Ares Management, along with holding company Access Industries, have agreed to back a $2.8 billion rights offering under which Lyondell would issue 263.9 million Class B shares. Also, on Thu |
|||
|
|||
|
(Reuters) - Softbank Corp, Japan’s third-largest mobile phone operator, said it would invest in bankrupt rival Willcom Inc as it aims to expand its network and close the gap with NTT DoCoMo and KDDI Corp. Willcom, majority-owned by U.S. private equity firm Carlyle, last month filed for bankruptcy with 206 billion yen ($2.3 billion) in debt and sought assistance from a state-backed fund to help it find new investors. The state-backed fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC), said on Friday that it had agreed to support Willcom along with investment from Softbank and Japanese private equity firm Advantage Partners. Under the deal, Willcom will spin off an advanced, high-speed mobile service into a new company, separating it from its exis |
|||
|
|
|
peHUB Second Opinion 3.11
|
|||||
|
Dodd: "We don't need Republicans." (NY Times)
Excited for Wall Street 2? Well you'll have to wait. The movie, which was slated to come out in April, has been pushed back to the fall now that it may get invited to Cannes. (Variety) Tricky Tricky: Is the Kabel Deutschland IPO an ambitious IPO or a cunning ploy to smoke out trade buyers? (Reuters) In the weirdest news you'll see today: Wondering what to do with leftover breast milk? This guy decided to make cheese out of it. Just, wow. (Reuters via WSJ) Who Hates Avatar the Most? I felt a little robbed after seeing Avatar (shouldn't it have been Pocahontas II?), but I certainly didn't hate it as much as these whiny mining executives. Reuters reports: "Let me put it this way, my kids saw the movie, and my kids know I'm a miner, and they didn't say anything to me," said Peter Kukielski, head of mining operations for ArcelorMittal, the world's largest steelmaker. (Reuters) Happy Birthday: VC-Backed Foursquare turns one today. Use that as a cheap excuse to try for the "Sweet 16" badge. I did! (Foursquare) Read more »
|
|
Harbourvest Cleantech FOF Preparing for Close
|
|||||
 Harbourvest launched fundraising just over a year ago with a target of $150 million and hard cap of $250 million. peHUB first flagged the fund in March 2009. The management company, called HarbourVest Cleantech Associates, was formed in April 2008. Harbourvest declined to comment. Read more »
|
|
Inside One Very Private Equity Firm
|
|||||
 But Centerbridge is in the market with its second fund, and nothing draws a ...
|
 |
 |
