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peHUB Second Opinion 2.9
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In Europe its 9.02.10. Ha. (Entertainment Fix)
$140 1BR Affordable Snow Fort Sublet in Capitol Hill: Now available for rent! Includes Wireless internet, doorman with fez, premade snowballs. (Craigslist) Get It While You Can: The Flotation Window could slam shut on PE. (Telegraph) Paranoid optimism: PE firms "shouldn't underestimate the impact on their industry that rising populism and politicians taking whacks at banks and bureaucracies will have." (NY Times) Email Forward of the Day: Rice Student Thinks Jefferies Is "More Courteous" Than Its Counterparts And Has "The Best Corporate Culture In Town" (Dealbreaker) And here's another, more service-y take on the same topic. (Business Insider) RISKY: The key to LBOs is not a lack of risk (that would not be an LBO by nature) but less of it. (NY Times) Read more » |
NEWS |
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Mike McTighe has joined General Atlantic as a special advisor, with a particular focus on Europe. He is chairman of Pace, Volex Group and WYG Group. Read more » |
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Richard Leonard and Michael Koike have joined the private equity group of Angelo, Gordon & Co. as a managing director and vice president, respectively. Leonard previously was a managing director with Bruckmann, Rosser, Sherrill & Co., while Koike was a vice president with Ripplewood Holdings. Read more » |
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Rowmark LLC, a Findlay, Ohio-based portfolio company of Clearview Capital, has acquired Triline Sign Systems, a Milan, Italy-based provider of sign systems and components to sign makers. No financial terms were disclosed. Read more » |
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Q&A On M&A: Roark’s Steve Romaniello Talks Restaurant Deals
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 The Atlanta-based buyout firm looking both for new restaurant acquisitions and add-on to its FOCUS Brands platform, which already includes Carvel, Cinnabon, Moe's Southwest Grill, Schlotzsky's, Seattle's Best International and McAlister's Deli. Roark's $1 billion fund, which closed in 2008, is 30% deployed. I spoke with Steve Romaniello, a managing director with the firm, on being "on-trend," bidding for cheese, deal multiples, and zigging while everyone else is zagging. What's the firm's outlook for restaurant performance this year? Will sales improve? We think its going to be another difficult year. Not quite as bad as last year, but we don't expect to see meaningful improvement in many segments until we start seeing employment growth again. And no one has any idea when that will be. Read more » |
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Invision Capital is raising up to $50 million for its debut fund, according to a regulatory filing. The Chicago-based firm plans to focus on buyout investments in the lower middle-markets. Invision’s principals include: Robert Castillo, a founder partner of Valor Equity Partners; Thomas Harrison, a co-founder of Diamond Creek Capital; and John Devaney, also a co-founder of Diamond Creek Capital. The firm already has secured more than $15 million in commitments. www.invisioncapitalgroup.com Read more » |
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Jeff Howe has joined Jefferies as a managing director in the firm's financial sponsors group. He previously was co-head of leveraged finance origination and restructuring at Credit Suisse. Read more » |
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Banks are certainly not lending “with all the bells and whistles… that we saw in 2007 and before”, Black said, at one of the private equity industry’s largest conferences, Super Return International. He was referring to the little or no covenant features seen in past deal |
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Berlin Packaging, a portfolio company of Investcorp, has agreed to acquire All-Pak, a Pittsburgh-based packaging supplier. No financial terms were disclosed. The combined company is expected to have annual revenue of nearly $500 million. Read more » |
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Douglas Goodwillie has joined LBC Credit Partners as a director in the firm's Chicago office. He previously was an operating director with Arsenal Capital Partners. Read more » |
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NEWS |
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MUMBAI (Reuters) - Indian conglomerate GMR Infrastructure (GMRI.BO) is in advanced talks with private equity firms to raise about 15 billion rupees ($322 million) for its power unit, the Economic Times reported, citing the group’s chairman. G.M. Rao told the newspaper the deal would be closed in the next two weeks, but did not disclose the names of the private equity firms that would provide the funds. The group is also talking to some funds to raise $400 million for its airports division, the paper said, citing Rao. In December, sources told Reuters GMR is in advanced talks with Singapore investment firm Temasek [TEM.UL] to raise $150 million by selling shares in its power unit. [ID:n |
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MILAN (Reuters) - An Italian private equity manager has proposed building electric cars at the Sicilian factory that Fiat (FIA.MI) plans to shut, the Financial Times reported. The newspaper on Tuesday cited Simone Cimino, Chairman of Cimino & Associates Private Equity, as saying that he needed a minimum investment of 65 million euros ($88.8 million) to start making electric cars at the Termini Imerese factory. Investments could eventually rise to 900 million euros. Cimino told the newspaper that he has already raised about 50 million euros of funding from investors including the Sicilian regional government and French bank Natixis (CNAT.PA). He is also in talks with Bangalore-based electric cars maker Reva. The venture would need to make 30,000 cars a yea |
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NEW YORK (Reuters) - A U.S. bankruptcy judge on Monday said Champion Enterprises Inc (CJHBQ.PK), a maker of factory-built homes and modular buildings, could go ahead with an auction of its assets next month. Champion, which sought bankruptcy protection in November, has said it wants to complete the sale process no later than March 18. Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware in Wilmington, on Monday approved bid procedures for an auction, according to court papers. A group of the company’s secured creditors including its bank lenders and investment firms Ce |
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peHub Second Opinion 2.8
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Wall Street's Rising Stars: Ten to watch in ‘10. (Barron's)
Q&A: View from the top with Tony James. (FT) New Investors Topple Masters of the Universe: Asian sovereign wealth funds and venture capitalists, rather than big firms of the past, were the most active investors last year (Wealth Bulletin) Update: The Kleen Energy plant explosion has claimed five identified casualties. The company, backed by Energy Investors Fund, won Goldman Sachs a Deal of the Year award from Project Finance. (Courant.com) Watch Your Backs Guys: Four pensioners have appeared in a German court charged with kidnapping a financial adviser they blamed for making rotten US property investments. (BBC) Tired of Complaining Customers? Ban them! That's what Tim Horton's did! (CBC News) Read more » |
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M&A Monday
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 PLC Systems Inc., an OTC-traded medical device maker has hired investment advisory firm Natixis Bleichroeder to help it raise capital and examine "strategic alternatives." German cable provider Kabel Deutschland is for sale. Carlyle, BC Partners and Advent are currently in the bidding pool. Miramax is for sale, and Lionsgate is interested in it. That could change the bidding dynamics of the auction for MGM. Iteration Energy, a listed Canadian oil and gas explorer, initiated a process to explore strategic alternatives. The company engaged FirstEnergy Capital Corp and Scotia Waterous Inc as co-financial advisors to assist it in this process. Hanmi Financial Corporation's Board of Directors authorized the Company's management team to explore a broad range of strategic alternatives. Cappello Capital Corp. has been engaged as the Company's financial advisor in this process. Hanmi is parent to Hanmi Bank, which provides multi-ethnic banking services in L.A. Read more » |
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Duke Street has agreed to acquire a 69% stake in Payzone Group, a UK-listed payment acceptance company. The deal values Payzone at €104 million. Duke Street will invest 45 million in equity, while Payzone's seven lenders will become shareholders -- as part of a restructuring that will cut the company's senior secured debt from approximately €300 million to €77 million. Read more » |
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TBA Global, a portfolio company of J.H. Whitney & Co., has sold its U.S.-based Destination Management Services operations to Switzerland's Kuoni Travel Holding Ltd. No financial terms were disclosed. Edgeview represented TBA on the sale. Read more » |
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LONDON/FRANKFURT (Reuters) - A trio of private equity firms, Advent, BC Partners and Carlyle, are set to submit bids for German cable provider Kabel Deutschland, four people familiar with the matter said. Buyouts are finding favour while market volatility undermines plans for public share sales. The business could sell for up to 5 billion euros ($6.8 billion), bankers said, in what could be the largest leveraged buyout in more than two years as private equity firms look to put cash to work. Banks will offer up to four billion euros of leverage in support of a deal, one of the sources said. “(Bidders) need 30 percent equity … an IPO is highly unlikely now thanks to the good offers,” one of the people said. Kabel Deutschland is also weighing |
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It’s Official: Markstone Settles with Cuomo
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 Cuomo's office declined to comment at the time, but today announced that the report was legit. Israel-focused Markstone will pay back $18 million in fees related to a $250 million investment from the New York State Common Retirement Fund into Markstone's debut fund. It also has signed Cuomo's "code of conduct," which basically promises not to use placement agents for future fundraising efforts in the U.S. Not sure how much that last part matters, considering that: (A) I really can't imagine Markstone raising another fund, and (B) If Markstone does try to raise, it could focus on investors in Israel, where the code of conduct has no legal bearing. Read more » |
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Wharton PE Conference Notebooks
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 Get some thoughts from the conference organizers, thoughts on keynotes by John Megrue (Apax) and Dalip Pathak, notes on a panel about the future of private equity and notes from a pair of venture capital panels. Big thanks to Rohan Deuskar, Daniela Stefovska and Carmen Feliciano. Read more » |
NEWS |
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NEW YORK (Reuters) - Telecommunications provider FairPoint Communications Inc on Monday filed a delayed plan of reorganization that calls for distributing millions of new shares to claim holders. The company said in court filings that $2.1 billion in allowed pre-petition credit agreement claims could expect a recovery of about 87.9 cents on the dollar in cash and new shares, and $635.3 million of unsecured claims could expect to recover 17 cents on the dollar in the form of shares of the reorganized company. Subject to certain conditions, some 47 million new common shares will be distributed to holders of Class 4 pre-petition credit agreement claims, and 4 million shares will be distributed to Class 7 unsecured claim holders. Current shareholders would be wiped out. |
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Clarity Partners, a Los Angeles-based private equity firm, is raising up to $650 million for its second China-focused fund, according to a regulatory filing. Clarity’s first China fund closed in 2007 with $220 million in capital commitments. www.claritypartners.net Read more » |
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HONG KONG (Reuters) - CITIC Capital, the flagship investment arm of CITIC Group, China’s No.1 financial conglomerate, said on Monday that it had completed raising $925 million for its second China buyout fund. The closing size was bigger than the firm’s original target of $750 million and the fund, named CITIC Capital China Partners II, will target buyout and privatisation investments in Chinese companies driven by domestic economic growth, particularly in the consumer products and manufacturing sectors. “We are delighted by the strong support we have received from both existing and new investors,” said Zhang Yicheng, chief executive of Hong Kong-headquartered CITIC Capital. CITIC Capital is owned by China Investment Corp [CIC.UL], China̵ |
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ANXeBusiness Corp., a Southfield, Mich.-based provider of networking and security managed services, has acquired S2S Communications, a provider of enterprise broadband and managed network infrastructure services. No financial terms were disclosed. ANXeBusiness is a portfolio company of One Equity Partners. Read more » |
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Renny DiPentima, former president and CEO of SRA International (NYSE: SRX) has joined Providence Equity Partners as a senior advisor. He will focus on the government information services sector, and serve on the board of Providence portfolio company Altegrity Inc. Read more » |
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SFW Capital Partners has acquired Agdata, a provider of data and analytics to agricultural and animal health manufacturers, from Carousel Capital and its founder Verl Purdy. Purdy and Carousel owned equal stakes in the company. No pricing terms were disclosed for the deal, byt SFW Capital purchased a majority ownership with management and Purdy retaining significant minority stakes. Carousel retains a lesser minority stake. Golub Capital provided leveraged financing.
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Triton Partners, a Germany-based buyout firm focused on the European middle markets, has closed its third fund with €2.25 billion in capital commitments, according to eFinancialNews. It had been targeting €2 billion. Read more » |
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American Tire Distributors Holdings Inc., a Huntersville, N.C.-based replacement tire distributor, has filed for a $230 million IPO. It plans to trade on the NYSE under ticker symbol ATD, with BoA Merrill Lynch and Deutsche Bank Sercurities serving as co-lead underwriters. The company reports around $1.65 billion in revenue for the nine months ending Oct. 3, 2009 — up slightly from the $1.5 billion in revenue from the similar period in 2008. Company shareholders include Investcorp, Berkshire Partners and Greenbrier Equity Partners. www.atd-us.com Read more » |
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peHUB First Read
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 * A private equity firm is majority owner of the Connecticut power plant that exploded yesterday, killing five workers. * The SEC is rethinking its proposed ban on PE placement agents. As it should. I'm all for rooting out corruption in PE fundraising -- hell, I've written about little else for the past year -- but the SEC's original language is the regulatory equivalent of using an anvil to swat a fly. * Morning Call: U.S. futures point higher, London rises early, European shares fall on banks, the Nikkei hits 2-month closing low and both China and Hong Kong shares keep slipping. * Q&A with Blackstone Group's Tony James * Economists, crises & cartoon (h/t Kedrosky) * James Surowiecki: The perils of economic populism * New white paper from BCG on how PE firms add operational value, and where LPs believe they still fall short. Read more » |
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LONDON/PARIS (Reuters) - French care home group Medica’s 275 million euros ($375.7 million) initial public offering was finally covered after it offered investors a 19 percent price cut, sources close to the deal said. Citing the recent deterioration in market conditions, Medica announced before the share market opened on Monday that it would price the IPO at 13 euros per share, below a 16.00-19.50 euros indicated range, and a 24 percent discount to bigger domestic rival Orpea (ORP.PA). Sentiment towards IPOs has cooled in the past two weeks, with Belgian chemical company Taminco forced to postpone its 400 million euro flotation plan, as investors rejected its valuation, while UK junior board listing candidate Walton & Co. cancelled a 200 million pound ($311.6 mi |
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LONDON (Reuters) - Private equity house Montagu has hired Morgan Stanley to plan a flotation of BSN Medical, which could value the German maker of bandages at as much as 2 billion euros ($2.7 billion), two people familiar with the matter said. Montagu had put BSN up for sale 18 months ago, but was forced to abandon the auction in the wake of the financial crisis. The news was reported earlier by the Financial Times, which said there was also likely to be strong interest in BSN from strategic buyers, such as 3M (MMM.N) and Kimberly Clarke, and private equity groups, such as Apax Partners [APAX.UL] and Bain Capital. If they bid, Montagu may decide to sell BSN rather tha |
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LONDON (Reuters) - Lloyds Banking Group (LLOY.L) is in talks with private equity firms interested in buying a controlling stake in its Integrated Finance unit, according to the Mail on Sunday. Lloyds has been widely expected to sell off the troubled unit, headed by Peter Cummings and which was part of HBOS (now part of Lloyds), but a drop of values has made a deal more difficult. The assets of the division, which has stakes in cinema chain Vue and housebuilder Keepmoat, are thought to be worth about 500 million pounds ($785.8 million), said the paper. Lloyds, which declined to comment on the report, is in talks with 3i (Read more » |
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FRANKFURT, (Reuters) - Permira will hold on to its investments in fashion house Hugo Boss (BOSG_p.DE) and broadcaster ProSiebenSat1 (PSMG_p.DE), the head of the buyout firm’s German business told a magazine. “We will certainly not divest Hugo Boss. We have just invested 250 million euros in the company,” Permira executive Joerg Rockenhaeuser was quoted as saying by Spiegel magazine in an article provided to Reuters on Saturday before publication on Monday. Permira would also not sell ProSiebenSat1, Spiegel reported, citing Rocken |
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MELBOURNE (Reuters Basis Point) - Australian private equity firm Affinity Equity Partners has put pallet maker Loscam up for sale, in a deal that could be worth at least A$500 million ($433 million), three sources familiar with the process said. Affinity has appointed Credit Suisse (CSGN.VX) and Deutsche (DBKGn.DE) to advise on options to sell the company, including a possible share market listing, the sources said. Confidentiality agreements for the sale have been sent out to prospective buyers, two of the sources said, adding the information memorandu |
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Thain, 54, immediately replaces interim CEO Peter Tobin, who will remain a director. Former CIT chief Jeff Peek, another past Merrill executive, retired on January 15. CIT said Thain was hired |
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peHUB Second Opinion 2.5
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"Insensitivity - It lets you sleep." The FT has 20 questions with Jon Moulton, formerly of Alchemy Partners, now with Better Capital. (FT)
Super Bowl Special: If the private equity industry needed to fill out a football team, it would be in a good position to do so. (PE Beat) Prodding: The Federal Reserve and other financial regulators, which have faced strong pressure from the White House and Congress to stimulate lending to small businesses, prodded banks on Friday to ease such financing. (NY Times) Remember the Macquarie Group Employee Browsing Nude Photos in the Background of a Newscast? He gets to keep his job. (BusinessWeek) European Meltdown? We may be close to a "Lehman/Merrill/AIG kind of September weekend", but with no buyer of last resort, writes Minyanville. Read more » |
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The private equity firm has become embroiled in an increasingly bitter legal dispute with U.S. bank Citigroup (C.N) which advised on and provided the financing for Terra Firma’s [TERA.UL] 4 billion pound ($6.3 billion) acquisition of EMI in 2007 |
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WILMINGTON, Del. (Reuters) - Aleris International Inc, a maker of rolled aluminum products, proposed a reorganization plan on Friday that would leave the company in the hands of the investment funds that financed its bankruptcy, according to court documents. The funds, affiliates of Oaktree Capital Management, Apollo Management and Sankaty Advisors, would backstop a sale of shares and debt in the reorganized company worth up to $690 million. Holders of U.S. and European term loans would have the option to receive cash or equity in the company and the chance to participate in the rights offering of securities. That money would be used to pay off its creditors as well as finance its operations after bankruptcy. The plan proposes wiping $2.5 billion from the company |
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LONDON (Reuters) - Private equity firm Bridgepoint has bought forensics and scientific testing company LGC for 257 million pounds ($404 million), as private equity dealmaking comes back to life after a year in the doldrums. LGC’s forensics division works with the police and other authorities, offering toxicology, drug and paternity testing and providing scientists to help investigators at crime scenes. Mid-market buyout house Bridgepoint acquired the business from LGV Capital, the private equity unit of insurer Legal & General Group Plc (LGEN.L), it said on Friday. London-based LGC, which employs 1,500 people in 28 laboratories in Europe, India, China and the United States, is forecasting revenues of 130 million pounds for the year to end-March 2010. <Read more » |
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International Mining Machinery Holdings Ltd., a Chinese maker of coal-mining equipment, has raised HK$2.54 billion ($327 million) in a Hong Kong IPO. The stock is scheduled to begin trading on February 10. IMM was formed in 2006 by The Jordan Co., in order to acquire Jixi Coal Mining Machinery Co. and Jiamusi Coal Mining Machinery Co. Read more » |
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PE Debt Watch (Upgrades & Downgrades)
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 Company: Hexion Specialty Chemicals Inc. Sponsor: Apollo Management Action: S&P raised its ratings, including its corporate credit rating to 'B-' from 'CCC+', on the company. Highlight: "The upgrade reflects an improvement in credit quality following the successful completion of Hexion's financing transaction including amendments to its senior secured credit facilities, and our expectation that an ongoing trend of improving operating results will continue into 2010," said Standard & Poor's credit analyst Paul Kurias. Read more » |
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Talking Private Equity Scandal
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My weekly video chat with Reuters moved out of the laundry room and into Times Square this week, for a discussion about a pair of burgeoning private equity scandals:
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