peHUB First Read Dan Primack
posted on: 05-16-2008

* BCE repricing fears persist, in the wake of what happened earlier this week with Clear Channel.

* VentureBeat has a Q&A with Steve Jurvetson, on a cleantech biz plan competition and playing God.

* CBS buys CNet. Now who should buy CBS? Felix suggests Berkshire Hathaway.

* The Alliance Boots banke...

	Tony James: Cov-Lite is Good for You Erin Griffith
posted on: 05-16-2008

The Blackstone Group’s COO Hamilton “Tony” James wants it to be known that his support of covenant lite and PIK toggle deals is not merely self-serving. He supports relaxed lending terms for the greater good of deal-makers everywhere. “Covenant lite and PIKs are in everyone’s interest,” he said at The Deal’s Private Capital Symposium this week.

The style of financing, popularized during the last few years of highly competitive lending rates, often gets blamed for the current strain in leveraged finance. “Everyone hates covenants, but they work!” is a popular sentiment among lenders, now in the driver’s seat with liquidity dried up.

James argued that LBO shops have a better understanding of how to recap a struggling company than its lenders do. Why involve them in ...

	Blackstone Group May Get Sector-Specific Dan Primack
posted on: 05-15-2008

The Blackstone Group (BX) is toying with the idea of raising sector-specific funds, peHUB has learned. This would be a major strategic shift for the firm, which historically has made all of its private equity investments out of the same general fund (sans real estate).

A firm spokesman declined comment, but here is what we know: Blackstone is currently raising its seventh mega-buyout fund – Blackstone Capital Partners VII – with a $20 billion target. That vehicle is expected to hold an $8 billion first close on June 27.

The firm also is telling prospective LPs that it may raise a series of industry-focused funds before the BCP VII inv...

	Partech Asks LPs for Help Dan Primack
posted on: 05-15-2008

Last week, I asked the following: Can you name the venture capital firm that recently asked its limited partners to help arbitrate a spat amongst the general partners? Hint: Some of its partners need a passport to visit each other face-to-face. Same goes for its LPs.

The correct answer is Partech International, the Franco-American firm that also has an outpost in Israel. Three of you got it right, which puts you on the list for those T-shirts I keep promising to make (think they’ll be ready by peHUB Across America).

All of this has to do w...

Glam Rock, Platform Boots & Stagflation Justin Pugsley

posted on: 05-15-2008

Are we about to see a repeat of the bad old days of the seventies – high inflation combined with low economic growth? If so it could have some unpleasant consequences for stock markets and M&A activity.

The signs are not encouraging. The UK’s official inflation figures hit 3% in April, quashing rate cut hopes in the process. But who actually believes these numbers? The old UK retail price index – ie un-EU harmonised numbers - came out at a more realistic 4.2%, up sharply from 3.8% the month before. However, several fund managers have told TMN over the months that they believe inflation is closer to 7-8%. Even Stuart Rose boss of ret...