HIG Capital is the new majority stakeholder in Hooters of America, peHUB has learned exclusively from multiple sources. The private equity investor is expected to announce shortly that it was among the group of investors led by minority investor Chanticleer Holdings that bought Hooters of America and Texas Wings Inc., the largest Hooters franchisees. Connecticut-based PE [...]

KarpReilly I First report: September 19, 2008: KarpReilly Raises $200 Million From Four Investors KarpReilly LLC, a newly formed mid-market buyout firm, has held a first close on its first fund, according to a source familiar with the situation. The firm, based in Greenwich, Conn., has received $200 million in commitments for KarpReilly Capital Partners [...]

Don’t you just love a good “Background of the Offer” story? It’s just like Days of Our Lives, only written by M&A lawyers. Exciting stuff.

This week we got a peek at the action leading up to Advent International’s agreement to purchase mall clothing retailer Charlotte Russe. We knew there would be some juicy details since buyout firm KarpReilly LLC had made a play for the company that went awry.

This episode of Days of Our Private Equity Lives shows that once again, financing trumps price. Advent International won the auction with a lower bid because, according to the filing, “the greater certainty of closing under the Advent proposal outweighed the $0.25 per share difference in price between the two proposals.”

We saw the same phenomena earlier this year when Anheuser Busch sold KKR its Korean beer company, Oriental Brewery. Sources told peHUB that KKR’s final bid was lower than two rival bids from local firms Affinity Equity Partners and MBK Partners, but KKR won the auction because its debt financing was guaranteed.

Charlotte Russe Holding Inc. (Nasdaq: CHIC), a women’s apparel retailer, is recommending that its shareholders reject a slate of three board nominees made by Allan Karp of KarpReilly Capital Partners, because it could represent a conflict of interest. KarpReilly currently controls around 8.6% of the company, and has offered to buy out the remainder. In related news, Charlotte Russe announced that it has instructed financial advisor Cowen & Co. to initiate a sale process.

Could the acquirers become the acquirees? I’ve heard rumblings of private equity consolidation for a few weeks now, stemming from research done by law firm Simmons & Simmons. The study found that 79% of 700 surveyed PE pros expect increased consolidation in 2009.

I dismissed this as unlikely, but the topic continues to surface in conversations. There even are some trader rumors that Blackstone and KKR could acquire 3i. Would struggling buyout firms really merge with each other? At the very least, the image of PE pros nervously biting their nails in fear of a hostile takeover is ironic, since they’re usually the ones inflicting such fear on public company employees.

Either way, there are several issues with this idea, which I’ve laid out in a nice little list.

KarpReilly Capital Partners and HIG Capital been withdrawn their $200 million offer to buy women’s apparel retailer Charlotte Russe Holding Inc. (Nasdaq: CHIC), after being rebuffed by the company’s board of directors. KarpReilly currently holds a 5.4% stake in Charlotte Russe.

KarpReilly Capital Partners and HIG Capital been rebuffed in their offer to buy women’s apparel retailer Charlotte Russe Holding Inc. (Nasdaq: CHIC), for between $9 and $9.50 per share. The deal could have been worth upwards of $198.6 million. KarpReilly currently holds a 5.4% stake in Charlotte Russe.

KarpReilly LLC, a newly formed mid-market buyout firm, has held a first close on its first fund, according to a source familiar with the situation. The firm, based in Greenwich, Conn., has received $200 million in commitments for KarpReilly Capital Partners LP, anchored by commitments from JPMorgan and Blackrock. In raising its debut fund, founders [...]