PE HUB Wire Highlights, 12.5.18


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Audax nears buy of 3 Rivers’ Phoenix Rehab; J.H. Whitney puts C.J. Foods up for sale; TPG’s Bonderman gets NHL team

With all the broad market volatility combined with tariff fears, many are expecting the bubble to burst. It’s not surprising that roughly half of LPs are preparing for the next downturn, according to a study from Coller Capital. Fifty-three percent of investors are adjusting their investment strategies or asset allocations as a precaution for the next bust, Coller Capital’s Global Private Equity Barometer said.

LPs may be preparing but they are also very optimistic. About two-thirds, or 70 percent, of investors expect private equity-backed companies to outperform businesses without PE backing, Coller said. In fact, very few LPs think PE-backed companies will perform worse during the next downturn. Three quarters of PE investors think the large number of unicorns suggest we are approaching, or have already returned to, an era reminiscent of the dot.combubble, Coller said.

Coller interviewed 110 PE investors from around the world to produce the report.

Frozen out? Wow, Hubsters, you really responded to yesterday’s column about the #metoo backlash. I plan to include your comments in tomorrow’s newsletter. Keep sending your insights to me at [email protected].

Private equity loves sports. Yesterday, the NHL approved Seattle as the league’s 32nd franchise. David Bonderman‘s Seattle Hockey Partners will own the unnamed team. Also investing are Hollywood producer Jerry Bruckheimer and longtime sports executive Tod Leiweke, according toPitchBookRead our brief here.

The race to buy minority stakes continues but this time it’s with a venture capital firm. Goldman Sachs’s Petershill is buying a chunk of General Catalyst for $200 million, according to the Wall Street Journal. Goldman will not influence the VC’s day-to-day operations, the story said. See our brief here.

Funds: Ares Management said its ninth U.S. real estate fund closed on about $1.04 billion. Check out our brief here.

CONTINUE READING

SUBSCRIBE to get the Wire in your inbox every morning. It’s free.

Take your pick!

  • Buyouts delivers exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more. Get your FREE trial or subscribe now.
  • VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. Get your FREE trial or subscribe now.