Sun Capital to allow LPs in Fund VI to cash out; Harbourvest MD Bacon takes advisory role; Warburg puts Liaison International on the block
Average equity commitments have jumped. Private equity firms contributed 52 percent equity to U.S. LBOs in second quarter, up from 45 percent in first quarter, the Wall Street Journal said, citing data from Covenant Review. The average equity commitment is 47 percent, the WSJ said.
Rising stock valuations are to blame for the increase in equity commitments, which is causing PE firms to contribute more cash to their deals, the story said.
Hubsters, we’ve talked many times about rising valuations and how hard it will be for PE firms to make good returns on deals. Are you putting in more equity for deals? How will you rationalize this in the future? Email me at firstname.lastname@example.org
Funds: Chris has a story on Sun Capital Partners, which is running a process on its sixth fund that would allow existing investors in the pool to cash out of their stakes. Sun Capital’s sixth fund closed on $2.1 billion in 2014. Find out more about the secondary here.
People: Emilia Sherifova has joined KKR as a member and chief information & innovation officer. Sherifova is the former chief technology officer of Northwestern Mutual.
Kathleen Bacon, HarbourVest Partners’ European and emerging market head of fund investments, has moved into a senior advisory role as of June 30, Private Equity International reported.
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