What we know
First of all, there’s Wachovia Capital Partners. It’s located under Wachovia’s “Capital Markets: Principal Investing” division. The firm has invested $3.5 billion in more than 200 mid-market companies, and its partners have been together since 1988. It’s based in Charlotte, N.C., and led by Scott B. Perper, Frederick W. Eubank, II and L. Watts Hamrick, III. According to the firm’s web site, it can do turnarounds, mezzanine, MBOs, LBOs, growth, and recap investments.
What’s the status of its funds?
In 2007, Wachovia Capital Partners raised WCP Fund I, a $1 billion Buyouts & Acquisitions fund, and also WCP Fund II, a $1.75 billion pool with the same purpose, according to Galante’s. The firm has invested very little in 2007 and 2008. Wachovia Capital Partners is sitting in a lot of dry powder. The firm’s Q1 earnings showed that $481 million in assets were affected by SFAS 157.
Next, we have Citigroup.
Funds listed in Galante’s include Citi Private Equity has Citigroup Capital Partners II LP, which is a 2006 vintage with $3.29 billion in commitments. That’s listed under the CPE, Citi’s Private Equity division.
Further, it’s got CVC, which is Citigroup’s VC business. CVC also has two third party mezz funds from the 90s, along with Citicorp Venture Capital Equity Partners LP, a fund categorized as “Buyouts & Acquisitions.” That fund was raised in 2001-02 with $2.5 billion in commitments.
And we shouldn’t exclude Metalmark Capital, a buyout firm sortof owned by Citi. You may remember in December of last year, it joined up with the firm after years of independance from its parent, Morgan Stanley. The firm raised $1.2 billion for mid-market deals in 2005-2006.
What we need to know: What’s the contribution from Wachovia to those funds? Could they exist outside the shelter of a corporate overlord? Would they want to? How independant are they? Call me back whenever you get a chance, Wachovia.