About a year ago I wrote in this column that cracks were starting to appear in the credit markets used to finance leveraged buyouts. Those early cracks, after a reasonably steady start to 2015, have since widened into fractures. Behind those fractures lies a growing wedge of fears. Among the biggest is that a slowing world economy will leave many […]
Private equity is its own universe in many ways. But don’t expect that universe to be shielded from the same forces rumbling through the public equity markets in the first few weeks of January. A survey of some 60 deal professionals and investors conducted by Buyouts Insider in December and early January found 30 percent of respondents predicting that prices would […]
With New Year’s resolutions in the books, now is the time to start making good on them. Gary LaBranche, president and CEO of the Association for Corporate Growth, and Amber Landis, ACG’s vice president of public policy, recently spoke with Buyouts about their goals for the new year. ACG has grown to more than 14,500 members, including […]
Check out the first installment of the Private Equity Cartoon drawn by Executive Editor David M. Toll.
The Small Business Investor Alliance, which lobbies for mid-market buyout and mezzanine shops, including many SBIC funds and BDCs, helped to secure member-friendly legislation as part of two appropriations bills this fall, including a provision that makes it easier for firms to raise additional SBIC funds. SBIA wants the momentum to continue. Among its 2016 objectives, the organization may push […]
Is the much-discussed private equity portfolio of California Public Employees’ Retirement System performing even better than widely thought? An examination of the performance and cost figures that CalPERS released late last month on its private equity program suggests that it is. Revelations include: Realized deals are outperforming the rest of the portfolio, suggesting untapped value in the unrealized portfolio. […]
Take our quick survey on buyout deal pricing and be the first to see the results.
Curious where deal prices are heading in the coming months in the North American middle market? Want to know how sponsors are reacting to high prices? You’ve come to the right place. If you take our quick survey on buyout deal pricing, you will be the first to see the results. The deadline to participate […]
Michael Tyler, then senior investment analyst-private markets at Public School Employees’ Retirement System of Pennsylvania, wrote in a March 2013 investment recommendation that New Mountain Capital “has not lost a person at or above the VP level since the start of Fund II,” a vintage 2005 pool. It was a noteworthy achievement for the New York buyout shop given the importance […]
The lesson drawn from several early SEC enforcement actions taken against sponsors is that they shouldn’t keep investors in the dark on how they handle the allocation of fees and expenses. It is especially problematic when their allocation happens to benefit them at the expense of investors. According to a new study, investors refuse to wait for private equity firms to […]
Big jumps in salaries and bonuses await many buyout and growth equity professionals, a reward for their ability to raise and smartly invest larger and larger sums of capital for institutional investors. According to the recently published 2015-2016 Holt-MM&K-Buyouts Insider PE/VC Compensation Report, well over a third (38 percent) of partner-level investment professionals at North American […]
Solomon Owayda and Christine Patrinos have partnered to launch Mozaic Capital, a firm that advises institutional investors on the sale of interests in private equity and related limited partnerships.
Recent academic research finds mixed evidence that since 2000 the performance of a buyout fund has something statistical to say about the performance of a successor. But, if anything, my latest review of the Buyouts database of return data finds stronger persistence of performance than it did last year.
Appointed Partners, founded by Marci Nigro, former partner at executive search firm TEG, launched today to help match PE-backed companies with board members and other executive talent.
Blackstone Group is shopping specialty materials company Polymer Group Inc. to prospective buyers in a deal that could approach $3 billion in value, according to a source familiar with the process. The firm is said to be preparing the company for either a sale or IPO.
Pantheon Ventures, the London-based funds-of-funds manager, is getting closer to tapping new oceans of capital – money held in defined-contribution retirement plans such as 401(k)s and money held by accredited investors who to date have had few good options for gaining access to a diversified portfolio of private equity investments.
Advisory shop Pantheon Ventures last fall released a study of buyout fund returns showing that a “deep J-curve, relative to vintage peers,” signals that a fund is more likely to be bottom-quartile than top-quartile.
Brooks Zug, senior managing director and co-founder of funds-of-funds manager HarbourVest Partners, this spring told an audience of deal-makers about a buyout opportunity some of his associates had recently pitched with a price tag of 23.5x of trailing EBITDA