Delos Capital, flea market, private equity, merger, m&a

Flea market owner Delos Capital closes second fund at ~$275 mln

Delos Capital, which has been building up a flea-market business via a series of acquisitions, closed its second fund close to its hard cap of $275 million, CFO Sanjay Sanghoee said. The firm closed its debut at just north of $250 million in 2014. It did not use a placement agent for its second fund, although […]

private equity, mergers, M&A

Private Eye: Washington reports single-digit net IRRs on big Alinda bet

Alinda Capital Partners made a splash in the middle of the past decade, charging out of the gates to raise a $3 billion value-added infrastructure fund. It was one of the largest debut funds. Many investors had been unfamiliar with a big aspect of the strategy the New York shop intended to pursue. Alinda planned […]

private equity, mergers, M&A

Private Eye: Liberty Partners captive program may offer cautionary tale for CalPERS

A trio of CalPERS investment-committee members this month objected to a plan to create two captive private equity funds, and the experience of sister state pension Florida State Board of Administration suggests they’re right to have concerns. Such programs don’t always work out as advertised. Under the proposed plan, approved in concept by the committee in […]

private equity, mergers, M&A

Private Eye: Even in long-duration funds, investors can cash in quickly

Raising long-duration funds gives buyout shops the flexibility to own companies for far longer than they would through conventional limited partnerships. But that doesn’t mean their investors will necessarily be starved for liquidity. Take the example of Ascend Learning, a professional training and testing company that in mid-February borrowed $350 million to help pay a dividend […]

private equity, mergers, M&A

Private Eye: Renovo, Balmoral, Hidden Harbor hunt complexity with new funds

The chase for complex, special-situation deals is heating up. Last month Dallas-based Renovo Capital finished raising its second institutionally backed turnaround and special-situations fund at its hard cap of $225 million. Among the 10 investors is the corporate pension plan of DuPont. The firm raised $132 million for its first institutional fund — its second overall […]

Herman Cain

Herman Cain touts opportunity zones; gets heckled

Herman Cain, a business executive who ran for president in 2012 as a Republican, talked up “opportunity zone” investments at a Jan. 16 conference in New York, encouraging developers, investors, local officials and others in the audience to “think bigger” and go beyond just affordable housing. But Cain’s veering into more political topics rubbed one […]

private equity, mergers, M&A

Private Eye: Creditors see yellow lights flashing in middle market

“It’s starting to feel like there are more and more cracks starting to appear in our market,” said Justin Kaplan, partner at Balance Point Capital, speaking on a leveraged-loan panel last month at Buyouts Insider’s PartnerConnect Texas conference in Dallas. Kaplan and fellow panelists — Jason Safran, senior asset manager at Texas Christian University Endowment, Stefan Shaffer, a founder […]

private equity, mergers, M&A

Private Eye: The funded and fundless team on deals; face hurdle of fees

Many independent sponsors boast of having proprietary deal flow but lack capital to close deals. Buyout firms with committed funds, by contrast, have the capital. What they need is more deal flow, and many are open to teaming with independent sponsors under the right conditions. Conditions of late have been right for at least two […]

private equity, growth equity, compensation, salaries, Buyouts Insider, employment, Denali Group, Russell Reynolds Associates, headhunter

With bargains scarce, GPs beef up deal-sourcing, operating teams

Buyout and growth-equity firms continue to hire talent at a rapid pace this year, driven in part by strength in fundraising and by the growing need to extract bargains from a white-hot market for deals. The sale of minority stakes by firms, often a precursor to diversification, has also fueled hiring. “I would say it’s […]

private equity, merger, M&A, fundraising

Market at a Glance: Soundcore makes transition from independent sponsor

It was another busy couple of weeks for U.S. buyout and mezzanine firms, which added more than $3 billion to their year-to-date fundraising tally and more than $14 billion to their year-to-date deal-making tally. Through July 25, U.S. buyout and mezzanine firms had raised $112.4 billion year to date, trailing by 20 percent the year-earlier […]

private equity, merger, M&A, fundraising

Market at a Glance – Fundraising boosted by slew of final closes

Fundraising shot higher over the past week thanks to a slew of final closes. Through July 12 U.S. buyout and mezzanine firms had raised $102.1 billion, up from $85.2 billion two weeks earlier but down from $137.2 billion a year earlier. Meantime, firms have so far completed $125 billion in deals, up from $95.1 billion […]


With Gamma deal, TA accelerates pace of partial exits

Gamma Technologies last month said it had agreed to sell a stake to private equity shop Cove Hill Partners, marking one of four partial exits so far this year for growth-equity specialist TA Associates.  TA Associates, which has more than 70 active portfolio companies, would remain the largest shareholder in the provider of engineering-simulation software should the deal […]

private equity, mergers, M&A

Private Eye: Portfolio executive turnover hurts; here’s how to prevent it

Executive turnover is a returns killer. What can you do to minimize it? Unfortunately, turnover is a fact of life for private equity firms. Research from management consulting firm AlixPartners suggests that nearly three-quarters of portfolio-company CEOs don’t last during the holding period of the typical investment. And the timing of their departure is often poor. […]

private equity, mergers, M&A

Private Eye: Lincolnshire proves fertile ground for spinouts

Some buyout shops seem susceptible to losing talent to spinout groups. Around the time Castle Harlan said it was pulling the plug on raising Fund VI in 2015, for example, four executives from the firm, including former Co-President Howard Morgan, emerged as founders of a new New York-based buyout shop called Argand Partners. The new shop […]

private equity, mergers, M&A

Private Eye: Chicago’s Kinzie Capital sets stage for likely institutional fund

Suzanne Yoon, an ex-managing director at Versa Capital Management and founder last year of Kinzie Capital Partners, finds that the lower-mid-market companies she vets for investments can often be woefully behind when it comes to technology. Among the problems she might encounter: companies lacking chief information officers or chief technology officers; companies whose e-commerce websites […]

private equity, mergers, M&A

Private Eye: Retail meltdown trips up operations-focused CD&R

Clayton, Dubilier & Rice was one of the first buyout shops to emphasize its operational chops; two of its co-founders, Gene Clayton and Martin Dubilier, had been crisis-management consultants before starting the firm in 1978. But so far the New York buyout shop hasn’t been able to revive the fortunes of specialty retailer David’s Bridal. It’s an unusual misstep for […]