private equity, merger, M&A, fundraising
115 Views

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 […]

380 Views

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, Lincolnshire Management
412 Views

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, Lincolnshire Management
625 Views

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, Lincolnshire Management
578 Views

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, Lincolnshire Management
1006 Views

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 […]

private equity, Lincolnshire Management
1026 Views

Private Eye: New battle lines drawn on partnership terms

It is not exactly a good time to ask top-performing firms to cut their carried interest percentage or to accept a no-fault divorce clause. Demand for slots in top funds is way too intense. Still, institutional investors continue to fight hard for LP-favorable terms with first-time funds and other emerging managers. Much of the negotiating centers […]

private equity, Lincolnshire Management
201 Views

Private Eye: Top priority on terms? LPs say GP commitment

Two thirds of institutional investors responding to a recent survey picked the “level of general partner financial commitment to the fund” as the partnership term they focus on most when deciding whether to invest in a fund or to advise a client to do so. Investors like to see a healthy GP commitment because it so neatly […]

private equity, Lincolnshire Management
310 Views

Private Eye: Sponsor hiring spree continues; focus on operations

Many buyouts and growth equity firms added staff this year, taking advantage of a buoyant fundraising market to bulk up their operations, fundraising and credit teams. The overall pace of industry hiring seems “modestly robust,” said Heather Hammond, managing director-financial services at executive recruiter Russell Reynolds Associates, as firms add mainly to their junior ranks. According to […]

Lincoln International, University of Chicago, private equity, equities, Russell 2000, S&P 500, indexes
196 Views

New sponsor-backed-company index lags public equities — but for good reason

The just-introduced Lincoln Middle Market Index, measuring changes in enterprise value of sponsor-backed companies, grew 23 percent over the 3 1/2 years ended Sept. 30. The index’s ups and downs largely tracked those of public equity benchmarks, and with less volatility. The index ultimately trailed the Russell 2000 (27 percent) and the S&P 500 (35 percent) […]

Primus Capital, healthcare, Medhost, private equity, merger, M&A
247 Views

New healthcare shop is first to get seed money from Moelis-Veritable

Petrichor Healthcare Capital Management LP, launched this January by an ex-managing director at OrbiMed Advisors, is the first private equity shop to secure seed funding from Archean Capital Partners, a joint-venture between Moelis Asset Management LP and asset manager Veritable LP. Archean Capital and Petrichor Healthcare planned to reveal today in a joint press release that Archean Capital had made […]

Florida State Board of Administration, pension fund, private equity, Levine Leichtman
510 Views

Trivest breezes to $600 mln dry close on sixth fund

Trivest Partners, the Coral Gables, Fla.-based firm that has become one of the country’s most prolific buyers of family-owned businesses, has quickly secured $600 million for its sixth core fund. Troy Templeton, managing partner, said the firm began reaching out to prior investors this summer. Trivest had just passed the 75 percent invested mark on its […]

891 Views

Emerging managers should emphasize team when fundraising; gird for uphill climb

Are emerging managers in tune with potential backers when it comes to anticipating what factors are most important to those backers in evaluating their funds? A recent survey by financial publisher Buyouts Insider and Gen II Fund Services, LLC finds that, to a surprising degree, they are. You would think “track record” would rank high […]

Deal Terms VC
356 Views

Leeds Equity Partners tops $400 mln for Fund VI

Leeds Equity Partners, buyer and builder of companies in the fields of education, training and information services, has closed on north of $400 million for its sixth core fund, Buyouts has learned. Leeds Equity, which owns Buyouts, has passed the halfway mark towards its $750 million target for Leeds Equity Partners VI LP, according to […]

private equity, Lincolnshire Management
284 Views

Private Eye: Michigan Prosperity Fund not a single blind pool, Blackford says

Executives at Blackford Capital like to talk up their Michigan Prosperity Fund, which they have described as a $50 million buyout fund launched in 2012 and earmarked mainly for in-state investments. But the fund isn’t a blind pool in the conventional sense. In fact, the firm has formed individual limited partnerships for each of the nine portfolio […]

private equity, Lincolnshire Management
529 Views

Private Eye: DeVos-family-backed firm, with $6.3 bln AUM, raises two co-investment pools

Ottawa Avenue Private Capital LLC, an investment arm of the family office of Richard DeVos, father-in-law to U.S. Secretary of Education Betsy DeVos, has raised at least $420 million for two funds in a series of annual co-investment pools, regulatory filings suggest. The Grand Rapids, Michigan, firm, founded in 2015, had assets in Ottawa Avenue Fund 2017 LP […]