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Erin Griffith

Placement agent C.P. Eaton today announced the hiring of Eric Gu to lead an exploratory effort toward placing RMB funds. Gu is based on Shanghai. I spoke with David Love, head of C.P. Eaton's Asia operations, about the developing rules and regulations, the potential for middle market RMB funds and the demand for private equity from Chinese investors. Tell me more about the new effort. It appears you're getting ready to place RMB funds. It's really an exploratory effort. We were the first placement agent to form an office there when we put one in Shanghai. It gave us a first mover advantage. One market that is developing is the whole RMB market, which is moving to be accessed by western GPs and China-based GPs, so we wanted to dedicate enough resources to it so we understood the regulations and rules of the market. We want to have knowledge of the development of the market, and so we could advise both western and local GPs as to strategies for accessing the market.
Wall Street Speak: Terms of art, endearment and subterfuge, by Deal Journal. (DJ) Joseph Javier Perla: Facebook is a Ponzi Scheme. (JJP) Goldman Taint: Meg Whitman, former eBay CEO and California gubernatorial candidate, is getting some flack for her time on the board of Goldman Sachs. (FINS, Wall St. Whitman)
Every firm wants returns, but sometimes getting them too early can cause unexpected complications. This is specifically true for a number of distressed debt firms, which earned returns on funds that were still in the process of being raised. To illustrate, let's take a look at a firm whose name I've promised not to share (sorry). It entered the market with a $1 billion-targeted fund last year and gathered commitments worth around $500 million. Seeing a strong opportunity as distressed debt trading levels rose, the firm held a number of closes on the capital and invested it. The value of distressed debt improved so dramatically in 2009 that the firm’s invested capital generated an IRR of 60% in just six months. That’s great news, except those returns, which occurred during fundraising, create a tricky conflict for a manager of a closed-end fund.
In 2008 and 2009, distressed debt was the most in-demand private equity strategy for institutional investors. And it doesn't seem to have cooled off this year, despite a recovering economy and general sluggishness within the private equity fundraising market. Oaktree Capital Management, Centerbridge Partners, Lone Star and MHR Fund Management are just a few large distressed debt firms currently raising new funds. There are a number of reasons these players are likely to find success. For starters, they are riding the coattails of last year’s blockbuster year for distressed debt (i.e., strong strack records). Admittedly, debt is trading around par this year -- and much of the upside for distressed debt plays is behind us -- but timing concerns rarely dampen LP enthusiasm. “Aside from the limits of the market opportunity, most investors are still looking to deploy capital in that space,” said Jérémie Le Febvre, a partner with fund placement agent Triago. One reason, he explained, is that many investors remain overallocated
Bad Boss: Authoritarians in Finance (FINS) Big Freaking Surprise: Look! Here are four shocking new behaviors that are "linked to" (but not the cause of?) premature death. (BusinessWeek) I Needed This: Your Mom's Guide to Facebook changes, and how to block them. (GigaOm) PS I know the date is old on this article, but I accessed it via my BusinessWeek "Most Popular" feed. Interesting that BusinessWeek's most popular stories are the ones it syndicates. Best Video I've Seen Today: Huffington Post has compiled five minutes worth of metaphors used by news commentators on the Goldman Sachs Fraud case. It covers everything from tainted meat and castration to antique cars and casinos. (View it after the jump)
Over the weekend we learned that the mystery bidder for CKE Restaurants was Apollo Management (as had been alluded to in prior reports). The reveal was surprising since it came out of a go-shop period — something PE pros seem to avoid like the plague. Go-shop provisions have become a standard way to protect corporate boards from angry shareholders, […]
Deal Spec: Dow Jones Investment Banker of deal rumors-what makes sense, and what is nonsense. (DJ) Delicate Balance: The economic crisis has revived the old debate about whether firms should focus most on their shareholders, their customers or their workers. (Economist) Summer Reading List: The B-School Edition: Take a look at what B-schoolers will be reading poolside for enlightenment and entertainment. (Businessweek) New Mezz: Is mezzanine the answer for entreprenuers? (Private Equiteer) Investors' love-hate relationship with Wall Street: The post-dot com bubble backlash gave us knew regulations, but had little impact on Wall Street's business. (New Yorker) And also: The Economist covers the financial reform developments with Synthetic/Derivative.
Here are some potential target ideas, rumored or official, to jumpstart your deal pipeline. Our sources are various news reports and the Buyouts “Seeking Buyers” list. OptimumBank, based in Florida, is exploring strategic alternatives to help it regain the capital levels requested by the FDIC. The bank plans to raise capital through a public or private offering. Eastman Chemical Co said on Friday that it might put its struggling plastic packaging business up for sale. (Reuters) Atlantic Station LLC, a unit of Jacoby Group Inc. and AIG Global Real Estate, is seeking a buyer for its retail division. Nielsen, the world's largest TV and consumer measurement company, plans to begin hiring bankers for its initial public offering, the Financial Times reported on Sunday. (Reuters)
Here's a look at the last week's worth of scoops, data, and analysis from the peHUB team. Catch up on what you missed before it goes behind our paywall... All First Reads | All Second Opinions A Few Good Regulators Raj Gupta Isn't the First New Silk Route Pro with Insider Trading Troubles Jobs Site Glassdoor.com Soaring on Anonymous Contributions PE Debt Watch (Upgrades and Downgrades) Hugo Boss Reverses Course, Will Keep Ohio Factory Open How To Run A Media Event Should Banks Invest in Private Equity? Don't Bury Consumer Protection Jeff Jarvis on Facebook's Open Graph: "It's Inside Out and Upside Down" Chris Dodd Sits On The Side of Angels SEC Accuses Detroit Private Equity Firm of Fraud Blueprint Ventures Announces Shutdown Bessemer Says Goodbye to Pair of Partners Giant Secondary Deal is a Win-Win Blackstone Results: Dripping in Positivity Sankaty Closes MM Debt Fund Money for Nothing, Content for Free Pana.ma CEO Hayden Wants to Hear Your Voice Messages Looking for New Markets? Try These. Pre-IPO Dividend? Fine By Investors Yes Virginia, There Were LP Defaults in 2009 Take a VC / PE Survey Dear Tom Hicks, A Word Please? CrowdFlower CEO Helped in Haitian Relief Google Buys Stealth Hardware Startup Agnilux Wellspring Limps Along in Fundraising Market Pick-Up in PE Handoffs a Symptom of "Use It or Lose It"? Why Growth Equity Is The Best Risk/Reward in Private Equity
You Know What They Say About Magazine Covers: Former eBay CEO / current California gubernatorial candidate Meg Whitman is on the cover of BusinessWeek. (BusinessWeek) What Wall Street Could Learn From KFC's Double Down Sandwich: "UNTHINK!" (Atlantic) Schumer's Balancing Act: He's undecided on Obama's financial regulation bill. He's a friend of Wall Street, but he's also a Democrat. (WSJ) Yikes: Check out these scathing emails from the ratings agencies. (FINS) For Fun: The 50 ugliest cars of the last 50 years. (BusinessWeek)

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