Fort Washington Relaunches 7th FOF With $400M Target

Fort Washington Capital Partners has re-launched its seventh fund of funds, which it originally initiated about a year ago.

Although the firm got a $10 million pledge last fall from the City of Cincinnati Retirement System for Fort Washington Private Equity Investors VII LP, the pension cancelled that commitment this spring. Meeting minutes do not indicate why it was cancelled, and the pension did not respond to a question about it. A spokeswoman for Fort Washington Capital said the firm does not comment on funds while they are in the market.

CalPERS Cuts Ties With PCG

The California Public Employees’ Retirement System announced today that it is dissolving its connections to long-time private equity consultant Pacific Corporate Group, known as PCG.

The nation’s largest pension fund did not explain why it was severing ties with its former adviser. But questions about the relationship have arisen in the wake of a PE pay-to-play scandal that began last year.

Specifically, concerns have surfaced regarding PCG’s relationship with former CalPERS board member turned placement agent Alfred Villalobos. According to an Aug. 19 story in the Sacramento Bee, Villalobos helped PCG in 2007 when CalPERS became worried over the departure of three PCG executives.

The Sound of Music at Investment Gathering

Attendees of investment conferences don’t usually get to hear live violin music, especially being played on a violin hundreds of years old and worth $3 million.

But that’s what happened at yesterday’s Alternative Investment Summit 2010 in New York. Tony Finley, a general partner in a debut vehicle, the $100-million targeted Artist Rare Instrument Fund LP, demonstrated the type of rare stringed instrument that investors can place bets on in anticipation of their rising in value.

And Christophe Landon, a dealer in rare stringed instruments and another fund partner, explains that because of his relationships around the world, the firm can avoid buying and selling at auctions and therefore will not pay commissions; thus the fund pockets all the proceeds. He notes that demand for rare instruments is especially strong now in Asia.

Money Dispute Heats Up At PCG

Carried interest payments can make for a nice annuity for executives long after they leave a private equity shop. They can also be a source of nasty disputes.

Such is the case at Pacific Corporate Group, a La Jolla, Calif.-based private equity advisory firm, where a former executive has filed a lawsuit claiming he hasn’t been paid all of the investment gains owed him. The firm has counter-sued, arguing it should not have to pay someone whom it believes engaged in an “illegal kick-back scheme,” according to PCG’s cross-complaint.

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Linden Plans To Hit Hard Cap for Second Healthcare Fund

Healthcare-focused private equity firm Linden LLC is more than two-thirds of the way toward the $300 million target for its second fund, and expectats of hitting its $350 million hard cap.

Chicago-based Linden has so far gathered $208 million for Linden Capital Partners II LP, according to a source familiar with the situation. New York-based placement agency Park Hill Group is helping to raise the fund.

Linden invests in lower middle-market healthcare companies with revenue of between $25 million and $300 million. Fund II is earmarked for eight to ten platform investments, plus add-ons.

Southlake Equity Back In The Fundraising Saddle

Southlake Equity Group has resumed raising its debut fund, after taking a hiatus to do a deal, beef up the team and find a placement agent. The Texas-based firm is again actively marketing a $250 million vehicle, Southlake Equity Group Fund I, with Neuberger Berman serving as placement agent. The firm has held almost 100 […]

Corsair Capital Targets Almost Double for New Fund

Corsair Capital has officially launched its fourth financial services investment fund and is looking to almost double the amount it raised for its prior vehicle. The New York-based firm hopes to hold a first close this fall on north of $600 million to $700 million, eventually hitting a target for the fund of $2 billion. […]

Ohio F-o-F Sees Opportunity In Distress

Cincinnati-based Fort Washington Capital Partners is looking for a few good funds, especially if they’re small. Having gathered about $170 million in a very tough fundraising market, the fund-of-funds manager is particularly interested in vehicles that can take advantage of distress in the market, such as turnarounds, restructurings and secondaries, according to Christopher Baucom, managing […]

Atlantic Street Ready To Raise Fund Two

Atlantic Street Capital is poised to begin fundraising for its sophomore special situations fund with a target of $100 million, possibly kicking off the marketing effort as soon as this month. The Stamford, Conn.-based shop is aiming to hold a first close around year-end at the earliest. The firm closed predecessor fund Atlantic Street Capital […]

Q&A with a Lehman Limited Partner

Gary Bland is the State Investment Officer for New Mexico, which has committed approximately $50 million to a pair of Lehman Brothers private equity funds.

peHUB: What’s your take on all this craziness?

GB: The bullies are out there trying to eat everybody’s lunch. They’re trying to steal the lunch money too.

So what do you think should happen?

I think that it’s probably being worked on even as we speak. It’s one of those circumstances where nobody knows what to do. Every piece of news that comes out sounds bad, looks bad, is bad, the world’s coming to an end.


Firm Under SEC Investigation Targeted Institutional Investors

The SEC charged Wextrust Capital LLC, a private equity firm, and various affiliates, on Aug. 12 with running a scheme to bilk investors by raising money for a particular investment, while instead using that money to pay off backers of previous investments. The firm’s two principals, CEO Steven Byers and former COO Joseph Shereshevsky, are […]