economicoutlook

GPs, LPs downplay recession, but worries persist

A sustained market correction could lead to lower private equity allocations as LPs rebalance their portfolios to make up for falling public equities. But it’s still too early to say where the market is heading, according to LP and GP sources. “I’ve felt since early last year that we’ve been in frothy territory because of the record number […]

On Location Executives and Investors

GPs back ‘rock star’ managers to amp returns

Private equity investors are increasingly looking for seasoned, successful executives — so-called “rock stars” — to drive performance at their portfolio companies. RedBird Capital took it to the extreme with one recent deal, teaming with real-life rocker Jon Bon Jovi. RedBird last year teamed with Bruin Sports Capital and the National Football League to launch On Location […]

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GI Partners eyes data centers near urban hubs

GI Partners has been acting like a bit of a downtown hipster when it comes to its recent investments in data centers. A string of three fresh data center deals in Chicago, as well as the Denver and Dallas areas, illustrate its strategy to focus on real estate located in densely populated areas. While bigger […]

Talking Top Quartile, Jim Cooper, Thompson Street Capital Partners

Talking Top Quartile with Jim Cooper of Thompson Street Capital Partners

The vintage 2006 Thompson Street Capital Partners II fund from Thompson Street Capital Partners rang up an investment multiple of 2.0x as of May 31, 2015, for the Oklahoma Police Pension & Retirement System. That’s ahead of the top-quartile threshold of 1.7x and the median of 1.4x for that vintage year, according to public pension […]

Lizanne Falsetto, founder, thinkThin. Photo courtesy of Lizanne Falsetto.

Need to Meet: Lizanne Falsetto, founder, thinkThin

It is a classic American success story. Lizanne Falsetto had a great idea for a protein bar and whipped it up in her own kitchen. That laid the foundation for her company, thinkThin. Over the next 20-plus years, the onetime fashion model grew her company without a dime of venture capital and without taking out a single loan. When she […]

FiveQuestionsFrankAngella

Five Questions with Frank Angella, Managing Partner, Grove Street Advisors

1. What trends are you noticing among newer GPs? I’d say at least on the emerging manager side, more of what we’re seeing is firms with a specific type of deal angle or an industry. Private equity generally has become more and more specialized. On the operational turnaround and restructuring side — that’s an area where […]

Savano Capital

Savano targets $100 mln for positions in late-stage companies

Savano Capital Partners, a Baltimore firm with a pedigree in both private equity and secondary venture capital, is on the fundraising trail with a target of $100 million to buy out shareholders in later-stage private companies. Among its recent activities, the firm invested $5 million in DrFirst, a specialist in doctor-patient software and healthcare information technology. In October, […]

Leon Black, Apollo Global Management
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Black says Apollo will deploy more capital in new down cycle

Apollo Global Management founder and CEO Leon Black famously said in 2014 the firm was selling everything that wasn’t nailed down. Now Apollo has flipped its strategy to invest more than it’s selling, even as credit for deals has tightened. Apollo said it wrapped up 2015 with about $13 billion deployed into its credit and […]

education
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Brentwood sees add-ons, possible IPO for Excelligence

Brentwood Associates is considering an initial public offering for Excelligence Learning Corp after it closed the first add-on for the platform company that sells educational products like crayons and other school supplies. Excelligence acquired Really Good Stuff, a Monroe, Connecticut marketer of classroom products and teaching tools primarily for grades K-8, in a deal announced on January […]

DavidBridal
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CD&R’s David’s Bridal debt load unsustainable: Moody’s

Clayton, Dubilier & Rice-backed David’s Bridal Inc faces margin pressure from increased competition despite efforts to turn around the 310-store bridal chain as it works to manage its $767 million debt load, according to Moody’s Investors Service. CD&R purchased David’s Bridal Inc in 2012 from Leonard Green & Partners. The chain was valued a $1.05 […]

Aircraft leasing
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BBAM targets $750 mln PE fund for aircraft leasing

BBAM, the aircraft leasing specialist that’s half-owned by Onex Corp, is approaching a first close on Incline, its inaugural private equity fund targeting $750 million, according to a source. BBAM is led by CEO Steven Zissis, a 30-plus year veteran in the aircraft leasing business and a former executive in the airline advisory group at […]

Tony James, Blackstone Group

Blackstone sees credit markets more stable after tough quarter

Blackstone Group blamed dislocations in high-yield debt for a quarterly loss in all three of its major credit strategies for the first time since 2011, but said market conditions appear to be leveling off. Overall, the largest private equity firm by assets under management said its business remained robust despite challenging and volatile markets, including steep drops […]

UBS Departures
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Two longtime placement agents leave UBS

Two longtime placement agents have left UBS Private Funds Group, one of the largest private equity fundraising and secondary advisory specialists in the business, according to a person close to the bank, as well as separate sources. The person close to the bank confirmed the changes and said they reflected the natural course of business. “People’s careers evolve […]

Proterra
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Proterra spins out from Cargill with $2.1 bln in assets

Proterra Investment Partners spun off from agribusiness giant Cargill with $2.1 billion under management, mostly from outside LPs, with a focus on overseas investments in food, agriculture and natural resources, according to an executive with the firm. The firm will focus on opportunities around the globe in the face of depressed commodity prices and sustained demand for food. […]

BDCs
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Fitch sees BDCs withstanding oil shock

As carnage in public equities around oil and gas price bleeds into private markets, Apollo Investment Corp and PennantPark Investment Corporation carry the largest exposure to the hard-hit oil and gas sector among the 10 business development companies covered by Fitch Ratings, according to a January 20 note from the debt research firm. While lower […]

Heidi Deiner, Association for Corporate Growth, ACG New York
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Need to Meet: Heidi Deiner, President, ACG New York

After raising four children, Heidi Deiner was looking for a way to jump-start her business, HLM Consulting, so she headed over to the New York chapter of the Association for Corporate Growth. “When I first walked in to an ACG New York meeting, I didn’t know anybody,” Deiner said. “It took me a short amount of […]

Dream, dreams, cat, lion, ambitious, ambition, shutterstock_144636674
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Emerging managers dream big

A record crowd gathered in Austin, Texas, recently to discuss the future of emerging managers amid an investment climate that could dampen strong returns delivered by smaller firms. The Emerging Manager Conference, hosted by the Teacher Retirement System of Texas (TRS), drew 1,200 attendees on January 13, up from about 100 when it debuted several years ago. Britt […]

JohnCrocker
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Snowbridge co-founder John Crocker leaves firm

John Crocker, co-founder of Snowbridge Advisors, has left the New York-based placement and advisory firm, according to sources. Formerly a managing partner at the firm, Crocker launched Snowbridge Advisors in 2013 with Mark Schroeder, managing partner, who remains there. Other key members of the team now at Snowbridge Advisors include Tom Boyle, Karen Christofferson, Scott […]