Ted Koenig, Monroe Capital, private equity, debt, bonds, junk bonds, high-yield bonds, mergers, M&A
212 Views

Talking Deal Prices: Debt multiples for mid-market buyouts echo syndicated loans

While market volatility in recent weeks may signal trouble ahead, for now the frenzy for both broadly syndicated and middle-market loans is expected to continue. A combination of cash-flush strategic buyers, rich valuations for publicly traded comps and easy debt continue to fuel purchase-price multiples. LPs seeking returns better than those from U.S. Treasurys allocate […]

Steve Burns, Quad-C Management, private equity
457 Views

Talking Top Quartile with Steve Burns of Quad-C Management

Quad-C Partners VIII LP, the vintage 2012 buyout fund from Quad-C Management, generated a net IRR of 29.5 percent as of Dec. 31, 2016, for Nevada Public Employees’ Retirement System. The performance outpaced the top-quartile IRR threshold of 23.4 percent based on an annual analysis of public-pension-fund data by Buyouts (see Sept. 11, 2017, issue). […]

127 Views

Talking Deal Prices: Stellex navigates steep valuations in aerospace and defense

While all sectors remain pricey nowadays, aerospace and defense has carved out a niche among richly priced buyouts. Interest in cybersecurity, drone development and geopolitical threats from North Korea and elsewhere have pushed purchase-price multiples up to 15x EBITDA and beyond on many deals. The sustained rally in public equities also encourages loftier sector prices […]

Todd Jerles, Trivest Partners, private equity, merger, M&A
429 Views

Car leases, no escrow: How Trivest seals proprietary deals

When middle-market GPs want to avoid paying auction prices, they sometimes go into the wild to find deals. Hunting down target companies may be more challenging than diving into an expensive M&A process run by an investment banker. But it also may be more rewarding. To find their own deals, firms work trade shows and make […]

Endeavour Capital, Mark Dorman, private equity
218 Views

Talking Top Quartile with Mark Dorman of Endeavour Capital

You’ve been with Endeavour for nearly 20 of its 26 years. What’s the firm’s mission today? The firm has certainly evolved from the early days but our mission hasn’t changed. We are still committed to our goals of building a legacy firm, partnering with quality middle-market companies and managers in the Western U.S. and generating favorable […]

Olympus Partners, Robert Morris, private equity
256 Views

Talking Top Quartile with Robert Morris of Olympus Partners

Olympus Growth Fund V LP raised $1.5 billion in 2007 and has produced a gross IRR well in the top-quartile range. What’s the biggest factor in delivering strong performance? We have been fortunate in that five of our six funds have been first-quartile. It is impossible to attribute these results to one factor, but certainly […]

private equity, m&a, mergers
139 Views

Talking Deal Prices: GPs look for add-ons in high-priced environment

With lofty purchase-price multiples persisting for the foreseeable future, GPs continue to pivot toward less-expensive add-ons as an alternative. Smaller companies not only cost less due to their relatively smaller revenue streams, they tend to trade at lower multiples than quality platform companies. That’s one reason buy-and-build strategies remain in favor. Adding up lower-cost small pieces […]

private equity, M&A, mergers, Riverstone, Apollo Global Management, Talen Energy, electricity, utilities
316 Views

Talking Deal Prices: GPs find value in beaten-down public companies

Super-strong equity prices, aggressive strategics and cautious GPs have added up to a meager crop of take-privates by private equity firms nowadays. But as resourceful GPs find their comfort zones on prices here and there, take-privates remain on the scene. They may even be gaining a bit of traction in deals ranging from just a […]

296 Views

Five Questions with Bruce Roberson, Senior Managing Director, Sun Capital

What’s your favorite deal or portfolio company that you’ve worked with recently, and why? I worked a fair amount with Critical Flow Solutions, which we sold to Circor International in October for an enterprise value of $210 million. We did quite well on it. The company’s CEO, Ruben Lah, was not a traditional, highly polished […]

381 Views

Talking Top Quartile with David Schnadig of Cortec Group

Cortec Funds III, IV and V have had top-quartile performances. What’s the common theme here? Our business model, which I’ll discuss more, is the primary driver of our results. That said, our leadership team, including myself, Jeff Lipsitz, founder Scott Schafler, and Mike Najjar, has worked together since 2004. Jeff, Scott and I have collaborated […]

Charming Charlie, private equity, Hancock Park Associates, Moody's, debt
414 Views

PE-backed Charming Charlie absorbs downgrade after weak performance

Charming Charlie, a Houston retailer backed by Hancock Park Associates, will be challenged to comply with its financial maintenance covenants over the next year in the face of weak operating performance, according to Moody’s Investors Service. A seller of value-priced fashion jewelry and accessories for 22- to 54-year-old women, Charming Charlie operated 370 stores with […]

Minnesota State Board of Investment, Asia Alternatives, private equity, pension fund
207 Views

MVision takes over as placement agent for Clearwater Capital flagship

Clearwater Capital Partners, the Hong Kong- and New York-based credit investor in Asia, has lined up MVision as placement agent for Clearwater Capital Partners Fund V, according to a filing. The filing lists $5 million for the placement agent sales commission. It did not reveal how much the fund collected so far, nor the target. A spokeswoman […]

639 Views

Antares taps ex-JP Morgan exec for loan-syndicate desk after 40-year veteran retires

Antares Capital executive Peter Nolan in 2017 takes up the reins as senior managing director, head of loan syndicate sales and trading, after a 40-year veteran in the trade retired, the Chicago lender said. Kevin Burke is officially retiring Dec. 31. Along with his two years at Antares, Burke for 12 years oversaw loan sales and trading at […]

EIV Capital, oil and gas, energy, private equity
207 Views

EIV Capital targets $450 mln for third flagship fund

EIV Capital, the Houston investor in energy-sector infrastructure, more than doubled the target of its third buyout fund compared with its predecessor, while remaining active on the acquisition trail. EIV Capital said it raised $341.7 million toward a target of $450 million for EIV Capital Fund III, according to a filing. The firm set a target […]

Chris Coetzee, Baird Capital, private equity, mergers, M&A
200 Views

Baird’s Coetzee: Platform-size deal activity could dominate early 2017

Sure, M&A bankers may be known for their optimism. But Baird’s Chris Coetzee said it’s realistic to expect the first quarter of 2017 to outpace the previous two year-ago periods in the sponsored-deal market. Unlike the start of 2016 and 2015, the early part of the new year won’t bring a lull in mergers and acquisitions, […]

iHeartMedia, S&P, debt
374 Views

iHeartMedia debt unsustainable: S&P

IHeartMedia Inc faces an unsustainable capital structure after the radio and display advertising company backed by Thomas H Lee Partners and Bain Capital missed a payment on notes but offered an exchange deal on other debt, according to S&P Global Ratings. The San Antonio, Texas, company’s debt now trades at “significant discounts to par” of […]

Shamrock Capital Advisors, Appetize, private equity
116 Views

Shamrock Capital backs point-of-sale company Appetize

Shamrock Capital Advisors expects Appetize, a point-of-sale technology provider for concession businesses at live entertainment and sporting events, to go on a hiring spree in 2017. The firm led a $20 million growth equity funding round for the three-year-old company, which plans to use proceeds to add as many as 80 employees and bring its total […]