Are sponsors getting worse at deal sourcing?

While there is buzz that the asset class is becoming mature and efficient, deal sourcing, one of the most critical components of a private equity firm’s success, is becoming tougher. This means there is greater opportunity than ever for outperformance on a relative basis by sponsors that are better at business development.


Lenders cowed by Fed rebuke on US leveraged loans: IFR

The Federal Reserve’s rebuke to Credit Suisse for failing to adhere to US leveraged lending guidelines is having an industry-wide effect as banks bow to regulatory pressures and start pulling back from underwriting highly leveraged loans, according to sister magazine Reuters IFR.


Buyout loan trends may reflect Fed, OCC disparities: TRLPC

Scrutiny by U.S. regulators is reshaping the leveraged loan market as bankers complain that the Office of the Comptroller of the Currency enforces leveraged lending guidance more stringently than the Federal Reserve, sister service Thomson Reuters Loan Pricing Corp reports.

West Partners backs NoteVault

NoteVault has received an undisclosed investment from West Partners. Based in San Diego, NoteVault is a provider of voice-to-text-based mobile reporting solutions for the engineering and construction sectors.


Latin American PE investing rose last year

Private equity and venture capital investing in Latin America climbed for a third straight year as fund managers put $8.9 billion to work in 234 deals last year, according to the Latin American Private Equity and Venture Capital Association.

Bovie Medical completes $7 mln funding through Great Point Partners

Bovie Medical Corporation, which makes electrosurgical products, has completed a $7 million funding through Great Point Partners. Gilford Securities acted as sole placement agent. Along with the funding, Bovie’s board appointed Robert Gershon as the company’s chief executive officer, replacing Andrew Makrides, who will take over the role of executive chairman of the board.

Is Equity Value the Same as Cash?

Are lenders playing fair when they demand sponsors put more cash into a deal simply to do an add-on acquisition that could easily be financed with debt?

Slideshow: Maine Reveals Bite Taken By Fees, Expenses

Alternative investments such as infrastructure and private equity aren’t for the shallow-pocketed. Data provided by the Maine Public Employees Retirement System reveals just how big a bite fees and expenses can take in the early years of limited partnerships. Take Carlyle Infrastructure Partners, a fund to which MainePERS committed $50 million in November 2007. Of that sum […]

Scorecard: American Buyout Shops In Europe

First came word from the Wall Street Journal earlier this month that New York buyout shop Vestar Capital Partners is beating a complete retreat from its European operations.

And then yesterday the Financial Times reported that Fort Worth, Texas-based TPG Capital is rearranging priorities in Europe, placing less emphasis on buyouts and more on non-performing loans and restructuring. (Sources confirmed the main thrust of both stories to me; Vestar Capital, which has had offices in Europe since 1999, has decided to focus laser-like on the United States, its primary market over its last several funds. The withdrawal has been several years in the making.)

You’d think buyout firms have had a hard time generating solid returns on their European investments. But, if so, that’s not always been the case, judging from the results of five European funds in the returns database of sister magazine Buyouts. Managed by The Carlyle Group, Kohlberg, Kravis Roberts & Co., and Hicks, Muse, Tate & Furst, the five, running from vintage years 1998 to 2005, have generated a median investment multiple of 2x and a median internal rate of return of 21.5 percent.

Perhaps tellingly, the worst performer to date is also the youngest–the 2005 KKR European Fund II, which is just slightly in the black according to backer Oregon Public Employees Retirement Fund. Click through below to see more details on the performance of this and the other four U.S.-sponsored European funds in our database.

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