Charities find unlikely new champion in private equity: "The slash and burn culture of private equity seems ill-suited to the warm and well-meaning charity sector. But perhaps that is just what the latter needs." By applying private equity best practices to charities, one firm has increased the number of people they help by an average of 53p% every year over a five-year period. (Telegraph) The Bailout Bonanza: TARP's early returns are impressive. (Newsweek) Demerging markets: Private equity emerging markets are seen as being down in '09. (Reuters) OpEd: The New York Times approves of the FDIC's rules for private equity investment in failed banks. (NYT) More Positivity: More PE Groups in Europe have hinted that the worst is over for the industry. (FT) Don't Waste Time When You Travel: 10 tactics for being productive while traveling. (Lifehacker) CIC is Back: "As the effects of the credit crunch continue to ease, Chinese sovereign wealth fund China Investment Corp. is aiming to capitalize on the drop in valuations to load up on investments in private equity, hedge funds investments and funds-of-funds." (Dealscape)
North River Capital has acquired Wayne Manufacturing Corp., a LaOtto, Ind.-based maker of component parts for the transportation industry. No financial temrs were disclosed. News of the sale was first reported by the Greater Ft. Wayne Business Weekly.
SAO PAULO (Reuters) – Cetip, Latin America’s largest clearing house, this week will resume its plans to put up for sale as much as 50 percent of its capital in an initial public offering, O Estado de S. Paulo reported on Monday, without saying how it obtained the information. Cetip is the latest exchange company […]
Kirtland Capital Partners has acquired Northwest Mailing Service Inc., a Chicago-based direct mail marketing company. No financial terms were disclosed. Kirtland will use Northwest as an acquisition platform.
SEOUL (Reuters) – South Korean private equity firm Vogo Fund is buying the 30.7 percent stake of two banks in a domestic card processing company for $156 million and is in talks with other banks to raise its holdings to more than 50 percent within this year. Vogo Fund said on Monday it had signed […]
PHILADELPHIA (Reuters) – Freedom Communications Inc, owner of the Orange County Register newspaper, is expected to declare bankruptcy this week, The Wall Street Journal reported on Sunday. Freedom, which has been majority owned for more than 70 years by the Hoiles family, has reached agreements with its lenders to restructure its debts, the newspaper reported […]
NEW YORK (Reuters) – The reinvigorated market for initial public offerings has sparked a rash of new filings by prominent companies that have been waiting for years for the chance to go public, setting the stage for potentially billions of dollars in IPOs by the end of the year. So far in August, 11 companies […]
NEW YORK (Reuters) – Insurance giant American International Group (AIG.N) has paused the auction of its aircraft leasing firm, International Lease Finance Corp. (ILFC), as its new CEO reviews the divestiture process, a source familiar with the situation said on Friday. The new CEO, Robert Benmosche, is responsible for leading AIG in repaying more than […]
On The Market: Blackstone Group Chief Executive Stephen Schwarzman has listed a 2.1-acre property in East Hampton, N.Y., for $7.2 million. Don't worry. He's wrapping up work on a house he's building on a 9.9-acre estate in nearby Water Mill, which he bought for $34 million in 2005. (NY Times) Rebuttals: The Private Equiteer takes issue with the Economist's "scathing" piece on the puzzle of private equity. Particularly the line which states that you are far more likely to achieve billionaire status by running an asset management business than by setting up an operating business. (Private Equiteer) Deals Deals Deals: Terra Firma purchased a wind energy business for $350 million. (Reuters) Deal Journal calls the deal "a bold move." (DJ) The Most Powerful Banker You've Never Heard of: Lewis Kaden is the ultimate behind-the-scenes power player. Lobbying the White House for Citi may be his biggest role yet. (BusinessWeek) Good News and Bad News: For the FDIC there's a long tunnel and little light. (Rolfe Winkler) But, you know, don't worry about the FDIC. (Felix Salmon)
Mergermarket today released its half-year private equity review, suggesting that private equity may have hit a bottom. Between Q1 and Q2, deal volume only decreased 4%. That’s a relatively shallow fall, when compared with the 49% plummet between Q3 and Q4 of last year. Exit data looks similar:
After declining 44% from Q3 to Q4 last year, exit volume this year has been on a slow but steady rise, gaining an average of two deals in each quarter.
Financial services and dominated deal activity, taking 70% of aggregate deal value in the first half of the year, thanks to deals like IndyMac, iShares and BankUnited. Many of the deals were in the asset management subsector, “which offered and continues to offer a variety of healthy, attractively priced businesses.” Thanks to parent company distress, forced divestitures have provided a fertile buying ground.