Pharos Capital and TPG Capital have completed their acquisition of American Beacon Advisors, the asset management subsidiary of American Airlines parent company AMR Corp. The deal was valued at $480 million, with AMR retaining a minority ownership position.   PRESS RELEASE   AMR Corporation, the parent company of American Airlines, Inc., announced today that it has […]
Standard & Poor’s has lowered its long-term counterparty rating on AIG to A-, citing “reduced flexibility in meeting additional collateral needs” and “concerns over increasing residential mortgage-related losses.” It also kept AIG on creditwatch negative.
All the way back in 1998, AIG invested $150 million for a 7% stake in Blackstone Group. The stake was supposed to be valued at $1.35 billion over an undisclosed period of time. At the time of Blackstone’s IPO last year, that stake grew to nearly $2 billion, according to an AP report. Separately, AIG agreed to commit around $1.2 billion in various Blackstone funds. The point was to formalize AIG's relationship with the fund via former AIG CEO Hank Greenberg.* Now Greenburg has been ousted at AIG (replaced by a buyout pro no less), and anyways, the insurer may need to liquidate that stake. Ironically, the same 1998 press release that announced AIG’s investments in Blackstone also announced a termination of a longstanding LP relationship, triggered by a different financial crisis. Blackstone lost its commitment from Nikki Securities of Japan thanks to the tough market in Tokyo in the late 90s.
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.
TORONTO (Reuters) – Private equity group Onex Corp said on Monday it will buy a 50 percent stake in U.S. cabinet maker RSI Home Products Inc for $318 million. Onex said RSI founder and Chairman Ronald Simon will continue to own 50 percent of RSI, which makes kitchen and bathroom cabinets, along with other existing […]
Champ Private Equity, the Australian affiliate of Castle Harlan, has acquired LCR Lindores Group, an Australian industrial and mining services company. No financial terms were disclosed.   PRESS RELEASE Castle Harlan, Inc., the New York-based private equity investment firm, announced today that its Australian affiliate, CHAMP Private Equity, has acquired LCR Lindores Group, one of […]
Lyceum Capital has agreed to acquire Carewatch Care Services from publicly-traded Nestor Healthcare Group PLC, for £37 million. Barclays is providing leveraged financing for the deal, which is subject to approval of Nestor shareholders. Carewatch provides home-based social care services in the UK.
NBC Universal, Bain Capital and The Blackstone Group have completed their $3.5 billion acquisition of The Weather Channel from Landmark Communications.
Capital for Business, a private equity unit of Commerce Bancshares, has acquired SoTel Systems, a Maryland Heights, Mo.-based provider of enterprise telecom equipment. No financial terms were disclosed for the deal, which was first reported by the St. Louis Business Journal.

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