By Chris Fay, Greenwich Strategy Investors who are doing commercial due diligence the way they’ve always done it are almost certainly missing opportunities to own great companies. Commercial due diligence used to be a confirmatory step at the end of the acquisition process. In today’s tough market it’s got to be front-loaded. It serves not […]
By James M. McKnight, Mintz Levin Your PE firm owns a small but growing life-science company with pipeline products and emerging technologies. A big strategic company offers you a fat purchase price and you jump at it. You go into sell mode. After months of negotiations and diligence, the purchase price still stands at a […]
By Alex Hicks, MHT Partners Private equity investors are looking for someone to take an Amazon approach to online education. Since the days of the frontier schoolhouse, where different ages were taught together in the same classroom, education has become more and more fragmented. Kindergarten and then elementary are separate from middle school and then high school. […]
Capital-call subscription lines is one of the most talked about issues in the industry this year. This is because many firms have now adopted the practice, ostensibly to smooth the capital-call process, with the peripheral effect of juicing a fund’s IRR and, as some LPs have described it to me, artificially getting a manager closer to […]
By Joanne Baginski, partner, EKS&H After years of record corporate profits and inexpensive credit, the price of nearly all middle-market acquisitions — from manufacturing to technology and healthcare — has soared. For private equity investors, that has made the diligence process more important than ever. Thanks to favorable macroeconomic conditions and the dry powder available […]
In today’s record-breaking fundraising market, GPs are negotiating hard to get terms they like. One of those is to ensure they get paid after exiting each investment in their fund, rather than waiting until the LPs get paid back before they can start collecting profits. In other words, GPs are pushing for deal-by-deal carried-interest-distribution structures […]
By Kapila Ratnam, NewSpring Capital The healthcare industry creates thousands of new investment opportunities every year. At NewSpring, we continue to see promising opportunities in telemedicine, behavioral health, home health, and pharma outsourcing. Telemedicine The use of telemedicine is growing quickly across this country: The American Telemedicine Association says that more than half of all […]
I’ve recently had a few conversations with folks in the secondary market about reports that Warburg Pincus plans to carve out about $1 billion in Asia interests from Fund XI, which closed on $11.2 billion in 2013. The feeling from a few sources is this deal — if it gets completed as was reported in the Wall […]
By Patrick Krause, MHT Partners Specialty physician groups continue to garner significant interest from private equity investors, with orthopedic and ophthalmology practices joining dermatology and dentistry as particularly attractive in the current market. The past few months have seen a number of transactions involving these physician-led practices. And that activity is likely to continue because these operations […]
By Gary Moran, managing director, and Naseem Ansari, vice president, Accordion. “I cannot hit curveball. Straight ball I hit it very much. Curveball, bats are afraid.” — Pedro Cerrano, “Major League” (1989) Cerrano was no Ricky Vaughn, but the slugger had a point. It’s hard to put wood on the curveball. Fourteen years later, researchers studying the […]