A pile of links today:
***PE-backed bankruptcies are piling up in July. Last week it was TA Associates’s Steve & Barry’s. This week its Madison Dearborn’s Pierre Foods, and Cerberus’s Western NonWoven. Three consumer products companies in a row (indirectly for Western NonWoven) makes me curious about some of the consumer-focused funds. North Castle Partners (which recently saw its investment in Leiner Health go down), TSG Consumer Partners, Catterton Partners, and Circle Peak Partners all invest almost exclusively in the sector. Are they as doomed as some of the auto or housing-focused funds? Or does their cunning sector expertise put them in a better position than generalist firms merely dabbling in the sector? (I’m sure they would argue in favor of the latter.)
***The co-founder of Elevation Partners (you know, Bono’s firm) says that starting a rock band is like building a company. If every great rock band had that attitude, VH1’s Behind the Music would have no stories to tell. Its somewhat clever (I guess?), but I thought the great thing about rock music is that it’s the opposite of a stodgy nine-to-five business. Don’t people like it for its authentic lack of well-calculated, highly managed and controlled moves? I guess given the current state of the music industry, the most popular artists today, including U2, are astute and maybe even shrewd business people.
***In case you haven’t caught it yet, a VC fundraising review from Business Wire.
***Despite a bit of a slow down in the US, SPACs are taking off in Europe. Is it the market or the lack of that widely reported SPAC “stigma”?