We’ve had a terrific turnout for our Buyouts East conference in Cambridge, Mass., which runs today and tomorrow. For those who weren’t able to make it, here are three highlights.
An investor group led by Siris Capital Group has agreed to buy Digital River in a deal valued at about $840 million. Terms of the deal call for Siris to buy all outstanding Digital River shares for $26 each cash. Minneapolis-based Digital River provides Commerce-as-a-Service solutions. Digital River has the right to solicit alternative offers from third parties during a 45-day “go shop.” Macquarie Capital and Sankaty Advisors are providing debt financing. Morgan Stanley & Co. advised Digital River, while Union Square Advisors and Evercore Partners provided financial advice to Siris.
Sankaty Advisors has acquired a portfolio of loans and other securities from J.P. Morgan’s Global Special Opportunities Group. The portfolio contains mezzanine loans in North America and Europe, as well as loans and related special situations investments in Australia and across Asia, with an aggregate value of approximately $1.3 billion.
Sankaty Advisors, an investment arm of private equity firm Bain Capital, has made an undisclosed investment in Manischewitz. Based in Newark, NJ, Manischewitz is a producer of matzos and kosher food products.
New York private equity firm Arsenal Capital Partners has acquired Kel-Tech. No financial terms were disclosed. PPHB advised Kel-Tech on the transaction while Syntal Capital Partners advised the Keller family. KeyBanc Capital Markets and Madison Capital Funding provided senior debt financing and funds managed by Sankaty Advisors and Metropolitan Life Insurance Company provided subordinated debt financing for the deal. Headquartered in Midland, Texas, Kel-Tech is a provider of oilfield chemicals for the Permian basin.
Dockwise said Monday that it has agreed to sell subsidiary Dockwise Yacht Transport to Coby Enterprises. Private equity is supporting the deal along with management of DYT. Financial terms, and the name of the PE investor, were not announced. DYT transports yachts and leisure craft between sailing regions around the globe.
Mobile broadband solutions company Tekelec is to be acquired by a consortium led by Siris Capital Group and including affiliates of The ComVest Group, funds and accounts managed by GSO Capital Partners LP, Sankaty Advisors, ZelnickMedia and other Siris limited partners and affiliates. The transaction is valued at approximately $780 million. PRESS RELEASE Tekelec, the […]
Sankaty Advisors, a private manager of fixed income and credit instruments, said that it has added Eric Karp as a Senior Advisor. Karp will help the firm identify and pursue new credit investment opportunities, especially in the sponsored LBO space, the firm said in a statement. Karp was most recently global head of financial sponsors at Bank of America. Sankaty has offices in Boston, New York, Chicago and London.
Sankaty Advisors has closed its debt fund dedicated to the middle market with more than $900 million in commitments, the firm confirmed. The Boston-based credit affiliate of Bain Capital aims to use the capital to fill a whole in middle market deal financing. Sankaty launched the Sankaty Middle Market Opportunities Fund LP in August of […]
Sankaty Advisors, the credit affiliate of Bain Capital, has closed on $672 million from 740 investors for its DIP Opportunities Fund, according to regulatory filings. That includes $388.4 million in commitments from 446 U.S. investors and $284.58 million in commitments from 294 offshore investors.
Since our last update on this fund (yes, slow news day), we’ve learned that the reason Sankaty has so many investors to dollars is that the firm is marketing this fund to high-net-worth individuals rather than the traditional investors in private equity funds (pensions and endowments) or usual sources of DIP lending (banks).
Specifically, a J.P. Morgan Securities feeder fund is obtaining many of the commitments. It’s obviously been a successful fundraise, considering we had pegged the fund’s original target at $400 million. According to an investor, the fund has a two-year investment period with fees of 1.75% on commitments, and Sankaty anticipates returns of between 12% and 15% for the entity.
And Amalgamated Capital makes seven. I’ve written so many stories about new lending groups formed to serve the “void” of financing in the middle market, that it’s time to make a list. So I give you, the recent crop of new middle market lenders (please email with any I may have overlooked).
The groups are in various stages of development-some have raised funds, others are seeking to secure credit, and even one is in registration to go public. While they’re getting their ducks in a row, someone (anyone) find them some deals to finance!
1. Sankaty Middle Market Opportunities Fund will invest in middle-market mezzanine loans with some senior debt and equity. More specifically, it would target credit for new buyouts, rescue financings and secondary purchases of mezzanine debt. See related story.
Sankaty Advisors, the credit affiliate of Bain Capital, has held a first close on a new fund called Sankaty DIP Opportunities Fund. The vehicle has raised $160.8 million from 151 investors, according to a regulatory filing. A parallel offshore fund raised $21.5 million in commitments from 34 investors.
The ratio of investors to dollars doesn’t add up to a very sizable commitment per investor, which means their placement agent, J.P. Morgan Securities, is certainly earning its commission on this one. Then again, that could simply be a result of numerous employee contributions. In August peHUB reported that Sankaty was seeking $400 million for the fund, which will make debtor-in-possession loans to bankrupt entities. The $400 million fund has a two-year investment period with fees of 1.75% on commitments. The firm anticipates returns of between 12% and 15% for the entity.
Sankaty Advisors, the credit affiliate of Bain Capital, wants to help plug the gaping hole that is middle-market lending.
The Boston-based firm has launched two new funds in recent weeks, one designed to invest in middle-market debt, and another to capitalize on the bankruptcy bubble with DIP loans. According to sources familiar with the efforts, Sankaty is looking to raise $750 million for Sankaty Middle Market Opportunities Fund, and $400 million for Sankaty DIP Opportunities Fund.
Sankaty Middle Market Opportunities Fund (MMOF) will invest in middle-market mezzanine loans with some senior debt and equity. More specifically, it would target credit for new buyouts, rescue financings and secondary purchases of mezzanine debt. Sankaty expects to close on fundraising in November 2009, and then invest over the subsequent four years. Sankaty MMOF will charge a 1.25% fee on drawn capital with a
Sankaty Advisors, a credit affiliate of Bain Capital, is raising up to $200 million for a Senior Loan Fund, according to a regulatory filing. So far it has secured around $85 million in capital commitments. www.sankaty.com