Hedgemedia's AltInvestment Global News Round-Up: Federal Reserve recruits BlackRock to manage Bear portfolio

Fri, 28 Mar 2008, 07:24

HedgeWeek

BlackRock has been tapped by the Federal Reserve Bank of New York to help manage the USD30bn portfolio of Bear Stearns, which is being acquired by JPMorgan Chase, now for USD1.2bn. This was a huge vote of confidence for chief executive Lawrence Fink, whose firm already manages USD1.4trn in assets.

Mitsubishi firms plung einto private equity

Fri, 28 Mar 2008, 06:56

Wall Street Journal

The Mitsubishi Group, one of Japan's most powerful corporate families, is launching a USD1 billion turnaround fund. That raises the question: Could some of that deal-making be within the family? The new buyout vehicle will be funded primarily by Mitsubishi Corp, the giant trading house at the center of the group, and Mitsubishi UFJ Financial Group Inc., Japan's biggest and soundest bank.

Private equity firm KPS earns praise from labor unions

Fri, 28 Mar 2008, 06:52

St Louis Today

Private equity firms are known for making hard decisions aimed at improving a company's bottom line to sell it later for a profit. And that usually puts the firms at odds with unions. But the 17-year-old private equity firm that bought the metals division of Clayton-based Olin Corp. last year has won praise from labor unions for quickly negotiating contracts and soliciting worker input. New York-based KPS Capital Partners LP buys struggling manufacturers, turns them around and sells them. It converted the Olin division into Global Brass and Copper Inc.

Financial crisis squeezes buyouts and mergers

Fri, 28 Mar 2008, 00:49

Daily Telegraph

Dealmaking activity plunged in the first quarter of the year as turbulent credit markets made it difficult for private equity firms to pull off the same kind of audacious transactions that they were doing during the opening months of last year. According to Thomson Financial, the amount of deals announced globally tumbled 31pc from USD962bn to USD661bn (GBP480bn to GBP330bn) in the first quarter of 2008. In the UK, the total value of the deals announced fell 40pc to USD47bn.

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Thu, 20 Mar 2008, 19:05

HedgeWeek

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Private equity set to reveal hand on M&B

Thu, 27 Mar 2008, 22:23

FT.com

Mitchells & Butlers will discover today which private equity groups, if any, are willing to take up its offer of partial stakes in the pubs group, having concluded that market conditions have all but killed off the prospect of an outright cash offer. A deadline of Friday has been set for bids, with a bid from its rival Punch Taverns of a 50-50 merger plus GBP175m cash payment the only tangible offer on the table.

Private equity deal values back to earth

Thu, 27 Mar 2008, 21:48

Philly.com

Sale prices for mid-sized businesses dropped to 6 times earnings (before income tax, depreciation and amortization) during the second half of last year, from 6.5 times during the first six months, Philadelphia deal professionals Andrew Greenberg (managing partner at Fairmount Partners) and Graeme Frazier (president, Private Capital Research LLC) said in a report today. Besides their day jobs, Frazier and Greenberg crunch data through their side business, GF Data Resources, which tracks private equity-backed mergers and acquisitions valued at USD10 to USD250 million.

Clear Channel and buyers sue six banks as merger unravels

Thu, 27 Mar 2008, 21:14

Financial News

Two private equity firms have paid USD593m (EUR374.5m) in fees over the past three years to six investment banks that they are now suing as their USD26bn acquisition of media company Clear Channel Communications verges on collapse. Bain Capital Partners, Thomas H Lee Partners and Clear Channel are suing Citigroup, Morgan Stanley, Credit Suisse, Royal Bank of Scotland, Wachovia and Deutsche Bank claiming the banks have sought to change the terms of the deal and thus making it unacceptable to the buyers.

Gryphon Investors appoints Dennis O'Brien as operating partner

Thu, 27 Mar 2008, 21:05

Alt Assets

San Francisco-based private equity firm Gryphon Investors has appointed Dennis F O'Brien as a partner. O'Brien will join Gryphon's operating resources group and will monitor and improve the performance of some of Gryphon's portfolio companies.

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Thu, 20 Mar 2008, 00:05

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CMEA Ventures closes seventh fund on USD400m

Thu, 27 Mar 2008, 18:53

Alt Assets

Californian venture capital firm CMEA Ventures has closed its seventh fund, CMEA Ventures VII, on USD400m. Investors in the fund included Guardian Life Insurance Company. The new fund will continue the firm's focus on energy and materials, IT and life sciences.

Merrill Lynch exits Debenham's after share price collapse

Thu, 27 Mar 2008, 18:53

Financial News

Merrill Lynch's private equity unit has sold its final 6.2% stake in Debenhams, one of the UK's largest department store chains, following a 69% drop in the retailer's share price since its re-listing two years ago. It is understood Merrill Lynch Global Private Equity sold the 47.3 million shares in Debenhams for 60p each, according to a source close to the trade. Its current market capitalization is GBP509m (EUR645m). The firm declined to comment but was understood viewed the investment as a passive holding as it no longer had any seats on the Debenhams board after the departure of managing director Guido Padovano last April, and that the timing of the sale was not significant.

Ospraie buys ConAgra unit for USD2.1bn

Thu, 27 Mar 2008, 18:53

Financial News

Ospraie Management, an alternative asset manager, is buying ConAgra Foods' commodity trading and merchandising operations for USD2.1bn (EUR1.3bn) in the largest acquisition for its Special Opportunities Fund to date. Greg Heckman, the president of ConAgra's commercial operations, will become the chief executive of the acquired business which will be renamed Gavilon. The ConAgra unit has 950 employees, based mainly in the US. Gavilon will also offer risk management services. Centerview Partners acted as the primary financial advisor to ConAgra Foods and Credit Suisse served as financial advisor to Ospraie. The deal is expected to close by the end of May.

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Thu, 20 Mar 2008, 16:00

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Paul Humphries joins Octopus Ventures as investment director

Thu, 27 Mar 2008, 17:49

HedgeWeek

Octopus Ventures, the private investor group specialising in early stage businesses valued at between GBP2m and GBP10m, is pleased to announce the appointment of  Paul  Humphries as investment director with immediate effect.

Aureos invests in South African electronic security software company

Thu, 27 Mar 2008, 17:48

HedgeWeek

Aureos Southern Africa Fund (ASAF) has acquired a 30 per cent equity stake in South African company Sandbox Holdings. ASAF is an initiative of Aureos Capital, one of the leading private equity fund management companies specialising in investing in small to mid-cap businesses in emerging markets.

Private equity alters focus as crunch bites

Thu, 27 Mar 2008, 17:37

Stuff.co.nz

An upsurge in private equity buyouts of mid-size privately owned New Zealand companies is likely as a result of the global credit crunch, a director of Australasia's biggest private equity firm says. David Grayce, of Pacific Equity Partners, said that big deals involving the delisting of larger public companies were simply too difficult in the current environment because of the scarcity of funding.

Private equity firm plays Swedish card in V&S battle

Thu, 27 Mar 2008, 16:34

Reuters

Sweden-based private equity group EQT hopes to gain an edge over foreign rivals in a bid battle for state-owned Vin & Sprit [VSG.UL] by stressing the benefits of keeping the Absolut Vodka maker in Swedish hands. A source close to the situation said EQT, which has teamed up in a bid with holding company Investor AB (INVEb.ST), had also offered to let the government share any profit resulting from a subsequent sale or bourse listing of the spirits group.

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Thu, 27 Mar 2008, 16:23

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Firm raises 'largest' private equity fund in Australia

Thu, 27 Mar 2008, 15:46

FinAlternatives

Sydney, Australia-based Pacific Equity Partners has raised AUD4 billion (USD3.6bn) for its fourth private equity fund. The fund, PEP Fund IV, which will invest in companies with principal operations in Australia or New Zealand with an enterprise value of at least AUD300 million, is more than three times larger than any previous Australasian private equity fund, according to the firm.

Private equity sues Citigroup over deal

Thu, 27 Mar 2008, 15:46

Sydney Morning Herald

Two American private equity firms are suing a group of banks led by Citigroup to force them to honour an deal to finance a USD19.5 billion (AUD21 billion) acquisition of the US's largest radio broadcaster, Clear Channel Communications. Bain Capital and Thomas H Lee filed complaints in the New York state court yesterday, claiming the banks had breached their funding commitments. Clear Channel has joined the lawsuit in a filing in a Texan court, alleging the banks interfered with the takeover by refusing to provide loans.

GVCA, KPMG, and Zawya launch the Private Equity and Venture Capital Report 2007

Thu, 27 Mar 2008, 13:37

Business Intelligence Middle East

Gulf Venture Capital Association (GVCA), in collaboration with KPMG and Zawya, has launched the second Private Equity and Venture Capital Annual Report for the Middle East in Dubai International Financial Centre. The report has tracked the thriving activities of Private Equity in the Middle East region for the second year, 2007. Breaking several records, 2007 witnessed continuous growth in the private equity industry of the Middle East. The first billion dollar investment was completed in 2007 when Abraaj Capital took over Egypt Fertilizers Company for USD1.4 billion. Abraaj Infrastructure & Growth Capital Fund was the first fund exceeding one billion; hence, setting the path for the entrance of mega funds into the region.

Lower bids force Morgan Stanley to freeze CICC divestment

Thu, 27 Mar 2008, 11:02

Financial News/Financial Times

Morgan Stanley has put the sale of its stake in mainland brokerage China International Capital Corp on hold, telling private equity bidders including Bain Capital and TPG that their offers are too low as jittery equity markets continue to take a toll on deals. The US investment bank's decision to halt the auction for its 34.3% stake in CICC will complicate matters as Morgan Stanley had planned to seal a new partnership with Fortune Securities in Shanghai.

Yorkville Advisors appoints managing director to head growing international business

Thu, 27 Mar 2008, 11:02

HedgeWeek

Yorkville Advisors, LLC, a private investment firm that specializes in structured finance and direct investments, hired Paul Strzelecki as Managing Director and partner for its UK-based operation, Yorkville Advisors UK, LLP.

Private equity firm 3i invests more, realises less

Thu, 27 Mar 2008, 09:44

Reuters

Private equity firm 3i Group Plc (III.L) reported a big rise in investments to take advantage of uncertain business conditions, but said its proceeds from realising investments had fallen. 3i said on Thursday it invested GBP2.15 billion (USD4.3 billion) in the 11 months to Feb 29, compared with 1.35 billion in the same period the year before. This included a big rise invested in buyouts and a more than doubling of money put into growing its businesses.

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