Ex-Goldman Banker Frederick Antwi Joins TPG Capital

Following to source, Frederick Antwi, a former Goldman Sachs Group Inc. banker who was raised in Ghana, has been appointed by a private equity firm TPG Capital as a consultant to devise a strategy for prospecting investment opportunities in Africa.

TPG is lagging its U.S. private-equity rivals Blackstone Group LP, KKR & Co. and Carlyle Group LP, which have already established teams for Africa and have started doing deals on the continent. Blackstone built a hydroelectric dam in Uganda, while KKR bought a rose farm in Ethiopia earlier this year. Carlyle has raised a dedicated African investment fund.

Mr. Antwi will report back to TPG next year on the geographic areas and the industry sectors in Africa that may provide investment opportunities, the person familiar said. TPG could invest in Africa from its global private-equity fund or its growth fund, the person said.

Private-equity firms are being drawn to Africa by higher economic growth rates and lower competition for deals. Investors at a conference in London this week considered 136 projects valued at $246 billion. Africa presents opportunities in energy infrastructure and in providing goods and services to an emerging middle class, according to Robert van Zwieten, chief executive officer of the Washington-based Emerging Markets Private Equity Association.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Frederick Antwi, Goldman Sachs Group Inc., Ghana, TPG Capital, Africa, Blackstone Group LP, KKR & Co., Carlyle Group LP, Uganda, Ethiopia, African Investment Fund, London, Robert van Zwieten, Washington, Emerging Markets Private Equity Association.


Computer Sciences in Talks with Blackstone, Bain on Leveraged Buyout

An American multinational corporation that provides information technology services and professional services Computer Sciences Corp. is in talks with private equity firms including Blackstone Group LP and Bain Capital LLC to measure their interest in a leveraged buyout, people told Bloomberg.

The talks are at an early stage and may not result in a deal, according to the people, who asked not to be named because the negotiations are private. CSC, as the company is known, provides information technology services to clients including NASA and Avis Budget Group Inc.

CSC rose 5.3 percent to $59.62 in New York trading yesterday, giving the company a market value of about $8.65 billion. If it goes private, CSC’s would be the largest leveraged buyout since Michael Dell and Silver Lake Management LLC acquired Dell Inc. for more than $16 billion last year.

CSC Chief Executive Officer Mike Lawrie is trying to convince potential suitors that a turnaround at the company, which he took over in 2012, is halfway done, one of the people said. Lawrie is arguing that buyers could benefit as the reorganization continues, the person said.

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Computer Sciences Corp., Blackstone Group LP, Bain Capital LLC, NASA, Avis Budget Group Inc., Michael Dell, Dell Inc., Silver Lake Management LLC, Mike Lawrie.


Rhone Capital is Nearing a Deal to Acquire Neovia Logistics

Neovia Logistics LLC, a logistics services provider, will be acquired by Goldman Sachs Group Inc’s private equity arm and buyout firm Rhone Capital LLC for over $1 billion, including debt, people familiar with the matter told Reuters.

Goldman Sachs’ and Rhone Capital’s consortium has prevailed over a rival bid from private equity firm Blackstone Group LP, the people said on Wednesday. The deal is expected to be finalized later this month, the people added.

The sale of Neovia comes just two years after private equity firm Platinum Equity LLC acquired a 65 percent stake in the company from Caterpillar Inc, leaving the industrial conglomerate with a 35 percent interest.

The sources asked not to be identified because the deal talks are confidential. Representatives for Neovia, Platinum Equity, Caterpillar, Goldman Sachs and Rhone Capital did not immediately respond to requests for comment, while Blackstone declined to comment.

Source: Reuters

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Neovia Logistics LLC, Logistics Services Provider, Goldman Sachs Group Inc., Rhone Capital LLC, Blackstone Group LP, Platinum Equity LLC, Caterpillar Inc.


Private Equity Acquisitions in the Middle East and Africa Rise to $6.6M in 2014

Following Bloomberg data released, acquisitions by private equity firms in the Middle East and Africa have rose to $6.6 billion in 2014 from $141 million in the same period a year ago.

KKR & Co. LP (KKR), Blackstone Group LP (BX) and other large private-equity firms have long parachuted into the Middle East to hunt for cash, only to carry it back home to make investments in Western companies. Now, they are putting their money to work in the region.

Acquisitions by private-equity firms in the Middle East and Africa have surged to $6.6 billion this year from $141 million in the same period in 2013, according to data compiled by Bloomberg. In one deal, buyout firms including CVC Capital Partners Ltd., KKR and TPG Capital Management LP are bidding for Kuwait Food Co., operator of about 1,500 KFC and Pizza Hut restaurants in the Middle East and North Africa, people familiar with the matter have said. The company, known as Americana, could fetch $4 billion.

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Bloomberg, Middle East, Africa, KKR & Co. LP, Blackstone Group LP, CVC Capital Partners Ltd., TPG Capital Management LP, Kuwait Food Co., KFC, Pizza Hut, North Africa.


United Biscuits Ltd. Meets Potential Buyers

According to sources, United Biscuits Ltd., UK’s multinational food manufacturer, makers of McVitie’s biscuits, Jacob’s Cream Crackers, and Twiglets, is meeting potential buyers as the company makes headway on its plans to sell itself or go public.

Potential buyers holding initial meetings with the management of the Jaffa Cakes maker include U.S. cereal and snack maker Kellogg Co., Italian chocolate confectionery Ferrero SpA, Canadian pension fund Ontario Teachers’ Pension Plan and Turkish biscuit company Ulker Biskuvi Sanayi AS, said the people.

The latest meetings are part of a years-long struggle by the private equity owners of United Biscuits to exit their investment. In 2006, Blackstone Group LP and PAI Partners bought the cookie company for £1.6 billion. In 2010, the firms tried to sell the business to China’s Bright Food Group Co. but the deal fell apart over United Biscuits’ pension liabilities.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, United Biscuits Ltd., Britain, UK, McVitie’s, Jacob’s Cream Crackers, Twiglets, IPO, Jaffa Cakes, US, Snack Maker, Kellogg Co., Italy, Ferrero SpA, Canada, Canadian Pension Fund, Ontario Teachers’ Pension Plan, Turkey, Turkish Biscuit Company, Ulker Biskuvi Sanayi AS, United Biscuits, Blackstone Group LP, PAI Partners, China, Bright Food Group Co.


New York Private Equity Firm Blackstone is Close to Its First Investment in the Middle East

According to sources, a New York-based private equity firm Blackstone Group LP is nearing its first investment in the Middle East.

Blackstone, based in New York, has teamed up with Fajr Capital Ltd. to invest in the world’s biggest privately held schools operator GEMS through its Blackstone Tactical Opportunities unit, the people said, asking not to be identified as the information is private. A formal agreement to buy 20 percent of the company may be reached in the next couple of weeks, two of the people said. The deal may value the stake at about $350 million, they said.

GEMS, which operates more than 100 schools across 14 countries, may sell as much as 25 percent of the company to raise up to $500 million, Chief Operating Officer Dino Sunny Varkey said last year. The company hired Credit Suisse Group AG to help manage the sale, Varkey said. GEMS reported profit of $74.4m for the year ended March 31, in a statement to the Nasdaq Dubai stock exchange in July.

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, New York, New York Private Equity, Blackstone Group LP, Middle East, Fajr Capital Ltd., GEMS, Blackstone Tactical Opportunities, Dino Sunny Varkey, Credit Suisse Group AG, NASDAQ Dubai Stock Exchange.


Mark Burton Joins Blackstone as Principal

Mark Burton, who previously spent 11 years at Goldman Sachs Group Inc., has been appointed by an American multinational private equity firm Blackstone Group LP to oversee the private equity firm’s real estate secondaries business.

Burton, who previously spent 11 years at Goldman Sachs Group Inc. (GS:US), will be a principal in Blackstone’s Strategic Partners business, according to a statement today from the New York-based firm. At H/2 Burton was a managing director focusing on distressed commercial mortgage investments.

Blackstone acquired the Strategic Partners unit last year from Credit Suisse Group AG (CSGN), expanding its traditional buyout business to include the practice of buying and selling stakes in private-equity funds. The market for secondary fund stakes is expected to grow in the next year as heightened regulatory measures such as the Volcker Rule lead banks to dispose of their private-equity investments to raise capital, according to a report last month from research firm Preqin Ltd.

Source: Businessweek

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Mark Burton, Goldman Sachs, Goldman Sachs Group Inc., Blackstone, Blackstone Group LP, Volcker Rule, Preqin Ltd.


United Biscuits’ Market Listing

United Biscuits, a British multinational food manufacturer, makers of the BN biscuits, McVitie’s biscuits, Jacob’s Cream Crackers, and Twiglets, is considering a market listing, according to people familiar with the situation.

Bankers for the Jaffa Cakes maker had been holding informal meetings with potential buyers in recent weeks, said some of the people. But now United Biscuits’ owners—private-equity firms Blackstone Group LP and PAI Partners—believe they may be able to get more money by going public, rather than through a sale, they added.

The company is now looking at running a so-called dual-track process, according to the people, in which United Biscuits’ owners would move forward with plans to take the company public while still engaging in talks with interested buyers to determine where they could gain the most lucrative exit.

A spokeswoman for United Biscuits declined to comment.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, United Biscuits, British Multinational Food Manufacturer, BN biscuits, McVitie’s biscuits, Jacob’s Cream Crackers, Twiglets, Jaffa Cakes, Blackstone Group LP, PAI Partners.


Dynegy Competes Against Private Equity Bidders for Duke Energy

Dynegy Inc., an electric utility company based in Houston, is competing against several private equity firms for the acquisition of Duke Energy Corp., portfolio of 11 power plants in the Midwest.

The Houston-based power company is competing against several private-equity firms that have submitted first-round bids for the gas-and coal-fueled plants in Ohio, Illinois and Pennsylvania. Blackstone Group LP and Riverstone Holdings LLC have teamed up to bid on the plants, people familiar with the matter have said. Other bidders for the Duke power plants include Energy Investors Funds and Energy Capital Partners, according to people familiar with the matter.

The Duke Energy portfolio would be a significant acquisition for Dynegy, which produces and sells electricity to municipalities and other energy companies. Dynegy’s market capitalization currently stands at about $3.5 billion, and it has about $2 billion in debt. The Duke plants are expected to sell for about $2.5 billion, according to people familiar with the matter.

The contest also pits Dynegy against its one-time suitor, Blackstone. Dynegy’s board in 2010 rejected a buyout offer from Blackstone and aligned itself instead with activist investor Carl Icahn, who engineered a plan to keep shareholders in control of the company as it struggled with more than $4 billion in long-term debt.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Dynegy Inc., Houston, Duke Energy Corp., Midwest, Power Company, Ohio, Illinois, Pennsylvania, Blackstone Group LP, Riverstone Holdings LLC, Energy Capital Partners, Carl Icahn.


Blackstone Pays $1.7B for The Cosmopolitan of Las Vegas

The Cosmopolitan of Las Vegas, the glimmering but struggling 3,000-room hotel and casino on the Strip, has been acquired by a private equity giant Blackstone Group LP, in a deal worth at $1.7 billion.

The German bank spent about $4 billion to build the Cosmo, first as its lender and then as its owner after the project’s developer defaulted during the financial crisis. The sale represents one of the biggest losses on a single project that Las Vegas has ever seen.

Deutsche Bank, which has been grappling with falling profits and new banking rules, said in a written statement that the sale will have a “positive impact” on the bank’s Tier 1 capital ratio, which is a key measure of balance sheet strength that compares equity to assets weighted by riskiness. A spokesman for Deutsche Bank, Germany’s largest bank, declined to comment on the overall loss that it suffered.

Source: MarketWatch

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, The Cosmopolitan of Las Vegas, Blackstone, Blackstone Group LP, Germany, German Bank, Las Vegas, Nevada, Deutsche Bank, Tier 1 Capital.


TreeHouse Foods to Increase Bids for Flagstone Foods

TreeHouse Foods Inc., a food manufacturer servicing the retail grocery and foodservice distribution channels, is weighing buyout offer for Flagstone Foods, people with knowledge of the matter told Bloomberg.

TreeHouse and private-equity firms including Blackstone Group LP, Carlyle Group LP (CG) and Leonard Green & Partners LP made first-round offers in the $1 billion range and are considering whether to advance to the next round of bidding for the Minneapolis maker of dried fruits and nuts, said the people, who asked not to be identified because the talks are private.

TreeHouse has acquired at least six food companies in the past four years, according to data compiled by Bloomberg. In April, the Oakbrook, Illinois-based company agreed to buy Protenergy Natural Foods, a developer and maker of private-label soups and broths, to expand its offerings.

Gryphon Investors, the San Francisco private-equity owner of Flagstone, is working with Moelis & Co, Houlihan Lokey and Bank of Montreal to sell the business, people familiar with the situation said in March. A price of $1 billion implies about 12 times earnings before interest, taxes, depreciation and amortization, the people said then.

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, TreeHouse Foods Inc., Food Manufacturer, Flagstone Foods, Blackstone Group LP, Carlyle Group LP, Leonard Green & Partners LP, Minneapolis, Oakbrook, Illinois, Protenergy Natural Foods, Gryphon Investors, San Francisco, San Francisco Private Equity, Moelis & Co, Houlihan Lokey, Bank of Montreal.


Apollo Global Expands Its $100 Billion Credit

An American private equity firm Apollo Global Management, LLC is growing its credit business far faster than its buyout activities, according to its chief executive officer announcement.

“We don’t see any reason why that can’t be a large multiple, frankly, of where we are today at $100 billion,” Leon Black said of Apollo’s credit operation, already the firm’s biggest unit, on a conference call today. “What we’ve tried to do in building our credit business is to create, if you will, a Chinese menu of different products across the yield and liquidity spectrum.”

Apollo, whose credit arm oversaw $18 billion in September 2009, has diversified its business beyond leveraged buyouts like larger peers Blackstone Group LP and Carlyle Group LP. LBOs will continue to be a profit center for New York-based Apollo, though as a business it’s not “terribly scalable,” said Black, who co-founded the company in 1990 with Josh Harris and Marc Rowan.

Source: Businessweek

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, American Private Equity, Apollo Global, Apollo Global Management, LLC, Credit Business,  Leon Black, Blackstone Group LP, Carlyle Group LP, New York, New York Private Equity, Josh Harris, Marc Rowan.


“Really Hard to See How Private Equity Works” says Larry Zimpleman

Larry D Zimpleman, CEO of Principal Financial, said on a conference call “When people start talking about ETFs and liquid alts and private equity and all of that stuff, I too chuckle a little bit,” “It’s really hard to see how that is something that can be easily explained.”

Carlyle Group LP (CG), Blackstone Group LP (BX) and KKR & Co. are among private-equity firms that have sought to increase their appeal to ordinary investors with an eye to managing a piece of the $4.2 trillion Americans held in 401(k) retirement plans. KKR this year closed two funds that targeted individuals in a setback to the push.

Zimpleman, 62, said it’s possible that private-equity and liquid alternative funds could find a place in target-date investment options. Target-date strategies provide an asset allocation that’s selected by the fund manager and typically becomes less risky over time.

Liquid alternatives can mimic hedge fund approaches while allowing investors to trade in and out of the holdings daily. They invest in assets including real estate and commodities and may wager on stock declines.

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Larry D Zimpleman, Principal Financial, ETFs, Carlyle, Carlyle Group LP, Blackstone, Blackstone Group LP, KKR & Co.


KKR Sells Ipreo for $975M

KKR & Co. is selling a financial data provider Ipreo Holdings LLC to Blackstone Group LP, the world’s biggest private-equity firm, and Goldman Sachs Group Inc.’s merchant banking unit, in a deal worth at $975 million.

According to people familiar with the matter, the deal could be announced as soon as Monday.

The planned sale, coming barely three years after KKR acquired Ipreo for $425m, reflects the trend for private equity groups to flip assets among themselves at a time when there are fewer fresh deals on the ground.

So far in 2014, there has been $19.1bn of such secondary transactions between private equity firms, the highest year-to-date level since 2007. Investors tend to frown upon these “pass the parcel” deals because many invest in multiple private equity funds and thus have exposure to both ends of the transaction.

Source: Financial Times

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, KKR & Co., Ipreo Holdings LLC, Blackstone Group LP, Goldman Sachs Group Inc.


Ares Management Eyes $100M IPO

A Los Angeles-based leading global alternative asset manager Ares Management filed to raise $100 million in the largest IPO of an alternative-asset manager.

The figure is a placeholder used to calculate fees and may change. Ares, based in Los Angeles, oversees $74 billion in credit and private equity assets, and plans to use the proceeds from the IPO to repay debt, according to today’s filing. JPMorgan Chase & Co. and Bank of America Corp. are managing the sale, the document shows.

Ares and the Canada Pension Plan Investment Board agreed to acquire Neiman Marcus for $6 billion in September.

At the $100 million amount, Ares would be the biggest IPO in the industry since Carlyle Group LP raised $671 million in May 2012. Stock prices of Ares’ private-equity peers are surging: Blackstone Group LP reached a record high this month, while Apollo Global Management LLC has more than doubled over the last two years.

Source: Dallas Morning News

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Los Angeles, Alternative Asset Manager, Ares Management, IPO, Initial Public Offering, JPMorgan Chase & Co., Bank of America Corp., Canada Pension Plan, Neiman Marcus, Carlyle, Carlyle Group LP, Blackstone, Blackstone Group LP, Apollo Global Management LLC.


Ares Management Prepares for IPO

Ares Management is preparing for an initial public offering that will be the largest from a private equity firm since Carlyle Group went public in 2012. Ares manages $74 billion between credit and private equity and was founded in 1997. Ares was founded by a veteran team of investment professionals to pursue investment activities in leveraged loans, high yield bonds, private debt, private equity and other types of investments

Ares Management LLC is preparing to sell stock in the biggest initial offering of an alternative-asset manager since Carlyle Group LP went public in 2012, according to two people with knowledge of the matter.

The Los-Angeles based investment firm, which oversees $74 billion in credit and private equity, is set to disclose its plan in a filing with the U.S. Securities and Exchange Commission within days, said the people, asking not to be identified because the information is private. The firm is working with JPMorgan Chase & Co. and Bank of America Corp.

Source: Bloomberg

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, US Private Equity, American Private Equity, Carlyle, Carlyle Group LP, Ares Management LLC, U.S. Securities and Exchange Commission, JPMorgan Chase & Co., Bank of America Corp., Tony Ressler, Drexel Burnham Lambert Inc., Apollo Global Management LLC, Leon Black, Blackstone Group LP, Neiman Marcus Inc., TPG Capital, Warburg Pincus LLC, Adam Goldman, Red Rocks Capital LLC.


Ares Management LLC Goes Public

Ares Management is preparing to file an IPO that will rival Carlyle Group’s IPO in 2012.

The firm is working with JPMorgan Chase & Co. and Bank of America Corp.

Chief Executive Officer Tony Ressler, who co-founded Ares in 1997 after working at Drexel Burnham Lambert Inc. and Apollo Global Management LLC (APO:US), is taking advantage of a five-year stock-market rally that pushed shares of peers near record highs. Apollo, run by Ressler’s brother-in-law Leon Black, and Blackstone Group LP (BX:US) more than doubled in the past two years. Ares last year made its biggest private-equity investment, buying luxury retail chain Neiman Marcus Inc. from TPG Capital and Warburg Pincus LLC for $6 billion.

“Having watched the performance of other management firms like Blackstone and Apollo, Ares probably sees strong potential stock performance,” said Adam Goldman, the founder of Red Rocks Capital LLC, which manages $1.3 billion invested in listed private-equity vehicles. “We think publicly listed private equity is just starting and has a long way to run.”

Source: Businessweek

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, US Private Equity, American Private Equity, Carlyle, Carlyle Group LP, Ares Management LLC, U.S. Securities and Exchange Commission, JPMorgan Chase & Co., Bank of America Corp., Tony Ressler, Drexel Burnham Lambert Inc., Apollo Global Management LLC, Leon Black, Blackstone Group LP, Neiman Marcus Inc., TPG Capital, Warburg Pincus LLC, Adam Goldman, Red Rocks Capital LLC.


Compuware’s Second Approach from Thoma Bravo, Vista

Vista Equity Partners LLC and Thoma Bravo LLC, a pair of private-equity funds, are reviewing the Compuware Corp’s finances.

This is the second time in last 15 months that Compuware attracted attention from prospective private-equity buyers.

Although no talks between the parties have been reported, according to Bloomberg the company’s finances are being reviewed by the duo. Compuware rejected a $3.2 billion bid from activist investor Elliott Management Corp. in January last year.

Post the Elliott offer, Compuware reportedly solicited a number of other private equity funds such as Blackstone Group LP, TPG Capital LP and Golden Gate Capital for a possible buyout. However, to date, nothing concrete has materialized from these discussions.

Source: NASDAQ

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Vista Equity Partners LLC, Thoma Bravo LLC, Compuware Corp, Bloomberg, Elliott Management Corp., Blackstone Group LP, TPG Capital LP, Golden Gate Capital.


Private Equity-Backed Biomet Files for Proposed $100M IPO

Biomet Inc., a Private equity-backed medical device company, announced that has filed a registration statement with the SEC for a proposed initial public offering of its common stock.

Biomet was taken private for $11.4 billion in 2007 by the private equity arm of Goldman Sachs Group Inc., Blackstone Group LP, KKR & Co LP and TPG Capital LP, who own 97.04 percent of the company.

The consortium had raised its offer after its original offer of $10.9 billion was deemed too low.

Founded in 1977 and based in Warsaw, Indiana, Biomet designs, manufactures and markets products that include dental implants and artificial hip joints.

The company competes with Smith & Nephew Plc and Stryker Corp.

Biomet was bought out just before the financial crisis hit, pulling the markets down. The crisis hurt the medical device industry as patients delayed surgery and joint replacements.

Source: Reuters

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Biomet Inc., IPO, Initial Public Offering, Goldman Sachs Group Inc., Blackstone Group LP, KKR & Co LP, TPG Capital LP, Warsaw, Indiana, Smith & Nephew Plc, Stryker Corp.


KKR Focuses on $2B North American Oil & Gas Fund

The New York private equity firm Kohlberg Kravis Roberts & Co. finished raising $2 billion to invest in oil and gas assets, readily surpassing a $1.5 billion target.

KKR Energy Income and Growth Fund was started with capital from New York-based KKR and did three deals before gathering money from outside investors, said the person, who requested anonymity because the details haven’t been announced. KKR initially sought US$1.5-billion for the strategy, people familiar with the plans said last year. Kristi Huller, a spokeswoman for the firm, declined to comment on fundraising.

Investors are seeking to take advantage of a boom in U.S. oil and gas supply available through hydraulic fracturing of shale rock, known as fracking. Carlyle Group LP co-founder David Rubenstein last year said energy is the most attractive area for investment, and Blackstone Group LP in 2012 closed its first energy fund with US$2.5-billion, which was generating a 55% net internal rate of return as of Dec. 31.

Before gathering money from clients, KKR’s fund invested in drilling partnerships with Comstock Resources Inc., Raptor Petroleum LLC and Cinco Energy Services.

Source: Financial Post

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, New York Private Equity, NY Private Equity, Kohlberg Kravis Roberts & Co., KKR & Co., Oil and Gas, Oil and Gas Assets, KKR Energy Income and Growth Fund, New York, Kristi Huller, Carlyle Group LP, David Rubenstein, Blackstone Group LP, Comstock Resources Inc., Raptor Petroleum LLC, Cinco Energy Services.


Gianni Versace Sells Minority Stake to Blackstone

Italy’s fashion house Gianni Versace SpA is selling a 20% stake to an American multinational private equity Blackstone Group LP for €200 million ($275 million).

After months of negotiations, the Versace family—which controls the company founded in the 1970s by Gianni Versace—is near a decision to sell a 20% stake in the company to the investment fund for as much as €200 million ($275 million). Another person close to the negotiations cautioned that Versace and Blackstone hadn’t yet reached a deal and that the situation remained fluid.

Blackstone had been shortlisted together with Investcorp and CCMP Capital to buy a stake in the company and they all presented their bids last week. According to one of the people, a deal with Blackstone would value Versace at about €1.1 billion, more than any of the other suitors offered.

The Versace family laid down strict conditions for any buyer. A minority partner would have to support the creative strategy laid down by Donatella Versace and comply with the strategic direction pursued by Chief Executive Gian Giacomo Ferraris, who has helped bring Versace back to health over the last several years.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Italian Fashion House, Italy, Versace, Gianni Versace SpA, US Private Equity, American Private Equity, Blackstone, Blackstone Group LP, Investcorp, CCMP Capital, Donatella Versace, Gian Giacomo Ferraris.


TPG Capital to Join the Public Private Equity Club

David Bonderman, founding partner of one of the largest private equity investment firms globally TPG Capital, announced that he is “contemplating” an initial public offering for his private equity group.

“‘Contemplating’ is the right word for us,” Mr. Bonderman said on Tuesday at the SuperReturn International private-equity conference in Berlin. “We’re thinking about it, but not too hard.”

Blackstone Group LP, KKR & Co., Apollo Global Management LLC and Carlyle Group LP have all started selling shares on public exchanges in recent years. These private-equity firms have for the most part enjoyed rising stock prices, increased profits and outsize dividend payouts to their founders.

Mr. Bonderman likened the development to a previous wave among Wall Street banks, noting Goldman Sachs Group Inc. was the last of those financial firms to become a publicly traded company.

“At the end of the day, everybody will go public,” Mr. Bonderman said of large private-equity firms such as TPG.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, David Bonderman, TPG, TPG Capital, SuperReturn International, Berlin, Blackstone Group LP, KKR & Co., Apollo Global Management LLC, Carlyle Group LP, Wall Street, Goldman Sachs Group Inc.


Fleury SA to Be Bought Out by Private Equity Firms

Fleury SA, Brazil’s second-largest provider of medical diagnostics, to be bought by at least two private equity firms, in what could be the second major deal this week in an industry.

Consortiums led by JP Morgan Chase & Co.’s Gávea Investimentos Ltda and Blackstone Group LP are looking to buy out a group of doctors that own 41.2% of Fleury SA in a deal that could be worth some $500 million based on current market prices, according to people familiar with the talks. The people said there may be other bidders in the running.

Gávea and Blackstone declined to comment.

All of the potential buyers had to make preliminary offers over the last 40 days for the doctors’ stake in the company, one of those people said. On Thursday, Fleury said in a statement that it had been notified bids for the shares have been received but didn’t provide further details.

The prospect of the deal, which has been in the works for some time, follows billionaire businessman Edson Bueno’s $747 million purchase Monday of a majority stake in the No. 1 player in the sector, Diagnósticos da America SA.

Source: MarketWatch

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Fleury SA, Brazil, Medical Diagnostics, JP Morgan Chase & Co., Gávea Investimentos Ltda, Blackstone Group LP, Edson Bueno, Diagnósticos da America SA.


$1B Secondary Fund to Be Raised by Deutsche Bank

According to sources, a German global banking and financial services company Deutsche Bank AG’s private-equity group is seeking $1 billion for its next fund that will buy investors’ stakes in Private equity funds.

DB Secondary Opportunities Fund III LP, which the firm is raising just less than a year after closing its predecessor, will purchase stakes at a discount in funds that have already invested a substantial amount of capital, said the people, who asked not to be identified because the information is private. The prior fund raised $614 million last year.

Deutsche Bank joins a number of private-equity investors in raising bigger secondary vehicles as pensions and financial institutions divest buyout fund stakes at a record pace. Lexington Partners is seeking $8 billion for its latest secondary fund, 13 percent more than the prior fund raised, said a person familiar with that firm. Strategic Partners Fund Solutions, owned by Blackstone Group LP (BX:US), is targeting $3.5 billion for its next secondaries fund, more than the $2.9 billion gathered by the predecessor, according to a marketing e-mail.

Source: Businessweek

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Germany, Global Banking, Services Company, Deutsche Bank AG, Opportunities Fund III LP, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Lexington Partners, Strategic Partners Fund Solutions, Blackstone, Blackstone Group LP.


TSG Backs Revolveclothing.com with $50 Million

TSG Consumer Partners LLC, one of the largest and oldest private equity firms focused on growth capital investments, has taken a minority stake in online clothing retailer Revolveclothing.com.

TSG, which invests in and owns a variety of consumer and retail-focused companies, has paid $50 million for a minority stake in closely held Revolve, Jennifer Baxter Moser, a partner at TSG, said in an interview Monday. She wouldn’t disclose what percent stake TSG has.

The investment is the latest in a string of equity investments from private-equity firms in retail and consumer-products companies. In December, Blackstone Group LP said it would pump $200 million into footwear maker Crocs Inc., and Carlyle Group LP last year agreed to invest $500 million for a minority stake in Beats Electronics LLC, the maker of the popular Beats by Dr. Dre headphones. Italian fashion house Gianni Versace SpA has a number of private-equity firms circling a 20% stake in the luxury retailer.

The investment in Revolve gives TSG access to a fast-growing area of retail, an industry that has had to adjust as more consumers choose to shop online than visit physical retail stores. This is TSG’s first investment in the e-commerce space.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, TSG, TSG Consumer Partners LLC, Growth Capital Investment, Online Clothing Retailer, Revolveclothing.com, Jennifer Baxter Moser, Blackstone, Blackstone Group LP, Crocs Inc., Carlyle Group LP, Carlyle, Beats Electronics LLC, Dr. Dre, Dr. Dre Headphones, Gianni Versace SpA.


Blackstone Invests $200 Million in Crocs

Blackstone Group LP, an American multinational private equity, investment banking, is making a $200 million investment that will give the private equity firm a 13 percent stake in the shoe company Crocs.

The deal will give the private-equity firm a 13% ownership stake in Crocs and two seats on its board, he said. The preferred shares can convert to common stock in three years if the company’s shares rise to a certain level, Mr. Lasher said in an interview Sunday.

Crocs plans to use the funds from Blackstone with existing cash for a $350 million stock repurchase that is expected to begin in the first quarter, he said. That transaction would retire about 30% of Crocs’s shares outstanding, as of Friday’s market close, he said.

Crocs Chief Executive John McCarvel plans to retire by late April, Mr. Lasher said. Mr. McCarvel, who has led the company since 2010, also will give up his board seat. The board has begun a search for his successor, Mr. Lasher said. Mr. McCarvel couldn’t be reached for comment.

Source: Wall Street Journal

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Blackstone, Blackstone Group LP, US Private Equity, American Private Equity, Investment Banking, Crocs, John McCarvel.


Investors Agrees with Apollo to Raise a $17.5B Fund

Investors agreed with Apollo Global Management, LLC, an American private equity firm, founded in 1990 by former Drexel Burnham Lambert banker Leon Black, to raise its buyout fund from $15 billion to $17.5 billion, two people told Bloomberg.

The firm expects to finish raising the fund this month, said one of the people, who asked not to be identified because the process is private. The New York-based firm in recent months sought to increase the maximum amount the fund can raise after investors expressed interest in putting in as much as $20 billion.

Apollo, which attracted commitments from investors amid profitable sales, is on its way to raising the industry’s largest buyout fund since 2008, when the markets seized up during the financial crisis. Blackstone Group LP has held that distinction, raising $16.2 billion for its main buyout fund at the beginning of 2012.

Source: Bloomberg

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, US Private Equity, American Private Equity, Apollo Global Management, LLC, Apollo, Drexel Burnham Lambert, Leon Black, New York, Blackstone Group LP, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm.


Carlyle Group in Talks to Acquire J&J’s Blood-Testing Unit

Carlyle Group LP is in exclusive talks with Johnson & Johnson to acquire J&J’s blood-testing unit, which is expected to value nearly $4 billion, according to four people familiar with the matter.

Carlyle is in exclusive talks with Johnson & Johnson after prevailing over a rival bid from Blackstone Group LP in partnership with healthcare and industrial conglomerate Danaher Corp, the people said, cautioning that negotiations were ongoing and the outcome could change.

A deal is expected to be reached within the next two weeks, one of the sources said.

The exact price of Carlyle’s offer could not be learned. The sources asked not to be identified because details of the sale process are confidential.

Carlyle, Johnson & Johnson and Blackstone declined to comment. A Danaher representative did not immediately respond to a request for comment.

Source: Reuters

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Carlyle, Carlyle Group LP, Johnson & Johnson, J&J, Blood-Testing Unit, Blackstone Group LP, Danaher Corp, Blackstone.


Kohlberg Kravis Roberts to Finish Raising a $1.5B Real Estate Fund

Kohlberg Kravis Roberts, an American multinational private equity firm, specializing in leveraged buyouts, expects to finish raising a $1.5 billion real estate fund this week, according to sources.

KKR’s fund has made about a dozen investments over the past 18 months, including acquiring U.K. shopping centers, developing industrial property in Houston, and building an apartment complex in Williston, N.D., aimed at the fracking community.

The New York-based firm is one of the original buyout shops, and it has dabbled in real estate in the past. But KKR has resisted assembling a real estate team and raising a dedicated property fund, watching as long-time rivals Blackstone Group LP and Carlyle Group took in billions of dollars to invest in property.

Following the collapse in property prices during the financial crisis, and with many of the bank-sponsored property funds either out of business or unable to raise new money, KKR executives believed the time was right to enter the business. The firm began buying property in 2012 to establish a track record, and began raising the fund earlier this year.

Source: MarketWatch

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, US Private Equity, American Private Equity, Kohlberg Kravis Roberts, KKR & Co. L.P., KKR, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Real Estate, Real Estate Fund, UK Shopping Center, Houston, Williston, ND, New York, Blackstone Group LP, Carlyle Group.


Hilton Causes One of Records Private Equity Returns Ever for Blackstone

World’s biggest hotel chain Hilton Worldwide Holdings Inc. has raised $2.35 billion in a record initial public offering for Blackstone Group LP, an American-based multinational private equity company.

Blackstone has a paper profit of $8.5 billion in the McLean, Virginia-based hotel operator’s initial public offering today. That’s second only to the $10.1 billion of gains that Apollo Global Management LLC has had from its 2008 investment in chemicals producer LyondellBasell Industries NV, according to data compiled by Bloomberg. Hilton would become No. 1 if the shares rise more than $2 above its IPO price.

The turnaround of the world’s largest hotel chain marks a triumph for New York-based Blackstone, which bought Hilton at the end of the 2007 buyout boom only to see property values and hotel occupancies plunge during the credit crisis that ensued. The rebound reflects Hilton’s strides under Chief Executive Officer Christopher Nassetta in increasing revenue and profit, as well as a recovery in the lodging and capital markets.

Source: Businessweek

 

Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, New York Private Equity, NY Private Equity, American Private Equity, Blackstone, Blackstone Group LP, Hotel Chain, Hilton, Hilton Worldwide Holdings Inc., McLean, Virginia, IPO, Initial Public Offering, Apollo, Apollo Global Management LLC, LyondellBasell Industries NV, Bloomberg, New York, Buyout Boom, Christopher Nassetta.


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