PineBridge Reaches First Close on Rare Sharia Fund

PineBridge, a global asset manager with $71.4 billion in assets under management, announced it has reached a first close on a rare sharia-compliant real estate fund.

PineBridge GCC Real Estate Fund has so far raised $140 million of its $200 million target, according to a statement from Pinebridge today.

It is PineBridge’s first sharia-compliant fund and will invest in existing properties in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. It will focus on warehousing, healthcare, education, and retail properties.

A spokeswoman for Pinebridge said that the firm had seen “definite investor demand for sharia compliant” products and that investors include sovereign wealth funds and financial institutions.

Before the financial crisis and the Arab Spring, Sharia funds had long been expected to surge on the back of appetite among oil-rich Middle Eastern investors. But despite greater understanding of their structure among private equity firms and investors, interest in these funds has dwindled over the past five years.

On average around $900 million has been raised every year since 2009 by Sharia compliant funds, according to data provider Preqin. Before the onset of the financial crisis, interest in sharia funds had been on the rise, with private equity firms raising $5.6 billion of capital through six such funds in 2006 alone.

Source: Financial 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, PineBridge, Global Asset Manager, Rare Sharia-Compliant Real Estate Fund, Rare Sharia Fund, Real Estate, Real Estate, Real Estate Fund, PineBridge GCC Real Estate Fund, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Arab Spring, Middle Eastern Investors, Preqin.


Henry Kravis Reveals Seeds of Private Equity Perennials

Henry R. Kravis, an American businessman, co-founder of Kohlberg Kravis Roberts & Co., a private equity firm with $94.3 billion in assets, revealed the seeds of private equity perennials.

U.S. buyout shops like his are selling companies to each other at a breakneck pace. It’s easy to be skeptical about these so-called secondaries. But KKR’s $1.6 billion acquisition of landscaper Brickman Group may turn out to be an example of how such deals can flourish.

In the United States, one in seven deals is a hot potato being passed from one private equity firm to another. Research firm Preqin, whose data stretch back to 2006, says that’s the highest rate on its books. The $23 billion of such transactions account for a third of U.S. buyout volume this year, also a record in the making.

Two forces are at work. First, while corporate acquirers and the public markets have come back strong, buyout firms have plenty of pre-crisis portfolio companies to offload and need as many exit routes as they can find. Second, with about $1 trillion of leveraged capital globally to deploy in private equity, there’s no shortage of eager buyers.

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, Henry R. Kravis, American Businessman, US, KKR, Kohlberg Kravis Roberts & Co., US Buyout Shop, Brickman Group, United States, Preqin.


How to Start Your Own Private Equity Fund

Successfully raising the first private equity fund is easier, the industry is teeming with ambitious deal-doers looking to form their own shops and be their own bosses.

The number of first-time funds focused on Europe that got off the ground last year hit their lowest level since records began in 2000, according to data provider Preqin. There were 46 funds that reached a final close, compared with 54 in 2012 and 127 at the market peak in 2008. By the value of first-time funds, it was the worst year for more than a decade. The $7.5 billion raised was slightly down on $7.7 billion in 2012 and significantly lower than the $29.8 billion raised in 2007. The last time it fell so low was in 2002, when $6 billion was raised.

Nils Rode, a managing director and co-head of investment management at Zurich-based private equity fund of funds manager Adveq, said the figures were not surprising given the choice among more established fund managers. “If you look at Europe alone, there are more than 700 buyout funds, at least on our long list.

At the same time, limited partners are consolidating rather than expanding the number of their relationships, so that leaves less room for new funds to be added to the market,” he said.

Source: Financial 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, Europe, Preqin, Nils Rode, Zurich, Adveq, Buyout, Buyout Fund, Leveraged Buyout, LBO, Buyout Firm.


Mining Industry Attracting Private Equity Firms

Metals and mining industry for untapped resources and deals, are attracting investments from private equity firms after years of avoiding the volatile sector.

Firms are devoting resources to the industry, hiring senior professionals, raising funds dedicated to the sector and mapping out future moves to tap into the industry.

This comes as uncertainty surrounds the space due to low commodity prices and a mining industry starved for capital, according to senior private equity professionals focused on the space. While deal flow has lagged in recent years, it’s expected to steadily rise in the next five to 10 years, they said.

“I think the industry is going through a period of transition and will be stronger when it comes out of this period,” said Isser Elishis, chief investment officer of Waterton Global Resource Management.

Earlier this year, Mr. Elishis’ metal and mining-focused firm closed its second fund at $1 billion. That’s nearly a third of the $3.2 billion that was raised by seven funds focused primarily on metals and mining in 2013, according to data provider Preqin.

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, Metals, Mining Industry, Isser Elishis, Waterton Global Resource Management, Preqin.


Bain Capital Closes its Latest Buyout Fund at $7.3B

Bain Capital, an American alternative asset management and financial services company based in Boston, Massachusetts, has raised $7.3 billion for its latest buyout fund.

Bain raised $6.5 billion from outside investors, more than the $6 billion it was originally targeting but less than the $7.5 billion cap it set when it started marketing the fund more than a year and a half ago, the people said.

Bain employees committed another $800 million to the fund, dubbed Bain Capital Fund XI, bringing its final size to $7.3 billion, the sources said. Bain’s previous flagship fund, Fund X, raised $10.7 billion in 2008.

Bain declined to comment.

The completion of fundraising by Bain is referred to in the private equity industry as “final close.” Private equity funds reached final close on an aggregate $95 billion in the first quarter of 2014, the largest amount of capital raised since the first quarter of 2008, according to market research firm Preqin.

Source: Fox Business

 

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, Boston Private Equity, Massachusetts Private Equity, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Bain Capital Fund XI, Preqin.


Private Equity Real Estate Firms Reaches $110B Mark

According to early data from Preqin, private equity real estate firms reached $110 billion mark of equity available to make new investments, an all-time high and an increase of $4 billion from December 2013.

The increase in available capital demonstrates a trend, as the $106 billion available in December 2013 was up significantly from the $89 billion available in December 2012.

“While there was a decline in fundraising for North America-focused funds in Q1 2014, compared with the last quarter of 2013, there have now been several consecutive quarters of strong fundraising, reflecting the growing institutional investor appetite for real estate funds,” said Andrew Moylan, head of real assets products for Preqin.

“As a result of this increase in fundraising, private equity real estate fund managers now have an all-time high of $110 billion available to invest in North America and with confidence in US real estate markets continuing to improve, these firms are likely to be very active in the coming months.”

Source: Housing Wire

 

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, Preqin, Private Equity Real Estate Firm, North America, Real Estate, Real Estate Fund, Andrew Moylan, US, US Real Estate Market.


Private Equity Real Estate Fundraising More than Doubled in Q2 2013

According to Preqin’s latest data released, private equity real estate investment fundraising more than doubled in the second quarter of 2013 from the previous quarter.

The firm noted in its July 1 report that between the 33 closed-end private real estate funds that held final closes in the second quarter, they raised $17.3 billion. It represented a significant increase on the $6 billion raised in the first quarter, which marked a 10-year low for private real estate fundraising.

“The second quarter of 2013 has seen increasing momentum in the private equity real estate fundraising market, with the capital raised in the quarter increasing by 188 percent,” said Andrew Moylan, head of real assets products for Preqin.

Another positive sign for the fundraising market in the second quarter, according to Moylan, was that $16.1 billion were raised toward the targets of 51 funds that held interim closes.

Source: REIT

 

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, Private Equity Real Estate Investment, Private Equity Real Estate Investment Fundraising, Real Estate, Real Estate Fundraising, Private Real Estate Funds, Private Equity Real Estate Fundraising Market, Andrew Moylan, Preqin.


Carlyle Group Nears Deal to Acquire South Korea’s Tyco Unit

Carlyle Group LP, an American-based global asset management firm, specializing in private equity, is nearing a deal to buy Swiss security products maker Tyco International Ltd.’s South Korean home security unit.

The sale to Carlyle of the business, known as Caps, could be announced this week and is likely to carry a price tag of $1.5 billion or more, some of the people said. There is still the possibility it will fall apart at the last minute. Assuming it doesn’t, Carlyle will have bested a field of other large U.S. private-equity heavyweights who competed in the auction.

Private-equity firms looking to put their cash to work in Asia are drawn to mature markets like South Korea where big targets periodically come up for sale. Across Asia, private-equity firms are sitting on some $120 billion of unspent money, according to Preqin. South Korea can also be attractive to buyout shops because they can take full control of assets, unlike in some other Asian markets where such bids can run into political opposition. Total private-equity investments in the country, including minority stakes, rose 55% last year to $6.3 billion, according to Dealogic–a five-year high.

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, American Private Equity, US Private Equity, Carlyle, Carlyle Group LP, Swiss, Swiss Security Products Maker, Switzerland, Tyco International Ltd., South Korea, Asia, Preqin, Dealogic.


North American Energy and PE Funds

Recent study shows North America is the place to be when it comes to private equity investing within the energy industry.

A survey by Ernst & Young LLP of 100 private equity executives focused on oil and gas investments found that 49% of them were currently investing in North America, the highest percentage of all regions.

In addition, 77% of the executives surveyed said they expect to see increased private equity interest in North American oil and gas deals.

The largest funds in the sector to close in 2013 were all based in North America. New York-based Riverstone Holdings LLC’s Riverstone Global Energy and Power Fund V closed with $7.7 billion; Houston-based EnCap Investments LP’s EnCap Energy Capital Fund I closed with $5 billion; and EnerVest Ltd.’s EnerVest Energy Institutional Fund XIII, also in Houston, closed with $2 billion, according to Preqin.

Their targets are also more likely to be in North America.

Source: The Deal Pipeline

 

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, North America, Ernst & Young LLP, E&Y, Oil and Gas, North American Oil and Gas Deals, New York, Riverstone Holdings LLC, Riverstone Global Energy and Power Fund V, Houston, EnCap Investments LP, EnCap Energy Capital Fund I, EnerVest Ltd. EnerVest Energy Institutional Fund XIII, Preqin.


Private Equity Announces $4B of African Deals in 2013

Almost four times the $1.1billion recorded in 2012, private equity investors revealed about $4billion worth of Africa-based deals in 2013.

According to combined research from Preqin and Private Equity Africa.

The 2013 figure is the second highest reached in Africa since 2006, only surpassed by the $7.2billion reported in 2007, at the height of the global private equity boom, according to Preqin data. The data only covers revealed deal values.

Overall, last year’s values were bolstered by the gigantic $1.525bn deal from Helios and Brazil’s BTG Pactual, who partnered to invest in Nigeria-based Oil & Gas exploration company, Petrobras Africa.

Deal making values were also spiked by the colossal $1.035billion IHS club deal led by Emerging Capital Partners and Investec Asset Management. The duo led a number of investors to infuse fresh capital into their Nigeria-based telecommunications infrastructure services portfolio company.

Preqin’s preliminary figures place last year’s aggregate values  at approximately $3.9billion, while Private Equity Africa has this at $4.4billion, adjusted to include Abraaj’s sizeable investment into Fan Milk, a Ghana-based consumer food company. The deal value was confidential, but is understood to be just over $400million – making it the largest consumer deal closed historically in Sub -Saharan Africa, ex-South Africa.

Source: PrivateEquityAfrica

 

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, Africa Private Equity, Africa, African Deals, Preqin, Global Private Equity,Private Equity Boom, Helio, Brazil, Abraaj, The Abraaj Group, Fan Milk, Sub -Saharan Africa, South Africa.


CVC Capital is the Number One to Spend on Leveraged Buyout

Topping the American adversaries Apollo Global Management and Carlyle Group, a London-headquartered private equity firm with approximately US$46 billion in funds CVC Capital Partners, is the giant to spend on leveraged buyouts, as the industry prepares for an acceleration of deals in 2014.

The Luxembourg-headquartered fund manager, whose main office is in London, has an estimated $20bn of “dry powder” – unspent commitments from investors – according to data compiled by Preqin, the research company, in its annual report.

The sum includes €10.75bn raised last year for European and US deals, $2bn amassed for Asian investments and older commitments yet to be spent from the group’s previous flagship European fund, raised in 2008. Buyout houses have typically five to six years to invest cash that investors commit. If they fail to do so, they have to return it or seek an extension.

Private equity dry powder is piling up again after four years of decline following the financial crisis, when cash-constrained investors reduced new commitments. Preqin estimates the total cash available for leveraged buyouts globally surged to nearly $400bn last year, from $354bn in 2012, even though dealmakers found it hard to unearth bargains as stock markets reached all-time highs. After adding in other types of funds, targeting real estate, credit, infrastructure and venture capital, “dry powder” stands at a record $1.07tn.

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, Apollo Global Management, Carlyle Group, American Private Equity, London Private Equity, UK Private Equity, CVC Capital Partners, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Luxembourg, Preqin, Europe, Asia, Asian Investments, European Fund.


Idinvest Partners Nears €200M Final Close for Secondaries Fund

Idinvest Partners, a principal investment firm specializing in direct investments, is reportedly approaching a €200 million final close for another secondaries vehicle following its 2010 spinout from Germany-based insurer Allianz.

Idinvest, the Paris-based investor which spun out of German insurer Allianz in 2010, launched its fundraising effort in early 2012 with a €150 million-€200 million target. The firm is set to close the new fund in the next few weeks, according to people familiar with the matter.

The new secondaries fund would be the second fund for secondaries deals raised by the firm since its spin-out, and the firm has received backing from Allianz for the new vehicle, the person said.

According to data provider Preqin, Idinvest has hit four separate closes on the way to its €200 million target. Idinvest will aim to buy small stakes in a range of European private equity funds once the new vehicle is raised, targeting second hand investments in buyout and growth capital funds.

The firm’s new fund comes as the market for second-hand investor interests in buyout funds continues to evolve.

Source: Financial 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, Idinvest Partners, Germany, Allianz, Paris, France, Preqin, European Private Equity, Growth Capital Fund, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm.


Europe Venture Capital Sees Investment Record High in 2013

According to a survey from research and consultancy firm Preqin, European companies received €6.3 billion ($8.3 billion) of venture capital investment during 2013.

The figure is the highest recorded since 2007, the year in which Preqin began tracking the data, and it marks a significant increase on the EUR4.6bn invested throughout 2012.

The number of deals in Europe was 8 percent up on the year before, with 1,352 deals in 2013 compared to 1,250 in 2012.

The report also found that North America was again the most prominent region for venture capital investment, with 3,686 venture capital deals in 2013 valued at a total of USD31.6bn, compared to 4,233 deals totaling a combined USD32.9bn during 2012. The region accounted for 62 percent of the global number of deals and 68 percent of the aggregate value throughout 2013.

There were 5,973 venture capital financings announced globally in 2013 with an aggregate value of USD46.3bn, representing a 6 percent fall in number and a 5 percent rise in aggregate value compared to 2012.

Source: ExpatBriefing

 

Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, Europe Venture Capital, Preqin, Europe, European Company, North America.


Preqin Reveals Foreign Private Equity Fund Results in 2013

Private equity fundraising reached $431 billion for 2013, which represents a 13 percent increase from 2012, according to data released by provider for the alternative assets industry Preqin.

In a press release, Preqin said this was the highest amount of capital secured since the start of the global financial crisis. This compared with the high of $688 billion raised by funds that closed in 2008. According to the company’s research, the high capital growth was due to robust fundraising activity for funds focused in North America and Europe. Comparatively, funds geared towards Asia and other regions saw a substantial decline in fundraising levels in 2013.

From its talks with LPs, Preqin recorded that 59% of investors saw Europe as giving the best private equity investment opportunities given the current financial conditions. A slightly smaller percentage, 54%, felt that this opportunity was found in North America. Only 22% felt similarly for Asia while 11% had the same sentiment for other regions. Preqin said that this is the first time that investors placed Europe at the top of the category since they started documenting this information.

The research revealed that private equity funds focused in North America that had a final close last year were able to secure $266 billion in funding, representing a 33% increase from 2012 when only $200 billion was raised.

Source: Venture Capital 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, Foreign Private Equity, Preqin, Global Financial Crisis, North America, Europe, Asia.


Private Equity “Dry Powder” Ends 2013 at a Record High of $1.07T

Private equity is sitting on the largest amount of $1.07 trillion in dry-powder ever raised over a year-long period in history, according to Preqin.

According to industry tracker Preqin, the volume of “dry powder” – money pledged by investors to private equity firms but still yet to be invested – has surpassed the previous high of $1.067 trillion reached at the end of 2008.

Preqin said that while private equity exits – the sales of companies – had risen in 2013, new deal volumes have remained relatively flat for three years, at around $265 billion.

Aggregate global private equity dry powder increased 14 percent over the past year, Preqin said.

Large unspent pools of capital raise the prospect that buyout firms will have to ask investors for more time to do deals or not use the money at all.

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, Dry Powder, Preqin, Global Private Equity Dry Powder.


€20 Billion Fundraising is Expected for 2014

Buyout firms such as Bridgepoint, Charterhouse Capital Partners, Bain Capital and Kohlberg Kravis Roberts, will be in search for multi-billion-dollar funds.

Equistone Partners Europe could also come back to the market next year as the firm has already invested half of its €1.5 billion vehicle, which it finished raising in January.

They are set to join various lower mid-market firms that are due to launch next year, including Stirling Square Capital Partners, ECI Partners, Paragon Partners and Sovereign Capital, which are together targeting about €2 billion.

Firms in southern Europe also likely to launch funds next year with a combined value of about €2 billion include Clessidra, N+1 Mercapital, Magnum Capital and ProA Capital.

All the firms either failed to return calls or said they were unable to comment for regulatory reasons. The surge follows the best year for Europe-focused buyout fundraising since the crisis. Forty funds have raised €43 billion this year, a 60% rise on 2012 when 32 funds raised €26.9 billion, according to data provider Preqin. The figures have improved since 2010, when 36 funds raised €13 billion, but are still below the 88 funds that raised €59.2 billion at the peak of the market in 2006. There are 69 Europe-focused buyout funds in the market targeting €42.5 billion, according to Preqin.

Source: Financial 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, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Bridgepoint, Charterhouse Capital Partners, Bain Capital, Kohlberg Kravis Roberts, KKR, Equistone Partners Europe, Stirling Square Capital Partners, ECI Partners, Paragon Partners, Sovereign Capital, Europe, Clessidra, N+1 Mercapital, Magnum Capital, ProA Capital, Preqin.


Preqin Joins Hands with Hatteras for Private Equity Fund

Hatteras Funds, a provider of unique alternative investment solutions for financial advisors and their clients, has joined hands with Preqin to launch a liquid alternative private equity fund.

The Hatteras PE Intelligence Fund relies on daily deal intelligence provided by Preqin, and seeks comparable returns to the Nomura QES Modeled Private Equity Returns Index.

PERI is based on belief that a substantial portion of private equity buyout returns can be attained through investments in public market sectors. The new fund does not invest directly in buyout funds or the public equity of buyout firms. PERI allocates to both publicly available stocks and global currencies based off of the sector, market cap, currency and timing of the real-time deal activity. In addition, the Index targets both the returns of capital invested in private equity buyout funds as well as a risk-free rate of return for the proportion of capital that has been committed but is not yet funded.

Source: FINalternatives

 

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, Hatteras Funds, Preqin, Hatteras PE Intelligence Fund, Nomura QES Modeled Private Equity Returns Index, Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm.


Private Equity Funds Raise $2 Billion in Africa

According to Preqin data, figures this year have been lifted in reason by an $800 million fund closure at the beginning of the year by Ethos, Vital Capital’s $350 million maiden vehicle and another $243 million debut fundraiser by Phatisa.

The figures only cover final closures, and exclude interim closings from some of the industry’s largest funds, including Carlyle, which has already exceeded its original target, and will touch $700 million by year-end, according to Private Equity Africa research.

However, the report shows that the figures do not include Development Partners International, which has exceeded $400 million in its first closing, and Amethis with a $290 million first close during the year.

Commenting on the figures, Adeola Dosunmu, Head of Research at Private Equity Africa, said: “This year’s fundraising figures bring great warmth to the continents fundraising environment and demonstrates that improved LP sentiment for Africa is slowly translating to solid commitments.”

Signs of this growing sentiment were shown earlier this year when the Emerging Private Equity Association (EMPEA) placed Sub-Saharan Africa in its top tier for emerging markets, displacing traditional BRIC markets, said Dosunmu.

Source: Ventures Africa

 

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, Preqin, Ethos, Vital Capital, Phatisa, Carlyle, Private Equity Africa, Development Partners International, Amethis, Adeola Dosunmu, Emerging Private Equity Association, EMPEA, Sub-Saharan Africa, BRIC Markets.


$789B of Powder Dry Kept by Private Equity

$789 billion this year, an increase of 12% since December 2012, after four years of decline, show the importance of unspent commitments to private equity funds, known as “dry powder”, according to Preqin.

This compares with $769bn of unspent cash in 2007 – when the volume of private equity deals reached a peak – and the $829bn that went unspent in 2008, when deal volumes plunged 70 per cent as the financial crisis unfolded.

In 2007, private-equity houses led $776bn-worth of deals, but the comparable figure stands at just $310bn in 2013, according to Thomson Reuters.

According to research by Hamilton Lane, a private equity investor that tracks 2,000 funds, this combination of increased fundraising and decreased deal volume could lead to a record level of dry powder by the year end.

Buyout groups’ rising cash piles reflect the fact that they have taken longer to invest their funds since the crisis, as they have found fewer good opportunities.

Source: CNBC

 

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, Dry Powder, Preqin, Private Equity Deals, Private Equity Houses, Hamilton Lane, Buyout Groups.


The Volume of Private Equity Backed Buyout Deals Raises by 19%

In the third quarter of the year comparing with the same period in 2012, the volume of private equity backed buyout deals have raised 19 percent, according to Preqin report released.

The aggregate value of PE backed buyout deals so far in 2013 has increased by around 19 percent compared with last year. The overall value of PE-backed buyouts for the first three quarters of 2013 was around $217bn, up from $182bn during the same period in 2012.

North America in particular was a fertile region for PE backed deals. Preqin notes that during the third quarter of 2013, there were 363 such deals announced in the area, valued at $36bn. “Private equity-backed buyout deal flow continues to be encouraging for 2013 and is up 19 percent on the same period in 2012, demonstrating private equity fund managers continue to find good opportunities for investments, despite some concerns that deal flow is decreasing,” said Ignatius Fogarty, Preqin’s head of private equity products. “While the majority of deals continue to occur in North America, Asian private equity deal flow has shown signs of improvement throughout 2013,” he added.

The overall value of European PE-backed deals during the same period was $15bn. The European figure is somewhat concerning when considered alongside the number of deals in the preceding quarter – Q3 saw 50 percent fewer deals in Europe for the second quarter of 2013 when the aggregate sum was $29bn.

Source: Financier Worldwide

 

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, Private Equity Backed Buyout Deals, PE Backed Buyout Deals, Preqin, North America, United States, US, Canada, Ignatius Fogarty, Asian Private Equity Deals, Private Equity Backed, PE-Backed.


Ropes & Gray Repositions Jim Lidbury to Hong Kong

For meeting the growing needs of the firm’s private equity clients in Asia, Ropes & Gray LLP, a global law firm with 11 offices located in the United States, Asia, and Europe, has transferred its co-head of global mergers and acquisitions, Jim Lidbury, to Hong Kong.

Mr. Lidbury, who has been co-head of global M&A since early 2012, previously was based in Chicago. He played a lead role in advising the Blackstone consortium on the recent buyout of U.S.-listed Chinese technology-services firm Pactera and also worked on TPG’s US$108.6 million investment in Xinyuan Real Estate Co., announced in August.

“We’ve seen a lot of growth in our Asian M&A practice which is consistent with global trends, where U.S. M&A has been bumpy but flat and Europe has been slow,” Mr. Lidbury said. “We’ve consistently heard from some of the large private equity funds like TPG and Blackstone and Bain that they are putting more resources in the region and they’d like us to do the same thing to service that.”

Mr. Lidbury’s move comes at a time when private equity firms are sitting on record amounts of cash in Asia, with $120 billion in funds to be invested, according to Preqin data.

Source: The 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, Law Firm, Ropes & Gray, Asia, Ropes & Gray LLP, United States, Asia, Europe, Jim Lidbury, Hong Kong, Global M&A, Chicago, Blackstone, Pactera, TPG, Xinyuan Real Estate Co., Asian M&A, US M&A, Europe, Bain Capital, Preqin.


Gaw Capital Raises $1 Billion for China Real Estate Fund

Gaw Capital Partners, a uniquely positioned private equity fund management company that focuses in real estate markets in greater China, has reached a final close on its fourth China real estate fund at a total cash consideration of $1.025 billion.

Hong Kong-based Gaw, which has more than $7 billion in assets under management, took about one year to raise the fund, which will focus on real estate in China, Hong Kong, Taiwan and Macau. “A lot of [international] investors are allocating to Asia for the first time,” said Christina Gaw, the firm’s managing principal and head of capital markets.

“Since the global financial crisis, the comfort level toward Asia and China has increased… [Our real-estate funds] first started getting money from university endowments around 2007, and then increasingly from pension funds and sovereign-wealth funds,” which tend to be more conservative investors, she said.

Asia-focused real-estate funds have raised $6.4 billion so far this year, and there are more funds in the pipeline, according to Preqin, a data tracker. U.S. private-equity firm Blackstone Group LP is raising a $4 billion Asia-focused fund, while warehouse operator Global Logistic Properties Ltd. is raising a $1.5 billion China-focused fund. Last year, Asia-focused property funds raised $7.8 billion, sharply higher than the $5.3 billion raised in the preceding year. Source: The 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, Hong Kong Private Equity, China Private Equity, US Private Equity, American Private Equity, Gaw, Gaw Capital Partners, Private Equity Real Estate, Real Estate, Real Estate Investment, REIT, Real Estate Funds, China, Asia, Hong Kong, Christina Gaw, Preqin, Blackstone, Blackstone Group LP, Global Logistic Properties Ltd.


Cash Surplus Due to Lack of Attractive Companies

Private equity firms are sitting on $120 billion in funds, but the region’s small markets, tough governments and fierce competition for deals could make it hard for firms to invest all that money profitably.

Drawn by the promise of strong economic growth, investors have been pouring money into Asia for years, even though returns have lagged behind those in North America. Private-equity firms operating in Asia returned 6.5% in the year ended in March, compared with 12.7% in North America, according to data provider Preqin. In the five years ended in March, Asia funds had internal rates of return—a private-equity benchmark for the profitability of a deal—of just 3.9%, compared with 6.8% in North America.

“You do hear concerns that with all the money being raised and deal levels not at the levels you’d like to see, where is this money going to go?” said Michael Buxton , Ernst & Young Asia-Pacific private-equity leader.

The large economies where big deals are available—Japan and South Korea—aren’t particularly friendly toward private equity, and when there are deals, competition is rife. Targets in high-growth markets like China or Southeast Asia tend to be small. Many of the region’s initial-public-offering markets remain quiet or, in China’s case, completely shut, making exits on past investments tough. Source

 

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, Asia Private Equity, North America, North America Private Equity, US Private Equity, Preqin, Michael Buxton, Ernst & Young Asia-Pacific Private Equity, Ernst & Young Asia-Pacific, Ernst & Young, E&Y, Japan, South Korea, Southeast Asia.


NC to Increase Losing Hedge Fund Bets for Pension

The state of North Carolina has been adding to its losing bets on hedge funds, private equity and real estate to pump up less developed returns at its $80 billion.

Governor Pat McCrory, a Republican, signed a bill in August raising limits on investments in alternatives to stocks and bonds. The Tar Heel state’s hedge-fund bets lost 2 percent annually for the five years ending June 30, 2012. Its private-equity portfolio has returned about 5 percent over 10 years, 7.5 percentage points below the median U.S. public pension, according to Preqin Ltd., a London-based research firm.

“We’re behaving like a losing gambler right now,” said Ardis Watkins, legislative-affairs director for North Carolina’s State Employees Association, the state’s second-biggest public-worker union. “We’re chasing money.” Source

 

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, Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Real Estate, Real Estate Investment, REIT, Real Estate Investment Trust, North Carolina, NC, Pat McCrory, Republican, Tar Heel, Preqin Ltd., Preqin, London, Ardis Watkins, State Employees Association.


Advent International Plans to Acquire P2 Energy from Vista Equity

Private equity firm Advent International Corp. has purchased P2 Energy Solutions this week. P2 is an oil industry software expert located in Denver, CO. P2’s software helps oil companies monitor drilling leases, royalty payments, and their oil well output. Vista Equity Partners purchased P2 in 2008, but decided to part ways with the company this week in an effort to recoup loses.

Buyout firm Advent International Corp. agreed to buy P2 from Vista Equity Partners. Terms of the transaction weren’t disclosed. P2′s management team will remain with the company and retain their stakes in it, Advent said Monday.

Based in Denver, P2 sells software that helps oil and gas producers keep track of drilling leases, royalty payments and well output. Vista, which has headquarters in Austin, Texas, acquired P2 in 2008. Vista specializes in buying and selling software companies and its funds have been among the top performing in private-equity globally, data provider Preqin found in an August study.

Since then P2 has been a consolidator of software companies that serve the oil patch. Its most recent deal, a $43 million acquisition of Australia’s ISS Group Ltd., was completed in August and helped entice Advent. Source

 

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, Advent International, Advent International Corp., P2 Energy, Vista Equity, P2 Energy Solutions Inc., Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Austin, Texas, Software Companies, Preqin, Australia, ISS Group Ltd.


Is Private Equity Making a Comeback?

According to a study by Preqin, comprehensive data and research provider on Private Equity, Real Estate, Hedge Funds and Infrastructure Funds and other alternative investments, private equity funds have increased about $308 billion so far this year, this result is expecting to impulse the industry to its best nine-month total since a record 2008.

Managers of private-equity funds are taking advantage of low interest rates to finance new deals at the fastest pace in five years—and more investors are trying to get in on the action.

The funds typically operate as partnerships, buying and selling private companies or other assets that aren’t usually traded on exchanges.

The Federal Reserve’s recent decision not to “taper” its economic-stimulus program is good news for the private-equity market since it is likely to keep borrowing costs down, says Brad Stratton, an adviser in Overland Park, Kan., who oversees $150 million in assets.

But some money managers remain wary of private-equity funds, pointing out that rising private-market activity is attracting novice investors trying to strike their own deals.

“This is a real potential minefield,” says John Bird, co-founder of Albion Financial Group, an investment advisory firm in Salt Lake City with about $750 million in assets. “One in 10 of these private-equity deals might earn enough to make it worthwhile for someone, and the others can easily blow up if investors aren’t careful.” Source

 

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, Preqin, Real Estate, Hedge Funds, Infrastructure Funds, Federal Reserve, Brad Stratton, Overland Park, John Bird, Albion Financial Group, Salt Lake City.


Graphite Capital Obtains £475M Fund

Private Equity firm Graphite Capital has just closed a deal for a £475 buyout fund. This is the largest Private Equity fund in Britain since the financial crisis began.

Graphite, which began raising its eighth fund in February, has secured £475 million from investors, with a further £25 million likely to be secured over the coming weeks, it said Wednesday.

The new capital consists of a £430 million main fund, and £70 million top-up fund, a spokeswoman for the firm said. So far, £45 million of this top-up fund has been secured, the spokeswoman said.

Although smaller than the firm’s seventh fund – a £475 million main fund and £110 million top up fund raised in 2007 – the new vehicle ranks as the largest raised solely for UK buyouts since 2008, according to data provider Preqin.

Graphite Enterprise Trust, a London-listed fund of funds managed by Graphite, invested a total of £100 million across the main fund and the top-up fund. Source

 

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, Leading Independent Private Equity Investor, Graphite, Graphite Capital, Buyout, Buyout Funds, Leveraged Buyout, Buyout Firm, Preqin, Graphite Enterprise Trust.


AUM in the American Private Real Estate Assets Hit $335B

Preqin, a research and consultancy firm focusing on alternative asset classes, announced cumulative assets under management in the United States private real estate industry reached an all-time high at the end of 2012.

The overall assets under management totaled $335 billion as of Dec. 31, up 8% from the previous year, according to the Preqin’s report, “U.S. Private Equity Real Estate Fund Management Industry.”

Total AUM as defined by Preqin is the sum of its unrealized value of portfolio assets, as well as its “dry powder,” or uncommitted capital.

The unrealized value of portfolio assets increased to $256 billion as of Dec. 31, up 20% the year before, while dry powder dropped to $79 billion, down 15.1%.

Dry powder is at its lowest point since the end of 2006, when fund managers had $70 billion. The decrease is attributed to an increase in investment activity, putting their significant capital reserves to work, the report said. Source

 

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, Preqin, Private Real Estate, Private Real Estate Industry, Real Estate, Real Estate Investment Trust, REIT.


Blackstone Announces European Property Fund

Blackstone’s real estate arm has softly started growing a new European fund, aiming up to $5 billion according to prospective investors, as deal flow and economic sentiment on the content improves.

Tony James, president of Blackstone, did not mention the fundraising when reporting the private equity group’s earnings in July, but said at the time: “Activity levels seem to be shifting from the US, which has been our focus, to Europe where there is more distress . . . the spigots are starting to loosen up in the sense that people want to sell assets.”

Blackstone declined to comment on the new European fund. However, in recent weeks, the volume of European property investment deals has shown signs of picking up.

There are now 112 real estate funds being raised for Europe targeting a total of $46bn – about half the amount sought for North America – according to Preqin, a London-based research company. If it raises $5bn, Blackstone’s fund would be the largest being marketed for the region, Preqin said.

This increased demand for assets has led to an increase in prices, which has in turn brought more sellers to the market. Previously, sellers had been reluctant to seek deals because of the scale of the writedowns they would have been forced to take while prices were depressed. Source

 

Tags: Private Equity, Private Equity firm, Private Equity fund, Private Equity investment, Private Equity group, Real Estate, Real Estate investment, Real Estate firm, Blackstone, European Private Equity, European Real Estate, Tony James, North America, Preqin, London, European fund.


CVC Capital Partners Agrees to Acquire Domestic & General for $1.2 Billion

One of the world’s leading private equity and investment advisory firms CVC Capital Partners, has agreed to acquire for a total cash consideration of $1.2 billion an extended warranty company Domestic & General from the American global private equity firm Advent International.

The terms of the deal were not disclosed, but CVC Capital is understood to have paid around £750 million ($1.2 billion), according to a person with direct knowledge of the matter.

The deal is the latest sale of a company by one private equity firm to another, as other potential options like initial public offerings and disposals to corporate buyers remain difficult because of the financial crisis.

So far this year, European acquisitions by private equity buyers represent 59 percent, or $26 billion, of the total combined value of deals done by private equity sellers, according to the data provider Preqin.

CVC Capital will acquire Domestic and General, which Advent bought for £524 million in 2007 at the beginning of the financial crisis.

Domestic and General has been expanding internationally into Continental Europe, Australia and New Zealand; about a quarter of its annual revenue of £600 million comes from its operations outside of Britain. Source

 

Tags: Private Equity, Private Equity firm, Private Equity fund, Private Equity Company, Investment Advisory Firm, CVC Capital, CVC Capital Partners, Extended Warranty Company, Domestic and General, Advent International, European Private Equity, European Private Equity buyers, Private Equity sellers, European Private Equity sellers, Preqin, Continental Europe, Australia, New Zealand.


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