Sycamore Banks Nearly $2B for its Fresh Fund

A private equity firm based in New York specializing in consumer and retail investments Sycamore Partners, has raised nearly $2 billion to its latest fund, which is targeting $2.5 billion.

So far, Sycamore has raised $1.97 billion for the fund from 40 investors, according to a filing with the Securities and Exchange Commission.

In its pursuit of underperforming retailers and consumer brands, the tight-lipped private equity firm has engaged in some fairly public takeover battles.

In an attempt to fend off the firm in 2011, Talbots Inc. adopted a poison pill shortly after Sycamore revealed it had accumulated a nearly 10% stake in the apparel retailer. A year later, after some extended wrangling, Sycamore completed a $391 million deal for the company.

The firm spent months circling beleaguered surfwear company Billabong International Ltd., which instead agreed to accept a refinancing package from Centerbridge Partners and Oaktree Capital Management.

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, New York Private Equity, NY Private Equity, Sycamore Partners, Sycamore, Securities and Exchange Commission, Talbots Inc., Surfwear Company, Billabong International Ltd., Centerbridge Partners, Oaktree Capital Management.


Sycamore Partners Agrees to Invest $150M in Aeropostale

Sycamore Partners, a private equity firm based in New York specializing in consumer and retail investments, has signed agreement to invest $150 million in clothing retailer Aeropostale.

In exchange, Sycamore Partners will be given convertible preferred stock that gives the firm the right to buy up to 5 percent of the company’s stock.

If Sycamore takes advantage of this, it would raise the firm’s stake in the company to roughly 12.3 percent of its outstanding shares.

Aeropostale says a managing director at Sycamore Partners will join its board, and the firm will receive the right to appoint another director.

The New York retailer is trying to turn around its business as slowing sales have hurt its profitability.

Source: Post-Bulletin

 

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, Sycamore Partners, Clothing Retailer, Aeropostale.


KKR, Sycamore Eyeing Jones Group

Sycamore Partners and the Private equity giant KKR & Co LP are in talk to acquire retailer Jones Group as soon as this week, according to the New York Post reported and sources.

The private-equity firms want to put an end to an auction for the fashion and footwear company, which owns retail chains Nine West and Jones New York, run by Citigroup Inc. The auction has attracted bids from several buyout shops, including Leonard Green & Partners, Sun Capital and Golden Gate Capital, the Post said.

“The goal is to have it wrapped up before the deadline” for second-round bids, a source close to the process told the Post, noting that the deadline is this week.

The Post did not report the size of the offer but said investors have speculated that Jones could fetch between $17 and $18 per share. The shares closed at $15.68 on the New York Stock Exchange on Monday. 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, Private Equity Giant, Sycamore Partners, Sycamore, KKR & Co LP, KKR, Jones Group, New York Post, Fashion Company, Footwear Company, Nine West, Jones New York, Citigroup Inc., Leonard Green & Partners, Sun Capital, Golden Gate Capital, New York Stock Exchange.


Aeropostale Shares Climbs 17% After Private Equity Firm Takes a Stake

Aeropostale Inc. shares advanced 17 percent on Tuesday after Sycamore Partners, a private equity firm based in New York specializing in consumer and retail investments, took an 8 percent stake in the teen retailer company.

Sycamore said it bought 6.25 million shares of Aeropostale at a cost of $54 million because the stock is “an attractive investment.” It said in a regulatory filing that it plans to talk to the company’s management, its board and other stockholders and may consider various actions.

Sycamore is no stranger to the retail world. The company last year bought women’s clothing retailer Talbots Inc. at a discount. In June, it also took teen retailer Hot Topic Inc. private in a $600 million deal. The stake disclosure prompts speculation that it may end up taking Aeropostale private as well.

The involvement of Sycamore co-founder Stefan Kaluzny on the Aeropostale deal “adds credibility to the bid and in our estimation, the likelihood of its success,” said Stifel analyst Richard Jaffe. Assuming Aeropostale could be taken private using the same multiple as in the Talbots deal, that would imply an acquisition price of about $10 a share, or a 16% premium to Monday’s closing price, he 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, New York Private Equity, Sycamore Partners, Aeropostale, Aeropostale Inc., Talbots Inc., Hot Topic Inc., Stefan Kaluzny, Richard Jaffe.


KKR, Sycamore Consider Joint Bid for Retailer Jones Group

Giant private equity firms KKR & Co. and Sycamore Partners are considering a joint bid for Jones Group Inc., a leading global designer, marketer and wholesaler of over 35 lifestyle brands with best-in-class product expertise across five divisions: apparel, footwear, jeanswear, jewelry and handbags, according to the Wall Street Journal report, citing people familiar with the matter.

Private-equity firms KKR & Co. and Sycamore Partners are considering a joint bid for Jones Group Inc., the footwear and apparel maker that has put itself up for sale, people familiar with the matter said.

A number of other private-equity and industry players are considering offers for parts of the New York shoe, apparel and accessory seller, which currently has a market value of $1.15 billion, the people said. Second-round bids for the company are due within the next two weeks and a deal could follow soon after that, they said, assuming one is struck at all. It isn’t clear what form any deal for the company would ultimately take.

Jones Group has hundreds of retail stores and it also owns and licenses dozens of brands, including Anne Klein, Nine West and Stuart Weitzman, which are sold through department stores such as Macy’s Inc. and Nordstrom Inc. Grappling with sluggish sales of its legacy brands and lackluster results at some of its retail stores—as well as an activist hedge fund in its shares—Jones over the summer hired advisers to help it explore a possible sale of the company. 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, KKR, KKR & Co., Sycamore Partners, Jones Group, Jones Group Inc., Apparel, Footwear, Jeanswear, Jewelry, Handbags, Wall Street, the Wall Street Journal, Anne Klein, Nine West, Stuart Weitzman, Macy’s Inc., Nordstrom Inc.


Platinum Members Log-in

Log-in to your Platinum Membership.
Not a Platinum Member? Start a 30-day free trial here.

Promote Your Brand Here

To become a sponsor of PrivateEquity.com please register here, call us at (212) 729-5067 or email us at Sponsorships@PrivateEquity.com

About Us



Site Sponsors