KKR Agrees to Acquire Internet Brands

Kohlberg Kravis Roberts, a leading global private equity firm founded by Henry Kravis and George Roberts, agreed to acquire Internet Brands in a deal worth at $1.1 billion.

Under the terms of the deal, worth $1.1 billion according to The New York Times, KKR will buy Internet Brands from private-equity firms Hellman & Friedman and JMI Equity.

The deal is the second major asset sale for Hellman & Friedman in under a week. On Thursday, the firm agreed to sell Sheridan Healthcare for about $2.35 billion to Amsurg Corp. Hellman & Friedman has invested in over 75 companies since its founding in 1984.

For KKR, the move to buy Internet Brands is a further investment in the technology sector. The firm joined two peers in acquiring Internet domain name registrar GoDaddy Group Inc. in 2011, and also touted other recent investments, including Nordic software provider Visma Group Holdings and software provider Ipreo Holdings LLC. KKR recently agreed to sell Ipreo after about three years of ownership.

Source: Fortune

 

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, Kohlberg Kravis Roberts, KKR, Henry Kravis, George Roberts, Internet Brands, The New York Times, Hellman & Friedman, JMI Equity, Amsurg Corp., GoDaddy, GoDaddy Group Inc., Nordic Software Provider, Visma Group Holdings, Ipreo Holdings LLC.


Bain’s Sankaty Advisors Adds Manischewitz Company to Its Portfolio

Sankaty Advisors, an arm of the private equity firm Bain Capital, is pleased to announce the addition of The Manischewitz Company, well known for its Passover foods, to its portfolio.

Under its new owner, Manischewitz is expected to promote kosher as an indication of quality food rather than just a religious designation, according to The New York Times.

“This investment reflects our confidence in the Manischewitz brands and team,” Sankaty Advisors said in a statement. “Manischewitz has earned a position as one of the most highly recognized brands in the world, and it has distinguished itself through a passionate commitment to producing the highest quality kosher products possible. We believe Manischewitz is well positioned to grow due to rising mainstream interest in kosher foods.”

Source: Jewish Exponent

 

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, Sankaty Advisors, Bain Capital, The Manischewitz Company, Passover Foods, The New York Times, Kosher Foods.


Buyout Valuations Been Pushed by Private Equity’s ‘Dry Powder’

Some private equity firm managers have indicated they’d rather to be investing more, but they’re trying to avoid overpaying at a time too few firms are willing to sell, according to The Wall Street Journal and The New York Times report released.

Private equity firms ended 2013 with a record $1.07 trillion in “dry powder,” or capital committed but yet to be invested. But some deal makers have indicated that tough competition among buyers and high prices for sellers are creating some challenges, including lofty valuations.

“A number of private equity executives have noticed an increase in competition for deals in the last year or so,” The New York Times reported. “Low interest rates and generous bank financing have also contributed to a market in which prices can rise to dizzying heights, deal makers say.”

The Wall Street Journal quoted Blackstone Group President Hamilton “Tony” James as saying sustaining the same level of investment as in 2013 has been difficult. “It is frustrating for our guys to keep going after things and keep getting outbid,” James reportedly said.

Source: SageWorks

 

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 Wall Street Journal, The New York Times, Blackstone Group, Hamilton “Tony” James.


Dell Launches Business Advertising Campaign

A new advertising campaign has been launched by an American privately owned multinational computer maker based in Round Rock, Texas, that develops, sells, repairs and supports computers Dell Inc. focused on businesses rather than consumers.

The Round Rock-based company that completed a $24.9 billion leveraged buyout of its shareholders in late October enlisted the New York office of Y&R to produce the campaign that highlights the companies that started with Dell products, The New York Times reported Tuesday.

The TV ads highlight companies such as Massachusetts-based TripAdvisor Inc. (Nasdaq: TRIP), Skype and California-based Shutterfly Inc. (Nasdaq: SFLY). Since the buyout, CEO Michael Dell has repeatedly called his company “the world’s largest startup” in a transparent attempt to regain some credibility as a more innovative company.

Dell, the No. 3 computer maker in world, employs 14,000 workers in Central Texas. The company is undergoing a transition to offset a dramatic decline in demand for the personal computers that enabled it to become a technology industry staple.

Source: Dallas Business Journal

 

Tags: Buyout, Buyout Fund, Leveraged Buyout, Buyout Firm, Round Rock, Texas, United States, US, Advertising Campaign, Business Advertising Campaign, Computer Maker, New York, Y&R, Dell, Dell Inc., The New York Times, TV Ads, Ads, Advertising, Massachusetts, TripAdvisor Inc., Skype, California, Shutterfly Inc., Michael Dell, Central Texas.


Private Company Boards are Preferences of Directors

Advantages and disadvantages among private companies and public companies according to The New York Times.

Additionally, private company boards don’t have the same legal liabilities and risks that public company boards face. For example, directors can be more involved in growing the business, rather than acting as a watchdog for shareholders, and work more closely with the CEO and management team.

However, in a closely held company, you may have limited influence, particularly if the CEO or chairman has assembled a board that’s afraid to challenge the C-suite’s perspective and decisions.

Board composition, benefits and challenges can vary depending on how the company is funded: by venture capital (VC), private equity (PE) or family ownership. Different board skills may be needed in different phases of each of these types of businesses.

Source: Forbes

 

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 New York Times, Private Company, Public Company, Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC.


Meet Michael R. Stoler

The article below Michael R. Stoler, a managing director of Madison Realty Capital, a private equity fund specializing in commercial debt, has been interviewed by Vivian Marino of The New York Times.

Mr. Stoler, 66, is a managing director of Madison Realty Capital, a private equity fund specializing in commercial debt. He is also the president of New York Real Estate TV, where he has produced and hosted several shows, among them “The Stoler Report-New York’s Business Report.”

Before joining Madison Realty in 2009, Mr. Stoler was a senior principal at AREA Property Partners. The company is now called the Ares Real Estate Group.

Q. Which do you identify with more: your role in commercial real estate or TV?

A. Probably both. But I think more people know me from the TV shows; I’m on 16 times a week.

Q. Many people know what you do on TV, but what do you do at Madison Realty?

A. One of my major roles is bank financing and also bringing in businesses — people who are looking for financing. Madison has been very active this year with regard to providing finance for commercial real estate. Their role is not really into development. But they’re sometimes involved in the development: They might take over the financing, and at certain times, they take over the property. Traditionally they try to work with the borrower.

Source: New York 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, Michael R. Stoler, Madison Realty Capital, Vivian Marino, The New York Times, New York Real Estate TV, AREA Property Partners, Ares Real Estate Group.


Alexander D. Evans Joins Comcast Corp.

Alexander D. Evans has departed from the $37 billion private equity firm Providence Equity Partners in Rhode Island, to join Comcast Corp.

Evans will be one of four executive vice presidents at Comcast – the others are Steve Burke in NBCUniversal, Neil Smit in the cable division, and David L. Cohen, who supervises government affairs.

A Comcast official said Friday that the hiring was unrelated to speculation Comcast could be looking to acquire Time Warner Cable, the nation’s second-largest publicly traded cable TV distributor.

Time Warner Cable stock has soared in recent months on rumors that it could be bought by Charter Communications Inc., Cox Communications, Comcast, or a combination of those companies. The New York Times reported Friday that Charter was preparing a takeover bid for Time Warner Cable.

Comcast has retained JPMorgan to advise it on a potential Time Warner Cable deal, according to a source close to the situation.

Source: Philly

 

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, Rhode Island Private Equity, RI Private Equity, Providence Equity Partners, Alexander D. Evans, Comcast Corp., Steve Burke, NBCUniversal, Neil Smit, David L. Cohen, Time Warner Cable, Charter Communications Inc., Cox Communications, The New York Times, JPMorgan.


Rubenstein, Bonderman Share Opinions about Africa Investment at DealBook Conference

David Rubenstein and David Bonderman, two of the most important names in the American private equity industry, shared their opinions on investment in Africa at The New York Times DealBook conference.

Carlyle Group Co-Founder and Co-Chief Executive David Rubenstein and TPG Founding Partner David Bonderman voiced very different positions on the long-term attractiveness of emerging markets while speaking Tuesday at DealBook’s Opportunities For Tomorrow Conference.

Mr. Rubenstein, whose firm has raised nearly $600 million for its Sub-Saharan Africa fund, said the region represented a new investment opportunity that would become important to many private equity funds in the next decade.

“Seven of the ten fastest growing countries in the world are in sub-Saharan Africa,” said Mr. Rubenstein.

“Obviously there are a lot of issues with respect to corruption, issues with respect to size, quality of management, quality of financing,” he said. “But over the next ten years or so, it’s likely, because of the extraction opportunities there, minerals and so forth, oil and gas, and because of the wealthy middle class that’s getting bigger and bigger, that there’s going to be a lot of opportunities there.”

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, Biggest Private Equity Names, David Rubenstein, David Bonderman, The New York Times, DealBook Conference, Carlyle Group, TPG, Opportunities For Tomorrow Conference, Sub-Saharan Africa Fund, Minerals, Oil and Gas.


Venture Capital Firm Backs Brazil’s E-Commerce Furniture Store Oppa

A Brazilian furniture e-commerce store Oppa has raised about $10.5 million from Valar Ventures Managementan, a San Francisco-based internationally-focused venture capital firm backed by Peter Thiel, according to securities filings obtained by The New York Times.

Monashees Capital, based in São Paulo, Kaszek Ventures and Thrive Capital joined Valar in the investment.

Valar Ventures Management was founded last year by PayPal co-founder Peter Thiel, who is one of three partners there.

Aiming to be the Brazilian equivalent of the Swedish furniture design and retailer Ikea, almost, the São Paulo-based Oppa deals strictly in e-commerce, bypassing expenses associated with store showrooms, according to an interview with Founder/CEO Max Reichel as told to Brazil Venture Capital and Growth Equity. In addition to its lower prices, shipping is free and customers can pay in ten installments.

Creations are exclusively by Brazilian designers.

Oppa’s biggest competitor, Tok & Stok, recently made the news when it sold a 60 percent stake to the Carlyle Group for $347 million. Founded in 1979, Tok & Stok has 35 stores in Brazil with 3,300 employees.  As reported by the Times, it generated about $495 million in sales last year. Source

 

Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, San Francisco Venture Capital, US Venture Capital, Brazilian Furniture E-Commerce Store, Brazil, Oppa, Valar Ventures Managementan, Peter Thiel, The New York Times, Monashees Capital, São Paulo, Kaszek Ventures, Thrive Capital, Valar Ventures Management, PayPal, Max Reichel, Brazil Venture Capital and Growth Equity, Tok & Stok, Carlyle Group.


Former Microsoft Corp. Executive Brian McAndrews Joins Pandora as New CEO

Pandora Media Inc., the Internet radio giant, just announced that it has appointed aQuantive head and Microsoft Corp. executive Brian McAndrews as its new chief executive, president and chairman as it fends off growing competition and tries to increase revenue from advertising.

McAndrews led aQuantive for a number of years, culminating in its sale to Microsoft for $6.3 billion in 2007, at the time the largest acquisition in the software giant’s history. Microsoft later wrote-down much of the acquisition after failing to integrate the assets or management team. At the time of the $6.2 billion writedown, considered one of Microsoft CEO Steve Ballmer’s many failed maneuvers, the company said that “the acquisition did not accelerate growth to the degree anticipated.”

McAndrews joined Madrona Venture Group in 2009 as a venture partner, one of the leading venture capital firms in Seattle. He was named to the board of The New York Times last year.

“We are pleased for Brian that he is returning to the public company CEO role he thrives on,” said Matt McIlwain, managing director at Madrona. ”He has added tremendous value to many Madrona portfolio companies.  We look forward to continuing our long-term relationship with Brian and being a resource for him and the Pandora team.” Source

 

Tags: Venture Capital, Venture Capital firm, Venture Capital group, Venture Capital industry, Venture Capital investment, Venture Capital Investor, Venture Capital fund, VC Funding, VC, Pandora, Pandora Media Inc., aQuantive, Microsoft, Microsoft Corp., Brian McAndrews, Steve Ballmer, Madrona Venture Group, The New York Times, Seattle, Matt McIlwain.


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