Erin Griffith

A week ago we reported on Boathouse Capital, a new mezzanine fund formed by alumni of American Capital (ACAS). We had very few details except the names of the professionals. Today I learned a little more information from a source. The Wayne, Penn.-based firm is in fundraising mode with a target of somewhere between $75 million and $225 million, based on its intended deal size. After forming last fall and launching fundraising last month, the fund already held a first close on between 65% and 75% of the target amount. Beyond raising capital, the firm hopes to receive SBIC approval to increase its leverage in the fall. Boathouse Capital seeks to invest up to $15 million in sponsor-backed and direct transactions.

Here’s a look at the past two weeks of scoops, opinions and analysis from the peHUB blogging team. Laundry Room Chronicles: Discussing Blackstone Docs [The Big Guys] Weekly Downgrade Wrap-Up [Regulars] Midweek M&A Madness [Regulars] Five Things You Need To Know About Debt: Revisited [The More You Know...] Q&A With HM Capital's Andrew Rosen on Earthbound Farm [Qs, As]

Can't Get Enough CIT Drama? Here's a full recap of the deathwatch. (Clusterstock) Alan Blinder: The U.S. economy appears to be hitting bottom. And that's both good and bad. (NY Times) Proof That Twitter Is A Bunch of Crap? According to the The Poop Index, there are more people talking about pooping on Twitter than world peace, world hunger, or nuclear proliferation. (Gizmodo) Wow: Years after beginning a sale process (we're talking pre-recession people), fashion company Tory Burch sells a stake... to a Mexican firm I've never heard of. (Press release) Poor, Poor Rich People: "As if market forces and malevolent actors weren't enough, the rich are now finding themselves targeted by politicians." (Moneybox)

We'd hate to let down followers of the Pimco mortgage fund story, so as per usual for the past several quarters, here are the performance numbers on PIMCO Distressed Mortgage Fund I, L.P., a $2.8 billion pool designated to invest in secondary distressed mortgage securities. I'd like to point out first that since our last update of this fund's negative performance, we've learned that Pimco is earning $3 million per quarter to manage the government's commercial paper funding facility (CPFF) program. We've also seen Bill Gross, Pimco's head, come under more criticism for his influence over government policy. On Pimco's mortgage trading activities, he said he "assumes that Pimco traders working on behalf of the government don't talk to their peers trading for Pimco's own accounts, The New York Times reported, adding, "Then again, he said he doesn't know for sure what happens after hours." From the NY Times:

This week three private-equity-related surveys / studies / white papers / whathaveyous were released and we've got the highlights of each. 1. Navigating Your Portfolio Through Turbulent Waters From Grant Thornton, ACG, and our parent company, Thomson Reuters The study looks at the state of portfolio companies, probably because there aren't any deals to examine. Interesting findings include stats on markdowns, time spent on portfolio companies, and favored strategies for success in the downturn. The white paper also takes a close look at pooled purchasing for health insurance for portfolio companies. -Almost half of all survey respondants said their 1% to 25% of their portfolio companies are in covenant default. The survey concludes with a taste of the obvious: "Now more than ever, most private equity firms have both the knowledge and the time to create real value at the portfolio level.

As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from the agencies, Standard & Poor’s and Moody’s Investor Services. This week the agencies must’ve been busy confusing all of us with changes to their ratings systems (S&P) and finding buyers for Warren Buffet's stake (Moody's) because there’s only one. Either that, or private equity portfolio companies have magically be relieved of their massive debt burden! Ha. What would I write about then? Anyways, the company in the spotlight is Dutch semiconductor company NXP B.V., backed by AlpInvest Partners, Apax Partners, Bain Capital, Kohlberg Kravis Roberts & Co. and Silver Lake. S&P affirmed the company’s long-term corporate credit rating at ‘CCC’. In light of the company’s distressed debt exchange, lowered the ratings on the company's secured and unsecured notes to 'CC' and placed them on CreditWatch negative while affirming the remaining notes at 'B-'. The company plans to undergo a distressed debt exchange on July 23. S&P calculates that the latest exchanges should have a net $26 million negative impact on NXP's cash balances. Since there’s only one, I dug up a little extra info on this company.

Today Fifth Street Finance, a lower middle market business development corporation (BDC), has hoisted itself squarely into the proper middle market with a secondary offering worth $87.8 million. The official press release is below. I caught three quick questions with with Fifth Street’s CEO Len Tannenbaum on the offering and his outlook for middle market […]

Buyout Firms Like Old Media? OpenGate Capital (you know, the firm that bought TV Guide without TVGuide.com) is participating in the auction for BusinessWeek (BusinessWeek) Damage Control: Brynnwood Partners and portfolio company Stella D'Oro just wants to say that it is not the evil force behind the conflicts between Stella D'Oro and its union. (Businesswire) FYI: The rotation and orbit of planet Earth is powered by the continuous pronouncement (by private equiteers) that private equity only invests in the best management teams. (Private Equiteer) Studies: Europe doesn't really have a "hotbed of innovation" like Silicon Valley. How is innovation connected to private equity ownership there? (Financierworldwide)

Boston-based Riverside Partners is planning a first close on its fourth fund in the coming weeks, a source familiar with the situation said. The fund, Riverside Fund IV LP, has a target of $250 million, which is a slight increase from its $225 million third fund. Riverside Fund III LP closed in 2006, with investments […]

Marwit Capital Partners, a micro-cap buyout firm based in Los Angeles, has entered the market with its third formal buyout fund, seeking $225 million, according to a source familiar with the situation. The firm has not yet held a first close on the effort, which has a slightly higher target than its second vehicle. That […]