Erin Griffith

Centerbridge Partners, the somewhat secretive buyout firm that made headlines with its recent investment in BankUnited, last month closed on $460 million toward a “Special Credit Partners” fund with an undisclosed target. The fund had 37 investors at the time and serves as a follow-up to the firm’s first hedge fund-buyout fund hybrid vehicle, Centerbridge Capital Partners LP, a $3.2 billion pool raised in 2006. Somehow in the last few weeks, the firm has nearly doubled that amount, filing a Form D this week listing $850 million commitments from 40 investors. That’s just three more than its prior close, which indicates those three investors committed a total of $390 million. Not bad. The fund is designed to invest in distressed debt and according to a report, has a $2 billion target.

Here’s a look at the past two weeks of scoops, opinions and analysis from the peHUB blogging team. LBO-Backed Bankruptcy List: On Pace to Double Last Year's Total [Quarterly Stuff] Fund Performance Data Dump [Quarterly Stuff] Fund Performance Data Dump (Part Deux) [Quarterly Stuff] VC-Backed IPOs Rise Infinitely in Q2 [Quarterly Stuff] Private Equity Activity Falls in Q2 [Quarterly Stuff] Global PE Fundraising Rises in Q2 [Quarterly Stuff] PCG Pays $2 Million To Escape New York Probe [Buy Yourself Out of Trouble!] Escape from New York (Part II) [It's That Easy!] 88% of PE Firms Have Cut Portfolio Company Headcount [Studies] Los Angeles PE Firms To Buy Century-Old Tulsa Pipe Company [Deal Scoops] Highland Capital Delays Fund Close [Tough Times] Ashmore: Private Equity Is Deep Underwater [Tough Times] Of Work Ethic and Private Equity [Essays] Bain Capital Offers To Cut Size of Co-Invest Fund [peHUB Approves] KKR Proposes A Double Secret Reverse IPO [About-Faces]

The Private Equity Council isn't going to let federal regulators off so easily this time around. Last month, the private equity lobby supported the government's requirement that buyout firms register with the SEC, even while arguing that "private equity firms do not create systemic risk." Today, however, the PEC came out against proposed FDIC guidelines for buyout firm investments in banks, saying that they go to far and would be counterproductive. "We hope that the comment period yields changes that facilitate the flow of private capital into the banking system, consistent with the Administration's other efforts to address the financial crisis," said PEC president Doug Lowenstein. To recap, the proposed rules include a minimum three-year hold time, capitalization requirements, cross-guarantees for firms with multiple banks in its portfolios, and extensive disclosures, particularly regarding ownership structures.

Happy July 4th! Bloggers Gaining Steam: Goldman Sachs responds directly to blogger Zero Hedge. (Zero Hedge) Lists: Dumbest Moments in Business, Mid-Year 2009. I think we could add a few buyout moves to this list as well... (Fortune) Fighting Fund of Funds? "Private equity funds of funds are increasingly under fire. Not only do they reduce returns, but they do not minimise risks" (IP&E) Hours Versus Heads: The decline in aggregate hours worked has been frighteningly consistent over recent months. (Freakonomics) Student Loan Horror Story: How a law school grad that passed the bar is being denied admission because of his $400,000 student loan load. (Law Blog)

As usual, we have a week’s worth of ratings actions on buyout-backed companies from Standard & Poor’s and Moody’s Investor Services. This week was slow with two little downgrades and two withdrawals. Company: Yell Group PLC Sponsor: Apax Partners Downgrade: S&P lowered its long-term corporate credit ratings to 'B' from 'B+'. Highlights: "The downgrade reflects our concerns about the faster-than-expected deterioration of Yell's operating performance and liquidity profile, which is no longer commensurate with a 'B+' rating," said Standard & Poor's credit analyst Manuela Gabetta.

See you back here in a week! Claw it Back: The NY Post is pretty sure Apollo will be paying a few clawbacks in the coming quarters. (NY Post) Give Bankruptcy A Chance: Bear Stearns should have been allowed to go bankrupt. (Weekly Standard via Clusterstock) Green Shoot Myself In The Head: CNBC Europe is "sick" of the phrase green shoots. (Clusterstock) Who isn't? Even Maria Bartiromo is backpedaling on her gushing use of the phrase. Bank of AMerrilca: Bank of America Merrill Lynch has launched its new branding campaign, with the horrible tagline, "Signed, Sealed and Delivering." Merrill's famous bull logo is out (with apologies I'm sure to the Merrill Lifers who had it etched into their hot tubs and pruned into their gardens). (Dealscape)

Culled from regulatory filings, here are some recent private equity and venture fundraising updates. Centerbridge Partners, the secretive buyout firm that joined some of the largest firms in their buyout of BankUnited, has raised $467.1 million for a fund called Centerbridge Special Credit Partners LP. Based in New York City, the firm is run by Jeffrey Aronson and Mark Gallogly. The firm's first buyout fund, called Centerbridge Partners LP, closed in 2006 with an undisclosed size. The firm's latest special credit fund has 37 investors and is using Park Hill as a placement agent. The target is not disclosed. Domain Associates, a venture firm based in Princeton, N. J., has raised $371 million toward an indefinite target for its eighth fund, Domain Partners VIII LP. The firm invests in emerging life sciences companies. http://www.domainvc.com/ Pathway Capital Management, a private equity fund of funds based in Irving, Calif., has raised $290 million from 12 investors for its 2008 fund, which has a $500 million target. The fund, called Pathway Private Equity Fund 2008 LP, commits to funds that have an average size of $300 million. http://www.pathwaycapital.com/

The first two quarters of this year witnessed 46 bankruptcy filings from companies backed by private equity firms. That places 2009 on pace to double last year's total of 49, which is right in line with some predictions from the end of last year. Download the full spreadsheet after the jump. A few notes on the list this quarter: 1. The second quarter list includes our first mega-buyout bankruptcies: Extended Stay Inc., backed by Lightstone Group, and Chrysler, backed of course by Cerberus Capital Management. These deals could be the tip of the mega-bust iceberg, but I think most would agree that they're isolated incidents. We're still waiting, with bated breath, for 2011, when the real flood of mega-buyout debt begins to mature. Until then, the mega-market bankruptcies (ones with deal values greater than $5 billion) will be limited to the most underperforming companies with the most ridiculous capital structures.

Here's a look at the past week's scoops, opinions and analysis from the peHUB blogging team. Social Networking Startup May Become Black Eye for High-Profile Valley Investors [Controversy?] Tagged CEO Greg Tseng On Accountability, TechCrunch and Leading the Third Biggest Social Networking Site in the U.S. [Q&A] SoftBank's Hippeau Joins HuffPo...It Was Inevitable [HR] National Association of Realtors Forms VC Fund [Fund Scoops] When VC Paul Holland Builds a House, He Doesn't Mess Around [Its Green] Unithrive: Connecting Cash-Strapped Harvard Students with Wealthy Alumni [Startups] New Startup: VocabSushi [Startups] LogMeIn Could Become First Tech IPO of Third Quarter [Green Shoots?] What Up, Canada? [Word] Must-Read Tribute to Rajeev Motwani, One Week After His Fatal Accident [Eulogies] Study: If You're Over 25 and a Tech Geek, You're Probably Using an iPhone [FYI] Billionaire CEO Larry Ellison Cleared in Securities Suit [Whew] Thompson's Statement Was A Bunch Of Bull [Trust Politicians] Is Private Equity Poised For A Quick Bounce-Back? [Probably Not] Fundraising Updates: Resource Capital, Richardson, Walton St. [Scoops] Picking Up After "Large Loan" Verrone [Just Desserts?] Kind Of A Big Deal: ZM Capital Strikes First Deal With "Father Of Infomercials" [As Seen On Tv] A Modest Proposal [Suggestions] LPs Say "No Mas" To Future Funds, But What About Existing Ones? [More Suggestions] Ford Foundation Names New Private Equity Chief [HR] Dollar General IPO Speculation Reaching Feverish Levels [Do it already] How Will Tomorrow's Financial Regulation Announcements Affect Private Equity? [New New Deal] Private Equity and Venture Capital To Be Regulated [New New Deal] PEC Supports Obama Plan For SEC Registration [New New Deal] Underperform in Europe, and Heads Roll. In The U.S.? Business As Usual [Legacies] Steve Young of Huntsman Gay on Deploying a New Fund In a Slow Market [Q&As] 5 Eddie Bauer Questions for Jonathan Lynch [Ch 11s] Sun Capital and Golden Gate, Here's Your Second Shot at Eddie Bauer [Ch 11s] Lynn Tilton of Patriarch Partners on Speigel, AriZona Iced Tea, Not-Bankrupt Stila Cosmetics, and a Possible New Fund [Q&As] Thanks, Sale-Leaseback! Arcapita Takes 2x Return on Church's Chicken [Q&As] Midweek M&A Madness [Regulars] Weekly Downgrade Wrap-Up: Where Does Portfolio Company Debt Stand? [Regulars] Inside the startup office from hell [Links Lists] Things A VC will never say [Links Lists] Things a founder will never say [Links Lists] The largest bankruptcies in history [Links Lists] Former Management Buyouts [Links Lists] Bill Clinton for Fed Chairman? [Links Lists] Ten Ways to Provoke a Geek Argument Does VC post systemic risk? [Links Lists] Social networking for quant traders [Links Lists] Private equity is pretty dedicated to maintaining offshore abuse by private equity [Links Lists] The Human Gulf in Private Equity Secondaries [Vox Populi]

Happy Weekend! Keep On Rockin' Through The Layoffs: A cover band comprised of several laid off Credit Suisse bankers is "kept together by the music." Aged Inventory, the band's name, refers to a bond that sits in a trading book for more than 60 days. (Bloomberg) Private Equity Should Stay Away From Showbiz: Providence Equity Partners' MGM stake and Goldman Sachs' investment in the Weinstein Co. are reminders that betting on movies is a treacherous business. (BW) BDC Mess: American Capital's shares surged yesterday, and LBOWire isn't sure why. I suspect it had something to do with a rumour floating around about a "secret" meeting between the company and its lenders. There was little further info on the situation, but people will trade on anything. (LBOWire) Walking The Walk: Despite years of touting "operational expertise," it appears that buyout firms are finally walking that walk. (CNBC) From Phys. Ed. to PE: An interview with Adam Dudley of Grace Capital, which is seeking another partner. (Venture Hype) Why The OTS elimination shouldn't cause many tears: Fortune Swallows the Banks' Baloney (Columbia Journalism Review)