Update: The deadline for LPs to decide whether they will terminate their investment in Quadrangle due to Rattner's departure is one week from today, peHUB has learned. Plenty of people are wondering if Steve Rattner's involvement in the NY State Common kickback scandal will lose him his job as President Obama's top auto industry advisor. It seems obvious that he'd be shown the door, even if he told the U.S. Treasury about the investigation before Obama took office. It raises the question: Will he go back to Quadrangle? The firm recently put its fundraising on hold because of his departure. Meanwhile, he triggered a key man provision on older funds when he left (including Quadrangle Capital Partners II, the one under indictment). That key man provision requires a vote which had a deadline of April 24, a source said. LPs will be
GRCR has formed Six3 Systems Inc., a Fairfax, Va.-based government services acquisition platform focused on national security and defense intelligence. No financial terms were disclosed. Six3 Systems will be led by Robert Coleman, former CEO of government contractor ManTech International (NYSE: MANT).
Context Capital Partners has raised $44 million for a family of private equity funds that invest in de novo and community banks.
Lakeview Equity Partners of Milwaukee has acquired the event housing and registration assets of Ambassadors, an Atlanta-based event travel services company. No financial terms were disclosed.
LONDON (Reuters) – Wind farm operator Renewable Energy Generation (RERWE.L) has received a bid approach from an unnamed party, it said on Friday, sending its shares up by nearly 50 percent. The operator of 11 wind farms in the UK and Canada, and which runs a power station fuelled by vegetable oil in eastern England, […]
HONG KONG (Reuters) – South Korean retail giant Lotte Group will not submit a final offer for Oriental Brewery (OB), a source said on Friday, opening the way for a private equity buyer for the country’s No. 2 beer company. Anheuser-Busch InBev (INTB.BR), the world’s largest brewer and the owner of OB, is accepting final […]
NEW YORK (Reuters) – Activist investor Carl Icahn and private equity fund Oaktree Capital Management have amassed hundreds of millions of dollars of MGM Mirage (MGM.N) bonds and have told the troubled casino firm it should quickly overhaul its massive debts in bankruptcy, the Wall Street Journal reported, citing people familiar with the matter. The […]
NEW YORK (Reuters) – A federal bankruptcy judge ruled on Thursday that a joint $87.6 million bid by investment firms Hilco Consumer Capital and Gordon Brothers Group LLC was the “best offer” in the auction for bankrupt camera maker Polaroid’s assets, a Ritchie Capital spokesman said. The spokesman said the offer beat out rival Patriarch […]
Following my post this morning on ABS Capital's partial exit of Rosetta Stone, I spoke with Phil Clough of ABS Capital. He said private equity activity in the education sector, which has proven to be wildly successful for his firm, is getting a bit overheated. It's a curious thing to say; Rosetta Stone's debut traded up more than 40% today, and Bridgepoint Education, another for-profit education company backed by Warburg Pincus, traded up in its debut this week as well. The pair of IPOs are the first PE-backed offerings of the year and mark the first time the markets have seen two IPOs in one week in 11 months. (For context, Thomson Reuters has published a chart showing there was an average of 3.9 IPOs per week in 2007.) And it's not ABS Capital's first success in the sector. The firm made a killing on its offerings of American Public Education, which it floated for 17.1x its money in December. Prior to that, the firm made 2x its money selling CourseAdvisor Inc. to Washington Post after owning it for only a year. And as I reported earlier, ABS Capital is poised to make 6x its money on Rosetta Stone based on a $25 per share stock price. Even so, Clough said finding another home-run education deal in this market wouldn't be as easy.
The education sector has been good to private equity this year, especially in the case of ABS Capital. The firm is poised to earn at least 6x its money on its investment of Rosetta Stone Inc., a foreign language learning software business. Yesterday the company priced its IPO at $18 a share, well above its expected range of $15 to $17. Today, the shares opened at an impressive $23 a share, and as of 11:00 a.m. they had risen above $25. So let’s break down what that means for ABS Capital’s investment. The firm purchased Rosetta Stone with Norwest Equity Partners in 2006 for $62 million. ABS Capital put down $29 million in...