There are more private equity funds in the market this year than ever before. And that has made for a busy summer for some GPs and LPs. There were 2,176 private equity funds, across all strategies, in the market as of July 2014 seeking to raise an aggregate US$743 billion, according to the second quarter private equity fundraising report from data provider Preqin. A more recent report puts the number of funds in the market at 2,199.
Struggling department store chain Sears Canada Inc reported its ninth loss in 14 quarters as sales continued to decline, Reuters reported. Same-store sales fell 6.8 percent in the second quarter ended August 2nd. Same-store sales at Sears's home and hardlines business dropped 9.3 percent. Earlier this month, it was reported that U.S. private equity firm Sycamore Partners was considering a bid for Sears Canada. A possible deal could fetch up to US$2 billion.
Canadian retailer Alimentation Couche-Tard Inc and China's Tencent Holdings Ltd are among suitors short-listed to buy a US$16 billion minority stake in China's Sinopec Sales Co Ltd, the world's largest fuel retail network, sources told Reuters. China Life Insurance Co Ltd, ENN Energy Holdings Ltd, Fosun Group, Hopu Investment Management and Affinity Equity Partners have also progressed to the next round. State-run Sinopec plans to sell up to 30 percent of Sinopec Sales this year as Beijing restructures government-owned assets.
Investor William Ackman has been joined by several top hedge funds, including Paulson & Co, York Capital Management and Viking Global Investors, that have made bets on takeover target Allergan Inc, Reuters reported. New regulatory filings give the first look at Allergan's redrawn shareholder map since Ackman and deal partner, Laval, Québec-based Valeant Pharmaceuticals Inc, made public their US$49 billion pursuit of the Botox maker in late April.
ONCAP, the mid-market platform of Canadian private equity Onex Corp, has confirmed plans to sell U.S. car wash chain Mister Car Wash. A second quarter financial statement by Onex did not specify the buyer, but earlier reports have indicated it will be U.S. private equity firm Leonard Green & Partners. ONCAP is likely to take home approximately US$380 million in net proceeds from the deal. This translates into a gross multiple of capital invested of about 8x and a gross IRR of 36 percent.
ValueAct Capital, a top shareholder in Valeant Pharmaceuticals International Inc, supports the company's independent business plan and does not believe the Canadian drugmaker has to buy Allergan Inc, the investor told Reuters. ValueAct likes a potential combination between Valeant and Allergan, but said a drawn-out bidding war for the Botox maker might be too distracting. Allergan is fighting a hostile US$52 billion bid from Valeant and William Ackman, head of hedge fund Pershing Square Capital Management.
ONCAP, the mid-market investment platform of Onex Corp, has been named to Preqin's global list of the most consistent performing private equity fund managers. ONCAP was one of a dozen firms added last week to a league table of the world's top performing buyout fund managers. The table comprises 35 firms in total, 60 percent of which are U.S.-based, with most of the rest residing in Europe and Asia.
Investors are readying offers for the Spanish assets of Germany's top utility E.ON, sources told Reuters, adding that the bids would value the portfolio at about US$2.7 billion. Parties expected to submit non-binding bids for assets include private equity firm CVC Capital Partners; a consortium consisting of Canada's Borealis Infrastructure and Portuguese utility EDP; as well as a group comprising private equity firm Riverstone and Swiss energy company Alpiq. KKR, Macquarie and Spain's Grupo Villar Mir also are expected to express an interest.
Consulting firm McKinsey & Co says that hedge funds, private equity funds and other alternative investments will command up to 40 percent of the asset management industry's global revenues by 2020 as investors seek them for safety and consistent returns, Reuters reported. Alternative assets hit a record high of US$7.2 trillion in 2013 and currently generate nearly 30 percent of the asset management industry's revenues.
Northern Blizzard Resources Inc, a portfolio company of U.S. private equity firms NGP Energy Capital Management and Riverstone Holdings, has confirmed earlier reports of a planned initial public offering (IPO). The company has filed an IPO of 18.4 million common shares and a secondary offering of 7.9 million common shares. At $19 per share, gross proceeds will total approximately $500 million. The secondary offering, reflecting $150 million of the total, is being made by NGP and Riverstone.