Firms and Funds

(Reuters) – Buyout firm Allied Capital Corp, battered by frozen credit markets, said it was notified by its lenders of a default on its revolving credit facility, an event which could significantly hamper the firm’s liquidity. In a filing with the U.S. Securities and Exchange Commission, Allied said a default under its revolving credit facility […]

Global private equity firm Blackstone is planning to raise US$2bn for an infrastructure fund. With leveraged buyouts off the menu for the time-being, New York-based Blackstone wants to target infrastructure assets. According to reports, the fund is currently being marketed to investors after chairman Stephen Schwarzman revealed plans for the move into infrastructure last November. […]

HONG KONG (Reuters) – Royal Bank of Scotland (RBS.L) has hired Morgan Stanley (MS.N) to explore the sale of its Asian banking units, sources with direct knowledge of the matter told Reuters on Friday. The move comes after the UK government took a 70 percent stake in the bank, forcing RBS into seeking sales of […]

Capita buys healthcare information provider for £11.6m

(Reuters) – Resistance from investors burnt by a turbulent 2008 will make asset managers more willing to cut fees this year, a study by consultant Mercer said on Thursday. Mercer said overall fees in most asset classes were stable in 2008 but it said more willingness to negotiate fees downwards, especially in alternative asset classes, […]

Candover has followed Permira and TPG Capital’s lead in shrinking the size of its fund and letting investors off previous commitments regarding uncalled capital. It is unlikely to be the last. Unlike its peers, Candover has officially signalled a shift away from larger LBOs – investments with an enterprise value of more than €500m traditionally – saying that a restructuring of the fund will also involve a “revised investment strategy, in light of both a smaller fund and the significant changes in the global economy in the last six months”. The likely translation is: Mid-market. Permira has rarely played in the mega LBO space, and while it is known to be looking at smaller deals, especially those involving already indebted businesses, a shift downwards is not expected to be on the cards.

LONDON (Reuters) – British private equity firm 3i Group Plc (III.L) was among the biggest FTSE 100 fallers on Thursday after it unveiled plans to sell at least 55 million shares in investment fund 3i Infrastructure Plc (3IN.L) via a placing. At 1130 GMT its shares were 4.2 percent lower at 223.5 pence, having fallen […]

KKR today announced that it saved $16.4 million in less than a year through its partnership with Environmental Defense Fund. The partnership reduced fuel and emission costs at U.S. Foodservice, Primedia and Sealy Corp. The firm plans to implement its plan at four more portfolio companies: Accellent, Biomet, Dollar General and HCA. I spoke with Ken Mehlman, KKR's head of global public affairs, about where the money will go, the program's total cost saving potential and KKR's interest in green investing. Our Q&A is after the jump...

Danske Private Equity has held a second close for its fourth fund-of-funds, already reaching the vehicle's €600m target. The fund expects to hold a final close by June 2009. Danske said the capital was raised from institutions in Nordic countries and that it would be deployed equally between investments in small and mid-market buyout funds in Western Europe and the US. Unlike previous funds, Danske Private Equity Partners IV will also look for opportunities in the secondary private equity market and will co-invest with its other funds.

peHUB has learned that Jeff Rich, former CEO of Affiliated Computer Services (NYSE: ACS), and Todd Furniss, former president of the Everest Group, have partnered to form a new private equity firm focused on the IT-enabled business services sector. The Dallas-based effort is named PlumTree Partners, and will formally announce itself next week. PlumTree has not yet decided on whether it will raise a formal fund, operate as a fundless sponsor backed by local family offices or become an investment holding company for a large corporation that has expressed interest. In general, however, is wants to invest between $25 million and $50 million of equity per year, in around four deals. If PlumTree were to pursue the formal fund structure, that would work out to around a $250 million target. I’m pretty skeptical of most new PE firms in today’s environment, but this one certainly has big-name experience on its side. Rich began his career as an LBO banker for Citi in the 1980s, before getting recruited by ACS to be its CFO.