Firms and Funds

HONG KONG (Reuters) – U.S. hedge fund giant Citadel Investment Group LLC, which has racked up hefty losses this year, is closing its Tokyo office and its Asia principal investment operations by the end of this year, media reports said on Monday. As a result of the cutbacks, 25 people will be laid off in […]

NEW YORK (Reuters) – Some buy-out groups are coming under pressure from cash-strapped investors to reduce their commitments after Permira’s PERM.UL unprecedented offer to let its backers off the hook for 1.5 billion euros ($1.91 billion), the Financial Times said. The buy-out groups include Terra Firma, which is struggling to turn round the EMI music […]

HONG KONG (Reuters) – Private equity firm CCMP Capital Asia said on Monday it raised $1.2 billion for its third buyout fund, pulling the money together at a time when lending is tight, volatility high and valuations falling. Major investors of Asia Opportunity Fund III L.P., the latest buyout fund that CCMP Capital Asia has […]

Former VC Rob McCord says no allocation changes in store for two large pensions in state

LONDON (Reuters) – Private equity firm Charterhouse Capital has begun raising money for a new 5.2 billion pound ($7.6 billion) buyout fund, according to a report in the Sunday Telegraph. Investors that have already signed up to participate in the fund include the Los Angeles City Employees’ Retirement System (LACERS), said the report. Charterhouse has […]

SHANGHAI (Reuters) – China Investment Corp (CIC), the country’s $200 billion sovereign wealth fund, is unwilling to bail out troubled Western financial firms because of unfair restrictions on its investment, a deputy general manager of the fund said on Saturday. “On the one hand, the U.S. needs us; on the other hand, they’re suspicious toward […]

BOSTON (Reuters) – Legg Mason Inc (LM.N) said on Friday it will cut nearly 200 jobs, or about 8 percent of the parent company, as part of $120 million in cost savings the U.S. asset manager has targeted to combat shrinking assets. Legg joins a growing list of asset managers who have slashed nearly 4,000 […]

Yesterday I asked when private equity firms would begin cutting their fund sizes, in light of: (a) Layoffs which reduce management fee needs, (b) Less work because of reduced deal-flow and (c) Limited partner capital constraints. Apparently, all I had to do was ask. Check out the following statement from SVG Capital, which is a cornerstone investor in Permira IV, an €11.1 billion fund closed in 2006: Permira has approached its investors with a proposal whereby, subject to the requisite investor approval, an investor may elect to cap its commitment to Permira IV at 60% of an investor’s original commitment (against a current called amount of 52%). Those investors who do not elect to cap their commitment to Permira IV will continue to participate in all new Permira IV investments. An investor may elect to cap all or part of its commitment. The proposal would require electing investors to accept a 25% reduction in their entitlement to distributions from the fund, which would accrue to continuing investors, and to continue to pay management fees based on original commitments during the investment period of Permira IV. A Permira spokesman confirmed the statement in an interview with Reuters, adding: "Based on the

LONDON (Reuters) – European buyout firm Permira has proposed a 60 pct cap on commitments to its fourth fund for investors struggling to meet their planned allocations. Permira said the proposals will allow current investors to cap their commitments to the fund at 60 percent, against a current called amount of 52 pct, in return […]

NEW YORK (Reuters) – A shareholder lawsuit against the merger of JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) and the crippled investment bank Bear Stearns Cos was dismissed on Thursday. The lawsuit sought damages from JPMorgan and former directors of Bear Stearns, and asked that the federally arranged merger be set aside. […]