Firms and Funds

(Reuters) – JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) seized tens of millions of dollars of collateral from a commercial property debt fund run by Guggenheim Partners LLC, the Wall Street Journal said citing people familiar with the matter. The move followed the fund’s failure to provide additional capital to meet margin […]

NEW YORK (Reuters) – Middle market investment bank Jefferies Group Inc (JEF.N: Quote, Profile, Research, Stock Buzz) will slash nearly 15 percent of its employees worldwide and close offices in Dubai, Singapore and Tokyo as it contends with heavy losses for 2008. The bank also said on Wednesday it expects a fourth-quarter operating loss in […]

It’s been just two weeks since this space first broached the prospect of private equity layoffs, but that’s been enough time for them to evolve from anecdotal theory to systemic reality. Here are the latest examples: * Behrman Capital has laid off most of its San Francisco office, and also made a pair of layoffs in its New York headquarters. The middle-market buyout firm declined comment, although we hear that managing partner Bill Matthes will keep the SF light on with at least one other investment professional (another SF pro is relocating to NY). Behrman raised

When I ask sources "What firm has been battered the worst by the economic mess," I almost always get the same answer: Apollo Management. To better understand why that is, I've created a list of the firm's recent failures, broken down into strategy missteps and ugly deals. On Strategy: 1. Apollo companies are the most active PIK-togglers. Seven of Apollo's portfolio companies have toggled their PIKs and another four have the option to do so. According to a list made by Buyouts' Ari Nathanson, that is by far the most PIKs for any one sponsor. Toggling a PIK substitutes debt payments with more debt, and the move is largely seen as prolonging the inevitable, and a bad sign in a credit crunch. Among them: Berry Plastics, Claire's Stores, Metals USA Holdings, Momentive Performance Materials, Realogy, Rexnord Holdings and Harrah's. See a full chart here. (sub req.) 2. Apollo missed the bottom on distressed debt. In March, the firm began aggressively buying up leveraged loans that they viewed as undervalued, including bonds of their own portfolio companies. At the time, loans were trading at unprecedented low prices averaging

Avista Capital Partners next week will close its second fund with around $1 billion in capital commitments, according to LBO Wire. It had originally targeted $1.5 billion. www.avistacap.com

Sofinnova Partners, a Paris-based VC firm focused on the life sciences and IT sectors, has secured more than €205 million in capital commitments for its sixth fund, according to VentureWire. No official target was reported, although the firm is expected to approach the €385 million in raised for its fifth fund in 2005. www.sofinnova.fr

(Reuters) – Distressed investment specialist Oaktree Capital Management has raised about 1.8 billion euros ($2.2 billion) for a fund targeting hard-hit companies in Europe, up from the 1.25 billion it had originally sought, the Los Angeles Times said. Los Angeles-based Oaktree’s OCM European Principal Opportunities Fund II has been boosted by contrarian investors eager to […]

LONDON (Reuters) – Private equity group 3i Group Plc declined to comment Wednesday on reports that it is about to cut 15 percent of its workforce as the firm looks to cut costs and prepare for the economic downturn. The Financial Times reported 3i will announce plans to cut about 100 jobs from its staff […]

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS) shares fell Tuesday on speculation the bank’s fourth-quarter loss could be much larger than expected — more than $2.5 billion — fueled by the plunging value of many Goldman investments. The shares fell as much as 6 percent, rose briefly in volatile trading, then settled at […]

peHUB has learned that Joel Holsinger today began work as an Atlanta-based managing director with Fortress Investment Group, where his initial focus is on portfolio acquisitions and distressed opportunities. He previously had been a managing director with Atalaya Capital Management, and is considered one of the foremost authorities on capital markets transactions in the restaurant […]