Firms and Funds

The Florida State Board of Administration has issued an Intent to Negotiate (ITN) with general partners who would manage private equity and/or debt vehicles focused on Florida companies. PRESS RELEASE TALLAHASSEE, FL – The Florida State Board of Administration (SBA) issued an invitation to negotiate (ITN) today in search of world class investment organizations to […]

S&P’s latest credit analysis blames this year's skyrocketing default rate on a lot of things, but the most common thread is private equity. The report, titled “Default Autopsy Finds Traces of Private Equity DNA,” lists the usual suspects (bad economy, high energy prices, low consumer confidence, high cost of capital) as reasons the sharp rise in global defaults. But the fact remains: Of the 55 defaults in the first eight months of this year, 70% were involved in transactions involving private equity. The excuse S&P offers is one I don’t fully buy. The report explains that private equity firms want to buy cheap, therefore PE firms buy already-troubled assets, which is why they've got their hands in so many defaulting companies. For turnaround investors like Cerberus and Sun (who each have more than one ringer on this list), perhaps. Keep reading.

Macquarie Infrastructure Partners is raising up to $6 billion for its second fund, according to a regulatory filing. www.macquarie.com

Hiring Bob Lipp is one of the best moves Marge Magner’s ever made. At least that’s what she told me this morning in a discussion about Lipp and what LPs think of her firm’s moving parts. Despite (basically) losing her partner and co-founder to the corporate world, Magner and her young firm, Brysam Global Partners, couldn’t be happier. See, Magner and her fellow ex-Citigroup exec Bob Willumstad formed Brysam Global Partners in 2007. They raised a $1 billion private equity fund to invest in consumer facing financial services companies in emerging markets. But in June, Willumstad decided to take on a minor, insignificant extracurricular activity. He became CEO of AIG International. (You may have heard of it, some paltry $49 billion company.) He technically still works for Brysam Global Partners as a Senior Advisor, though the amount of time he commits can’t be much. Naturally, I had a few questions for Magner and Lipp. Follow the jump to read what Brysam’s LPs did when Willumstad left, where the firm sees opportunities, the status of its fund, and a bonus piece of trivia.

Sept 10 – Kohlberg Capital Corp.  said it has withdrawn a proposed public offering due to general stock market conditions and unusual trading activity in its stock. On Sept. 3, the business development company said it would offer 4.5 million common shares and expects to raise $46.2 million in net proceeds, or $53.2 million if […]

NEW YORK (Reuters) – Lehman Brothers Holdings Inc. said it plans to sell a majority stake in its investment management division and spin off commercial real estate assets as the struggling U.S. investment bank fights to raise capital. The fourth-largest U.S. investment bank said it has reduced exposure to toxic assets, including cutting its residential […]

SEOUL (Reuters) – State-run Korea Development Bank (KDB) confirmed on Wednesday it was no longer in talks with Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) over a possible multi-billion dollar investment in the troubled U.S. bank. After a day of conflicting reports about whether South Korea would ride to the 158-year-old bank’s rescue, the […]

TOKYO (Reuters) – Global buyout firm Advent International said it has raised 60 billion yen ($560 million) for its first private equity fund in Japan. The fund, which opened its office in Tokyo in 2001, will target companies with enterprise values from 5 to 50 billion yen, but could be involved in larger deals through […]

Last Friday, I wrote about how LPs were gaining some leverage on their mega-fund GPs, after years of being the weaker sister. Today, Dow Jones reports that a group of large institutional investors – representing over $100 billion in PE assets under management -- have formed a lobbying group to collectively press for more LP-friendly fund terms. These include GIC, AlpInvest, Canada Pension Plan and Ontario Teachers’ Pension Plan. I’ve long supported such an organization in theory, believing that LPs too often give away the store to greedy GPs (particularly in terms of transaction fee splits). But I’m immensely curious as to why no U.S. systems – particularly CalPERS and CalSTRS – are involved. The DJ article cites a group member as saying that “U.S. public pension plans lacked the resources to contribute to such a network.” Sorry, but that simply does not hold water. CalPERS, for example, has the resources in terms of both personnel and money. It also holds more cachet among U.S. buyout firms than do either GIC or AlpInvest, or at least more PR value when political attacks arrive. So let me throw out something else: Could there be a fear of collusion?

Accel-KKR has closed its third fund with $600 million in capital commitments. The firm focuses on growth opportunities in the technology mid-market. PRESS RELEASE Accel-KKR, a technology-focused private equity investment firm, today announced the final closing of its third private equity fund, Accel-KKR Capital Partners III, LP (“AKKR III”) at $600 million.  The growth-oriented middle-market […]