Private Equity
Global private equity firms are sitting on more than $2.1 trillion in “Dry Powder.” Their investment decisions and purchasing power will shape the public and private investment markets in ways that shape the future of the global economy. DailyAlts provides constant updates and insights on deal-making, regulatory shifts, global capital flows, and more.
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The monthly transaction report from the $280 billion New York State Common Retirement Fund showed an investment outlay of more than $4 billion in June. Significantly, and in a sign of the times, more than 75% of that was plowed into alternatives such as real estate ($2.2 billion) and private equity funds (over $1 billion).
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More Stories on Private Equity
Madison Dearborn Partners Eyes Eighth Fund, Sets $4.5 Billion Goal
Madison Dearborn Partners, a Chicago-based private equity giant, is launching its eighth fund. The company wants to raise $4.5 billion. The figure would top the $4.4 billion it raised for its a fund just three years ago.
Melvin: What People Are Getting Wrong About The Private Equity Buyout Study
The Economic Effects of Private Equity Buyouts is a study generating a lot of headlines. These headlines would suggest that private equity has negative impacts on the companies they buy, especially the workforce. But just how accurate are those takeaways?
Private Equity Firm Highview Capital Acquires Gold Star Foods, Plans Merger
Highview Capital announced it has acquired Gold Star Foods, a specialized food distributor to K-12 child nutrition programs. After the deal closes, Gold Star will merge with an existing Highview portfolio company called Good Source Solutions. The portfolio firm operates in similar segments.
Three Takeaways from the New KKR Consumer Report
The report examines consumer behavior at this point in the economic cycle KKR has posted a new report titled The New Consumer. Paula Campbell Roberts, the Director of Global Macro and Asset Allocation Team, lead the KKR research. The report examines the condition and behavior of the consumer at this stage of the economic and…
Private Equity Giant KKR Announces Special Situations Fund III
Private equity giant KKR & Co wants to raise $1.5 billion for its third special situations fund. Reuters reported the June registration of KKR Special Situations Fund III. The private equity firm said during its Q2 conference call that it planned to raise capital for a new special situations fund.
FireEye Is Seeking a Private Equity Buyer, Hires Goldman Sachs as Advisor
FireEye (FEYE) is reportedly seeking a private equity buyer. The news comes after the firm failed to locate a strategic buyer. The company reportedly hired Goldman Sachs to guide them through the process. Multiple reports suggest that discussions are in the early stages of development.
Can Apollo Get a Win with ADT after Canadian Services Sale
ADT announced is selling ADT Security Services Canada to TELUS Corporation. Terms of the deal are CAD 700 million in cash, subject to certain adjustments.
AssetMark Financial Holdings Buys OBS Financial
AssetMark Financial Holdings announced an agreement with Canandaigua National Corporation to buy OBS Financial. OBS is a turnkey asset management platform.
Leeds Equity Partners Buys VitalSmarts from TwentyEighty
Leeds Equity Partners has acquired VitalSmarts from TwentyEighty. Vital Smarts is a provider of communication, execution, and, leadership development training.
What’s the Matter With Chinese Private Equity?
Chinese private capital dealings slumped dramatically in the first half of the year. A new report from the Emerging Market Private Equity Association reveals startling figures on the state of the Chinese market.
Blackstone Chief Schwarzman: Private Assets Valuations Too High, Bubble-like
Stephen Schwarzman, the co-founder, chairman, and CEO of the Blackstone Group said dot.com like conditions prevailed in the startup industry. He said asset valuations had reached bubble-like proportions and that there could be a painful reckoning of losses from investing in companies such as Uber and WeWork.
Private Equity in the Dock for Alleged “Surprise Billing Practices”
A bipartisan Congressional investigation is to determine whether private equity giants are behind price gouging in emergency care.
“Surprise billing practices” are unexpectedly large medical bills from an out-of-insurer-network physician for emergency treatment. These bills could also emanate from an out-of-network physician or ancillary clinician working in an in-network hospital.
University of California Sees Assets Under Management Jump $7.4 billion in a year; PE a stellar performer
University of California’s assets under management jump $7.4 billion in a year; PE a stellar performer. The highlight of the University’s investment performance for the year was the impressive return of 27.4% achieved by the Private Equity asset class in the Endowment product, pushing its value up 8.24%.
Private equity is the top gainer for the Iowa Public Employees’ Retirement System (IPERS)
A healthy 19.18% gain on its private equity asset class powered an overall return of 8.35% at the Iowa Public Employees’ Retirement System (IPERS)during the last fiscal year
As a result, the fund’s returns were 9.3%, 6.77%, and 9.60% across the three-, five-, and 10-year timeframes. In the immediately preceding fiscal year, the fund earned 7.97%. The return fell short of the fund’s target rate of 8.64%, however.
Leon Cooperman: High odds of interest rates going up make private equity risky
The legendary hedge fund manager said declining interest rates had propped up returns in PE, but this could change
Cooperman was speaking at an event hosted by the New York Alternative Investment Roundtable. Initially calling private equity a scam, he later clarified his remarks. Though he was put off by the high fees and lengthy lock-ups, he said the industry wasn’t a scam.
Vista Equity Partners Raises Largest Tech-Focused PE Fund in History.
Tech funds still generate massive demand from investors Vista Equity Partners has raised the largest technology-focused PE fund in history. The shop raised $16 billion in outside capital for its new fund, Vista Equity Partners Fund VII LP. That figure exceeds the $15 billion raised by Silver Lake. It also surpasses the $12.6 billion raised…
Alternative Investments: Warning Alarms are Sounding
Could the mountain of ‘dry powder’ be too much of a good thing?
Warning notes are sounding that fund managers, weighed under by mounting investible funds with few good enough ideas to invest, may be forced to accept lower returns.
People on the Move – Rivendell Partners, Revolut,iCapital Network, and Gide Loyrette Nouel
Rivendell Partners, Revolut, Alpha FMC, iCapital Network, and Gide Loyrette Nouel People on the Move – September 3, 2019 Revolut has faced pressure in recent months due to its customer service and compliance limitations. The banking startup continues to expand at a breakneck pace (more than 6 million users since its 2015 launch). Now, after…
Alternative Investment Fund Launches and Updates – September 3, 2019
Investment fund launches for September 3, 2019. First up, venture capital firm Golden Gate Ventures has filed to launch a $200 million fund in partnership with South Korea’s Hanwha Asset Management. The Singapore-based VC fund also said it will focus on Series B startups in the Southeast Asian region. Next, Hosen Capital is seeking $750…
Suspended Woodford Equity Income Pivots from Unquoted Securities to Listed Ones
The £3.5 billion Woodford Equity Income fund, run by Neil Woodford, must reconstitute its holdings into a more liquid portfolio by December and come out of suspension
Neil Woodford has sold unquoted and illiquid stocks amounting an estimated £900 million out of three funds, most of it from Woodford Equity Income. Out of that, he spent £145 million on shares in British American Tobacco (BATS), BT (BT) and British Airways owner International Airlines Group (ICAG).
The American Investment Council Lists PE as Top Asset for Pensions
In an impressive run, PE has topped the returns table at pensions for seven consecutive years.
A study by the American Investment Council (AIC) of 165 US public pension funds that represent over 20 million public sector workers and retirees found that private equity (PE) has been a star-performing asset class.
World’s Largest Asset Manager: CEOs Should Not Serve on Other Boards
BlackRock voted against 94 CEOs who wanted to serve on more than one board outside their company The world’s largest asset manager is taking aim at chief executives who sit on the board of directors of different companies. In a 32-page report, the company showed it had voted against 94 different CEOs who ran for…
Eurozone Planning $110 billion Techs ‘Catch-Up’ Fund and Trade Tariffs
Fearing the threat from tech giants in the US and China, the EU plans to bulk up its own “high-potential European companies” through a sovereign wealth fund
According to media reports, which quoted an internal EU document, plans are afoot to set up a “European Future Fund” with a capital of € 100 billion ($ 110 billion) and the mandate to invest in promising European corporations to bring them up to speed on the tech front.
M&A Deal News – August 21, 2019
A new Osram suiter, Avaya finds an alternative to Mitel, an Italian-French merger, and Goldman takes China. Let’s look at Wednesday’s M&A Deal News. M&A Deal News – August 21, 2019: M&A deal news from around the globe. Each day, we focus on deals in the private equity, real estate, AI and tech, and others impacting the…