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Archive For: Private Equity

Private Equity Investing Soared in China Last Year

Private Equity Investing Soared in China Last Year

Patrick Boehler

Last year was a bumper year for private equity in China with new investments reaching record volumes and the value of deals more than doubling from a year earlier as investors rushed to profit from the continuing reforms of state-owned enterprises, according to PricewaterhouseCoopers LLP.

The overall value of private equity deals in China reached US$73.2 billion last year, up 101% from 2013, according to figures released by PwC Tuesday . The firm counted 593 private equity deals last year, 51% more than the prior year.

The opening of some state-owned enterprises to private investment spurred last year’s …

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Ethos Acquires AutoZone in South African Private Equity Deal

Ethos Acquires AutoZone in South African Private Equity Deal

By Renee Bonorchis

Ethos Private Equity Ltd. bought a controlling stake in South African closely held automotive-parts retailer AutoZone, the fourth investment through its 7.9 billion-rand ($682 million) Fund VI.

“We anticipate growing the business geographically,”Christo Roos, a partner at Johannesburg-based Ethos who will join AutoZone’s board, said in an e-mailed statement on Wednesday. “We have already identified immediate opportunities and have embarked on a rigorous program to accelerate AutoZone’s growth strategy.”

Founded in 1999, AutoZone has 151 retail and wholesale branches and 37 franchised outlets in South Africa, Namibia,Zimbabwe, Swaziland and Botswana. Ethos bought the stake for an undisclosed

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Calpers Is Not in Danger of Breaking Up With Private Equity – New York Times

Calpers Is Not in Danger of Breaking Up With Private Equity – New York Times

By William Alden

Any investment decision by the California Public Employees’ Retirement System, the nation’s biggest pension fund with about $300 billion in assets, is closely watched by investors around the world.

So an article in The Financial Times on Monday that said Calpers planned to reduce the number of private equity firms anaging its capital had investment professionals buzzing.

But Calpers is not planning to significantly reduce its allocation to private equity, though it may redistribute it, Joe DeAnda, a Calpers spokesman, said in an email. He said the pension fund may increase its allocation to individual private equity …

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Private equity’s largest US investor is changing up its strategy – Fortune

                             By Dan Primack

Is the nation’s largest public pension walking away from private equity, as it did with hedge funds?

When the California Public Employees’ Retirement System (CalPERS) announced last fall that it was abandoning hedge funds, I publicly wondered if private equity would be the next asset class to fall. After all, it featured many of the same complexities and high fees that CalPERS cited in its hedge fund critique. At the time, however, a system spokesman said my curiosity was unfounded, as the hedge fund decision was driven largely by an inability to scale – whereas CalPERS had …

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Private Equity Titans Open Cloistered World to Smaller Investors

Private Equity Titans Open Cloistered World to Smaller Investors

For decades, David M. Rubenstein has persuaded big institutions like pension funds and university endowments to invest billions of dollars with his private equity firm, the Carlyle Group, promising them better returns than the general market. But in recent months, he has crisscrossed the country in a campaign to attract a type of investor that has relatively little experience in this industry: individuals.

Carlyle, the Washington-based giant that Mr. Rubenstein co-founded in 1987, is at the forefront of an effort to open the cloistered and risky world of private equity to doctors, lawyers, well-heeled entrepreneurs and others with a brokerage …

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Warburg Said to Seal Biggest Foreign Private Equity Deal in China Finance

Warburg Said to Seal Biggest Foreign Private Equity Deal in China Finance

Warburg Pincus LLC will invest close to $700 million in China Huarong Asset Management Co., people with knowledge of the matter said, in the biggest investment in the nation’s financial industry by a foreign buyout firm.

Warburg Pincus bought the largest portion of a 21 percent stake that China’s biggest bad-loan manager sold to a group of investors for 14.5 billion yuan ($2.4 billion), said one of the people, who asked not to be identified as the matter is private.

Rising loan delinquencies in China are adding to opportunities for the country’s asset management companies, set up in 1999 to …

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3 Private Equity Firms Agree to Settle Lawsuit on Collusion

3 Private Equity Firms Agree to Settle Lawsuit on Collusion

BY WILLIAM ALDEN

Three of the leading private equity firms on Wall Street have agreed to pay a combined $325 million to settle accusations that they colluded with each other to drive down the prices of corporate takeover targets, according to a court filing on Thursday.

The three firms — Kohlberg Kravis Roberts, the Blackstone Group and TPG — have agreed to settle all claims without admitting wrongdoing. The firms will decide among themselves how to split up the payment, the filing said. The agreement was struck on July 28, but not disclosed until Thursday.

The collective settlement, if approved …

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Blackstone's Baratta on Private Equity's “Uncharted Territory”

Laura Kreutzer

Easy monetary policy has powered a boom in financing activity among buyout firms in recent years. But as the Federal Reserve starts to pull in the reins, few can predict exactly how the story will end.

Joseph Baratta, global head of private equity at the Blackstone GroupBX +0.48%, told a group of attendees at the Harvard Business School’s private equity and venture capital conference on Sunday that the global capital markets have entered “uncharted territory” when it comes to government and central banking involvement.

“Never in the history of humanity has there been this much intervention in capital …

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The Morning Leverage: Partner's Personal Investment Joins OpenGate Portfolio – Wall Street Journal (blog)

By  Thomas Dunford

From this morning’s LBO Wire:

“Share and share alike” seems to be the motto for the principals at OpenGate Capital, as illustrated by the Los Angeles firm’s recent transaction with one of its partners. Sebastien Kiekert Le Moult, who joined OpenGate in 2012, allowed for the European fire protection products company he owns, AGIS Fire & Security, to be integrated into OpenGate’s portfolio, Shasha Dai reports. The firm’s partners are accustomed to pooling their resources, since OpenGate invests its principals’ personal capital.

 

 …

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Super Group's SG Fleet Considers IPO as Private Equity Exits – Bloomberg

 

Super Group Ltd.’s SG Fleet, an Australian vehicle leasing and fleet management provider, is considering an initial public offering in that country as a private-equity firm looks to sell its 42 percent stake.

Super Group, which owns about 51 percent of SG Fleet, will keep control of the fleet management provider, the South African transportation company said in a statement today. CHAMP Ventures Pty will sell its stake if the IPO proceeds.

Super Group’s stock rose as much as 1.9 percent to 27.62 rand after the announcement. It traded 0.4 percent lower at 2:22 p.m. in Johannesburg, compared to …

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Asia Private Equity Weekly News, January 27, 2014 – Reuters

(Reuters) – News and developments in Asia private equity from Reuters News for the week ending January 24.

JANUARY 24

KKR & Co and BlackRock Inc are among leading global investors in talks to buy a stake in China Huarong Asset Management Co Ltd as the bad debt manager seeks to raise more than $2 billion, people familiar with the matter told Reuters.

GLOBAL PRIVATE equity firm Lone Star has asked banks to submit proposals for a financing to back its planned buyout of billing service provider Invoice Co Ltd, owned by MBK Partners, Basis Point reported citing banking sources.…

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Private Equity Stocks vs. BDCs: What's the Difference? – DailyFinance

Jordan Wathen

Private equity comes in many shapes and sizes, but you can divide most private equity players with a simple question: Do I own the asset, or do I own the asset manager?

Some of the largest players in private equity are Blackstone and Fortress Investment Group . Together, the two manage more than $300 billion, earning fees on every dollar plus incentive payments when they beat their benchmarks.

The difference between “PE” and BDC Business development companies, like Blackstone and Fortress, are private equity investors. However, they differ in that their shareholders are rewarded directly by private equity

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Private equity deals – The Term Sheet: Fortune’s deals Term Sheet

BC Partners and CVC Capital Partners are planning a €3.5 billion buyout bid for French catering company Elior, according to the FT. Sellers would include Charterhouse Capital Partners, Chequers Capital and Intermediate Capital Group. www.elior.fr

Berkshire Partners is in talks to acquire SRS Acquisition Corp., a McKinney, Texas-based roofing supply company, from AEA Investors, as first disclosed in an FTC filing.www.srsicorp.com

Community Intervention Services Inc., a portfolio company of H.I.G. Growth Partners, has acquired Family Behavioral Resources Inc., a Greensburg, Penn.-based provider of community-based outpatient behavioral health services. No financial terms were disclosed.www.higgrowth.com

The Hillman Cos., a portfolio …

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