TODAY'S NEWS
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 January 27, 2012 - ORIX Corporate Capital announced today that Jeff Sangalis has joined its Dallas office as Managing Director of Mezzanine and Private Equity Co-Investments. “I look forward to working with a talented group of investment professionals and to expanding our business relationships and platform in support of ORIX’s growth strategy,” said Mr. Sangalis. “We offer a flexible and creative junior capital approach that will help our clients achieve their goals... Read more.
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Which States Are Best for Business? |
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 January 27, 2012 -According to a new report by the Tax Foundation, Wyoming, Florida, and Texas rank among the ten best states for taxes on business, while companies in states like New York, New Jersey, and California have a far less pleasant tax climate to deal with...Read more. |
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YESTERDAY'S HEADLINES
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January 26, 2012 - Private equity firm GenNx360 Capital Partners announced today the formation of GenNx360 India Advisors Private Limited. The new entity will operate out of two offices located in Gurgaon and Bangalore, India. "This entity in India is the next logical step in our growth strategy of building a world-class, global organization," said Jim Shepard, Managing Partner. "India has become one of the most vibrant and important finance and services hubs in the world. Our goal is to take advantage of the rich talent base in both financial and operating skills in India.... Read more.
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 January 26, 2012 -Kreos Capital has held a first close of Kreos Capital IV with commitments in excess of €120 million ($160 million). Kreos is targeting a final close of up to €200 million in 2012, enabling the team to invest in excess of €500 million over the coming five years. Kreos Capital’s 4th fund has attracted a growing list of high quality limited partners, including current LPs re-upping from previous funds and new investors, despite the recent financial market turbulence...Read more. |
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CalSTRS Investment Returns Show Slight Gains |
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.png "Up") January 26, 2012 -Investment returns for the California State Teachers’ Retirement System (CalSTRS) ended the 2011 calendar year posting a 2.3 percent gain in a year of extreme market volatility. “We continue to feel the effects of the most precarious markets in decades. Even though overall we’ve earned positive returns, the numbers reinforce the fact that CalSTRS cannot rely solely on investments to restore the fund’s long-term viability,” said CalSTRS Chief Executive Officer Jack Ehnes...Read more. |
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ARCHIVED HEADLINES |
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Our archived headlines are available to
members only. To view the entire Headline Archive click HERE.
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January 25, 2012 - Stellus Capital Management has been spun from the D. E. Shaw group and will continue its current strategies of providing secured and unsecured loans to middle market companies and private equity sponsors in a range of industries to support growth, leveraged buyouts and refinancing. “We believe the favorable supply-demand dynamics within the middle market provide attractive private credit investment opportunities,” said Dean D’Angelo, Partner and Co-Head of Private Credit, Stellus Capital Management. “The significant dry powder at private equity firms along with maturing capital structures should drive demand for middle market debt...Read more. |
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 January 25, 2012 - Mason Wells announced today that it is actively seeking to acquire food and beverage processing businesses. The firm’s search is national in scope and includes businesses outside of Mason Wells’ traditional Midwestern geographic territory. Mason Wells has food and beverage industry experience, including the recent acquisition of Eddy Packing Co., a processor of branded and private label beef, pork, and poultry products...Read more. |
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January 24, 2012 - The majority of private equity fund managers (70 percent) – regardless of fund size – expect to close only two or three deals during the next 12 months, according to the third annual PErspective private equity study by BDO USA, an accounting and consulting organization. However, that’s an increase from 2011 when nearly half (47 percent) of fund managers reported closing no new deals and another 19 percent reported closing only one new deal. Small funds – those with less than $250 million in assets under management – were the hardest hit, with 66 percent reporting they closed no new deals in 2011...Read more. |
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 January 24, 2012 -Houlihan Lokey, an international investment bank, today announced that Sean Windsor has joined the firm as a Director in the New York office and is the latest hire into the Transaction Advisory Services (TAS) practice as part of its ongoing global expansion. “Sean is a seasoned advisor with an extensive background in due diligence, identifying value drivers, and helping resolve potential obstacles critical to investment decisions. We are pleased to add him to our team as we continue to bolster our capabilities in this area,” said Sam Clark, Managing Director and Global Head of Houlihan Lokey’s TAS practice....Read more. |
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Cook M&A Appoints Jordan Benson Vice President, Business Development |
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 January 24, 2012 -Cook M&A Advisory Services has announced the appointment of Jordan Benson as Vice President, Business Development. “We finished 2011 strong, closing six transactions, and are optimistic we’ll see continued momentum in 2012. Jordan Benson brings strong credentials and shares our commitment to building long-lasting relationships, and he will be an integral part of our 2012 growth strategy,” said Arnis Kins, President of Cook M&A. Mr. Benson will be based in Cook’s Chicago headquarters...Read more. |
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January 23, 2012 - Berkery Noyes has released its 2011 Full Year Mergers and Acquisitions trend report for the Pharma & Healthcare Information and Technology Industry. The report analyzes the sector for 2011 and compares it with similar activity in 2009 and 2010. "In 2011, M&A-driven expansion of strategic healthcare technology and information platforms by major players, some private equity-backed, continued as a dominant trend," said Jeffrey Smith, Managing Director in Berkery Noyes' Healthcare and Life Sciences group. "This trend will continue in 2012, offering an active market, competitive sales processes, and excellent valuation opportunities for independently-owned companies providing software, information, data, communications and services solutions to the healthcare and life science industries...Read more. |
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CSG Partners Expands with Opening of Miami Office |
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 January 23, 2012 - CSG Partners, a boutique investment bank serving the middle-market, announces that R. Dirk Peters has joined the firm to open and manage the firm's new office in Miami. "Dirk is a talented investment banker with many years of experience working with privately-held middle-market companies. Given his background and location in South Florida, he will be an invaluable resource for CSG Partners and our middle-market clients as we continue to build out our national presence," said Larry Kaplan, the founder and Managing Director of CSG Partners...Read more. |
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January 20, 2012 - Our article yesterday “Private Equity is Not Evil” was wildly popular with our readers. Ken Spain, the Vice President of Public Affairs and Communications for the Private Equity Growth Capital Council, has provided us with some additional highlights of recent private equity coverage. Here's one from George Will that appeared in the Washington Post on December 14, 2011 -
“ Firms such as Bain are indispensable for wealth creation, which often involves taking over badly run companies, shedding dead weight and thereby liberating remaining elements that add value. The process, like surgery, can be lifesaving. And like surgery, society would rather benefit from it than watch it... Read more. |
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TODAY'S TRANSACTIONS
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Industrial Growth Partners Exits O'Brien Corporation |
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 January 27, 2012 - Industrial Growth Partners has sold its portfolio company O'Brien Corporation, a manufacturer of industrial tubing bundles and equipment enclosures, to AMETEK for approximately $175 million...Read more. |
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 January 27, 2012 - Nonni’s, a portfolio company of Wind Point Partners, has announced the acquisition of THINaddictives, a maker of specialty thin biscotti. “The acquisition of THINaddictives is consistent with our strategy to grow Nonni’s into a diversified premium snack food company by acquiring products and brands that are complementary to our core line of premium cookies,” said Mark Burgett, a managing director at Wind Point... Read more.
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YESTERDAY'S TRANSACTIONS
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 January 26, 2012 - Satori Capital, through its portfolio company Novaria Group, has acquired Fitz Manufacturing Industries, a supplier of precision aerospace components. “There is significant opportunity for Fitz to accelerate its growth plans by joining forces with Novaria,” said Earl Larkin, managing partner of Novaria Group. “The current Fitz management team, combined with our financial support, deep industry relationships, and strategic expertise, will better serve customers while preserving the culture and reputation for high quality that Fitz has built over the last 16 years.” As part of the acquisition, Fitz Manufacturing will be renamed Fitz Aerospace... Read more.
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January 26, 2012 -SquareTrade, a consumer warranty provider, today announced a $238 million growth equity investment led by Bain Capital. "We are very excited to partner with SquareTrade, which is disrupting a $20+ billion global industry with its innovative approach to warranties," said Mike Krupka, a Managing Director of Bain Capital Ventures. The investment is being made jointly by the firm's private equity and venture capital affiliates. The investment caps a successful 2011 for SquareTrade, which saw sales nearly triple year over year, and the addition of some of the largest national and global retailers who are offering the company's warranty services to their customers. SquareTrade said it expects triple-digit revenue growth again in 2012. Financial Technology Partners served as exclusive financial and strategic advisors to SquareTrade... Read more.
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ARCHIVED TRANSACTIONS
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January 25, 2012 - Norwest Equity Partners (“NEP”) announced today that it has made a significant investment in Savage Sports Corporation, a providers of outdoor sportsman products. “Savage is an industry leading, best-in-class company. Our investment will help advance global market expansion and the continued development of an innovative, diversified products platform,” said Erik Torgerson, a NEP partner and senior advisor. “The company operates within a fragmented industry, and there is significant opportunity for consolidation through add-on acquisitions in both existing and adjacent market categories...Read more. |
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January 25, 2012 -Axum Capital Partners announced today that it has acquired a controlling interest in Wild Wing Café, a 32-unit restaurant company. Edna Morris, a managing director with Axum, will become the interim chief executive officer of Wild Wing Cafe. She is a 30-year veteran of the restaurant industry, having served as president of Red Lobster and Quincy's Family Steakhouse. "Wild Wing Cafe provides Axum with a proven and well-run concept allowing for strong growth in existing and new markets," said Ms. Morris. "Our experienced management team has over 120 years of restaurant experience. With Wild Wing's broad demographic appeal, quality food and superior service, we believe that the concept will sustain and continue to strengthen its competitive position." Wild Wing Cafe founders Cecil and Dianne Crowley will retain an ownership stake in the company and will serve on the board...Read more. |
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Strength Capital Forms Arch Global Precision, Acquires Three Companies |
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 January 25, 2012 -Strength Capital Partners has closed the acquisition of Hi-Vol Products, KEO Cutters and Richards Micro-Tool by Arch Global Precision, a newly formed entity created to acquire the assets. The new platform will serve as the initial base for a national manufacturer of precision components and tools...Read more. |
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January 24, 2012 -Topspin LBO today announced that it has completed the acquisition of Stagnito Media, a business-to-business media company serving the grocery and convenience store industries. "Stagnito Media has brought a successful, new business model to the grocery and convenience store retailing market, and that has been evidenced by its rapid growth during the past couple of years," said Steve Lebowitz, Managing Director at Topspin LBO. "We especially like the way the company has developed and integrated its platform of magazines, websites, digital products, events and original research. The company is a great addition to our portfolio...Read more. |
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GTCR Acquires Dawson Insurance |
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 January 24, 2012 -AssuredPartners, a portfolio company of GTCR, closed its fourth platform acquisition with the purchase of Dawson Insurance, an insurance brokerage firm. The acquisition includes Dawson of Florida, Dawson Consulting Group, Group Benefits Agency, and Dawson Mid-Atlantic. With the addition of Dawson, AssuredPartners has become the largest middle market insurance brokerage in the state of Ohio...Read more. |
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Ontario Teachers’ Pension Plan Invests in Trion Worlds |
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 January 24, 2012 - Trion Worlds, a publisher and developer of online computer games, has completed an $85 million growth equity financing, led by Ontario Teachers’ Pension Plan and current Trion investor Bertelsmann Digital Media Investments (BDMI). “We are thrilled about entering this exciting period of growth and scale with our investors,” said Lars Buttler, Founder and CEO, Trion Worlds. “Backing from a stalwart long-term investor such as Teachers’, which has the experience and structure to support our vision, and the expanded relationship with our current stakeholder and great supporter, BDMI, is a massive endorsement for Trion...Read more. |
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Education Growth Partners Invests in eScholar |
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 January 24, 2012 - Education Growth Partners, a private equity firm focused exclusively on the education industry, announced today a significant investment in eScholar, an education data company. "The eScholar team has built the industry-leading suite of products that collects, integrates and manages the disparate data that flows through our education system, as shown by eScholar's 13 statewide implementations, including New York, North Carolina, Pennsylvania and Texas. eScholar solutions enable the application of data for evidence-based decision-making by administrators, teachers, parents and students to improve educational outcomes," said Peter Campbell, Managing Partner at EdGrowth...Read more. |
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The Riverside Company Acquires EagleOne |
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January 24, 2012 - The Riverside Company announced today that its portfolio company Express Courier has acquired EagleOne Logistics, a regional delivery service company. The acquisition allows Express Courier to enter the Texas and Oklahoma markets. “EagleOne and Express operations overlap throughout a number of key areas, so the combination improves route density and customer service while helping Express expand into new geographies and add new customers,” said Loren Schlachet, Riverside Managing Partner. “This further solidifies the company’s leadership position in same-day delivery segment throughout the Southeast while helping the company grow...Read more. |
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FEATURE ARTICLES
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Why online deal flow exchanges will never disintermediate M&A advisors |
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By: Anthony Hill, CEO, PE-Nexus
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 October 2011 - A common question I get from investment bankers when espousing the virtues of PE-Nexus is “why would I support an enterprise that threatens to take away my livelihood?” The underlying concern is that online deal flow exchanges such as PE-Nexus will become so intelligent and widely-adopted that they will disintermediate the middle-market M&A process, rendering the M&A advisor obsolete along the way (much the way travel agents were marginalized to a certain degree by online booking sites)...Read more. |
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The Top 10 Riskiest US Industries |
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 October 2011 -As the United States inches toward recovery, there are several industries that aren’t expected to improve along with the rest of the economy. Here’s a list of the top ten riskiest industries in the US... Read more.
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An Interview with John Castle |
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 October 2011 - For our continuing series of interviews with leading private equity professionals, this month Private Equity Professional Digest interviewed John K. Castle, the chairman and chief executive officer of Castle Harlan... Read more.
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Valuation Gap Surging in Middle Market |
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 August 2011 -GF Data’s Second Quarter 2011 Report reveals that the size premium – the reward in valuation for larger businesses over smaller similar ones – is now the defining dynamic in middle market M&A. The second quarter data shows unprecedented differentials in valuations based on deal size being applied to small versus large deals in the middle market, indicating the resurgence of an even more severely bifurcated market that is less accommodating to smaller transactions...Read more. |
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Become a Member - A membership is only $250 a year. For that small amount you get access to the entire website which includes our annual surveys, feature articles, news articles and transaction summaries. If you have a promo code the cost is  even less. Click on the button to the right to begin your membership.
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Patriot Capital Pros Launch Harvest Capital Credit |
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 August 26, 2011 Harvest Capital Strategies, the alternative asset management arm of JMP Group, has formed Harvest Capital Credit, a specialty finance company providing structured credit to small businesses. Richard Buckanavage, who was formerly president and chief executive officer of Patriot Capital Funding, serves as president of Harvest Capital Credit and is joined by longtime colleague Ryan Magee. Mr. Buckanavage and Mr. Magee are based in New York...Read more. |
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Top 10 Industries Set to Benefit from the Growing Hispanic Population |
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August 25, 2011- By 2016 the Hispanic demographic will comprise 18 percent of US residents and while the nation’s buying power is projected to grow 27 percent to $14.7 trillion, the Hispanic population’s buying power is forecast to grow by 48 percent to $1.6 trillion. Industry research firm IBISWorld has analyzed the Hispanic population’s contribution to numerous industries between 2011 and 2016 and identified the top 10 US industries in which Hispanic market share is growing the fastest. A link to a free copy of the IBISWorld report is available at the end of this article... Read more.
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2011 CARRIED INTEREST AND COMPENSATION SURVEY |
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By John McNulty, Publisher
May 2011 -Our fifth annual survey of carried interest and compensation for private equity funds was a huge success.
We had 272 funds participate in this year's survey, the most ever. The survey results total 38 pages with more than 200 graphs and charts on 11 types of partner and employees all arranged by fund size.
This year, for the first time, we also provide 3 year averages for compensation for all of the partner/employee classes... READ MORE. ( Membership Required) |
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A membership is only $250 a year. For that small amount you get access to the entire website which includes our annual surveys, feature articles, news articles and transaction summaries. If you have a promo code the cost is even less. Click on the button below to begin your membership.
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Best yet is to become a registered member. This gives you full access to the site. You can read our daily news items, daily deal news and our full length feature articles, use our search function and access all our industry surveys (including our annual carried interest and compensation survey) and proprietary reports on industries with transaction activity. Also included is a subscription to "Morning Coffee", our industry leading, daily and digital private equity news bulletin.
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