Top Story
Private Equity:
Shaken, not Broken By: Douglas Warner and Michael Weisser
February 2010  This past year the private equity industry was shaken but not broken. The year began badly with the full gloom of the credit crunch with new loans virtually unavailable for acquisition financing. During the year private equity sponsors navigated, among other obstacles, difficult fundraising markets, liquidity constrained limited partners and portfolio company loan amendments, restructurings and bankruptcies. The mood brightened somewhat in the second half of the year as the primary loan market began to reopen and the rebounding equity markets facilitated portfolio company IPOs.
Certain pundits predicted that the private equity model was "broken" and that the credit crunch would irrevocably change the relationship between sponsors and their LPs and that many sponsors would be driven from the business. However, despite the credit crunch and the resultant turbulence for the private equity industry, the private equity industry survived 2009 and appears poised to continue to thrive for the foreseeable future...Read more.
(This article is premium content and is available to registered members only). |
|
|
|
Other Stories
White House Targets Captive Private Equity Firms
January 22, 2010 - Yesterday morning at the White House, President Barack Obama presented his ideas on future financial reform which may include changes that will prevent banks from operating private equity subsidiaries. In outlining his proposed changes, the President spoke of the improved strength of the financial system as compared to a year ago but he highlighted the fact that it is still operating under the same regulations that nearly led to its collapse. “These are rules that allowed firms to act contrary to the interests of customers; to conceal their exposure to debt through complex financial dealings; to benefit from taxpayer-insured deposits while making speculative investments; and to take on risks so vast that they posed threats to the entire system,” said President Obama...Read more.
2009 Carried Interest and Compensation Survey
The Private Equity Professional Digest 2009 Carried Interest and Compensation Survey was conducted from March through April 2009 and gathered data from 140 private equity funds. Approximately 70% of the funds in the survey are presently investing a fund that is less than $500 million in capital with the balance of the funds evenly split between $500 to $1 billion and greater than $1 billion. The survey results speak for themselves but one clear trend has emerged...Read more. (This article is premium content and is available to registered members only).
Non Partners Increase Share of Carried Interest
Every incoming class of private equity professionals want to know what their carry is going to be. Doling out carried interest stakes to new employees is commonplace now and it has been for quite some time. According to the most recent carried interest survey conducted by Private Equity Professional Digest, carry has become so widespread that most private equity firms give entry-level professionals a small percentage of carried interest and some even allow administrative staff to participate in the carry...Read more.
The Recessionary Fraud Double Whammy
The prospect of being on the wrong end of a fraud is an unnerving one for businesses at any time. In turbulent times like these though, the impact that a fraud may have can be far more marked than under happier economic conditions. Unfortunately, the probability of a new fraud being perpetrated — or of a longer running fraud finally coming to light — is far higher in a recessionary climate. To make matters worse, the well-intentioned cost cutting programs which many corporates are putting into place might reduce the efficiency of anti-fraud measures — just when they’re needed the most. Read more. (This article is premium content and is available to registered members only).
The Good the Bad and the Ugly: Options for Private Equity in the Current Business Downturn
Private Equity owned businesses are tripping loan covenants, being asked to inject fresh equity, and filing for bankruptcy protection in record numbers. The carnage is likely to increase as the steep falloff in business accelerates in 2009. Even now lenders are staffing up their workout groups to prepare for the onslaught, and being more aggressive with troubled businesses. In today’s adverse business environment, is there anything that can be done to prevent getting to this stage? Despite not having a magic wand to fix the economy (growth makes up for a lot of evils) and get credit flowing again, there is something proactive private equity firms can do to improve the survival odds of their portfolio companies. Address the classic leadership dilemma in a new way. Read more. (This article is premium content and is available to registered members only).
Introduction to the 2008 Marketing Best Practices - Investment Banks Survey
Editors Note: At some point or another every private equity professional has said, “I wish I knew what the banker thinking?” Well, wish no further. Private Equity Professional Digest surveyed more than 400 investment bankers to find out what’s on their minds when it comes to private equity firms, deal making and best practices. Read more. (This article is premium content and is available to registered members only)
Results of the 2008 Marketing Best Practices - Investment Banks Survey
Here are the responses to all 42 questions that the survey asked. Results are provided in a graphical format or in a PDF format as needed. Read more. (This article is premium content and is available to registered members only)
|
|
|
|
About Us
Private Equity Professional Digest is published by and for private equity investors. Our staff of experienced private equity investors has many years of direct experience in private equity.
 We know what we are writing about because we have lived what we are writing about.
This website is dedicated to advancing the success of its members by providing timely and well written editorial on the tools, techniques and best practices used in the private equity industry. We provide full length feature articles, real world private equity based case studies, daily updates on the relevant news articles of the day and a free electronic newsletter which outlines the most relevant private equity news articles from the day before. |
|
|
|
|
News to Know
For all deals from the past week please visit our trailing 4-day Deal Trax Archive 
March 10, 2010 - Yesterday we reported to you that H.I.G. Capital had acquired Albertville Quality Foods and Southern Quality Meats. Today we have learned that the seller in this transaction was Tennessee Valley Ventures (“TVV”), a lower middle-market private equity firm. The sale of both companies allowed TVV to realize a 14x multiple on invested capital over the life of the investment, including proceeds received from prior transactions... Read more.
March 10, 2010 - Business Week has an article today that casts doubt on the ability of private equity firms to invest the $500 billion in committed capital that the industry has amassed within a time frame that suits institutional investors. Here are a few quotes from the Business Week article and a link to the full article is below... Read more.
March 10, 2010 - Prestwick Partners, a middle-market investment banking firm located in Minneapolis, MN has added Lazard Middle Market veteran Erich Brelje to its investment banking staff. Mr. Brelje is now reunited with Prestwick partner David Santoni who joined the firm from Lazard Middle Market last September... Read more.
 US Companies Rapidly Expanding OverseasMarch 9, 2010 - U.S.-based companies led the world in completing merger-and-acquisition (M&A) deals with emerging or high-growth market companies in the second half of 2009, nearly tripling the number of acquisitions made by the second-ranked country, according to KPMG International's latest Emerging Markets International Acquisition Tracker study... Read more.
 Barry Freeman Joins Summer StreetMarch 9, 2010 - Summer Street Capital Partners has hired Barry Freeman as a Healthcare Advisory Partner. Mr. Freeman will be active in originating, screening, structuring and growing fund investments in the healthcare services sector... Read more.
For all articles from the past week
please visit our trailing
4-day News to Know Article Archive |
|
|
|
|
Become a Member
 Welcome to the best private equity website on the net!
There are three ways to navigate the site. You can do nothing and be an unregistered visitor. This allows you to only read our daily news items. Our site offers so much more why limit yourself to just the daily news?
A better option is to be a registered visitor. It's free and signup takes about 30 seconds. You can read our daily news items and daily deal news and use the site's search function. But that’s about all you get.
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.
If there is more than one of you interested in becoming a registered member we have great money saving group rates. If you're interested in a group membership email John@pepdigest.com and we will send you our group rates for 2009. 
|
|
|
Case Studies Wanted
We are looking for stories from our readers that we can use for our monthly “Case Studies” feature. If you have had an interesting experience (good or bad!) that you would like to share, please click HERE to go to the "Submissions" page and submit your idea. Confidentiality is always an issue with case studies. Rest assured, that we will do whatever is necessary to maintain confidentiality, including substituting the true names of companies and individuals with fictional names. |
|
|
Articles Wanted
The best source for many of our articles are our members. If you have an idea for an article click HERE to go to the "Submissions" page and submit your idea. If your topic meets our criteria we will email you back and invite you to write the article. Then we will publish it under your by-line and with your picture. 
|
|
|
|
 .. |
|
|
|
|
|
