Bloomberg | Brief » Private Equity

Mount Kellett in Market Again With $4B New Fund

jrossa — Wed, 24 Apr 2013 18:28:44 +0000

By Sabrina Willmer

Mount Kellett Capital Management, founded by two former Goldman Sachs Group Inc. executives, plans to raise a new fund matching the $4 billion gathered in 2012 for its last global special situations vehicle, according to two people familiar with the situation.

Mount Kellett Capital Partners Fund III, which is targeting a first close in the third quarter, will make opportunistic investments across multiple strategies and geographies. The firm has selected Park Hill Group LLC as placement agent.

FDIC Rule Changes Slow CLO Spread Compression

jcrombie8 — Fri, 12 Apr 2013 14:23:25 +0000

The introduction of new FDIC regulations has slowed the tightening of spreads on Triple A rated tranches of U.S. CLOs backed by widely syndicated loans. Once investors digest the changes and recent supply is absorbed, the market may tighten to its lowest since 2008.

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KRG Pulls $1.5 Billion Fund Amid Planned Departures

mkarsh — Wed, 10 Apr 2013 18:28:09 +0000

By Sabrina Willmer

KRG Capital Partners has pulled its latest buyout vehicle from the fundraising market as three of its original five managing directors will not take part in any future funds, according to two people familiar with the situation.

Charles Hamilton, 64 years old, Christopher Lane, who is 51, and co-founder Charles Gwirtsman, 59, will leave the firm for personal reasons once KRG’s fourth fund is fully exited, according to one of the people. That is scheduled for 2017. The three will continue managing the firm’s existing funds until that time, this person said.

THE 401(K) CHALLENGE

Bloomberg Brief — Tue, 09 Apr 2013 17:22:45 +0000

Big private equity firms are working to make their products more accessible to non-accredited investors, with 401(k) plans seen as the holy grail. Here, we explore the stumbling blocks and potential solutions.

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KKR Seeks $1.5 Billion for New Energy Fund

mkarsh — Wed, 27 Mar 2013 18:54:57 +0000

By Sabrina Willmer

KKR & Co. is seeking $1.5 billion for an energy fund that will invest in oil and gas development at the asset level, according to two people with knowledge of the firm’s plans.

The New York-based firm will primarily use the KKR Energy Income & Growth for drilling partnerships with a goal of generating steady income and distributions for investors, said the people, who declined to be identified because the information isn’t public. KKR is offering a management fee discount to investors that join the first close, which is targeted for May.

TH Lee Putnam Seeks Buyer for Rest of 2000 Fund

mkarsh — Wed, 13 Mar 2013 20:56:21 +0000

TH Lee Putnam Ventures, a partnership between buyout firm Thomas H. Lee Partners LP and mutual fund manager Putnam Investments, is giving investors the option of selling their stakes in its private-equity fund raised more than a decade ago, according to two people familiar with the situation.

The New York-based firm is seeking a buyer for up to 100 percent of the limited partner interests in the $1.1 billion fund, which closed in June 2000, these people said. The fund still has five companies in its portfolio, they said. TH Lee Putnam didn’t return a phone message seeking comment. Katherine Herring, a spokeswoman for Credit Suisse Group AG, which is acting as intermediary for the deal, declined to comment.

KKR May Extend Energy Future’s Agony for Edge

arozens — Thu, 28 Feb 2013 20:21:21 +0000

The deteriorating finances of the largest leveraged buyout in history is exposing the increasingly diverging interests of its private-equity owners led by KKR & C0. and TPG Capital and the secured lenders who helped finance the $48 billion deal in 2007.

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Thoma Bravo Weighs $300M Co-Investment Fund

jrossa — Wed, 27 Feb 2013 19:19:44 +0000

By Sabrina Willmer

Thoma Bravo is weighing a co-investment vehicle that would make software investments alongside its $1.25 billion fund from last year and a possible successor fund, according to a presentation obtained by Bloomberg.

The fund, which would target $300 million, would be used when Thoma Bravo Fund X LP is unable to provide enough capital for an attractive deal, according to the presentation.

“Thoma Bravo is discussing with Fund X investors the possibility of a supplemental fund to invest alongside Fund X when additional funds are needed. Thoma Bravo is not commenting further at this time,” said Ted Lane, an outside spokesman for the firm.

Irving Place Seeks Extension, Delays Next Fund

jrossa — Wed, 13 Feb 2013 16:30:58 +0000

By Sabrina Willmer

Irving Place Capital, the former merchant banking unit of Bear Stearns Cos., is asking limited partners for permission to keep investing its $2.7 billion buyout fund, raised in 2006, for two more years.

At the same time, it will delay raising its new fund in order to generate more realizations, according to two people familiar with the situation.

Irving Place Capital Partners III LP, which has already received one extension, must stop investing this month unless investors grant it permission to continue, these people said.

Providence Loses Two More Managing Directors

mkarsh — Wed, 06 Feb 2013 23:17:28 +0000

By Sabrina Willmer

Providence Equity Partners is losing two more managing directors after several other high-level departures over the past year, according to a year-end letter viewed by Bloomberg News.

Managing directors Jesse Du Bey and Nadim Nsouli are leaving the Providence, Rhode Island-based firm to pursue other opportunities, according to the letter from the end of January, a copy of which was obtained by Bloomberg.

Providence said in the letter that it was adjusting for “departures that often occur at the start of a new fund’s investment period.” The average tenure of managing directors at the firm is 12 years, according to a person familiar. Andrew Cole, a spokesman at Sard Verbinnen & Co. based in New York, declined to comment on behalf of Providence.

Providence has been raising a fund expected to be less than half the size of the $12.1 billion prior vehicle and narrowing its focus to sectors that have driven past performance. The firm is deemphasizing information services deals, for example, this person said.

The firm, which started raising money in the first half of 2011 for Providence Equity Partners VII LP, is looking to wrap up the fund by June after receiving a six-month extension to accommodate several investors, according to the letter. The fund has closed on about $4.5 billion so far and will likely wrap up at close to $5 billion, below its original $6 billion target, according to the person.