News Articles

Federal investigators continue to turn up the heat on Steven Cohen’s Stamford, Connecticut-based SAC Capital Advisors. According to a new report, three executives at the heavily scrutinized hedge fund firm have received subpoenas from the government.

Moore, Tudor, Caxton and others are among the big-name managers mounting a comeback this year.

Four in every five investors intend to maintain or increase their exposure to private equity throughout this year, but LPs are becoming more selective about the types of funds they commit to, according to Preqin. 

Property debt funds are stepping in to replace banks as a source of lending, but real estate experts say the process is still at a very early stage of development.

A survey of seventy investors by data firm Preqin has found that 80% plan to maintain or increase their allocations to alternative assets during 2013, with 50% proactive in sourcing investment opportunities.

Institutional investors remain bullish on alternatives, according to the latest data from Preqin, with most planning to maintain or increase their allocations to hedge funds, private equity, real estate and infrastructure in 2013.

At least 80 percent of investors in each of the alternative asset classes would maintain or enhance their allocations during 2013, according to Preqin’s report.

Institutional investors expect to maintain their exposure to alternative assets, such as hedge funds, a couple of different surveys find; but their role is changing.

Morgan Stanley’s infrastructure investment unit plans to seek $4 billion for a second global fund, according to two people with knowledge of the matter.

Just 12% of funds closed in 2012 secured over 75% of their target capital by the time they reached a first close, compared to 33% of funds that held a final close in 2006.

BlackRock, the world’s largest asset manager, has agreed to buy private equity real estate firm MGPA in a deal that will nearly double its property assets under management and expand its real estate investment division in Asia and Europe.

Blackstone is leading a $664m buyout bid for a Nasdaq-listed Chinese computer services and software company, the latest in a string of deals to delist mainland groups after they were roundly abandoned by US investors.

Middle East sovereign wealth funds are boosting their investment in unlisted companies and increasingly bypassing private equity funds as they seek higher returns.

VCCircle brings to you a survey of over a dozen LPs who have an exposure to the region to understand how they view the Indian PE market currently.

Triton Partners is believed to be on the verge of holding a first and final close of its latest fund on €3.3bn.

According to data tracked by Preqin, there are currently 19 Europe-focused real estate debt funds in the market targeting commitments of €10 billion ($12.8 billion) - compared to just €2.3 billion ($2.9 billion) a year ago. The increase is driven by institutional investors' increased appetite for real estate debt, as the number of new fund searches increased significantly from a year ago. Among new fund searches in the first-quarter of 2013, 27% were targeting real estate debt funds, compared with 8% in the first quarter of 2012.

Markets abhor a vacuum and there is no shortage of asset managers and specialists trying to supplement the banks as lenders of first resort.

Historically, secondary market transactions in private equity and elsewhere have tended to equate with fire sales as one party tries to get out of a deal turned sour. But as deal flow everywhere increased in the pre-crisis boom, investor expectations changed, and 2008 changed the game again - secondary transactions are taking off. These deals are less fire sale, and more garage sale. Often, firms or investors simply want to exit an investment quickly, and without a lot of hassle. Buyers in the secondary market now find themselves with a record number of deals to choose from.

Advantage Partners is about a month away from closing an interim vehicle that will give the Japanese firm some headroom until it raises a new main fund, according to a placement agent who viewed the marketing documents and two other people with knowledge of the situation.

India managed to attract only $3.5 billion of the global $320 billion funding raised in 2012.

The headline news out of Preqin's recent Hedge Fund Spotlight was that long/short hedge funds are faring well, outperforming all other strategies in the first quarter and finding favor with more institutional investors.

KKR recently set tongues wagging when it revealed plans to market its latest global funds to retail investors. The private equity giant hired US brokerage Charles Schwab to woo those willing to invest at least $2,500 in its high-yield fund or allocate $25,000 to its distressed opportunities fund.

Private equity funds that closed in 2012 secured on average 44 per cent of their target capital by the time they held a first close, the lowest proportion in the period since 2006, according to a study by Preqin.

Private equity firms are taking longer to reach a first close and raising less capital when they do.

The first quarter of 2013 saw an aggregate USD 9.7 billion raised by six natural resources funds, according to Preqin. It was the highest quarterly amount since the peak of USD 16.6 billion seen in Q2 2009.

A loan drought has crushed the number of private equity deals signed this year, sending deal values in the sector to a three-year low, figures showed yesterday.

A significant 63% of portfolio companies purchased in 2006 and 73% purchased in 2007 have yet to be sold, as fund managers have struggled to exit companies purchased during the buy-out boom, according to Preqin.

Growing interest in the asset class helps funds to attract investor commitments.

The average holding period for private equity-backed portfolio companies increased year on year between 2008 and 2012, according to research carried out by Preqin.

So far, the path to a robust market for infrastructure secondary deals resembles more of a country back road than a busy superhighway.

According to Preqin, a provider of alternative assets industry data, the 2007 financial crisis has caused the holding period for private equity portfolio companies to expand significantly as funds are struggling to sell investments that were purchased at peak prices during the buyout boom.

A first close can be a very happy milestone for those on the fundraising trail. It signals investor confidence in a team; it can also provide much-needed money to invest in new deals.

Direct secondary investors are circling Asia, expecting new buying opportunities to emerge as regional funds reach maturity and general partners come under pressure to return capital to investors.

Private equity investment into China's agriculture sector sagged in 2012, but as the government vows to modernize farming methods and general demand for food rises going back to the land looks increasingly like a good bet. 

Foreign private equity firms are not able to ride the China private equity boom like they once did

Private equity firms are struggling to sell companies bought at the top of the market.

It is probably time to put to rest the question of whether, over nearly three decades, U.S. buyout shops have on average outperformed the public equity markets. They have.

It's tough out there for a rookie. Closes by first-time private equity sponsors hit a six-year low in the first quarter, so Law360 asked experts to share tips for pushing maiden funds across the finish line.

India has lost its standing as the fastest-growing private equity (PE) market in Asia, and investors expect a moderate 10-25% rise in deals in 2013, according to Bain and Co.’s India Private Equity Report 2013.

Parisian buyout house PAI Partners has wrapped up its third fund at three-times net cost after its most recent exit, making it one of Europe’s best-performing funds for its vintage.

In the wake of the Bernie Madoff scandal, investors have been shunning fledgling hedge funds, betting instead on large funds with long track records. But small funds have key advantages.

Cheap debt and easy loan terms like those available now typically set the stage for the return of the megaleveraged buyouts, but market participants are divided over what kinds of opportunities are likely to arise.

Warburg Pincus has reached a final close of $11.2 billion on its latest global fund, one of the largest private equity vehicles raised since the global financial crisis. The firm fell short of its $12 billion target – as well as the $15 billion amassed by its previous fund in 2007 – in a challenging fundraising environment.

The world's largest India-dedicated infrastructure fund, UK-based 3i, is pulling out of India and exiting all its portfolio companies as the country has failed to meet investors' expectations due to slowing growth and a volatile policy environment worsened by a depreciating currency.

A team of former buyout executives from Nordic private equity firm CapMan have become the latest group to attempt a first time fundraising effort.

Swiss fund-of-funds manager Adveq has appointed a dedicated head of its business in China, as it looks to capitalise on strong growth prospects in the country.

Fewer maiden funds reached a final close in the first quarter than any period since 2007, a reminder that the days of easy money for first-time sponsors, even those with sterling pedigrees, is long gone.

WP XI is slightly larger than Advent's latest fund, which closed with commitments of €8.5 billion last year.

Carlyle Group has sets its sights on being the only international buyout firm with a specific focus on Japan with the launch of a local 200 billion yen ($2 billion) private equity fund.

Warburg Pincus LLC has secured $11.2 billion for its latest fund, one of the largest private equity funds raised since the global financial crisis, underscoring investor demand for high-return offerings at a time of record-low interest rates.

The first close follows a successful year for F&C, which enjoyed healthy returns from a number of its co-investments.

Preqin's hedge fund performance benchmarks showed signs of improvements over March, with hedge funds posting an average return of 0.74% for the month, up from 0.14% in February. Event driven funds outperformed other strategies, with average returns of 1.27% in March. Across the first quarter, event driven funds were the top-performing strategy, posting 3.84% on average. Long/short funds also maintained their positive start to the year, with average returns of 0.79% in March. Long/short vehicles posted returns of 3.82% over the first quarter of the year, largely driven by a strong January in which the Preqin benchmark recorded returns of 2.91% across the long/short sector. With continued growth in equities markets, long bias vehicles were once again the lead contributors to this benchmark, posting 1.35% in March. 

North America is still viewed as having the best opportunities for real estate investors, a new report from Preqin says.

A glitzy Manhattan real-estate crowd gathered in March to join Barry Sternlicht, chief executive of Starwood Capital Group, at a party celebrating the launch of condo sales at the Baccarat Hotel & Residences, a new development across from the Museum of Modern Art.

US private equity giant the Carlyle Group has become the first global buyout firm for five years to launch a Japan-focused fund.

The S&P 500 and other major stock indices topped private equity performance in Preqin’s latest data.

Carlyle Group has sets its sights on being the only international buyout firm with a specific focus on Japan with the launch of a local 200 billion yen ($2 billion) private equity fund.

Prudent behaviour from insurers is leading to sales of buyout fund interests and spin-outs of fund managers.

What started as a low rumble is turning into a roar. Private equity funds, sick of sitting on their investments for years with little hope of an exit, see the pick-up in equity markets as the cue for an IPO boom. Esure, Seaworld, Pinnacle Foods and Moleskine have been floated by PE funds this year. According to Preqin data, 18 more PE backed companies have filed for an IPO, with a total value of $5bn.

Fund managers brought home $1.4billion for Africa in the first quarter of 2013, already matching 2012 year’s full-year figures, according to Preqin data.

Welcome to the era of perpetual private equity. After 14 years in PE hands, Allflex, which makes electronic tags for livestock, is being sold for $1.3 billion to another buyout house.

Two thirds of European private equity activity this year has involved one buyout house selling a company it owns to another, worrying investors that firms are just recycling deals among themselves to trigger fees.

Tata Capital, part of steel-to-software conglomerate Tata Group, has raised $600 million for a private equity fund to invest in India, in what could be one of the largest debuts by a private equity fund targeting India.

Private equity investors became a significantly more diverse group over the last year, according to Preqin data.

KKR & Co. (KKR), the private-equity firm run by Henry Kravis and George Roberts, is in discussions with former Central Intelligence Agency Director David Petraeus about a role at the company, according to a person with knowledge of the talks.

Cerberus Capital Management LP has completed fundraising for its latest flagship private equity fund, raising $2.61 billion to invest in distressed assets, two sources said, bringing the capital Cerberus has raised from investors in the last two years to over $11 billion.