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Posts Tagged ‘Private Equity’

Wall Street Wrap – Still Tough Going

March 6th, 2011 Admin No comments

Wall Street fell on Wednesday, as oil prices surged to over $112 before backing up to under $111. The weekly inventory report from the EIA showed a deep draw from storage. Citigroup (NYSE: C) gapped higher to open, as it found private equity interest for $12 billion of its leveraged loans. Morgan Stanley (NYSE: MS), coming off a tough write-up in Barron’s this past weekend, caught further negative publicity on Thursday after it announced that it was having trouble valuing some more of its assets. MS is also selling a portion of its stake in MSCI, its index group. UPS (NYSE: UPS) warned for its current quarter, based on economic softness. Boeing (NYSE: BA) said its new 787 would be delayed further. In other words, it’s still tough going out there…

Finance & Real Estate: Two-year-old Praxis Capital launches real estate investment fund

February 22nd, 2011 Admin No comments

Over the past two years, Praxis Capital, a real estate private equity investment fund, has bought and sold more than 220 single-family homes in Northern California — all distressed properties.

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Finance & Real Estate: Two-year-old Praxis Capital launches real estate investment fund

Finance & Real Estate: Two-year-old Praxis Capital launches real estate investment fund

February 22nd, 2011 Admin No comments

Over the past two years, Praxis Capital, a real estate private equity investment fund, has bought and sold more than 220 single-family homes in Northern California — all distressed properties.

Go here to see the original: 
Finance & Real Estate: Two-year-old Praxis Capital launches real estate investment fund

Duet Group targets finance gap with mezzanine fund

January 26th, 2011 Admin No comments

* Fund to target internal rate of return of 15 percent * Targets 100 million pounds in fundraising * To be first of its type quoted on London Stock Exchange LONDON, Jan 26 (Reuters) – Duet Private Equity …

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Duet Group targets finance gap with mezzanine fund

Credit: it’s what’s fueling deals

January 7th, 2011 Admin No comments

Are credit and ample liquidity (aka cheap money) the driving factors behind the recent spate of merger and buyout deals?

We asked this question back in March in a post entitled “Mergers and global liquidity”. All the usual reasons for doing deals still applied (savings, “synergies”, empire building, etc.), but it seemed that the recent upsurge in M&A and buyout deals has been fueled by something else: in a word, credit.

Well now comes news that the most recent deal binge has, in fact, been financed through easy and cheap debt.

In yesterday’s Financial Times (November 21, 2006 print edition), John Authers looked at the deals done in the previous 24 hour period and asked, “where did yesterday’s rash of deals come from? The answer is the credit market”.

Authers went on to say that because of low borrowing costs, it is now cheaper for companies to finance themselves more cheaply through debt, rather than equity. This, being opposite from the usual case where tapping the equity market is seen as a more favorable option.

A similar point was made by FT writer Christopher Brown-Humes earlier in the month. See his November 4 article, “Debt and equity markets point to continuing boom in M&A” for more.

These points were echoed in John Politi’s piece, “$75bn in 24 hours”. He noted that deals announced in the recent 24 hour period were driven partly by “the protracted availability of inexpensive debt to finance takeovers”.

We are seeing a rush of mergers and private equity deals financed largely through easily available credit and debt. As Richard Russell recently noted, this huge pool of money may not be easily available to you and me, but it is there for the big players constructing the deals.

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Hedge funds becoming mainstream

January 3rd, 2011 Admin No comments

The FT Companies & Markets section carried two articles today on the trend towards mainstream acceptance of hedge funds and private equity. I will attempt to reproduce them here.

In, “Fortress to pave way with IPO”, the FT reports that the Fortress Investment Group IPO will be the “first public listing of its kind in the US and will provide a critical test of investor appetite for publicly traded hedge funds”.

Regardless of whether investors pile into the issue or leave it alone, it seems that hedge funds and private investment groups have left a profound influence on the investment world. The groups have influenced the mainstream investment community with their strategies and philosophies.

From, “Hedges begin to blur at the edges”:

THE distinction between hedge funds and the mainstream asset management business has become increasingly “arbitrary” as the two industries converge, according to the head of Barclays Global Investors, the world’s biggest money manager.

BGI chief executive Blake Grossman told the Financial Times this week: “The notion that there is a traditional way of investing that is long only, and then there is hedge funds, is crazy. We’re seeing real convergence. We’re getting mandates to employ some degree of short selling, some degree of derivatives … If you look out five years, there will be much less of a divide between what’s considered a hedge fund and what’s considered a traditional strategy.”