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Archive for the Private Equity Category

Mergers & Acquisitions Decline -

Mergers and acquisitions declined in the second quarter and marked the first time in over a year that deal volume dropped in two straight quarters.  Two reasons for the drop in M & A activity are weak global economies and the sovereign debt crisis.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/06/24/us-deals-idUSTRE75N00V20110624

Jim Sutliff

Pandora IPO Raises $234.9 Million -

Pandora Media raised $234.9 million in an initial public offering and is listed on the New York Stock Exchange with the symbol P.  Investor demand led Pandora to increase the size of the offering by 43% last week.  Pandora sold 14.7 million shares at $16 per share.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-06-14/pandora-media-raises-234-9-million-in-ipo-after-pricing-stock-above-range.html

Jim Sutliff

Glencore Valuation -

Glencore is expected to sell a 15% to 20% stake with an estimated value of $9 to 11 billion.  Reuters reports that Barclays Capital and Credit Suisse have released valuations that place Glencore at $52.5 to $69.2 billion.  The Reuters article also released additional information about the valuations. 

To read the Reuters article, please click here:

http://www.reuters.com/article/2011/04/16/us-glencore-valuation-idUSTRE73F20U20110416

Jim Sutliff

Private Equity Transparency -

Transparency in Private Equity firms has always been a concern for investors.  New leadership at three major private equity firms are attempting to address the concerns and change of image of the private equity sector.  The three private equity houses are Blackstone, PAI Partners, and 3i Group.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/04/03/us-mergers-summit-privateequity-leadersh-idUSTRE7322VK20110403

James Sutliff

Private Equity Backed IPOs -

HCA Holdings has placed private equity backed IPOs back in the spotlight.   The large initial public offering follows recent IPOs by Kinder Morgan and Nielson Holdings.  Reuters has an article on the ten largest U.S. private equity backed initial public offerings. 

To read the Reuters article, please click here:

http://www.reuters.com/article/2011/03/10/us-private-equity-ipos-idUSTRE7280O420110310

James Sutliff

Venture Capital funding -

Venture capital fundraising has been uneven in the last few years.  Accel Partners and Kleiner Perkins Caufield & Byers are two VC firms that have had success raising new funds.  The success of Facebook and Groupon has worked to their advantage in the fundraising process.  However, the economic environment and poor financial returns from previous venture capital investing has caused the number of new venture funds to decline to only 119 in 2010.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748703561604576150720188900388.html?mod=WSJ_Markets_RightMostPopular

Jim Sutliff

Private Equity Activity -

According to a private equity trade group, private equity activity significantly increased in 2010.  There was an increase in investments, exits, and deal volume.  The Private Equity Growth Capital Council announced that the index was above the 10 year moving average and at the highest level since 2007.

To read a related Wall Street Journal article, please click here:

http://blogs.wsj.com/deals/2011/02/03/more-back-patting-by-the-private-equity-industry/

James Sutliff

LinkedIn IPO -

LinkedIn is planning an initial public offering that could raise as much as $175 million.  The LinkedIn IPO may be the first in a string of social media related IPOs in the near future.  Groupon and Facebook are expected to test the IPO waters within the next two years.  In 2009, total revenue for LinkedIn was $120.1 million which is less than the amount posted for the first nine months of 2010.  In July, Tiger Global Management LLC invested $20 million at a valuation of $2 billion.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-01-28/linkedin-share-sale-may-be-first-in-wave-of-social-media-ipos.html

Jim Sutliff

Private Equity IPOs -

The IPO market is expected to pick up this year as several private equity backed companies go public.  Nielsen Holdings BV will be testing the IPO waters this week and it is a significant offering.  The last time that there was a similar wave of public offerings was from 2004 to 2006.

To read the Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748704279704576102312769390574.html?mod=WSJ_Deals_LEFTTopNews

James Sutliff

Private Deals Attract SEC -

Recent deals have caused the Securities and Exchange Commission to examine disclosure rules.  One rule requires companies with 500 or more shareholders of record to publicly disclose financial information.  Special-purpose vehicles like the one constructed in the Facebook deal are likely to be a focus of the SEC.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748704723104576062280540485652.html?mod=WSJ_hp_mostpop_read

Jim Sutliff

Buyouts -

Thomson Reuters has a site specifically for leveraged and managed buyouts.  The Buyouts site provides news and analysis on deals, data, and funds.  Upcoming buyout conferences and events are also showcased on the site.   

To visit the Buyouts site, please click here:

http://www.buyoutsnews.com/

James Sutliff

Republican Stock Market?

The sweeping victories by the Republicans may serve to keep the bulls running in the market.  The House is now solidly controlled by the Republicans and Democratic control of the Senate has been watered down a great deal.  Democrats in the Senate are likely to show caution regarding issues such as higher income and estate taxes.  The tax rate on carried interest also may be off limits to changes by the Democrats.  There are several Senate seats held by Democrats that are vulnerable in 2012 so this Congress should be much more conservative.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-11-03/republican-victory-in-u-s-midterm-elections-may-keep-bull-market-alive.html

James Sutliff

Solar Outlook -

VentureBeat has an article that discusses the outlook for the solar power sector in America.  The article provides funding statistics, public support numbers, and current production figures.  A comparison with Germany is mentioned to highlight the success that subsidies have had in the German solar market. 

To read the VentureBeat article, please click here:

http://venturebeat.com/2010/10/20/new-reports-say-american-solar-outlook-is-bright-but-germany-still-dominates/

Jim Sutliff

VC Funding Falls -

Venture Capital funding fell 7.3%  in third quarter from a year earlier.  According to a report from the National Venture Capital Association and PriceWaterhouseCoopers, firms invested $4.82 billion in the quarter.  Clean technology saw the steepest decline falling 32% from the same quarter in the previous year.  However, clean energy still received $625.2 million in funding.  The largest financing round was $106 million for Trilliant Inc. which makes software and equipment for smart grid energy networks.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-10-15/venture-capital-funding-drops-as-clean-energy-startups-attract-less-money.html

Jim Sutliff

AOL & Yahoo! -

AOL is considering making an offer for Yahoo! along with a number of private equity firms.  The interest in Yahoo! makes the firm appear to be up for grabs in a potential bidding war.  The recent departure of some senior executives at Yahoo! is another sign that the firm is in trouble. 

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748703673604575550661101743360.html?mod=WSJ_hpp_MIDDLETopStories

James Sutliff