Jan. 8, 2014, 7:33 AM| Comment!
Jan. 1, 2014, 8:30 AM
- With $585B of "dry powder" money to put to use in North America, private-equity firms are increasingly looking to take minority stakes in companies and partner with them rather than buy them outright.
- Carlyle (CG) and Blackstone (BX) are among those taking such an approach, with the latter this week agreeing to purchase a 13% stake in Crocs for $200M.
- The logic of the strategy is that full deals are expensive, competition for minority stakes is less, the transactions can be custom-made, and they often don't involve auctions.
- However, the story of Hicks, Muse, Tate & Furst should serve as a bit of a warning - one of the biggest P-E firms of the 1990s spent too much on telecom investments that didn't pay off, leading to its closure.
- Other P-E firms include KKR (KKR), Fortress Investment Group (FIG), BlackRock (BLK) and Apollo Global (APO).
Dec. 31, 2013, 4:49 AM
- Private-equity firms are set to return over $120B to their investors for this year, surpassing the 2012 record of $115B, Cambridge Associates estimates.
- The P-E sector has been assisted by low interest rates, which have helped P-E backed companies to sell $66.2B worth of debt in 2013 to fund dividends to their owners, up from $64.2B a year earlier.
- The Fed's easy money policies and subsequent stock boom have also been a factor, with a record 94 companies with P-E investors bringing in $33.3B in IPOs.
- The high payouts have helped buyout funds raise $143.5B in 2013, the most since 2008.
- Blackstone (BX) and KKR (KKR) are among those to have benefited, while others include Carlyle (CG), Fortress Investment Group (FIG), BlackRock (BLK) and Apollo Global (APO).
Dec. 26, 2013, 4:48 AM
- Sources say "the time has passed" that plaintiffs would have settled for $1B
- The suit alleges private-equity firms, including KKR (KKR), Bain Capital, Silver Lake Partners, Blackstone Group (BX), Carlyle Group (CG), TPG Capital, and Goldman Sachs Capital Partners (GS) agreed from 2004 through 2008 not to jump each others' signed deals.
- The PE firms have tried 10 times since the 2007 case was filed to get it tossed. Settlement talks could begin in earnest in coming months after a Nov. 3, 2014, trial date was set during a court hearing last week, sources say.
- The value of the eight buyouts in question is $170B
Dec. 24, 2013, 2:45 AM
- KKR (KKR) has raised $1.5B for its first property fund, which will invest most of its money in North America but also up to 25% in Europe.
- The establishment of KKR Real Estate Partners Americas comes two years after the private-equity firm formed a property unit in 2011, since when it has completed 14 deals. It also adds to the trend of P-E companies increasing their focus on real estate.
- "We have a very deep and robust pipeline of opportunities," said KKR's Ralph Rosenberg, although he warned that "it's harder to find things today than a year ago."
Dec. 17, 2013, 12:45 PM
Dec. 17, 2013, 9:11 AM
Dec. 17, 2013, 7:52 AM| 6 Comments
Dec. 16, 2013, 5:42 PM
Dec. 16, 2013, 5:03 PM
- The stock-for-stock acquisition in which KFN shareholders will receive 0.51 common units of KKR for each share of KFN they own values the company at $2.6B or $12.79 per share, based on today's KKR close of $25.08.
- KKR's book value is expected to growth to $9.3B from $7.2B, and book value per adjusted unit will grow to $11.34 from $10.07. The transaction is expected to be accretive to both the size of KKR's distribution per unit as well as the predictable and recurring component of future distributions. Integration risk is minimal as KFN's assets are already managed by KKR.
- The deal is currently a 35% premium to today's close for KFN and amounts to 1.15x book value.
- The boards of both companies have approved the merger.
- KFN +31%, KKR +1.7% AH
- Press release
Dec. 9, 2013, 4:15 AM
- Tyco International (TYC) has reportedly attracted initial bids from KKR (KKR) and Bain Capital for ADT Caps, its South Korean security systems unit, which is valued at around $1.6B.
- Other suitors for ADT Caps include CVC Capital Partners, Hong Kong-based Affinity Equity Partners and South Korea's MBK Partners.
- The $1.6B valuation is based on an EBITDA multiple of 10, above the 8X that other deals in the sector attracted.
Dec. 5, 2013, 7:28 AM
- KKR and the management of German car repair chain Auto-Teile Unger (think Pep Boys) have agreed to the main points of a debt-for-equity swap with the company's main creditors.
- Under the deal, ATU - majority owned by KKR - will be recapitalized with about €700M, about €100M in equity and €600M in debt. The chain will also receive a new line of credit of €75M.
- KKR's equity stake will be reduced to just a small percentage and P-E competitor Centerbridge will become majority shareholder.
Dec. 3, 2013, 1:30 PM
Nov. 29, 2013, 7:38 AM
- Reportedly the largest-ever P-E deal in India's health care sector, KKR has agreed to pay $200M for a minority stake in generic drugs maker Gland Pharma. The investment provides a slug of cash for the company plus an exit for Evolvence India Life Sciences Fund - a unit of Dubai's alternative assets manager.
- Gland is KKR's 2nd Indian investment this year and the fourth investment from its KKR Asian II Fund.
Nov. 27, 2013, 8:23 AM
- Citing the dreaded "unfavorable market sentiment" towards resource stocks, KKR's Australian mining services company Bis Industries earlier this month shut down a plan to raise as much as $465M in an IPO, reports the WSJ (a move now confirmed by the company).
- P-E firms are trying to take advantage of generally positive markets to exit Australian investments, and Bis was one of more than a dozen planned IPOs before year's end. "People are hoping the worst for mining services companies is over, but no one is really sure and that creates a pretty uncertain environment,” says Pengana Capital's Tim Schroeders. “Contractors are in oversupply, and big mining companies are seeking to cut rates on existing contracts.”
Nov. 22, 2013, 7:30 AM
- The French supplier of flooring products (the world's 3rd largest) priced at €29 each, and the amount raised could rise to as much as €531M should the underwriter greenshoe be exercised. The company has been jointly owned by KKR and the Deconinck family since 2007, and KKR will retain an 18.9% stake after the offering.
- The stock's off a bit in early trades at €27.76.
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