April 23 (Reuters) – KKR & Co LP on Thursday
reported a smaller-than-expected 4.9 percent year-on-year drop
in first-quarter profit, as proceeds from private equity asset
sales offset most credit investment losses.
KKR attributed the earnings decline to paper losses on
collateralized loan obligations and other credit investments.
The results are in sharp contrast to rival Blackstone Group LP
, which last week said its first-quarter profit doubled.
(Reuters) – Private equity firm KKR & Co LP has secured $1.7 billion for its second special situations fund, which is seeking to raise as much as $3 billion in all to invest in distressed assets, according to people familiar with the process.
The fund, dubbed KKR Special Situations Fund II, held a so-called close on that $1.7 billion last week, the people said this week. The fundraising is continuing and underscores how private equity firms have diversified beyond buying and selling companies to investing in all levels of a company’s capital structure.
(Reuters) – Carlyle Group LP has decided to liquidate the two mutual funds it launched last year, regulatory filings showed this week, as the private equity firm seeks other ways to gain more traction with so-called liquid alternative funds.
Developing mutual funds has historically been challenging for private equity firms because the average buyout fund is illiquid, with a typical life span of 10 years. But as these firms diversified into relatively more liquid alternative assets, such as credit and hedge funds, they have sought to widen their base beyond institutional investors.
(Reuters) – Vencore Inc, an information technology contractor serving U.S. intelligence agencies and the U.S. Department of Defense, is exploring a sale that could value it at around $1.5 billion, including debt, according to people familiar with the matter.
Cuts in U.S. government spending, particularly in the areas of defense and security, have hit companies that rely on government servicing contracts. A sale of Vencore could provide the latest example of the industry consolidating as a result.
April 17 (Reuters) – Vencore Inc, an information technology
contractor serving U.S. intelligence agencies and the U.S.
Department of Defense, is exploring a sale that could value it
at around $1.5 billion, including debt, according to people
familiar with the matter.
Cuts in U.S. government spending, particularly in the areas
of defense and security, have hit companies that rely on
government servicing contracts. A sale of Vencore could provide
the latest example of the industry consolidating as a result.
(Reuters) – Medical device supplier Patterson Companies Inc is looking to sell its rehabilitation supply business in a deal that could fetch between $500 million and $600 million, people familiar with the matter said on Friday.
Saint Paul, Minnesota-based Patterson has hired investment bank Bank of America Corp to assist with the potential sale, the people said, asking not be named because the matter is private.
April 16 (Reuters) – US LBM Holdings LLC, one of the
largest building materials distributors in the United States, is
exploring a sale that could value it at close to $1 billion,
including debt, people familiar with the matter said on
US LBM’s private equity owner, BlackEagle Partners LLC, has
hired Harris Williams & Co to run an auction for the company,
the people said.
(Reuters) – Halliburton Co has hired Bank of America Corp and Deutsche Bank AG to assist in the sale of two businesses that could be valued at as much as $5 billion collectively, according to people familiar with the matter.
Following its $35 billion merger agreement with Baker Hughes Inc in November, Halliburton earlier this month outlined some of the oilfield services assets it will seek to divest to alleviate regulators’ antitrust concerns.
April 16 (Reuters) – Blackstone Group LP, the world’s
largest alternative asset manager, said on Thursday that its
first-quarter profit doubled from a year ago, as strong asset
sales generated by its private equity and real estate units
brought in record cash.
For the second quarter in a row, private equity overtook
real estate as Blackstone’s biggest earnings driver, thanks to
the sale of shares in companies such as Catalent Inc,
Pinnacle Foods and Michaels Companies Inc.
April 15 (Reuters) – A consortium of private equity firm TPG
Capital LP and Chinese conglomerate Fosun International Ltd
is in the final stages of negotiations to acquire
Cirque du Soleil, according to people familiar with the matter.
TPG and Fosun have prevailed in an auction for the world’s
largest theatrical production company over a rival private
equity consortium comprising CVC Capital Partners Ltd and
Providence Equity LLC, the people said on Wednesday, confirming
an earlier report in Canadian newspaper The Globe and Mail.