Greg's Feed
Oct 23, 2014

U.S. SEC official praises Blackstone decision to stop some fees

By Greg Roumeliotis

(Reuters) – A senior U.S. Securities and Exchange Commission official on Thursday urged private equity firms to follow Blackstone Group LP’s decision to stop a controversial fee practice in its portfolio companies.

The practice involves the so-called acceleration of monitoring fees, when a private equity firm receives money from its portfolio companies for consulting work it has not performed because it has divested them and no longer runs them.

Oct 23, 2014

KKR third-quarter earnings beat expectations amid surge in cash

NEW YORK (Reuters) – Private equity firm KKR & Co LP (KKR.N: Quote, Profile, Research, Stock Buzz) reported a lower-than-expected 27 percent year-on-year drop in third-quarter profit on Thursday, as its holdings appreciated more than many analysts foresaw and it generated more cash by exiting its investments.

KKR’s steep earnings drop was driven by a lower appreciation of its private equity investments compared with peers Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz) and Carlyle Group (CG.O: Quote, Profile, Research, Stock Buzz). Its private equity portfolio rose 2.2 percent in the quarter compared with a 5.9 percent increase in the third quarter of 2013.

Oct 22, 2014

Exclusive: Advent, Avista near deal for UCB’s Kremers Urban – sources

By Olivia Oran and Greg Roumeliotis

(Reuters) – A consortium of buyout firms Advent International Corp and Avista Capital Partners is in advanced talks to acquire UCB SA’s (UCB.BR: Quote, Profile, Research, Stock Buzz) U.S. generic drugs unit Kremers Urban Pharmaceuticals Inc, according to people familiar with the matter.

Advent and Avista have prevailed in an auction for Kremers Urban, which attracted interest from other private equity firms as well as specialty drugmaker Akorn Inc (AKRX.O: Quote, Profile, Research, Stock Buzz), the people said this week.

Oct 22, 2014

Advent, Avista near deal for UCB’s Kremers Urban-sources

Oct 22 (Reuters) – A consortium of buyout firms Advent
International Corp and Avista Capital Partners is in advanced
talks to acquire UCB SA’s U.S. generic drugs unit
Kremers Urban Pharmaceuticals Inc, according to people familiar
with the matter.

Advent and Avista have prevailed in an auction for Kremers
Urban, which attracted interest from other private equity firms
as well as specialty drugmaker Akorn Inc, the people
said this week.

Oct 22, 2014

Contract sterilization company Sterigenics up for sale: sources

NEW YORK (Reuters) – Sterigenics International LLC, a provider of contract sterilization services to the medical device and food industries, is exploring a sale that could value it at as much as $1.5 billion, including debt, according to people familiar with the matter.

Sterigenics’ owner, private equity firm GTCR LLC, has asked investment banks Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and Jefferies LLC to run a sale process for the company, three people said this week.

Oct 22, 2014

Exclusive: Apollo to launch new natural resources fund – sources

NEW YORK (Reuters) – Apollo Global Management LLC plans to start raising between $2 billion and $3 billion for a second natural resources private equity fund, sources familiar with the situation said, in the latest sign that the firm is doubling down on the U.S. shale boom.

Apollo’s plans for a new fund come amid a steep fall in oil prices, with Brent crude oil plunging 15 percent since the end of September to a four-year low of under $83 per barrel. The fall in oil prices could generate new opportunities for the fund to buy assets at cheaper prices, but could also eat into cushions that Apollo built into its earlier deals in the sector.

Oct 22, 2014

Apollo to launch new natural resources fund – sources

NEW YORK, Oct 22 (Reuters) – Apollo Global Management LLC
plans to start raising between $2 billion and $3 billion
for a second natural resources private equity fund, sources
familiar with the situation said, in the latest sign that the
firm is doubling down on the U.S. shale boom.

Apollo’s plans for a new fund come amid a steep fall in oil
prices, with Brent crude oil plunging 15 percent since the end
of September to a four-year low of under $83 per barrel. The
fall in oil prices could generate new opportunities for the fund
to buy assets at cheaper prices, but could also eat into
cushions that Apollo built into its earlier deals in the sector.

Oct 20, 2014

Exclusive: Vitamin Shoppe in talks to hire bank amid activist pressure – sources

By Olivia Oran and Greg Roumeliotis

(Reuters) – Vitamin Shoppe Inc (VSI.N: Quote, Profile, Research, Stock Buzz), the nutritional supplement retailer under activist shareholder pressure to consider a sale, is speaking to investment banks about hiring a financial adviser, according to people familiar with the matter.

The scope of a bank’s mandate is not yet clear, and Vitamin Shoppe may decide against such a move, the sources said on Monday. However, the talks illustrate the retailer is trying to formulate a response to requests made by some big shareholders.

Oct 16, 2014

Timken, Regal Beloit, Altra vying for Emerson power unit -sources

Oct 16 (Reuters) – Timken Co, Regal Beloit Corp
and Altra Industrial Motion Corp are among
those competing for Emerson Electric Co’s power
transmission solutions business, according to people familiar
with the matter.

Ball bearings maker Timken, electric motors manufacturer
Regal Beloit, and Altra Industrial Motion, a producer of brakes,
clutches and couplings, are through to the second round of
bidding in the auction for the unit, the people said this week.

Oct 16, 2014

Blackstone profit misses, sees chance to put more cash to work

By Greg Roumeliotis

(Reuters) – Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz), the world’s largest alternative asset manager, on Thursday reported lower-than-expected third-quarter earnings, but said it was well positioned to profit from market jitters and put more of its $42.3 billion in undrawn investor capital to work.

As markets rallied in the last few years, buyout firms have been net sellers rather than buyers, since soaring asset values generally made it more attractive to sell than to buy. A stock market plunge in the last week, however, has raised questions about whether these dynamics could shift.