Village.albourne.

com

The Village Voice

19th 23rd Dec 2011

Village Stories and New Features

It's Christmas.... .....yup, it's that special time of year again so we will be placing the daily headlines on ice over the holiday period, but despair not....for your favourite alternative investment news service will resume on Wednesday 28th December. The Village team wish each and every one of you a thoroughly enjoyable holiday!

New to the Library this week:

A Christmas Miscellany (Festive article by Tim Price, PFP Wealth Management) Dechert LLP Legal Update - BaFin Report Provides Guidance on Application of New Regulation on PIBs (Paper by Dechert LLP) Eurekahedge December 2011 Key Trends in European Hedge Funds - Abridged (Abstract by Eurekahedge) Eurekahedge December 2011 Hedge Fund Performance Commentary - Abridged (Abstract by Eurekahedge) Eurekahedge December 2011 Asset Flows Update - Abridged (Abstract by Eurekahedge) The Futures and Options Hedge Ratio-December Expiry (Article by Richard A D Jones, JTIM Ltd) The Accuracy of 20/20 Hindsight (Report by Christopher Cruden, Insch Capital Management AG, Purnur Schneider, Insch Quantrend Ltd) Man on the Month - November (Review by Man Group Plc)

Have a festive weekend! Party Chairman

This Week's All Industry News

19/12/2011 Lone Star $3 Billion Costs for Korea Bank Shows Foreigner Perils

From Bloomberg
Bloomberg reports: What does it cost to do deals in South Korea? For Lone Star Funds, a Dallas-based buyout firm, almost $3 billion. Lone Star, which won control of Korea Exchange Bank in 2003 when no local lenders were interested, spent more than five years entangled by courts, regulators and lawmakers as the fund incited public backlash over the profits on its investment. After it was convicted of stock manipulation and two attempts to cash out were undone by legal disputes, Lone Star agreed this month to sell its majority stake to Hana Financial Group Inc. (086790) for $3.4 billion, an almost 50 percent discount to HSBC (HSBA) Holdings Plcs offer in 2007, according to data compiled by Bloomberg.

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

This Week's Hedge Funds News

19/12/2011 Charity Benefits from Hedge Fund Profits

From The Telegraph

The Telegraph reports: The Childrens Investment (TCI) fund, run by Chris Hohn, made 78.6m in the year to February 2011 and set aside 53m for division among its members. Sloane Robinson, another London-based hedge fund, had 16 partners take home more than 1m each after the fund paid out 65.3m from its profits. About 43.7m of the total was paid to connected corporate entities. 19/12/2011 Global X Launches Greek ETF

From Financial Times

FT reports: Global X, a US-based exchange traded fund provider, last week launched an ETF linked to the Greek stock market, in spite of fears that Greece could default on its debts and leave the euro. 19/12/2011 S&P Cut Proves Absurd as Investors Prefer U.S.

From Bloomberg
Bloomberg reports: Four months after Standard & Poors stripped the U.S. of its AAA credit rating and said the worlds biggest economy was no longer the safest of borrowers, dollar- denominated financial assets are doing nothing but appreciating. Government bonds have returned 4.4 percent, the dollar has gained 8.7 percent relative to a basket of currencies, and the S&P 500 Index of stocks has rallied 1.7 percent since the U.S. was cut to AA+ from AAA on Aug. 5. The cost for the nation to borrow has fallen to record lows since S&P said the U.S. was no longer risk-free, with the average monthly yield in November on 10-year notes below 2 percent for the first time since 1950. 19/12/2011 Layoffs Hit Soros Investment Company

From Reuters
Reuters reports: Soros Fund Management, the investment company of billionaire George Soros, has laid off a handful of analysts and portfolio managers in recent months. The moves came after the New York-based fund hired a new chief investment officer, Scott Bessent, in September, and after it closed its doors to outsiders in July by reorganizing into a so-called family office to exclusively oversee the Soros family's personal fortune. 19/12/2011 Caught in a Trap UK Concerns over Fracking Prompt US Authorities to Investigate

From The Telegraph

The Telegraph reports: Such was the scale of last weeks sell-off, it sparked worries we are seeing a re-run of the events of 2008, when the global financial meltdown began. Gold was the main headline-grabber, as the safe haven metal saw a dramatic plunge in its price. On Thursday, the spot gold price dropped below its 200-day moving average, a threshold that previous slides had failed to breach for three years. Market-watchers said gold was falling through both psychological and technical barriers, as the drop triggered sell-offs by computer trading programmes. 19/12/2011 Muddy Waters for Fortress in Wake of Mudd Lawsuit

From Reuters
Reuters reports: The filing of civil fraud charges against Fortress Investment Group CEO Daniel Mudd should not have come as a big surprise to the hedge fund company, given that U.S. securities regulators informed him earlier this year he could be subject to an enforcement action. Mudd is one of six former top executives at Fannie Mae and Freddie Mac sued by the U.S. Securities and Exchange Commission on Friday, in a case stemming from the role government-sponsored mortgage firms played in the financial crisis. 20/12/2011 Hedge fund alarm bells are ringing over China

From Financial Times

Financial Times writes, the eurozones political tarantella may still be roiling global markets but some of the worlds savviest investors are already turning their attention elsewhere. It is not trips to Brussels or Frankfurt that analysts at large, secretive hedge funds are planning in the first few months of 2012, but data-gathering exercises in Shenzen and Guangzhou.

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

20/12/2011 Hedge Fund Share Restrictions Favor Managers Over Investors

From Eurasia Review

Eurasia Review reports, armed with insider knowledge, managers of share-restricted hedge funds sell off their own holdings ahead of their investors in order to avoid low returns produced by an outflow of shareholder dollars, according to a new study by researchers from Boston College and EDHEC Business School in France. The practice, known as front running, pits the interests of managers against those of investors in hedge funds where shareholder actions are limited by contract and there is scant disclosure of fund details. Managers act in advance on the information they possess, and can pass it along to preferred clients to shield them from declining returns, which the researchers say can be predicted by the flow of funds. 20/12/2011 Whatever the Strategy, Hedge Funds End 2011 With A Whimper

From Dow Jones Newswires

Dow Jones reports, no matter which road they traveled, many hedge funds hit a dead end this year, judging from performance data compiled by Dow Jones Indexes and Credit Suisse Group AG. All seven trading strategies tracked by the Dow Jones Credit Suisse "Core Hedge Fund Index" are showing losses as of Wednesday, Dec. 14, with the entire index dropping nearly 8%. Investors would have been better off in the Standard & Poor's 500-stock index, which dropped only 4% over the same period. 20/12/2011 Falcone's wireless company running out of cash

From Reuters
According to Reuters, the upstart wireless company that is being bankrolled by Philip Falcone's $5 billion Harbinger Capital Partners hedge fund could run out of money during the second quarter of 2012, according to the company's financial statement. LightSquared, which registered a $427 million net loss during the first nine months of this year, may not be able to "continue as a going concern" unless it can raise additional capital and financing, the statement reviewed by Reuters said. 20/12/2011 Unigestion Hedge Fund Chief Plans Own Hedge Fund

From FINalternatives
FINalternatives writes, Unigestion's hedge fund chief is leaving the firm to launch a hedge fund of his own. Philippe Gougenheim's tenure at Unigestion will end on Jan. 31, 2012. He joined the firm last year from Man Investments, where he was a senior portfolio manager and former chairman of its investment committee. 20/12/2011 UK pension schemes pile into hedge funds

From Financial News

Financial News reports, pension scheme money is pouring into hedge funds at a faster rate than into any other asset class, according to an annual survey by the National Association of Pension Funds. The allocation has risen from 2.6% to 4.1% over the last year. Sums managed by all NAPF final salary members total 800bn. Applying hedge fund allocations across the total suggests pension scheme investment in hedge funds has risen by 12bn, to almost 33bn. The increase has come at the expense of UK equities, where allocations fell from 17.1% to 12.2%. 20/12/2011 Hedge-Fund Refuge Sought by Traders Amid Bank Cuts: Commodities

From Bloomberg
Bloomberg writes, Damien Bombell left JPMorgan Chase & Co. (JPM) a year ago after the largest and most profitable U.S. bank shut its group trading commodities for the companys own account. Now chief investment officer of his own hedge fund, hes hiring four people before accepting money from investors next month. I cant say theres anything I miss about banking, said Bombell, who turned 40 last week and plans to have at least $200 million under management at the Strand Global Macro Fund in Zug, Switzerland. I have more freedom. 21/12/2011 Hedge fund exit requests running at seasonal norms

From Reuters
Reuters reports, more clients asked for their money back from hedge funds in December than in the rest of 2011, in line with the traditional year-end evaluation of funds' performance after a year marked by high volatility and erratic returns, data shows. The GlobeOp Forward Redemption Indicator, a monthly snapshot of clients giving notice to withdraw their cash as a percentage of GlobeOp's assets under administration, measured 4.58 percent this month, up from 3.44 percent in November. 21/12/2011 An inside look at David Einhorn's "big short"

From Reuters
Reuters reports, Hedge fund manager David Einhorn is taking an even harder line against Green Mountain Coffee Roasters, his big short trade, claiming a recent audit committee review of the accounting issues he flagged is nothing more than a

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

"whitewash." In an exclusive interview with Reuters, Einhorn said he still doubts sales figures and spending plans at the company, which saw its stock soar to $110 in August on the rapid growth of its individual coffee servings or K-cups. 21/12/2011 Feds recommend up to 6 months in jail for former hedge-fund manager Bo Brownstein

From Denver Post

Federal probation officials recommended a sentence of up to six months in jail and other penalties for former Denver hedge- fund manager Drew "Bo" Brownstein, who pleaded guilty to illegal insider trading, his attorneys said in a court filing. Brownstein's sentencing in federal district court in New York was scheduled for Tuesday but was pushed back to Jan. 4. 21/12/2011 Long/Short Equities Fund Managers Roiled By Market Volatility

From Wall Street Journal Interactive

Dow Jones reports, hedge funds that try to beat the market through buying and selling individual stocks have had such a rough go of things this year that a number of them are cutting back on their allocations. Long/short equity managers recorded the heaviest withdrawal among various hedge fund strategies so far this year, accounting for $5 billion of the $9.4 billion outflows through November, according to Eurekhedge. 21/12/2011 China hedge fund bears look good in shorts

From Reuters
Reuters reports, hedge funds betting against China have earned outsized returns this year by shorting mainly property and auto stocks and positioning their portfolios to benefit from a feared hard-landing by the world's second-biggest economy. The winners include the $1.7 billion Dragon Billion China Fund, which returned 13.5 percent up to end-October, and the $60 million Ariose China Growth Fund, which gained 35 percent, according to sources familiar with the funds' performance. 21/12/2011 Greek debt talks hit trouble as hedge fund walks out

From Reuters
Reuters reports, talks over restructuring part of Greece's massive public debt ran into trouble on Tuesday as one fund walked away from negotiations, fuelling growing doubts about whether a deal that is crucial to a new bailout agreement can be reached this year. Vega Asset Management, a Madrid-based fund, resigned from the steering committee representing private creditors negotiating a voluntary restructuring of Greek government bonds, two sources familiar with the situation said. 22/12/2011 Hedge fund may take control of hobbled Quiznos

From Denver Post

Denver Post reports, a hedge fund that holds debt in Denver-based Quiznos would take control of the struggling restaurant chain under a deal set to go before creditors before year's end, a source familiar with the deal said. Avenue Capital Group, a New York fund owned by billionaire Marc Lasry, will convert its debt and a cash investment into 70 percent ownership of Quiznos if creditors approve the agreement, the source said. If they don't, Quiznos' owners will take the privately owned company into Chapter 11 bankruptcy protection. 22/12/2011 Ex-NY expert consultant to hedge funds sentenced to 2 1/2 years in prison for insider trading

From The Washington Post

The Washington Post reports, a former hedge fund consultant was sentenced Wednesday to 2 1/2 years in prison for insider trading, a crime that a judge said seemed to be growing in prevalence despite a continual crackdown by authorities against it. U.S. District Judge Jed Rakoff noted the need for deterrence as he sentenced James Fleishman for his September conviction by a jury on insider trading charges. 22/12/2011 Ex-Bear Stearns Fund Managers Cioffi, Tannin Seek Narrowing of SEC Suit

From Bloomberg
Bloomberg reports, former Bear Stearns Cos. hedge-fund managers Ralph Cioffi and Matthew Tannin, acquitted in 2009 of criminal charges they misled investors who lost $1.6 billion, asked a federal judge to toss out part of a related civil case brought by the U.S. Securities and Exchange Commission. Cioffi and Tannin, in their request to U.S. District Judge Frederic Block in Brooklyn, New York, said they cant be sued for statements they didnt make and over so-called scheme liability. The request, made in October, was made public yesterday. 22/12/2011 Fund threatens to sue over Greek bond losses

From Financial Times

FT reports, one of the most prominent hedge funds holding Greek bonds has threatened legal action against officials negoti-

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

ating the countrys debt restructuring if losses are too deep, raising a hurdle to eurozone leaders hopes of quickly reducing the countrys debt levels. 22/12/2011 Two More Are Sentenced in Insider Trading Cases

From New York Times

The New York Times writes, a French doctor and a California sales manager on Wednesday became the latest to be sentenced after being convicted in a recent federal crackdown on insider trading at hedge funds. Dr. Yves Benhamou was sentenced to time served and three years supervised release after he cooperated with an insider-trading investigation and pleaded guilty to leaking secrets to a hedge fund manager about the biotech company Human Genome Sciences. Dr. Benhamou served as an adviser on a clinical drug trial. 22/12/2011 Hedge Fund Fraudster Pleads Guilty

From FINalternatives
FINalternatives writes, a Utah hedge fund manager has admitted to defrauding investors of more than $30 million. Thomas Repke pleaded guilty to conspiracy two weeks before his trial was to begin in Atlanta federal court. Repke and his co-conspirator, James Jeffery, were charged last December; Jeffery pleaded guilty in April. 23/12/2011 Ex-Lehman executive's hedge fund up 45 percent

From Reuters
Reuters reports, Juggernaut Asia Fund, set-up by former Lehman Brothers' managing director Yashwant Bajaj, has returned 45 percent since its August 1 launch by mainly betting on equity capital market deals and shorting companies such as scandal-hit Olympus Corp. 23/12/2011 The Lure of the Hedge Fund, Despite Poor Performance

From New York Times

The New York Times writes, the improbable must-have holding of 2012 will be hedge funds. The typical fund has lost 4 percent this year through November, according to Hedge Fund Research. But that poor performance is not deterring institutional investors. Eleven months into 2011, even the Standard & Poors 500-stock index has managed a small gain when dividends are factored in. A bond index tracked by HFR returned nearly 8 percent. The average hedge fund is a loser by comparison. 23/12/2011 Oil fund BlueGold loses focus, sinks deep into red

From Reuters
Reuters reports, respected commodities hedge fund BlueGold has veered from its energy-focused strategy, betting half its money on equities and other trades that are worrying investors as it turns in its first down year. The London-based fund, founded by former Vitol VITOLV.ULoil traders Dennis Crema and Pierre Andurand, is heading for a negative annual return, losing 34 percent through mid-December. Its asset base is down to $1.2 billion (765.35 million pounds) from $2 billion about a year ago. 23/12/2011 Hedge funds and other financial firms looking to buy MF Global customers' bankruptcy claims

From New York Post

New York Post reports, Wall Streets vultures are swooping in with offers to buy bankruptcy claims held by MFs brokerage customers. A slew of hedge funds, banks and other financial firms, including Longacre Fund Management, Elliott Management, Triax Capital Advisors and Contrarian Capital, have started contacting MF customers with offers to buy their claims for cash but at a discount to their face value, The Post has learned. 23/12/2011 Diverging fortunes predicted for hedge and private equity secondary markets

From Investment Europe

According to Investment Europe, secondary trading markets for hedge and private equity funds will be transformed in the first half of next year - but in very different ways to one another, say alternative asset trade brokers Cattegatt Capital. For hedge funds, Cattegatt estimates about $200m of stakes will enter markets by June, but the market overall will continue to shrink. Volume already declined from about $60bn since mid-2011, according to some estimates, to $20bn now, according to Cattegatt. 23/12/2011 Brevan Howard Partners Pay Declined 79% to $201 Million in Year to March

From Bloomberg
According to Bloomberg, Brevan Howard Asset Management LLP, the hedge fund founded by Alan Howard, paid its partners as much as 128.3 million pounds ($201.3 million) in the 12 months ending in March, a 79 percent drop from a year earlier as fees plunged. Fees fell to 236.8 million pounds from 736.3 million pounds, according to a Brevan Howard filing posted today at the U.K.s Companies House.

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

23/12/2011 Hedge Fund Chief Falcone Rejects an Offer to Settle by SEC

From Wall Street Journal Interactive

Wall Street Journal writes, prominent hedge-fund manager Philip Falcone has rejected a Securities and Exchange Commission settlement offer that would have banned him from the securities industry and essentially ended his career, people familiar with the matter said. The move by SEC officials to reach a settlement came before an affiliate of Mr. Falcone's firm, Harbinger Capital Partners LLC, disclosed in a securities filing Dec. 9 that he and two senior executives have been warned by the SEC they could face civil-fraud charges.

This Week's Private Equity News

19/12/2011 United Biscuits split planned

From Financial Times

FT reports: The private equity owners of United Biscuits, maker of Jaffa Cakes and Hula Hoops, are planning to split the UKs biggest snack food group in two and run a staggered 2bn sale of the divisions, according to bankers. 19/12/2011 Star Capital Plans No Blohm Job Cuts, Sueddeutsche Zeitung Says

From Bloomberg
Bloomberg reports: Star Capital Partners Ltd., the British private-equity firm that has bought the civilian shipbuilding unit of ThyssenKrupp AG (TKA)s Blohm & Voss, doesnt plan any job cuts at the company, Sueddeutsche Zeitung reported today, citing Tony Mallin, Star Capitals chief executive officer. 19/12/2011 Babcock Hires Bluestone for U.S. Military Unit Sale, Times Says

From Bloomberg
Bloomberg reports: Babcock International Group Plc, which owns U.K. naval dockyards, is seeking to sell its business that manages military bases in the U.S., the Sunday Times reported, citing unidentified sources. The business could fetch as much as $150 million, with private equity firms said to be interested, the newspaper reported. 19/12/2011 Warren Hellman, U.S. investor, dead at 77

From Reuters
Reuters reports: Warren Hellman, co-founder of the private equity firm Hellman & Friedman and a prominent philanthropist, died Sunday in San Francisco of complications from leukemia. He was 77. Hellman was a star banker at Lehman Bros. and later helped build his namesake firm into one of the United States' largest private equity firms, with some $25 billion invested since launched in 1984. Its current holdings include about 20 firms, among them Getty Images, The Nielsen Company and Internet Brands. 19/12/2011 Accel Partners invests in Indian digital media company

From Reuters
Reuters reports: U.S. private equity fund Accel Partners said on Monday it had acquired a minority stake in unlisted Indian digital media and content company Trivone Digital. Details were not disclosed. Trivone will use the funds to meet capital requirements and "to grow inorganically", Accel Partners said in a statement. 19/12/2011 Private equity fund bids 2 bln SEK for Orc Group

From Reuters
Reuters reports: Private equity backed Cidron Delfi on Monday said it had launched a 2.0 billion Swedish crown ($292 million) bid for Orc Group, a provider of software and services for brokerages and traders. Cidron Delfi, indirectly owned by Nordic Capital Fund VII, said it was bidding 86 crowns per share for Orc, a 52 percent premium to the company's average share price over the last three months. 19/12/2011 Private equity fund bids 2 bln SEK for Orc Group

From Reuters
Reuters reports: Private equity backed Cidron Delfi on Monday said it had launched a 2.0 billion Swedish crown ($292 million) bid for Orc Group, a provider of software and services for brokerages and traders. Cidron Delfi, indirectly owned by Nordic Capital Fund VII, said it was bidding 86 crowns per share for Orc, a 52 percent premium to the company's average share price over the last three months.

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

19/12/2011 Nordic Capital Makes 2 Billion-Kronor Offer for Orc Group

From Bloomberg
Bloomberg reports: Nordic Capital AB, a Swedish private-equity firm, agreed to acquire Orc Group AB (ORC), sparking the biggest jump in 10 years in the shares of the Stocholm-based trading and market-making services company. Cidron Delfi Intressenter AB, owned by Nordic Capital, offered 86 kronor in cash for every Orc share, valuing the company at about 2 billion kronor ($290 million), Nordic Capital said today in a statement. Orcs board unanimously recommended the bid, which offers a premium of 52 percent compared with the past three-month average share price, it said. 20/12/2011 Romney still making millions from Bain

From Reuters
Reuters reports, republican White House hopeful Mitt Romney receives millions of dollars a year in a retirement agreement with Bain Capital, nearly 13 years after he left the private equity firm he helped start, the New York Times said on Monday. 20/12/2011 Private equity exits to end year 2011 with a weak quarter: Prequin

From Economic Times of India

The Economic Times of India reports, private equity exits are gearing for the second consecutive quarter of slump in the current three-month period ending this month, largely due to the ongoing financial uncertainty and market volatility, a report has said. According to research firm Prequin, the PE exit activities -- which allow private equity firms to sell off their investments -- are likely to decline even further in the fourth quarter of 2011, after a massive decline in the previous quarter. 20/12/2011 Miller Group takes plunge with private equity

From Financial Times

Financial Times reports, Miller Group, the privately owned housebuilding and construction business, is in the running to play a significant role in the consolidation of the sector after a 160m refinancing led by Blackstone, the US private equity group. 20/12/2011 SVG Capital Plans to Return 170 Million Pounds to its Investors

From Bloomberg
Bloomberg writes, SVG Capital Plc (SVI), the biggest backer of private equity firm Permira Advisers LLP, said it will return 170 million pounds ($264 million) to shareholders and will widen its range of investments to include other buyout firms. 20/12/2011 Henderson exits Gartmore private equity legacy

From Financial News

Financial News writes, UK fund manager Hermes has taken control of the private equity joint venture it ran with Henderson Global Investors. The deal marks the departure of another legacy asset from Henderson's takeover of fund manager Gartmore at the start of the year. Hermes GPE, a 4.8bn private markets specialist, was launched in April 2010 as a joint venture between Hermes and Gartmore. The latters stake was inherited by Henderson as part of its takeover of Gartmore in January. 20/12/2011 3i stages Brazilian investment debut

From Financial Times

FT reports, 3i, the UK private equity group, has made its first investment in Brazil with the acquisition of a stake in Blue Interactive Group, a cable television and broadband provider aiming to tap demand among the growing middle classes. 20/12/2011 Private Equity Pioneer and Philanthropist F. Warren Hellman Dies at 77

From Bloomberg
Bloomberg reports, F. Warren Hellman, a onetime president of Lehman Brothers Inc., a pioneer of the private- equity industry and a philanthropist who funded an annual music festival in San Francisco, has died. He was 77. 21/12/2011 OPTrust Private Markets lures top private equity executive

From GlobeandMail.com, Canada

The Globe and Mail reports, one of Canada's top private executives is on the move, with OPTrust Private Markets Group luring Sandra Bosela from her job as head of Edgestone Capital Partners to be the point person on the pension fund manager's search for deals.

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

21/12/2011 Nurses Accuse Equity Firm of Cutting Patient Care

From New York Times

The New York Times reports, instead of the inflatable rat that has become ho-hum at union protests in New York, a giant three-headed dog with fangs was the effigy on display as about 250 unionized nurses rallied outside the Midtown headquarters of the private equity firm Cerberus Capital Management. Last year the firm added 10 mostly Catholic community hospitals in the Boston area to its portfolio, promising to keep the same level of services or to provide even better services. But carrying signs that proclaimed Cerberus Is a Lying Dog, and that urged Get Wall Street Out of Health Care, members of the nurses union, National Nurses United, accused the firm of proving to be more like its namesake, the canine monster in Greek mythology that guarded the gates of hell. 21/12/2011 Shares up at SVG as it returns 170m

From telegraph.co.uk
The Telegraph reports, shares in SVG Capital jumped by more than 20pc to 200p on Tuesday after the listed investment firm said it would return 170m to shareholders and loosen its ties with private-equity firm Permira. SVG puts 80pc of its capital into Permira, whose fourth buyout fund made heavy writedowns in 2009 as the sector reeled from the credit crisis' impact. Permira, which has investments Hugo Boss and Valentino, has only just seen valuations on the fourth buyout fund return above par. 21/12/2011 3i Acquires Minority Stake In Brazil's Blue Interactive For BRL100M

From Wall Street Journal Interactive

Private equity investor 3i Group PLC announced Tuesday the acquisition of a minority stake of Brazil's small cable TV and broadband provider Blue Interactive Group, for 100 million Brazilian reais ($53.5 million). 21/12/2011 Archer Capital Raises $1.5 Billion for Fifth Australia Private Equity Fund

From Bloomberg
Bloomberg reports, Archer Capital, the Australian private-equity firm formed in 1996, raised A$1.5 billion ($1.5 billion) from local and international investors for its fifth fund. Archer, which has invested more than A$600 million this year, announced plans to raise the money in September, the company said today in an emailed statement. 22/12/2011 Arch Cru funds hit by private equity sell-off

From FT Adviser
FT Adviser reports, a deal struck in August to sell some of the Arch Cru assets contributed to a 20 per cent fall in NAV, the funds latest accounts show. Accounts published by Capita on December 21 show that the sale of private equity assets to the JPMorgan Private Equity investment trust (JPEL) led to a 20.3 per cent fall in the net asset value (NAV) of the Arch Cru Investment Portfolio. 22/12/2011 Private equity firm Thoma Bravo buys Telestream

From Sacramento Business Journal

The Sacramento Business Journal reports, private equity investment firm Thoma Bravo LLC entered into a definitive agreement to buy Telestream Inc., the video technology company based in Nevada City. No price is being disclosed. Telestream will continue to operate as an independent entity, and its headquarters will remain in Nevada City. 22/12/2011 Google partners with private equity giant KKR on solar projects

From Environmental Finance

Environmental Finance writes, Google and private equity firm Kohlberg Kravis Roberts (KKR) are teaming up to invest in solar power projects. The Mountain View, California-based search giant and KKR are joining forces with developer Recurrent Energy on four solar photovoltaic (PV) facilities that will provide 88MW to the Sacramento Municipal Utility District. The projects were the first to be contracted under the utility's feed-in tariff programme introduced in January 2010. 22/12/2011 Food outlets prove tasty target for private equity

From Manchester Evening News

Manchester Evening News writes, private equity houses with 'money to burn' are eyeing fast-growing restaurant and bar chains for acquisitions and mergers in 2012, a report by business advisers BDO said today. It predicts a significant increase in deals activity in the sector due to a combination of venture capital interest, thriving chains looking to cash in and banks selling repossessed assets.

Village.albourne.com

The Village Voice

19th 23rd Dec 2011

22/12/2011 Private Equity Managers Adapt to Reporting Challenges Amidst Global Investor Uncertainty

From Global Custodian Australia

GC Australia writes, with global trends pointing to private equity investors seeing challenges for funds over the next few years, Australian private equity fund managers are adapting to reporting challenges, more frequent valuations and taxation issues. In the winter 2011 Coller Capitals Global Private Equity Barometer, the firm reported that globally, the majority of investors believe refinancing the wall of buyout debt due to mature in 2013-2015 is a major risk to the industry, while half of the surveyed investors believe they have zombie funds in their portfolios situations in which private equity managers (GPs) with no prospect of earning carried interest are motivated to keep funds going for their management fees. 22/12/2011 Leonard Green Raises About $4 Billion for Private-Equity Fund

From Bloomberg
Bloomberg writes, Leonard Green & Partners LP, the buyout firm whose investments include Whole Foods Market Inc. and J. Crew Group Inc., raised about $4 billion for its sixth fund, according to two people with knowledge of the matter. The firm, based in Los Angeles, aims to complete fundraising for Green Equity Investors VI LP this month, with a formal close early next year, said one of the people, who asked not to be identified because the information is private. It started raising money this year with a goal of matching its 2007 fund at $5.3 billion and later set a cap of $6 billion. 22/12/2011 Silver Lake Founders Said to Cut Stake

From Bloomberg
Bloomberg writes, Glenn Hutchins, David Roux and Jim Davidson, who co-founded Silver Lake 13 years ago and built it into the largest technology-focused private-equity manager, will reduce their ownership as part of a broader leadership transition, according to two people briefed on the matter. Silver Lake, based in Menlo Park, California, will form a fivemember managing committee, comprised of Davidson and four younger managing directors, according to one of the people. 23/12/2011 Doss Aviation sold to private equity group

From The Gazette

The Gazette writes, Colorado Springs-based Doss Aviation has been acquired by a New York-based private equity firm that specializes in buying and growing companies in the aerospace, defense and maritime industries. J.F. Lehman & Co., headed by former Navy secretary and 9-11 Commission member John Lehman, announced Thursday that it had acquired Doss for an undisclosed price, with debt financing arranged by BNP Paribas, Abacus Financial Group LLC and Babson Capital Management LLC. 23/12/2011 CIC Takes Stake In South Africa's Shanduka Group

From Wall Street Journal Interactive

The Wall Street Journal writes, China's sovereign-wealth fund has acquired a 25% stake in South Africa's Shanduka Group, an unlisted but prominent investment holding company with interests in coal mining and other industries. China Investment Corp. paid two billion rand, or about $243 million, for the stake, Shanduka Group said in a statement Thursday. 23/12/2011 Former Lehman Team Seeking $2B for New Fund

From Bloomberg
Bloomberg reports, Trilantic Capital Partners, a private-equity firm created from Lehman Brothers Holdings Inc.s former merchant-banking unit, is seeking $2 billion for its first fund following its spinoff. Trilantic Capital Partners V (North America) LP will primarily target deals in consumer, energy and financial services, according to marketing materials dated October 2011 and obtained by Bloomberg News. The fund will make investments of $50 million to $200 million in North American companies with enterprise values as much as $1 billion, according to the materials. 23/12/2011 Lloyds sells 900m of debt

From telegraph.co.uk
According to the Telegraph, Lloyds Banking Group has sold a portfolio of debt valued at more than 900m to a US private equity firm as the state-backed lender continues to shrink its balance sheet. Lone Star said on Thursday it had bought the Project Royal debt package from Lloyds at a price that represents about a 40pc discount to the portfolio's book value. 23/12/2011 European bank retreat hits Asia private equity

From Reuters
Reuters reports, Asia's private equity firms face a shrinking pool of bank loans as European lenders pull back from the region, crimping both investments and re-financings for buyout-backed companies and adding to the list of challenges the industry will meet in 2012. In addition to tighter financing, Asia's private equity industry faces an IPO market that is virtually shut at a time when several funds are raising new money and need to exit previous investments. For further hedge fund and private equity information, news and commentary, look no further than the Village https://village.albourne.com