Tag Archive | "private equity"

Breaking: Ex-Athletes Turned Financiers Don’t Have To Worry About Things Like Decimal Points

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But an athlete does not have to get an MBA to break into finance, said Zoia of Glocap. Athletes may appeal to banks and private equity firms, but they are hired more so for business development roles than for technical ones, said Zoia. “They’re not doing detailed financial models and really advising the nitty gritty of the deal structure,” said Zoia. [FINS]



Article courtesy of Dealbreaker

Diesel founder invests in startup incubator H-farm

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Diesel fuel for lifeWe have seen plenty of high-tech investors taking stakes in online fashion businesses, such as Atomico Ventures, the investment fund of  Skype co-founder Niklas Zennström, investing in Fashiolista, an online fashion community.

A fashion magnate investing in startups is much more unusual. Renzo Rosso, the founder of clothing company Diesel, has just taken a 20 percent stake in the startup incubator H-farm. The amount of the investment was not disclosed.

H-Farm was founded in 2005 is based in an estate in a rural area overlooking the Venice lagoon in Italy. H-farm makes seed investments in startups which then remain on the estate for up to 36 months before taking on further investment rounds. There are H-farm branches in Seattle, Mumbai and London. In its first 5 years, H-farm invested 9.5 million EUR ($13.62) in 26 startups. Another 10 million EUR ($14.33) is expected to be invested in the next 5 years.

Renzo Rosso owns not only Diesel but a plethora of other fashion labels including Marc Jacobs Men, Viktor & Rolf and Vivienne Westwood. Diesel has a turnover of $350 million per year and employs more than 1,300 people.

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Article courtesy of VentureBeat » deals

Lynn Tilton: “My Response To Forbes”

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Yesterday Forbes published an article that discussed Patriarch Partners founder Lynn Tilton telling an employee “You expect me to believe that, like I’m going to believe you’re not going to cum in my mouth,” among other anecdotes. Today Tilton has responded on her company website.

At a time when (1) the federal government is facing a monumental debt crisis and is on the brink of a shutdown, (2) unemployment in the U.S. continues to hover at around 9%, (3) the housing market continues to hemorrhage value threatening our economy and the welfare of many American homeowners, (4) we are fighting three wars, (5) there is unprecedented turmoil in the middle east, (6) Japan just suffered one of the most catastrophic natural disasters in history, and (7) the European banking system is in the midst of a meltdown (just to name a few of the important issues affecting Americans and our economy), why would Forbes devote three months and countless hours of reporting, four journalists, and at least six separate stories to a relatively obscure private equity firm owned by a self-made woman whose sole mission is turning around distressed companies on the brink of going out of business and saving jobs in this country?

If there is a reasonable explanation to this question, other than a personal vendetta against me and a misguided attempt to regain relevance through sensationalistic journalism, I’d like to know.

My Response To Forbes [Patriarch Partners via BI



Article courtesy of Dealbreaker

Epicor Zooms 11% On Private Equity Sale

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Shares of software maker Epicor Software (EPIC) are having an epic day, up $1.21, or 11%, at $12.45, after the company this morning said it would sell itself to private equity shop Apax Partners for $12.50 per share in cash, an 11% premium to Friday’s close and a 34% premium to the average 52-week closing price. The transaction is valued at $976 million.

At the same time, Epicor said it will purchase privately held Activant Solutions, a maker of software for retailers, and that Apax intends, “to combine Activant and Epicor to create one of the largest global providers of enterprise applications focused on the manufacturing, distribution, services and retail sectors.”

Epicor was one of the software M&A targets identified in the chart of M&A that I put up on Thursday, courtesy of The 451 Group.

Article courtesy of Tech Trader Daily

Protest At 299 Park Ave

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Apparently some people are of the mind that Cerberus Capital Management is racist.



Article courtesy of Dealbreaker

HP Holders Approve Whitman, 4 Others

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Hewlett-Packard‘s (HPQ) shareholders this afternoon approved changes to the company’s board proposed by chairman Ray Lane back in late January, including the Meg Whitman, former eBay (EBAY) CEO.

The five new board members are: Shumeet Banerji, CEO of Booz & Co.; Gary Reiner, former CIO of General Electric (GE); Pat Russo, former CEO of Alcatel-Lucent (ALU); and Dominique Senequier, CEO of AXA Private Equity, bringing the board total to 13.

The new appointees replace four departing board members. Lane’s decision to shake up the board had been widely regarded on the Street as a smart move following controversy about the abrupt dismissal of Mark Hurd from the CEO spot last summer, whose dismissal for violations of HP’s “standards of business conduct” was the result of an investigation overseen by HP’s board.

However, today’s replacements were not without controversy. As Ian Sherr with Dow Jones Newswires points out, Institutional Shareholder Services said that HP CEO Leo Apotheker broke the company’s own rules by participating in nominating the five, thereby calling into question their independence. ISI had petitioned shareholders to opposed the nominees.

Article courtesy of Tech Trader Daily

Movie special effects shop The Foundry is sold

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The Foundry makes digital visual effects software which has been used in motion pictures like Tron legacy 3D, Avatar, Harry Potter and many others. Private equity firm The Carlyle Group just acquired a majority stake in the Foundry from Advent Venture Partners and other stakeholders. The details of the transaction have not been made public.

Making a movie involving digital visual effects is a complicated and technically sophisticated business.  In fact, the visual rendering farms used for movies like Happy Feet or Lord of the Rings rank among the top 500 supercomputing centers in the world. Each film sequence combining live action and visual effects involves a huge number of visual elements which must be integrated into a final, polished product. The Foundry’s software creates rough combinations of these elements (a process called compositing) in a visual representation which can then be refined by dozens of artists. The video below shows some work created using Nuke, the Foundry’s core compositing product.

I talked to Mike Chalfen, a partner at Advent Venture Partners, the Foundry’s main investors about the deal. He contends that this deal is a validation of the firm’s growth investment strategy. Growth investment means investing is a business which has a proven business model and technology and is usually already profitable but wants to expand. Venture capital tends to invest in newer products and markets.

Advent only invested in the Foundry 2 years ago. Chalfen told me that the Foundry is a typical growth investment deal. The company makes a complex product which is hard to replicate and there was a pent-up sales demand which was not being satisfied. The company expanded 100 percent in 2009.

I asked Chalfen about the growth investment climate in Europe. He told me that he is feeling bullish about the tech market in Europe. It has become less important where a company is based. According to Chalfen, in the US massive companies created very rapidly but it is often easier to find truly differentiated companies in Europe. However, he is of the opinion that too many European founders here fall in love with their technology at the expense of the business aspect. European technology and American business savvy could be a match waiting to happen.

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Article courtesy of VentureBeat » deals

65 Alternative Investment Managers On Forbes Richest Billionaires List

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Paulson! Simons! Soros! Cohen! Icahn!** Tepper! The gang is all here and while making the list might be a ho-hum event for some, for others, like a guy who employs a dancing and singing pig on his household staff it’s a moment they weren’t sure was going to come, had the list been published after April 15.



Paulson Now Richest Alternatives Billionaire [FINalternatives]

**Was geting dropping to 61st place what Soros was hinting at when he said “Icahn has his own problems?



Article courtesy of Dealbreaker

Mark Your Calendars For March 17

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Subject: Dust to Diamonds event, Patriarch Partners March 17 //To: newyork@gsb.columbia.edu, privateequity@gsb.columbia.edu.//The Sanford C. Bernstein Student Leadership and Ethics Board presents: Dust to Diamonds- Lynn Tilton, CEO and Principal of Patriarch Partners, LLC.

Lynn Tilton will discuss her approach to vertically integrated private equity investment as a powerful tool for economic recovery in the US. As Founder and CEO, Ms. Tilton manages 74 companies, generating over $8 billion in annual revenues. A Columbia Business School graduate, she has been described as a “Rock Star executive”, the “Queen of Job Saving,” and was recently named “Aviation Entrepreneur of the Year” by the Living Legends of Aviation organization.

Columbia Business School, Warren Hall

Thursday, March 17, 2011

4:30 p.m. – 6:00 p.m.



Article courtesy of Dealbreaker

Libya: Loyal Goldman Sachs Asset Management Client

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Also a big fan of Citi, JPMorgan and Carlyle.

U.S. President Barack Obama’s executive order freezing $30 billion in assets of Muammar Gaddafi, his family and the Libyan government could impact several U.S. banks and private equity firms, including Goldman Sachs, Citigroup, JPMorgan Chase and the Carlyle Group. The Obama administration described it as the largest seizure of foreign funds in U.S. history.

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The secretive Libyan Investment Authority has reportedly invested hundreds of millions of dollars in Goldman Sachs Asset Management funds, including a loan fund designed to invest in new hedge funds set up by the Kuwait Investment Authority. Goldman Sachs already has a relationship with Libya — in 2008, Goldman was the first U.S. bank to get a contract with the country following the removal of sanctions, when it was hired by Libya’s central bank to provide information on its behalf to credit rating agencies. A spokesperson for Goldman Sachs did not return calls seeking comment.

Libya’s Billions Invested In US Banks, Private Equity [HP]



Article courtesy of Dealbreaker