Archive for Private Equity
Stada Board Recommends Acceptance of Improved Takeover Bid
Posted by: | CommentsLONDON — The German generic drugmaker Stada Arzneimittel said on Tuesday that its board of directors had recommended that shareholders accept a sweetened takeover bid by the private equity firms Bain Capitaland Cinven, the latest in a series of takeovers in the industry in recent years.
The deal, which valued Stada at $4.8 billion, came after a bid in June by Bain and Cinven was unable to get support from 75 percent of shareholders. The new offer has a lower threshold for acceptance: 63 percent…
Stada Board Recommends Acceptance of Improved Takeover Bid
Panoche Valley Solar Project to be Downsized
Posted by: | CommentsPanoche Valley Solar LLC, a subsidiary of Consolidated Edison Development Inc., entered into a settlement agreement with three environmental groups: the Sierra Club, Defenders of Wildlife and Santa Clara Valley Audubon Society, as well as the California Department of Fish and Wildlife (CDFW) concerning the size and location of a solar project currently underway in California’s Panoche Valley. Specifically, the agreement concerns the relocation of a portion of a contentious large solar project planned for San Benito County at a site in Imperial County close to the border of Mexico.
Brazil’s 90MW Cristalândia Wind Farm Begins Operations
Posted by: | CommentsEnel Green Power Brasil Participações (EGPB), a subsidiary of Enel, began operation of its Cristalândia wind farm. The facility has a total installed capacity of 90 megawatts and is located in the municipalities of Brumado, Rio de Contas and Dom Basilio in Brazil’s northeastern state of Bahia.
Cristalândia’s construction cost roughly $190 million and was awarded to EGPB through the Leilão de Fontes Alternativas (LFA) public renewable energy auction in April 2015. The wind project has 20-year power purchase agreements with a pool of Brazilian electricity distribution companies…
Anchor Health Buys San Diego Hospital Campus MOB
Posted by: | CommentsAnchor Health Properties acquired Fletcher Parkway Medical Center, a mission-critical, 82,024-square-foot medical office building in the San Diego suburb of La Mesa, Calif. The company purchased the fee-simple asset free and clear of existing debt from The Abbey Co. HFF represented the seller.
Located at 8881 Fletcher Parkway, just north of the Interstate 8/California 125 interchange in La Mesa, Fletcher Parkway Medical Center is adjacent to Sharp Grossmont Hospital. The class B asset was built in 1985 and is located in an area with a population of 72,293 and average household income of $75,075, according to Commercial Café…
Howard Marks Sounds the Alarm on Tech, Cryptocurrencies and Private Equity
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‘I’m going to issue a warning today,’ the billionaire says
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SoftBank fund structure is ‘questionable’; bitcoin ‘not real’
Billionaire Howard Marks, who’s warned of excessive risk in the markets for the past five years, is now sounding the alarm as hazards from red-hot tech stocks to investor confidence in SoftBank’s $100 billion fund converge.
In a 22-page memo Wednesday — longer than most of his missives to clients — the Oaktree Capital Group LLC co-chairman said he sees several phenomena that by themselves seem reasonable but together reveal markets to be heated and risky…
German Automotive Supplier to Invest $69M in SC Plant
Posted by: | CommentsIFA, a direct supplier of propshafts for passenger cars and light commercial vehicles, is constructing a new manufacturing and distribution facility in Summerville, S.C. The 234,000-square-foot development represents a $69 million investment and is projected to create approximately 120 new job.
Located at 479 Trade Center Parkway, the new facility will provide easy access to Interstate 26. The Coordinating Council for Economic Development approved a $150,000 job development credit related to this Berkeley County project…
Blackstone and CVC Bid for British Payments Processor Paysafe
Posted by: | CommentsLONDON — As more people shop online, the race is heating up to grab a slice of the infrastructure that makes e-commerce go.
Financial companies are targeting the firms that process payments over the internet, and on Friday, the private equity groups Blackstone and CVC Capital Partners teamed up to make a 2.9 billion pound, or $3.7 billion, preliminary offer for Paysafe, a British payments processor.
Paysafe is among a growing number of companies that have taken advantage of the increased prevalence of mobile payments and online shopping, jostling with traditional banks, as well as industry behemoths like PayPal…
Credit Suisse’s Once-Mighty Equities Unit Struggles Under Thiam
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Bank lost a third of its equities market share since 2015
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Executives have pledged to ‘defend and grow’ stocks business
In October 2015, Credit Suisse Group AG Chief Executive Officer Tidjane Thiam and the head of its markets unit, Timothy O’Hara, laid out their vision for a business they said would be key to overhauling one of the world’s biggest investment banks.
“Credit Suisse has consistently been a top-three trader of global stocks since 2010,” O’Hara, a 27-year veteran of the bank, told investors who had gathered in London. “It’s important to us that we invest in our content and execution capabilities to defend and grow our equities franchise.”
U.S. Stocks Climb as Earnings Season Picks Up; Health Care Gains
Posted by: | CommentsU.S. stocks climbed as corporate earnings reports pick up steam and investors assess the fallout of the Trump Administration’s embattled health-care bill.
The S&P 500 added 0.3 percent to 2,468 as of 10:10 a.m. in New York after the underlying gauge closed at a record high Tuesday. Small-cap shares rallied as the Dow Jones Industrial average was little changed…
U.S. Stocks Climb as Earnings Season Picks Up; Health Care Gains
K.K.R. Lays Out a Line of Succession, a Rare Move in Private Equity
Posted by: | CommentsFew can claim as crucial a role in creating the buyout industry as Henry R. Kravis and George R. Roberts. From a small partnership that began with just $120,000, the two created the colossus now known as Kohlberg Kravis Roberts, the firm that bought RJR Nabisco and defined an era.
Now, more than 40 years after setting up K.K.R., the two billionaire cousins have finally outlined the future of a firm where the K, the K and the R are all gone…
K.K.R. Lays Out a Line of Succession, a Rare Move in Private Equity
MedEquities Buys IN Skilled Nursing Facilities
Posted by: | CommentsMedEquities Realty Trust Inc. has executed a definitive agreement to purchase two skilled nursing facilities in Indiana from Magnolia Health Systems for $15 million in cash. The company will lease the facilities to Magnolia, pursuant to a 15-year, triple-net master lease at an initial lease rate of 9 percent, with annual escalators. The transaction is expected to close within 30 days, subject to customary closing conditions.
NKF Secures One of the Largest Industrial Sales in Pittsburgh
Posted by: | CommentsAfter leading the global marketing launch of the 3.25 million-square-foot mixed-use development in Eagan, Minn. back in June, Newmark Knight Frank secured the marketing and sale of Clinton Commerce Center I, a 297,200-square-foot industrial space located close to Pittsburgh International Airport. The company represented Clinton Center LLC. PenTrust, a local pension fund advisor, provided the financing for the project which was valued at $26.7 million.
Onyx Equities Sells 2 in New Jersey
Posted by: | CommentsIn separate transactions, Onyx Equities, a private value-add real estate investment firm, and its joint venture partners have sold two office properties in New Jersey, including one in Basking Ridge, N.J., that underwent a $40 million repositioning.
Woodbridge, N.J.-based Onyx Equities and Rubenstein Partners sold 211 Mount Airy Road in Basking Ridge, a 307,000-square-foot suburban office property, for a reported $98.5 million. The sellers did not disclose the name of the buyer, but the Wall Street Journalreported Norfolk, Va.-based Harbor Group International paid $98.5 million for the asset…
Xcel Energy Receives Approval for 1,550MW Wind Energy Plan
Posted by: | CommentsXcel Energy received approval from the Minnesota Public Utilities Commission for the largest expansion of wind energy in the upper Midwest. The North Dakota Public Service Commission will review the plan later this year.
The new energy plan consists of seven new wind farms for Iowa, Minnesota, North Dakota and South Dakota, and are slated to begin commercial operation by the end of 2020. Combined, the facilities will generate enough energy to power more than 800,000 homes, increasing Xcel Energy’s regional wind output by roughly 70 percent…
Premier Design Breaks Ground on Illinois Distribution Facility
Posted by: | CommentsPremier Design + Build Group started work at Okabe complex, a 133,951-square-foot distribution facility in Grayslake, Ill. The property will serve as the new North American headquarters for OCM Inc. and Okabe Inc. The two subsidiaries of the Japanese company Okabe Ltd. are relocating from Vernon Hills, Ill. Bridge Development Partners is the developer of the project and Cornerstone Architects is responsible for the design.
RAF Kicks Off $110M in Spec Industrial Projects
Posted by: | CommentsRAF Pacifica Group is developing three ground-up creative industrial projects in North County San Diego, totaling more than 500,000 square feet and approximately $110 million. The company recently broke ground on all three and delivery is expected in 2018.
Momentum Is Rising From the Dead, But Only for Equity Quants
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Strategy of buying stocks with best 12-month gains outperforms
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BlackRock says strength to continue despite June tech selloff
Call off the search party. Stock market momentum has been located.
As investors chasing trends across asset classes have gotten pummeled over the past few weeks, a smaller subset of asset managers has managed to thrive: market-neutral momentum equity funds. The vehicles employ a quantitative strategy where the market’s greater moves are hedged out, isolating bets around stocks that have gone up the most in the past year…
Momentum Is Rising From the Dead, But Only for Equity Quants
JLL Arranges NW Houston Industrial Lease Renewal in NW Houston
Posted by: | CommentsJLL has negotiated a 140,695-square-foot industrial lease renewal at Prologis Park–West by Northwest, 14902 Sommermeyer Street in Houston, on behalf of LSI Industries Inc., a manufacturer of LED lighting solutions.
Built in 1983, 14902 Sommermeyer Street is a 264,461-square-foot industrial building and was the second of 26 buildings completed within Prologis’ West by Northwest industrial park. The asset features front-load dock configuration, ample parking, 24-foot clear heights and convenient access to Beltway 8 and Highway 290…
Abandoned Power Plant Turns Into Solar Farm
Posted by: | CommentsBirdseye Renewable Energy joined forces with United Renewable Energy to design and construct a solar farm in Hawkins County, Tenn. The 1-megawatt solar power facility was built on the site of the abandoned Phipps Bend nuclear power plant near Surgoinsville, Tenn.
JLL Tapped to Lease Phoenix Industrial Project
Posted by: | CommentsWith Leonard Green Stake, Blackstone Harks Back to Its Roots
Posted by: | CommentsThe Blackstone Group’s diversification drive is circling home.
Over the years, the group, run by Stephen A. Schwarzman, has expanded far beyond its leveraged-buyout roots. Now it is using capital that had been focused on hedge funds to take a stake in a rival private equity firm, Leonard Green. The return comparisons are too stark to ignore.
Though it started 32 years ago as a merger advisory shop, Blackstone raised its first leveraged buyout fund soon after the October 1987 market crash. With real estate, credit and hedge funds fully in the mix, private equity now accounts for just over a quarter of the firm’s nearly $370 billion under management…
The Private Equity Firm That Quietly Profits on Top-Selling Drugs
Posted by: | CommentsCashing in on rising drug prices often unleashes an outcry from consumers and politicians.
But a little-known private equity investor, Royalty Pharma, has built an unusual investment portfolio valued at $15 billion — it buys up the rights to royalties on future drug sales — while largely avoiding public controversy. By its own count, Royalty Pharma owns partial rights to seven of the 30 top-selling drugs in the United States, including giants like Humira, the arthritis treatment that is the single biggest-selling medication in America. And its deals have been getting larger…
The Private Equity Firm That Quietly Profits on Top-Selling Drugs
Rockefeller Buys 228-Acre NJ Industrial Site
Posted by: | CommentsLincoln Equities Group and partner Real Capital Solutions just pocketed $57 million on the sale of a 228-acre industrial site in Piscataway, N.J. The partners sold the fully entitled property to The Rockefeller Group, which plans to invest as much as $250 million to develop the site.
Northwell Health Inks Lease at Greenwich Lane in NYC
Posted by: | CommentsRudin Management Co. signed a 22,000-square-foot lease with Northwell Health, New York City’s largest healthcare network at The Greenwich Lane, a 199-unit residential condominium complex jointly owned by Rudin and Eyal Ofer’s Global Holdings. The tenant will occupy space on the second and third floors, and open in 2018 a new community facility that will offer primary specialty care services to local residents.
QVC to Merge With Home Shopping Network in $2.1 Billion Deal
Posted by: | CommentsJohn C. Malone is solidifying his hold on home-shopping channels — in his own particular way.
His Liberty Interactive, which owns QVC, said on Thursday that it would combine with its longtime rival, the Home Shopping Network, in a $2.1 billion deal.
The deal will put together the two home-shopping television networks at a time of upheaval in the retail world. Amazon’s dominance in selling online has grown seemingly nonstop, while Walmart has made e-commerce a big priority with the purchases of start-ups like Jet and the clothing brand Bonobos…
QVC to Merge With Home Shopping Network in $2.1 Billion Deal
A Price for Worldpay That Will Be Hard to Process
Posted by: | CommentsWorldpay discovered on Wednesday that a couple of birds in the bush are sometimes worth a bit more than one in the hand.
A day after Worldpay, Britain’s biggest payment processor, said it had been approached by both Vantiv and JPMorgan Chase, the company agreed in principle to Vantiv’s offer of nearly $10 billion in a mix of cash and shares. That took the shine off the share price of both the buyer and its target, perhaps because the deal makes sense only with some very charitable assumptions…
A Price for Worldpay That Will Be Hard to Process
Dominion Energy Adds to Its VA Solar Portfolio
Posted by: | CommentsDominion Generation Inc., a wholly-owned subsidiary of Dominion Energy Inc., announced the acquisition of a 10-megawatt solar facility in Clarke County, Va. The project’s developer is an affiliate of Hecate Energy LLC. Moreover, the company announced its intention to purchase another 20-megawatt solar farm, the Cherrydale facility, currently under construction in Northampton County, Va., from the same developer, in the third quarter of 2017.
Apollo’s Huge Buyout Fund Provides for a Large Margin of Error
Posted by: | CommentsPrivate equity’s cup runneth over.
Apollo Global Management just accumulated the largest single pool of capital earmarked for buyouts, $23.5 billion. The haul adds to a growing stockpile of dry powder that could make outsize returns harder to come by. With yields so low across most markets, however, it should be easier to make fund investors happy.
Cash is being raised at a rate not seen since 2008. CVC Capital, based in London, raised more than $18 billion for Europe’s largest buyout vehicle earlier this year, Silver Lake pulled together $15 billion for tech deals, and Kohlberg Kravis Roberts set a record in Asia with a $9.3 billion fund while also putting the finishing touches on a $13.9 billion United States fund…
Pennsylvania Offices Trade for $23M
Posted by: | CommentsTPG Said to Target $3 Billion for Fourth Growth-Equity Fund
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Investment firm said to plan starting the fundraise this year
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Bill McGlashan-led unit got $3 billion for third fund in 2015
TPG, an investor in Uber Technologies Inc. and Airbnb Inc., is seeking $3 billion for its fourth growth-equity fund, according to people with knowledge of the matter.
The private equity firm plans to start raising money for the pool this year and is targeting the same amount it got for its third fund, which finished collecting $3 billion in 2015, said the people, who asked not to be identified because they weren’t authorized to speak publicly. TPG wants to stay at that amount even as client demand is surpassing it, one of the people said.
Is Private Equity More Sexist Than Uber?
Posted by: | CommentsDavid Bonderman Resigns From Uber Board After Sexist Remark
Posted by: | CommentsSAN FRANCISCO — David Bonderman, an Uber board member and partner at private equity firm TPG, is resigning from the board of the ride-hailing company after he made a disparaging remark about women at an Uber meeting on Tuesday.
At an Uber staff meeting earlier in the day, Arianna Huffington, another Uber board member, said one woman on a board often leads to more women joining a board. Mr. Bonderman responded “that it’s much more likely to be more talking.”
Attendees were aghast at the exchange, and Mr. Bonderman later apologized…
David Bonderman Resigns From Uber Board After Sexist Remark
CVS Opens First Standalone Store in Colorado
Posted by: | CommentsCVS Health held the grand opening of its first standalone store in Colorado, which is the first of three locations set to open in the greater Denver area in 2017.
Located at 16920 E. Lincoln Ave. in Parker, Colo., the store will feature the retailers signature pharmacy, better-for-you food options, expanded beauty section, assortment of health and wellness products, and customer rewards. CVS recently announced the launch of 39 pharmacies within Target stores, but this is the first separate retail location…
KKR Amasses $9.3 Billion for Biggest Asian Private Fund Pool
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Latest fund comprises $800 million from KKR and employees
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Pool amassed even as number of megadeals in region falls
KKR & Co. has raised $9.3 billion for its third Asia fund, amassing the biggest ever pool by a private equity firm in the region, as the firm steps up investments in Japan.
About $800 million of the pool comes from the firm’s balance sheet and employees, the company said in a statement. The fund is 55 percent larger than its second Asia fund, which had generated a net internal rate of return of 20.6 percent as of March 31, the New York-based firm said in the statement Friday…
Morning Agenda: A Newspaper Bidding War?
Posted by: | CommentsThe business of publishing newspapers may not be the most obvious thing to set a private equity executive’s heart fluttering.
And yet Wall Street is in a bidding war for Fairfax Media, the Australian company that owns The Sydney Morning Herald and Domain, a real estate portal.
What’s the attraction?
Property. In Sydney and Melbourne, Australia’s two largest cities, prices have been in an extended surge, and investors want a piece of the action through sites like Domain…
Morning Agenda: A Newspaper Bidding War?
Private Equity Examines Its Distressed Navel
Posted by: | CommentsThere’s a fascinating exchange buried in Payless ShoeSource’s bankruptcy court documents, one that highlights the increasing ire over private equity firms’ involvement in distressed retailers.
Payless, remember, is the discount shoe retailer that became insolvent earlier this year after being the subject of a leveraged buyout in 2012. Now, suppliers and property owners that are owed money are clearly mad about how private equity firms directed Payless to borrow millions of dollars to pay themselves hefty dividends without improving the company’s viability.
These creditors want to hire an expert to evaluate how much those dividend payments ate into Payless’s value and doomed its fate…
Silver Lake Invests $400 Million in Gaming Toolmaker Unity
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Unity sees itself as key virtual-reality software developer
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Funding round values Unity Technologies at $2.6 billion
Private equity firm Silver Lake has agreed to a $400 million investment in Unity Technologies, said John Riccitiello, chief executive officer of the gaming software maker.
The investment values the San Francisco-based company, which makes development tools for video-game creators, at $2.6 billion, according to a person with knowledge of the transaction. Regulators still need to approve the deal, Riccitiello said…
Silver Lake Invests $400 Million in Gaming Toolmaker Unity
SEC Probes Rental Home Values in Private-Equity Bond Deals
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Radian’s Green River says U.S. queries broker price opinions
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Probe said to examine if industry overassessed property values
U.S. securities regulators are investigating whether bonds backed by single-family rental homes and sold by Wall Street’s biggest residential landlords used overvalued property assessments.
Radian Group Inc.’s Green River Capital unit is among companies that received a request for information from the Securities and Exchange Commission in March about broker price opinions, or BPOs, Radian said in a regulatory filing late Friday. Green River provides BPOs that are used to value real estate in bonds backed by properties…
SEC Probes Rental Home Values Backing Private-Equity Bond Deals
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Radian’s Green River says U.S. queries broker price opinions
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Probe said to question if firms’ assessments overstated values
U.S. securities regulators are investigating whether bonds backed by single-family rental homes and sold by Wall Street’s biggest residential landlords used overvalued property assessments.
Radian Group Inc.’s Green River Capital unit is one of the market participants that received a request for information from the Securities and Exchange Commission in March about broker price opinions, or BPOs, the company said in a regulatory filing late Friday. Green River provides BPOs that are used to value real estate in securitizations.
Rich Families Go Solo on Deals, Moving Away From Private Equity
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Most family offices deploying staff to evaluate transactions
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Appetite for hedge funds is down, family office survey shows
Family offices, which manage the financial and personal affairs of the wealthy, are increasingly taking stakes in companies and committing staff to such efforts rather than investing in private-equity funds.
About 81 percent of offices have at least one full-time employee sourcing and evaluating direct investments, according to an annual survey by the Family Office Exchange released Wednesday. Of the 118 offices polled, firms had an average of three employees involved in the investment process, two of whom had some responsibility for direct stakes…