Private Equity Growing

Despite reports of Private Equity firms under siege in the current financial markets, the sector is continuing to prove resilient. Serent Capital, a mid-market fund from San Fransisco, was able to raise $250 million last month, 25 percent above its fundraising goal of $200 million.

Posted by Jeffrey Watson, Loewen & Partners., Toronto, Canada.

Private Equity at 2006 Levels

There were 29 private-equity buyouts in Canada in the first quarter. Only nine deals disclosed their values, of which purchase prices came to $2.4 billion. That tally is consistent with performance in 2006.

Posted by Jeff Watson, Loewen & Partners.

Canada's Biggest Private Equity Deal

On Wednesday, May 28 BCE asked the Supreme Court of Canada to hear an appeal of a lower court decision that could kill its planned buyout, saying it was important to clarify rules governing corporate boards. Bondholders successfully argued before a Quebec court that the C$34.8 billion privatization of BCE would unfairly devalue their bonds. This decision imposes obligations on company directors to creditors that have never before been recognized by a court in Canada.

Posted by Jeffrey Watson, Associate at the private equity firm, Loewen & Partners.

Raising Capital - A Fresh View From Toronto

A Guest to Canadian Private Equity Blog

A warm welcome to Jeff Watson, our guest columnist. We hope Jeff will visit us on a weekly basis to give an update on what is hapening in the world of private equity. Here's what's new from Jeff Watson:

Private Equity Funds are turning their attention towards the emerging markets as the U.S. and Western Europe economies continue to withstand economic slowdowns and the global credit crunch. New York-based private equity giant Kohlberg Kravis Roberts & Co (KKR) announced this week that it will be opening an office in India by the end of this year.

KKR has a history of investing in the region, having acquired Flextronics International for $900 million in 2006, the largest ever leveraged buyout in India. Earlier this year, the private equity firm said it would invest $250 million in Bharti Infratel Ltd., India’s largest private telco firm.

That's some key note speaker at the CVCA Conference

Sometimes Private Equity people get poorly characterized as Gordon Gehko from the movie Wall Street. Remember Michael Douglas playing the smooth talking, phone throwing, "lunch is for wimps" smoothie? Oliver Stone, the director says Gehko was supposed to be the greedy, materialistic financier who the audience would vilify but instead, the character probably inspired thousands of MBAs to swerve away from careers in industry and head for Wall street instead. According to John Loewen at Loewen & Partners, "that unsettling, cartoonish image still lingers in the heads of many when thinking about private equity finance people."

But there are some private equity guys who are changing this stereotype. How? By playing in their own garage bands in public and having U2's famous lead singer - Bono - on their investment team. How can you not trust those guys?

Check out the story in the Globe & Mail. Here is their amusing description of McNamee's band:

Canada's Venture Capital & Private Equity Association is in Montreal this week for its annual conference and claiming a record number of investors will attend over three days beginning tomorrow. At the gala on Thursday evening, Roger McNamee, who is managing director and a co-founder in 2007 of Elevation Partners, is the marquee entertainment, performing with his rock band Moonalice. Mr. McNamee goes by the name Chubby Wombatt Moonalice when he's playing bass and guitar with the band. Shades of Frank D'Angelo and his Steelback beer and.Mr. McNamee's private equity fund, operating out of San Francisco and Manhattan, runs $1.9-billion (U.S.) focused on investments in media and entertainment companies. Among those on the investment team are a former Blackwater Group principal and a former CFO of Apple. Mr. McNamee is also addressing the conference as a keynote speaker.