DEALTALK-Regulators put chill on U.S. private-equity insurance deals
(Reuters) – With acquisitions in the U.S. financial services industry slowing to a crawl since the 2008-09 financial crisis, private equity funds have provided a rare bright spot with their pursuit of annuity portfolios that insurers have been eager to sell.
But the dealmaking may have hit a roadblock now that New York’s top financial regulator has decided to launch a review, concerned that the private equity firms are taking on too much risk – at the expense of consumers who hold the annuities.
As a consequence, some insurers are putting on hold plans to sell their businesses, while bankers and attorneys who are working on two deals nearing completion are worried that the probe could derail them completely.
Posted in Breaking news, Equity Markets, Events, Finance, Private Equity, Regulation
Tagged finance, Financial Services, insurance, New York, Private Equity, Private equity firm, Private equity fund, regulation, Reuters
DERIVATIVES: CFTC makes “significant progress” on cross-border rules
The CFTC is close to unveiling its approach to cross-border regulation of the over-the-counter derivatives market. Commissioner Mark Wetjen has signalled the agency may be ready to allow US firms operating in foreign jurisdictions to comply with local regulations instead of the US Dodd-Frank Act.
“We have made significant progress in recent weeks towards a workable cross-border framework,” Wetjen told the audience at the International Derivatives Expo in a keynote speech on Tuesday.
“I believe the CFTC should adopt interim guidance in the coming weeks and seek additional comment under an interim approach that provides legal certainty in the medium- and short-term.”
Posted in Commodities, Derivatives, Finance, Regulation
Tagged Border, CFTC, Commodity Future Trading Commission, Derivatives, Derivatives market, Dodd-Frank, Gary Gensler, Mark Wetjen, OTC, regulation
Velocity Venture Capital, NVCA, and Kauffman Kick off the 4th Year of the Entrepreneurs Showcase
SACRAMENTO, Calif.–(BUSINESS WIRE)–In collaboration with the National Venture Capital Association and the Kauffman Fellows Program, Velocity Venture Capital announced today the kick off of its fourth annual Entrepreneurs Showcase to identify and support new technology companies in the Sacramento / Northern California region. The Showcase consists of a variety of events that will take place between now and December designed to Ignite, Accelerate and Capitalize the most promising tech startups in the region — and to build a sustainable entrepreneurial ecosystem of investors, entrepreneurs and educators.
Posted in Events, Finance, Venture Capita;, Venture Capital
Tagged Business, Calif, Entrepreneur, Financial Services, Kauffman Fellows Program, National Venture Capital Association, Velocity Venture Capital, Venture Capital
Hedge Funds Aren’t Crazy About Rentech Nitrogen Partners LP (RNF) Anymore
Rentech Nitrogen Partners LP (NYSE:RNF) was in 5 hedge funds’ portfolio at the end of March. RNF shareholders have witnessed a decrease in support from the world’s most elite money managers of late. There were 7 hedge funds in our database with RNF holdings at the end of the previous quarter.
In the eyes of most market participants, hedge funds are assumed to be underperforming, old financial tools of the past. While there are more than 8000 funds in operation at the moment, we hone in on the leaders of this group, close to 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total asset base, and by paying attention to their highest performing equity investments, we have determined a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Posted in Events, Finance, Hedge Funds, Opinion
Tagged Business, funds, hedge fund, investing, New York Stock Exchange, NYSE, Renaissance Technologies, Rentech Nitrogen Partners LP
Kirk’s Cantab Hedge Fund Said to Drop 14% in June Selloff
Cantab Capital Partners LLP, a hedge-fund firm partly owned by Goldman Sachs Group Inc., has lost 14 percent in its main fund this month as bonds and currencies fell, two people familiar with the performance said.
The $4.5 billion fund, based in Cambridge, England, dropped 19 percent for the year through June 21, said the people, who asked not to be named because the firm is private. Cantab, founded in 2006 by Ewan Kirk, a former Goldman Sachs partner, has been hurt in recent days as markets tumbled after Federal Reserve Chairman Ben S. Bernanke said on June 19 that the U.S. central bank may start reducing fixed-income purchases that have helped fuel a global rally in stocks and bonds.
Posted in Events, Finance, Hedge Funds, Investment Banking
Tagged Ben Bernanke, Cambridge, Cantab, Central Bank, Chairman of the Federal Reserve, Goldman Sachs, Goldman Sachs Group, hedge fund
Private equity’s court battles
FORTUNE — A large number of private equity and venture capital firms are currently involved in litigation, some as defendants and some as plaintiffs. Four of these cases have had recent developments, so here is a quick rundown:
Dahl: This is the massive private equity bid-rigging case, which has accused 10 private equity firms of conspiring on nearly two dozen buyouts that occurred before the financial crisis. A Boston federal court judge last week rejected a motion brought by four firms – Blackstone, Carlyle, Goldman Sachs and TPG – to dismiss plaintiff claims specific to the $33 buyout of hospital chain HCA (the firms that actually bought HCA – Bain, KKR and Merrill Lynch – are no longer parties to this particular charge). The judge also has not yet ruled on a motion to dismiss the broader bid-rigging charges against the entire defendant group, although an earlier ruling suggested that he was leaning toward doing so.
Posted in Equity Markets, Events, Finance, Opinion, Private Equity, Regulation, Venture Capita;
Tagged Bid rigging, Business, court battle, Goldman Sachs, Merrill Lynch, Private Equity, TPG Capital, Venture Capital
Private Equity Finding Exits Easier Than Buyouts
Private equity is finding the egress a lot easier than the entrance.
The Blackstone Group’s sale of Vanguard Health Systems to a rival hospital chain,Tenet Healthcare, for more than $1.7 billion is the latest example of a successful cash-out. The leveraged buyout firm, led by Stephen A. Schwarzman, more than doubled its money on the deal. Finding suitable investments – and companies that will accept private equity cash – is harder.
Posted in Equity Markets, Events, Finance, Opinion, Private Equity
Tagged Blackstone Group, Leveraged Buyout, Private Equity, Stephen Schwarzman, Tenet Healthcare, TPG Capital, Vanguard Health Systems, Venture Capital