Aug 5 (Reuters) – In three years, global private equity firm KKR & Co has provided over $1.5 billion in loans to companies in India, a business traditionally handled by state-owned and private sector banks.
Encouraged by that success, KKR – which rose to prominence with its hostile $25 billion takeover of U.S. food and tobacco giant RJR Nabisco in 1989 – plans to expand the niche business in China and across Asia.
The move by private equity into lending comes at a time when buyout deals in Asia are few and far between and as traditional banks retreat. Apollo Global Management, KKR and Olympus Capital are raising credit funds as they seek out alternative sources of income. At least $6.6 billion is being raised by 12 funds for investment in Asia, according to Private Equity International and Thomson Reuters data.
Posted in China, emerging market, Equity Markets, Finance, Opinion, Private Equity
Tagged Apollo Global Management, Asia, China, India, Kohlberg Kravis Roberts, Private Equity, Reuters, Thomson Reuters
Blackstone Group buys private equity unit
NEW YORK (AP) — Private equity firm Blackstone said Monday that it has acquired a private equity unit called Strategic Partners from Swiss banking giant Credit Suisse.
Strategic Partners buys stakes in private equity funds. It has 29 investment professionals and $10 billion in assets under management. Blackstone has about 1,780 employees, according to its latest annual report. It has about $230 billion in assets under management.
Blackstone’s decision to buy Strategic Partners was first announced in April. The terms of the deal were not disclosed.
Posted in Equity Markets, Events, Finance, Private Equity
Tagged Blackstone, Blackstone Group, Credit Suisse, New York, Private Equity, Private equity firm, Strategic Partners, Switzerland
Hedge Funds Are Sitting On $1 Trillion Of Debt
America’s largest hedge funds have $1.47 trillion in net assets and more than $1 trillion in debt, according to a new report from the Securities and Exchange Commission.
The SEC issued the report — the first of its kind — to Congress last week, according to Bloomberg.
Under Dodd-Frank, legislators directed the SEC to collect information from hedge funds and private equity firms.
The new reporting rules require hedge fund managers with more than than $1.5 billion in gross assets to file quarterly with the SEC (and for each separate fund with more than $500 million, they have to further detail leverage and risk).
Posted in Economy, Finance, Hedge Funds, Opinion
Tagged Bloomberg L.P., Dodd–Frank Wall Street Reform and Consumer Protection Act, hedge fund, Net assets, Private equity firm, U.S. Securities and Exchange Commission, United States, United States Congress
George Clooney zaps hedge fund billionaire as ‘carpetbagger’
Actor George Clooney attacked one of Wall Street’s most famous hedge fund managers, billionaire Daniel Loeb, accusing him of criticizing Hollywood studios for their business practices, while failing to understand the movie industry himself.
“(Loeb) calls himself an activist investor, and I would call him a carpetbagger, and one who is trying to spread a climate of fear that pushes studios to want to make only tent poles (big blockbuster movies),” Clooney said in an interview with the Hollywood industry web site, Deadline.com.
Sun Capital Court Ruling Threatens Structure of Private Equity
Think twice before you bet against the widows and orphans.
Last week, the United States Court of Appeals for the First Circuit issued a ruling that will make it harder for private equity funds to walk away from the unfunded pension liabilities of companies they have bought if the company goes bankrupt.
Specifically, the court ruled that one of Sun Capital’s private equity funds was “not merely a ‘passive’ investor” but actively involved in the operations of Scott Brass Inc., a portfolio company that went bankrupt in 2008. The case was brought by the New England Teamsters and Trucking Industry Pension Fund.
Venture Capital in the U.S. and Europe Compared
Following up on the European second quarter tech funding data we reported earlier in the week, we have had a look at the comparable data for the U.S. and some interesting, and stark, comparisons emerge.
While inevitably Europe does not compare favorably with the U.S. in a like-for-like comparison, there are signs that things are getting better in Europe, as we reported. Unfortunately, as the data show, while Europe is improving, the gap between Europe and the U.S. is widening.
Once again, while Dow Jones VentureSource reports on all industrial sectors, in this report we have just looked at three sectors that are the most tech heavy: business and finance, information technology and consumer services.
Posted in European economy, Finance, Opinion, Venture Capita;, Venture Capital
Tagged Business and Economy, DFJ Esprit, Dow Jones & Company, Dow Jones VentureSource, France, Simon Cook, United States, Venture Capital
Arrested analyst allegedly tipped off hedge fund to Microsoft deal
Federal authorities have arrested a financial analyst who shared inside information about a 2009 advertising deal between Microsoft and Yahoo. He allegedly got the tip from a Microsoft executive.
NEW YORK — A financial analyst provided inside information about a blockbuster deal between Microsoft and Yahoo to a portfolio manager at a hedge fund that’s become the target of a sweeping investigation, authorities said Tuesday.
Federal prosecutors in New York announced the securities-fraud charges against Sandeep Aggarwal a day after he was arrested in San Jose, Calif. There was no immediate response to a phone message left Tuesday with his attorney.
Posted in Breaking news, Equity Markets, Events, Finance
Tagged Financial analyst, insider-trading, Microsoft, New York, SAC Capital Advisors, San Jose California, tuesday, Yahoo