Harvest private equity
China’s Bureaucracy Thwarts Private Equity Matchups
Chinese institutions have money to burn and are looking for opportunities. A new generation of domestic private-equity funds wants to channel that money into making deals.
A perfect marriage? Not while China’s regulators are officiating.
Chinese dealmakers are clamoring to raise billions of dollars for their own private equity funds, as we report today. Most operate dollar-denominated funds to attract overseas investors, who are comfortable with private equity and eager to invest in Chinese PE deals.
But domestic firms also are counting on yuan-denominated funds meant to attract local investors and help navigate China’s regulatory thicket. Investors in China have cash, thanks to a bulging trade surplus that has pushed China’s foreign exchange reserves past $1.8 trillion.
Because they are cutting deals on behalf of local investors, domestic private-equity funds face fewer bureaucratic hurdles and can invest in sectors off-limits to foreigners, like military suppliers and mainstream media. Domestic deals using domestic funds also don’t add to the capital inflows that some blame for stoking inflation in China.
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China’s Scene Lures Big Names
HONG KONG — Some of Asia’s best-connected deal makers are leaving their Wall Street perches for what they hope is the next big thing: China’s homegrown private-equity scene.
The defections from Goldman Sachs Group Inc., Merrill Lynch & Co. and others will likely intensify competition between Western investors and a new generation of mainland-run buyout funds. Overseas firms already are struggling to strike deals in China as Beijing becomes increasingly wary of foreign capital and looks for ways to keep local enterprises in Chinese hands.
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BMW, Continental, Deutsche Boerse, MAN: German Equity Preview ( Not pe or vc but i found it interesting as a way of observing foreign markets, have a look)
The following is a list of companies whose shares may have unusual price changes in Germany. Stock symbols are in parentheses, and share prices are from the previous close.
DAX Index futures expiring in September gained 18.5, or 0.3 percent, to 6,440 as of 8:17 a.m. in Frankfurt. The DAX advanced 1.8 percent to 6,382.65.
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Persystent, Lifestyle Family Fitness, lead Tampa local VC investment
Persystent Technology Corp. led the state in venture capital investment for the second quarter pulling in $11.6 million.
That’s the latest report from PricewaterhouseCoopers, the National Venture Capital Association and Thomson Reuters. It was part of seven deals in Florida in Q2, accounting for $28.6 million.
Those deals accounted for just half a percent of the total $7.4 billion in the quarter nationally, fueled mostly by the $3.9 billion in investments in California, which took more than half of the total investment dollars.
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Private-equity niche rush
Infrastructure funds draw strong demand as times get tough
THE AMOUNT of money raised for private-equity funds has been rapidly growing as investors hunt for opportunities. According to data provider Private Equity Intelligence, or Prequin, unlisted infrastructure funds valued at a total of $34.9 billion were raised in 2007, a more-than-fivefold increase from $6.6 billion raised in 2005.
So far in 2008, funds valued at $13.2 billion have been raised, and 71 funds are raising money globally, aiming for a combined total of $90.8 billion. The largest proportion is focused outside the U.S. and Europe, with 33 focused on Asia and the rest of the world. However the highest value of funds sought is in the U.S., where 15 funds are raising $34 billion.
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CDC to invest $185 mn in 6 India focused PE funds
UK-based CDC Group will invest $185 million in six India focused private equity funds, thus taking its overall commitment to such funds investing in the region to over 1 billion dollar.
By investing in growth companies, CDCs capital is able to support the growth of the private sector and foster the next generation of successful enterprise across India, creating jobs and improving the local economy, CDC Group Portfolio Director, South & South East Asia Anubha Shrivastava said.
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China-focused private equity funds raise $12 bln in Q2
Ten new China-focused private equity funds raised $12 billion in the second quarter, but poor market conditions have forced foreign funds to delay exits of their investments through IPOs and secondary offerings, consultant firm Zero2IPO said on Thursday.
The second-quarter figure is up 107.6 percent from the same period of 2007 but down nearly 40 percent from the first quarter of this year, according to the firm’s quarterly report.
Some 8.1 percent of capital raised by the 10 funds in the second quarter, or $972 million, target investments in Chinese property markets despite China’s tight monetary policy, which may hurt its real estate industry.
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Good timing always helps in investing.
But determining when a market hits bottom is particularly crucial for would-be rescuers of financial companies. A mistimed call can wipe out an investment. Efforts to get it right seem to be picking up pace.
Carlyle Group and Sageview Capital both made small investments in financial firms this week. Several funds, including Carlyle, Kohlberg Kravis Roberts and Permira, are beefing up their financial services teams. Moreover, a fund-raising push from outfits like hedge fund Paulson & Co - which has made billions on its bearish bets but is now looking for cash to invest in capital-starved financials - could hint at a shift in sentiment.
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Venture capital eyes Chinese software sector
Alibaba Group, the largest e-commerce trading company in China specializing in global trading, announced it has established the “Investors’ Alliance” in association with 20 domestic and overseas venture capital (VC) firms, targeting China’s software market, the China Business News reported today.
The alliance plans to invest 1 billion yuan ($146.41 million) within five years to cultivate China’s Software-as-a-Service (SaaS) market, and harvest more than 10 billion yuan in sales revenue. The program will also help some software developers qualify for listing.
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Private-Equity Firms, Funds Take New Look at Ailing Banks
Capital-hungry banks are suddenly attracting new interest from private-equity firms and hedge funds.
At least two private-equity firms are considering investments in BankUnited Financial Corp., based in Coral Gables, Fla., which is saddled with a large portfolio of adjustable-rate mortgages, according to people familiar with the situation. MatlinPatterson Global Advisers LLC and Kelso & Co. are conducting due diligence on BankUnited and consulting with regulators, these people said
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Blackstone buying security firm AlliedBarton
Private-equity firm Blackstone Group is buying King of Prussia-based AlliedBarton Security Services Inc., a company that employs 52,000 security guards and others in the United States.
Terms were not disclosed.
AlliedBarton, formerly SpectaGuard Inc., had revenues of $1.5 billion in 2007 and a net income of $347,000, according a regulatory filing. Before taxes, interest payments and other items, the firm earned $89.1 million.
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