privateequity

Top stories in today’s LBO Wire:

Panelists at the Dow Jones Private Equity Analyst Outlook conference in New York on Thursday spoke of opportunity–and caution–for those considering investing in China, reports LBO Wire’s Thomas Dunford.

The speakers said to expect a mix of overly high expectations, regulatory challenges and threats from domestic corporations when making a deal in the country.

“Ten cents of every dollar we manage in private equity is in China,” said Jonathan E. Colby, a managing director with Carlyle Group. He added the Washington, D.C., firm is optimistic about China’s expected transition from an export-based to consumer-based economy.

Fund raising is expected to pick up pace this year, building on the 20% gain to roughly $122.4 billion in 2011 compared with year-earlier results. LBO Wire’s Mohammed Sergie writes that an improvement in the U.S. economic outlook “is giving private equity firms the confidence to return to their limited partners.”

Also, Global Environment Fund held a final closing on its GEF Africa Sustainable Forestry Fund at $160 million, exceeding the vehicle’s $150 million target. The U.S. firm’s fund is focused solely on sustainable forestry in sub-Saharan Africa.

(LBO Wire is a daily newsletter with comprehensive analysis of all the investments, deals, fund raisings and personnel moves involving private equity firms. For a two-week trial, click here.)

Elsewhere on the Web: The Wall Street Journal reports that public pension plans are investing more money into private equity funds, “deepening ties between government workers and an industry currently under the harsh glare of U.S. presidential politics.”

www.chinafirstcapital.com/blog

Wishing everyone a happy, healthy and prosperous Chinese New Year. This is a Dragon Year, which many consider the most auspicious in the duodecennial Chinese lunar cycle.

The vigorous dragon above is a “Kesi” embroidery from the Ming Dynasty, Wanli Emperor period.

 

-

The buy-out industry is under attack for destroying jobs. Its returns to investors are the real problem.

Yasuragi Co., Ltd., a Nagoya Exchange-listed housing renovation and sales company, announced that it approved a tender offer from an investment vechile by Advantage Partners, a major private equity firm. The TOB price is set at 627 yen, a 82.80% premium over a 3-month average. The deal size is 12.9 billion yen at most. Yasuragi will be delisted upon a successful outcome of it.

Financial reform has some in the venture investment community feeling uneasy–namely Silicon Valley Bank, which has launched a publicity campaign against a potential interpretation that could threaten investments made by “banking entities.”

Mitt Romney’s campaign for the Republican presidential nomination may be costing his private- equity backers a lot more than they bargained for.

Here’s a look at the top stories in this morning’s LBO Wire:

Buyout pros are gathering in midtown for the Dow Jones Private Equity Analyst Outlook conference to discuss what the coming year will hold. The prognosis after Day 1? It will be a “decent, slow year,” was how one private equity bigwig put it.

On the energy front, there could be an opportunity for buyout firms if natural gas producers continue their shift to developing oil and other liquids, according to one energy analyst, who noted that there could be a 10% decline in U.S. natural-gas drilling activity in the next six months.

And, just as Mitt Romney is probably tired of deflecting questions about private equity, private equity is tired of people asking about Mitt Romney. “I hadn’t really considered that it could actually get much worse,” one executive said about public scrutiny of the industry. “But here we are.”

On the deal front, Long Point Capital has made a killing on its latest exit, pulling in three times its investment through the sale of hunting rifle maker Savage Sports Corp. to Norwest Equity Partners.

(LBO Wire is a daily newsletter with comprehensive analysis of all the investments, deals, fund raisings and personnel moves involving private equity firms. For a two-week trial, click here.)

Elsewhere on the Web:

OK, just a little more Romney, just for fun: Be afraid of the prospect of a private equity president, says a Los Angeles Times column by a former Boston Consulting Group partner. And Bloomberg breaks down Romney’s big, diverse portfolio, which in addition to Bain Capital investment vehicles also includes a Goldman Sachs money-market fund and a Golden Gate Capital fund.

Axum Capital Partners, the firm co-founded by former Carolina Panther Pro Bowler Muhsin Muhammad, has acquired South Carolina sports-bar chain Wild Wing Cafe for its first deal, the Charlotte Observer reports.

NTT Communications Corp., a unit of Japan’s Nippon Telegraph and Telephone Corp, will buy a 74% stake in Indian data centre services provider Netmagic Solutions Pvt. Ltd. While financial details of the transaction were not disclosed, Telecompaper, an independent research and publishing firm focused on the telecom industry, pegged the transaction to be around 10 billion Japanese yen (Rs.642 crore). A person directly involved with the deal confirmed the transaction value. He spoke on condition of anonymity. Netmagic operates seven [...]

Ahmedabad-based National Multi Commodity Exchange (NMCE) is in talks with five private equity players and large private banks to divest part of shareholders’ equity in the exchange, to meet the regulatory guidelines before the extended deadline of March 31, 2012. Currently, the exchange has an equity share capital of Rs 19.12 crore, which, according to revised guidelines, should be raised to at least Rs 50 crore before March 31. Also, the promoters’ stake needs to be brought down to 26 [...]

IOT Infrastructure & Energy Services Ltd (IOT) announced on Monday that Rs 100 crore have been invested in the company by India Infrastructure Development Fund (IIDF), a private equity fund managed by UTI Capital. IOT is a joint venture between Indian Oil Corporation (IOC) and Oiltanking GmbH of Germany. The fresh investment will help IOT meet its capital requirements for various projects including the over 1.4 million kilolitre petroleum product facility at IOC Paradip refinery and the proposed 1.92 lakh [...]

GMR Infrastructure is understood to be giving final touches to raise close to Rs 600 crore through the private equity (PE) route to fund expansion of its highways business. Investment bankers close to the company indicate a deal is expected to be signed within three weeks. This will facilitate financial closure for the Rs 7,500-crore highway project the Bangalore-based firm won in October, for a 555-km stretch from Ahmedabad to Kishangarh, Rajasthan (about 30 km from Ajmer). The company, according [...]