Private Equity

State pension funds are still missing their targets by 50% despite significantly increasing their allocations to private equity...

CalPERS just hired a seasoned veteran to oversee their private equity program...

Canadian private equity is booming, helped in large part by large Canadian public pension funds, and increasingly attracting global tech leaders. Is this the beginning of a renaissance period for Canada's PE market, or a sign that an overheated and over-leveraged economy is peaking?

Is private equity less risky than public equity or is this just an illusion? What about outright manipulation in public markets? It's no wonder pension funds are fed up and shifting more assets into private markets...

More studies touting the "benefits of private equity"...

Stay tuned – the private equity trend is one to watch carefully.

The new head of the Ontario Teachers’ Pension Plan’s $10-billion private equity portfolio will have to hit the ground running when she assumes the position in mid-October.

So, Mr. Private Equity Fund Man says, "Give me $10 in order for me to lose you $8, and I'll give you $2 dollars back for your inconvenience." Am I in the wrong business or what?

All the latest M&A activity begs the question--where the heck is private equity? Can they still compete with large companies sitting on a pile of cash? If so, who will likely be the potential candidates?

It looks like private equity is emerging from the deep as investor confidence is returning, and there is increased interest in long-term asset classes. But the boom years are over, and only the strong will survive the coming shakeout in the PE industry.

According to Charlie Gasparino, Goldman Sachs may soon begin discussions on spinning off parts or the whole of its massive Private Equity arm. From Fox Business: "One of the first casualties of financial reform and its restrictions on banks’ ownership of private equity and hedge funds may soon take place at Goldman Sachs as senior executives there begin serious discussions about spinning off at least a piece of the firm’s massive private equity arm, FOX Business has learned." Intuitively this makes sense: while BHC investments in hedge fund are far more liquid, due to the very nature of the business, when it comes to the 3-7 year investment horizons for private equity, the regulatory uncertainty may be too much for PE LPs to handle, as a result reducing a firm like Goldman's competitiveness when submitting a go-private bid over competing offers (even when accounting for discount window access and zero cost of capital). "Senior executives at Goldman are worried that the mandates of financial reform, namely the so-called Volcker Rule, which severely limits how much a bank can invest in such funds, will create enormous uncertainty and prod investors to flee their investments, or prevent the firm from raising money in the future, this person said."

The Ontario Teachers' Pension Plan's £389 million deal for Britain's lottery company is a sign that private equity firms should watch out, The Wall Street Journal says. Noting that Teachers won out in a race against Europe's CVC Capital Partners, the newspaper's Heard on the Street column says it could be the beginning of a broader trend. I have my doubts...

There is a great buzz in the marketplace about new private equity funds being raised to invest in failed banks. The story goes something like this: We are organizing a fund led by the former heads of federal regulatory agencies with big time connections in Washington. These DC players are going to get a front-row seat to play in the sales process for failed banks being run by the FDIC. These funds claim that FDIC Chairman Sheila Bair is giving assets away for nothing and we are all going to make a lot of money in that old fashioned Washington way, namely slopping at the public trough. Unfortunately none of the above is true and many of these "offerings" are misleading or fraudulent.

As President Obama addressed the nation, the Lords of finance were out defending the private equity industry. They stand to gain the most if financial reforms pass...

Looks like private equity is staging a comeback but will it last?