Private Equity

  • April 17, 2015

    Chassis Maker's Creditors Object To Proposed Claim Releases

    Chassix Inc. creditors on Friday objected to aspects of its Chapter 11 plan, telling a New York bankruptcy court that the company was trying to coerce them into releasing claims against Chassix’s directors and the chassis manufacturer’s private equity sponsor over pre-bankruptcy dividends.

  • April 17, 2015

    Banks Lose Ground In Revolving Door Race

    Former Federal Reserve Chairman Ben Bernanke's decision to join hedge fund Citadel LLC makes him the latest former government official to choose the alternative investment sector over work at a bank, a reflection of both the stigma on banks and the funds' growing needs for regulatory expertise.

  • April 17, 2015

    ThyssenKrupp Dumps Metals Business In Lindsay Goldberg Deal

    German industrial conglomerate ThyssenKrupp AG has agreed to sell its VDM Metals Group to the European affiliate of private equity buyout firm Lindsay Goldberg, taking a €100 million ($108.1 million) write-down in the business, the company said Friday.

  • April 17, 2015

    Goodwin Procter Nabs Ex-King & Wood PE Partner In London

    Goodwin Procter LLP has recruited a partner from King & Wood Mallesons experienced in middle-market private equity and corporate mergers and acquisitions to bolster its growing London private equity practice, the firm said Thursday.

  • April 17, 2015

    Deals Rumor Mill: Cirque du Soleil, Vessel, Deutsche Bank

    A TPG Capital Management-led consortium is nearing a deal to buy a majority stake in Cirque du Soleil Inc. valuing the theatrical circus company at about $1.5 billion, while online video service and hopeful YouTube rival Vessel has closed its second fundraising round after raising $57.5 million.

  • April 17, 2015

    KSL Delivers $100M Refi To St. Regis Aspen Resort

    A fund affiliate of KSL Capital Partners LLC has provided a $100 million refinancing package to the St. Regis Aspen Resort, building up the private equity's firm exposure to the luxury brand, according to a Friday announcement.

  • April 17, 2015

    Winston & Strawn Lures Another Ex-Pillsbury Finance Partner

    Winston & Strawn LLP said Thursday it has added to its New York office a structured finance partner with experience in private equity and banking from Pillsbury Winthrop Shaw Pittman LLP as part of a wave of attorneys leaving Pillsbury to join Winston & Strawn's ranks over the past couple months.

  • April 17, 2015

    7 Cos. Rake In $1.3B In Week's Flood Of IPO Activity

    Seven companies rumbled onto the public markets to raise nearly $1.3 billion during the week of April 13, rocking the lackluster initial public offering activity recorded at the beginning of 2015 as an online crafts marketplace, a private equity-backed retailer, a high-frequency trading firm and four biotechnology companies priced their debuts.

  • April 17, 2015

    Hony Capital Unloads $1.3B In Shares Of CSPC Pharma

    Chinese private equity firm Hony Capital has sold its shares in Chinese drugmaker CSPC Pharmaceutical Group Ltd. for HK$9.78 billion ($1.26 billion), the company said in a regulatory filing on Friday.

  • April 17, 2015

    MRI Radiation Therapy Maker ViewRay Pulls Plug On IPO

    Venture-capital backed ViewRay Inc., the maker of the only MRI-guided radiation therapy system to image and treat cancer patients simultaneously, has pulled an estimated $50 million-plus initial public offering, formally bowing out on Thursday after earlier signs of cold feet.

  • April 17, 2015

    Taxation With Representation: Norton Rose Fulbright, Skadden

    In this week's Taxation With Representation, Skadden helps Builders FirstSource Inc. snatch up a competitor in a $1.63 billion deal, Asia Alternatives closes its largest fundraising, and Norton Rose Fulbright helps oil refiner Delek U.S. Holdings Inc. expand its southern and western holdings.

  • April 16, 2015

    Kirkland Steers Lovell Minnick's $100M Finance Co. Investment

    Led by Kirkland & Ellis LLP, private equity firm Lovell Minnick Partners LLC said Wednesday it will invest $100 million in LSQ Funding Group to help the accounts receivable finance company capture more small-business customers through better technology.

  • April 16, 2015

    Judge Largely Finds For Money Manager In SEC Fraud Case

    A U.S. Securities and Exchange Commission administrative law judge ruled Thursday that private equity manager David J. Montanino violated the Investment Advisor Act by deceiving clients but cleared him of more serious Securities Act and Exchange Act fraud allegations and declined to bar Montanino from finance.

  • April 16, 2015

    High-Frequency Trader Virtu Financial Raises $314M In IPO

    Private equity-backed electronic trading firm Virtu Financial Inc. on Thursday raised $314.1 million in an initial public offering — which promptly rallied 17 percent — that priced shares on the high end, finding a warmer reception one year after delaying IPO plans amid furor over high-frequency trading.

  • April 16, 2015

    Caesars Ch. 11 Examiner Gets Winston & Strawn For Probe

    A bankruptcy judge has appointed Winston & Strawn LLP to lead an investigation into transactions that Caesars Entertainment Operating Co. Inc. stakeholders say swept significant value out of the company before it officially went bankrupt.

  • April 16, 2015

    Deals Rumor Mill: Procter & Gamble, Hony Capital, Stemcor

    Henkel, Revlon and Coty may make bids for parts of Procter & Gamble's beauty business, while Chinese private equity firm Hony Capital hopes to raise up to $1.26 billion by selling its remaining shares in CSPC Pharmaceutical.

  • April 16, 2015

    Party City Raises $372M In Debut As IPOs Pick Up Steam

    Private equity-backed party supplies giant Party City Holdco Inc. raised $371.9 million in its initial public offering Wednesday, pricing shares at the top end of its range as it joins a string of IPOs this week kicking this year’s market into high gear.

  • April 16, 2015

    Ex-Revel Utility Maligns Straub's Proposed Power Plans

    The energy company locked in a literal power struggle with the new owner of the shuttered Revel Atlantic City in New Jersey released a statement Thursday undercutting several options that have been floated to restore the casino hotel's electricity following a weeklong blackout.

  • April 16, 2015

    Lynn Tilton Presses Bid To Freeze SEC In-House Case

    Distressed debt investor Lynn Tilton on Wednesday pressed a New York federal judge to stop a U.S. Securities and Exchange Commission administrative case against her, arguing such proceedings are unconstitutional in a motion filed mere hours after another Southern District judge rejected similar claims over the agency's in-house court.

  • April 16, 2015

    BLT Sheds Single-Family Rental Portfolio For $150M

    Real estate private equity firm Building and Land Technology said Wednesday its BLT Homes unit sold a portfolio of 1,385 homes in North Carolina, South Carolina and Texas for $150 million, three years after entering the single-family rental business.

Expert Analysis

  • Appraisal Rights Waivers After Halpin V. Riverstone

    Brian E. Krob

    The ability of common stockholders in Delaware corporations to prospectively waive appraisal rights has been taken for granted. However, Halpin v. Riverstone National Inc., a case decided in the Delaware Court of Chancery, questions the effectiveness of such a waiver, say Brian Krob and Kimberly Rovtar of Nixon Peabody LLP.

  • 2 Routes To Hourly Rates For Lawyers

    Gerald G. Knapton

    If we were developing a system to determine legal fees from a clean slate, we would price our professional services according to quality, efficiency and results — tasks and team would be agreed upon. Instead, we have an hourly system that discourages tight management, can lead to padded bills and includes time for work that may not have been necessary, says Gerald Knapton of Ropers Majeski Kohn & Bentley PC.

  • Mandatory Subordination And The Fate Of Equity Claims

    Robert L. Eisenbach III

    The Ninth Circuit’s recent decision in the case of Tristar Esperanza Properties LLC essentially says, “once a shareholder, always a shareholder,” and reminds us that Section 510(b)’s mandatory subordination rules impact entire categories of claims and make it extremely difficult to collect on any equity-like claim in bankruptcy, says Robert Eisenbach of Cooley LLP.

  • How To Weather Media Inquiries In High-Profile Cases

    Jolie Balido

    Avoid using “no comment” in response to a question or statement from reporters. Some reporters, particularly TV news reporters, are simply trying to elicit a reaction for a quick visual and aren’t particularly concerned with the actual answer, says Jolie Balido, president of marketing communications firm Roar Media.

  • Practical D&O Insurance Considerations For PE Firms

    Ari Berman

    Private equity funds should carefully examine the definition of “claim” in their directors and officers policies to ensure that it extends to subpoenas and investigative orders issued by government agencies. Meanwhile, the portfolio company’s D&O insurance plays a slightly different role in the various stages of the private equity firm’s investment in the company, say Ari Berman and Sarah Mitchell of Vinson & Elkins LLP.

  • How Russian CFC Rules Affect Inbound US Tax Planning

    Jeffrey L. Rubinger

    With the enactment of the controlled foreign corporation rules in Russia, the use of a leveraged U.S. blocker entity along with a British Virgin Islands company to strip out a large portion of the U.S.-source income in a tax-free manner no longer will be the most tax-efficient strategy, says Jeffrey Rubinger of Bilzin Sumberg Baena Price & Axelrod LLP.

  • How US Sanctions Can Affect Cos. With Russian Investors

    Arman Pahlavan

    Many Russian investors presently hold shares in U.S. companies that may be acquired or go public, and there are concerns about violating U.S. sanctions when distributing such assets to Russian investors. These portfolio companies now face questions as to what risks they may face in the event of liquidity, say attorneys with Perkins Coie LLP.

  • 4 Crowdfunding Tips From The Trenches

    Joe Castelluccio

    While crowdfunding can be an exciting opportunity for some companies, broader access to capital in a new and evolving process also comes with greater potential for missteps and mistakes. Be judicious in who you allow to partner with you — sometimes the money someone invests is not worth the headaches that come along, say Andrew Ray and Joe Castelluccio of Morgan Lewis & Bockius LLP.

  • EB-5 Program: An Alternative Financing Source

    The EB-5 program provides a platform for foreign investors to finance a U.S. business or construction project through investment funds sponsored by EB-5 regional centers in exchange for a U.S. visa. Sutherland Asbill & Brennan LLP partner John Mahon explains the legal considerations of structuring these transactions and why so many EB-5 funds are financing real estate projects.

  • Lessons In Preserving The Atty-Client Privilege In M&A

    Lawrence Friedman

    Change-in-control transactions can present complicated questions concerning the attorney-client privilege, should litigation arise. Recent decisions by courts in New York and Delaware help shed light on these questions and provide useful guidance on how to ensure that all available privileges are preserved, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.