Private Equity

  • September 18, 2014

    Ropes & Gray Advises Welsh Carson In $400M CCHN Sale

    Private equity firm Welsh Carson Anderson & Stowe agreed to sell its 3-year-old portfolio company CCHN Group Holdings to Providence Service Corp. for $400 million in cash and stock, the fellow Arizona-based social services provider said Thursday.

  • September 18, 2014

    PE Funds Ditch Transaction Fees Amid Increased Scrutiny

    Less than a third of private equity deals in the second quarter included monitoring or transaction fees, according to a new report from industry researcher PitchBook, highlighting a growing trend toward ditching fees as investors, asset managers and regulators question their merit.

  • September 18, 2014

    Dealmakers Q&A: Kaye Scholer's Mel Cherney

    At some point, the interest rate and refinancing environment will become more difficult and expensive, and the consequences for the deal environment could be profound, says Mel Cherney, co-chairman of Kaye Scholer LLP’s corporate department.

  • September 18, 2014

    Dealmakers Q&A: Saul Ewing’s Eric Orlinsky

    I remember an associate at another firm left three zeros off of a security agreement and the bank he was representing ended up with a $100,000 security interest on a $100 million loan. I think the associate was fired in his first year, says Eric Orlinsky of Saul Ewing LLP.

  • September 17, 2014

    Valeant Slams Allergan Doc Redactions In Insider Trading Row

    Valeant Pharmaceuticals International Inc. sought a court order Tuesday barring Allergan Inc. from redacting documents on grounds of business strategy in its insider trading suit against Valeant, alleging its takeover target is inventing a federal privilege to justify improperly withholding information.

  • September 17, 2014

    Bankrupt Refinery Owner Floats $100M EnCap Deal

    The bankrupt owner of a Texas asphalt refinery caught up in a bitter family feud unveiled plans Wednesday to sell it for $100 million to a portfolio company of private equity firm EnCap Flatrock Midstream, enough to pay off creditors in full and leave equity holders in the money.

  • September 17, 2014

    Amsterdam Listing Offers 4 Big Benefits For Ackman IPO

    U.S. activist investor Bill Ackman surprised many on Monday when he said a planned $2 billion initial public offering for one of his funds, Pershing Square Holdings Ltd., would take place in Amsterdam rather than London — a move likely driven by a quest for a broad investor base and flexible corporate governance standards. Here, Law360 takes a look at the benefits of listing in Amsterdam.

  • September 17, 2014

    FERC Won't Review New England Power Auction Results

    A deadlocked Federal Energy Regulatory Commission on Monday let stand the results of regional grid operator ISO New England Inc.'s annual forward capacity auction, angering consumer advocates who claim a private equity firm intentionally drove up auction prices by retiring a coal-fired plant prior to the auction.

  • September 17, 2014

    Market Rumors: Credit Suisse, MJardin, Alibaba

    Credit Suisse is brushing off U.S. regulators' concerns about problems with its underwriting and sale of leveraged loans, while marijuana startup MJardin is eyeing plans to take its cannabis management company public.

  • September 17, 2014

    PDV Raises $218M, Will Launch 2-Way Radio Network

    Pacific DataVision Inc. said on Tuesday that part of the $218 million in equity funding it recently raised will go toward the purchase of Sprint Corp.'s spectrum licenses, as PDV works to launch a two-way radio network for businesses.

  • September 17, 2014

    PE-Backed Civitas Raises Just $199M After Shares Price Low

    Private equity-backed Civitas Solutions Inc., which provides health care services for the developmentally disabled, priced well below its range, raising just $198.9 million before kicking off trading Wednesday on the New York Stock Exchange.

  • September 17, 2014

    Dealmakers Q&A: Perkins Coie's Fiona Brophy

    We’ve seen a number of large, complicated deals get inked in two weeks or less — from start to finish. Competitive pressure to get deals done quickly results in a streamlined diligence process and a real no-nonsense approach to negotiating definitive documents, says Fiona Brophy of Perkins Coie LLP.

  • September 16, 2014

    RE Rumor Mill: Puff Daddy, Blackstone, Keck Seng

    Puff Daddy has paid $40 million for a Los Angeles-area mansion, while Blackstone is said to have paid €350 million for two Frankfurt office towers and Keck Seng is buying the Sofitel hotel in Manhattan for $272 million.

  • September 16, 2014

    Carlyle Doubles Down On Islamorada Hotels In Fla. Keys

    The Carlyle Group LP has acquired a pair of hotels in the Florida Keys multi-island village of Islamorada, doubling the number of hotels it owns there, the global asset manager said Monday.

  • September 16, 2014

    Deals Rumor Mill: Eagle Merchant, Advanstar, Citadele Bank

    Atlanta-headquartered private equity firm Eagle Merchant Partners is looking into PODS Enterprises Inc. for about $1 billion including debt, while U.K. communications and media company UBM PLC is in the late stages of discussions to buy Advanstar Communications Inc.

  • September 16, 2014

    Scottish ‘Yes’ Vote Could Put Debt Markets On Pause

    Friendly capital markets have helped spur a strong year for global M&A as low interest rates and few constraints have made debt readily available to buyers, but as Scotland prepares to vote for independence, a "yes" vote could quickly put the deals market on pause amid an expected spike in interest rates.

  • September 16, 2014

    Market Rumors: Alibaba, Barclays, InBev

    A group of previously undisclosed Alibaba investors are set to rake in some serious cash in the e-commerce giant's upcoming IPO, while the world's biggest banks are overhauling the way they trade currencies.

  • September 16, 2014

    KKR Spins New Beat In $551M Deal For Pioneer's DJ Co.

    KKR & Co. Inc. will pick up Pioneer Corp.’s disc-jockeying equipment unit for 59 billion yen ($551.7 million) as the Japan-based digital entertainment products company continues to pare down to focus on its automotive technology business.

  • September 16, 2014

    KKR Floats $164M To Indian Infrastructure Co. GMR Holdings

    Private equity firm KKR & Co. LP has provided $164.2 million in long-term financing to the holding company of Indian infrastructure development firm GMR Infrastructure Ltd., the companies announced Tuesday.

  • September 16, 2014

    Deal Makers Start Week With A Multibillion-Dollar Bang

    This week is off to an auspicious start after deal makers introduced a slew of multibillion-dollar transactions that fan out over a range of industries, proving the summer lull is officially over and M&A prospects remain solid heading into fall.

Expert Analysis

  • Equity Cure Rights In Middle-Market Deals — A Primer

    Mark M. Oveson

    The equity cure right has gained significant acceptance in all ranges of the middle market for sponsor-backed deals, and lenders are adapting equity cure provisions for the middle-market risk profile by including tighter controls on the use of proceeds and limits on the borrower’s ability to exercise the cure right, say attorneys with Brownstein Hyatt Farber Schreck LLP.

  • Momentous Ruling In Momentive Part 3: Subordination

    Charles M. Persons

    Decisions interpreting subordination agreements often serve as a reminder of the importance of using precise language. In the Chapter 11 case of Momentive Performance Materials, potential ambiguity created by four words — “junior in any respect” — opened the door to litigation, says Charles Persons of Weil Gotshal & Manges LLP.

  • IRS Memo Raises New Tax Questions For Investment Managers

    Donald-Bruce Abrams

    The scope and impact of recent IRS chief counsel advice — concluding that members of an investment manager were subject to self-employment taxes — is difficult to assess, especially since the CCA does not address how its analysis would apply if the entity in question was a limited partnership and its members were “limited partners” under the applicable state law, say attorneys with Bingham McCutchen LLP.

  • Momentous Ruling In Momentive Part 2: The Cramdown Rate

    David N. Griffiths

    Ultimately, the appropriate methodology for a cramdown interest rate is a value allocation tug-of-war between debtors, secured creditors and more junior creditors, and Judge Robert Drain’s decision in the Chapter 11 case of Momentive Performance Materials affords additional weight to debtors in that battle, says David Griffiths of Weil Gotshal & Manges LLP.

  • Momentous Ruling In Momentive Part 1: Primer On Cramdown

    David N. Griffiths

    Judge Robert Drain’s bench ruling in Momentive Performance Materials is unambiguous when it comes to its support for the “formula” approach in determining a cramdown interest rate for a secured creditor and in elucidating the guiding first principles that dictate how to calculate the applicable cramdown interest rate for a secured creditor’s allowed claim in a Chapter 11 case, says David Griffiths of Weil Gotshal & Manges LLP.

  • 8 Trends Influencing Energy Transactions

    Sean T. Wheeler

    More and more midstream companies are in need of capital to take advantage of significant infrastructure investment opportunities, which should lead to more public and private merger and acquisition activity in the midstream space along with additional initial public offerings, says Sean Wheeler of Latham & Watkins LLP.

  • OPINION: Pro Bono May Help Diversity Recruiting Efforts

    David A. Lash

    A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.

  • How Volcker Rule Affects Subscription Credit Facilities

    Michael C. Mascia

    It is highly unlikely that a subscription facility lender, absent unusual control or profit-sharing mechanics, could be deemed to hold an ownership interest in a private equity fund under the Volcker Rule solely as a result of the typical facility lending relationship, say attorneys with Mayer Brown LLP.

  • How Research Efficiency Impacts Law Firm Profitability

    David Houlihan

    For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.

  • Winning Strategies For Bidders In M&A Auctions

    Robert C. Hussle

    Obtaining a successful outcome when bidding in a merger and acquisition auction is a balancing act between two competing goals — winning the bid and minimizing the cost of losing, says Robert Hussle of Rogers & Hardin LLP.