Private Equity

  • November 17, 2017

    Lack Of SEC Enforcement Doesn't Mean PE Is Off The Hook

    The storm of U.S. Securities and Exchange Commission enforcement actions against private equity firms seems to have calmed, but industry players should beware that the regulator is still intent on policing improper practices throughout the financial world, meaning it could refocus on PE at any moment.

  • November 17, 2017

    Taxation With Representation: Andrews, Mayer, Jones, Delaby

    In this week’s Taxation With Representation, Marathon Petroleum dropped down $8.1 billion in assets to its master limited partnership, Caesars Entertainment acquired Centaur for $1.7 billion, Shanghai Pharma snapped up the China business of Cardinal Health for $557 million, and OMERS bought Trescal in a $788.6 million deal.

  • November 17, 2017

    3 Firms Guided Largest CMBS Loan In October

    Simpson Thacher & Bartlett LLP, Dechert LLP and Orrick Herrington & Sutcliffe LLP scored work on the largest commercial mortgage-backed securities loan in October, and that $955 million deal was one of numerous nine-figure loans that got done during the month.

  • November 16, 2017

    2 PE-Backed Cos. Unveil Secondary Offerings Worth $1B

    The market for secondary offerings was active Wednesday, with two private equity-backed companies — a window and door manufacturer and an industrial equipment company — announcing the pricing of secondary offerings that, combined, are worth just over $1 billion.

  • November 16, 2017

    ChinaCast Ch. 11 Confirmation Delayed Over Filing Issues

    The judge presiding over the bankruptcy case of ChinaCast Education Corp. abruptly adjourned the company's Chapter 11 plan confirmation hearing on Thursday, finding the debtor’s last-minute request for approval of a shareholder settlement and a post-petition financing adjustment troubling.

  • November 16, 2017

    PE Firm In Cartel-Linked Mexico Property Row Loses Fee Bid

    A California federal court on Thursday denied a private equity firm’s request for attorneys’ fees after arbitration in a dispute with a Mexican industrial real estate buyer who claimed the firm sold it a $15 million facility overrun by a drug cartel.

  • November 16, 2017

    Avenue Capital $6M MagnaChip Fraud Deal Tossed Again

    A California federal judge on Thursday refused for the second time to grant preliminary approval to a $6.2 million deal between MagnaChip Corp.'s majority shareholder Avenue Capital and the semiconductor products maker's common stock investors who sued for an alleged fraud scheme in which Avenue sold its shares at inflated prices.

  • November 16, 2017

    3rd Circ. Won't Revive RICO Claims Over Allied Bankruptcy

    The Third Circuit on Wednesday found that investment firm Yucaipa Cos. Ltd. had no standing for its $170 million RICO suit claiming two hedge funds conspired to wipe out its debt claim against bankrupt car hauler Allied Systems Holdings Inc.

  • November 16, 2017

    Aster Brings In €240M For Energy, Digital Investments

    Aster Capital, a venture capital investment firm focused on industries including consumer, digital and energy, has raised €240 million ($282.36 million) from investors, according to a Thursday statement.

  • November 16, 2017

    1Sharpe Capital Collects $500M From Investors

    Recently formed investment manager 1Sharpe Capital said on Thursday that it has raised $500 million from a group of private investors for an investment strategy focused on real estate-related loans that the Piedmont, California-based firm believes can deliver attractive returns.

  • November 16, 2017

    PE-Backed MPM Delays $350M IPO, Citing Adverse Markets

    Private equity-backed silicone producer MPM Holdings Inc. withdrew an estimated $350 million initial public offering late Wednesday, citing adverse market conditions, becoming the second company this week to pull an IPO because of market jitters.

  • November 16, 2017

    HFF Nabs $289M In Construction Funds For Calif. High-Rise

    Real estate developer and investment firm Bayview Development Group scored $288.8 million in construction financing from a private equity fund managed by Goldman Sachs Merchant Banking Division to be used for a pair of luxury apartment towers in San Jose, California, borrower-side broker Holliday Fenoglio Fowler LP said Thursday.

  • November 16, 2017

    Why More M&A Deals Are Being Canceled Before They Close

    Increased complexity in the dealmaking process and more intense regulatory scrutiny have led to a spike in the proportion of deals that end up falling apart, and legal advisers who can come up with novel solutions for these issues are in demand from companies that want their mergers to succeed.

  • November 15, 2017

    Chinese Companies Inject Life Into US IPO Market

    A sudden surge in Chinese initial public offerings is spilling over to the U.S., providing a shot in the arm to the IPO market and keeping deals lawyers who work on China-related offerings busy.

  • November 15, 2017

    Barclays Beats Employee's Sex, Race Bias Suit

    Barclays does not have to face claims it paid a Latina employee less than similarly situated men and laid her off because of her sex and race, a New York federal judge ruled Wednesday, finding that the bank presented legitimate explanations for each of the employment actions it took against her.

  • November 15, 2017

    CST Industries' $92M Stalking Horse Sale Gets Go-Ahead

    After more than a day of negotiations among bankrupt steel tank maker CST Industries Holding Inc., its creditors and its proposed buyers, a Delaware judge gave his approval Wednesday for a $92.9 million sale transaction that resolved objections from unsecured lenders.

  • November 15, 2017

    Ex-WL Ross Execs Want Answers On $48M Fund-Related Fees

    Three former WL Ross & Co. Inc. investment managers launched a lawsuit in New York court Wednesday alleging that the company hid the presence of more than $48 million in management fees charged to a trio of general partner companies established to oversee certain WL Ross private equity funds.

  • November 15, 2017

    Deals Rumor Mill: AT&T, Mattel, Varo Energy

    The U.S. Department of Justice has attempted to get state attorneys general to support a rejection of AT&T's blockbuster Time Warner acquisition, Mattel has rejected the recent takeover offer made by rival Hasbro, and Varo Energy could be valued at about $2 billion in an initial public offering planned for next year.

  • November 15, 2017

    Arrowroot Capital Closes 3rd Fund At $177M

    California-based, software-focused growth equity firm Arrowroot Capital Management LLC on Wednesday said it closed an oversubscribed third fund at its hard cap after more than $177 million in commitments.

  • November 15, 2017

    Sodexo Buys Centerplate From Olympus In $675M Deal

    Food services and facilities management company Sodexo Inc. said Wednesday it will take a major leap forward in the stadium and entertainment venue concessions business with the acquisition of Centerplate Inc. from private equity firm Olympus Partners in a deal worth $675 million.

Expert Analysis

  • Inside CFIUS’ Annual Report: 7 Highlights

    Mario Mancuso

    Last week, the Committee on Foreign Investment in the United States released its unclassified annual report for the 2015 calendar year. While dated, the information in the report is nevertheless useful — the data clearly point to the CFIUS future we are now living through, say attorneys with Kirkland & Ellis LLP.

  • CFIUS Continues To Present Obstacle To Chinese Acquisitions

    Brendan Hanifin

    Although presidential intervention to block a planned acquisition is relatively rare, President Donald Trump’s executive order last week blocking Canyon from acquiring Lattice was not especially surprising in light of recent precedent, the cautious approach of the Committee on Foreign Investment in the United States, and public statements by the Trump administration regarding China, say attorneys with Ropes & Gray LLP.

  • Founders Find Leverage In Investors’ Short Memories

    Les Trachtman

    The only rationale for why the capital markets have succumbed to the trendy scheme of dual-class stock is that economist John Kenneth Galbraith was right — when it comes to financial markets, we do have short memories. History is littered with well-meaning founders and chief executives who succumbed to the seduction of wealth and power, says Les Trachtman, CEO of The Trachtman Group.

  • Inside China's New Policies On Overseas Investments

    Lester Ross

    Several policies and rules were introduced in 2016 and 2017 to tighten China's control and supervision of overseas investment activities, including new guidelines promulgated last month. These policies impose a much stricter regulatory regime, raise hurdles for cross-border currency outflows, and place particular emphasis on certain areas, say Lester Ross and Kenneth Zhou of WilmerHale.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.

  • Delaware Suit Brings Lessons For Externally Managed REITs

    Steven Haas

    A Delaware court recently denied a motion to dismiss H&N Management Group v. Crouch, a shareholder derivative suit brought against an externally managed real estate investment trust alleging breach of fiduciary duties. The case is a reminder about managing conflicts of interest, among other things, say Steven Haas and David Wright of Hunton & Williams LLP.

  • Preserving The Business Deal In The Final Hours

    Justin Stolte

    When an asset transaction in the oil and gas sector is close to being executed, a deal team is often faced with a very short time in which to provide additional financing information and a final purchase and sale agreement. As a consequence, certain concerns may be inadequately addressed or completely forgotten, says Justin Stolte of Gibson Dunn & Crutcher LLP.

  • The Psychology Of Hourly Fee Arrangements

    J.B. Heaton

    The range of possible and better fee agreements is wide. But such alternatives will become popular only if litigants confront the psychological tendencies shaping their existing fee arrangements, says J.B. Heaton, a partner at Bartlit Beck Herman Palenchar & Scott LLP.

  • Investing In Urgent Care: Trends And Developments To Watch

    Bart Walker

    With the rise of narrow networks and increasing deductibles for health insurance plans, patients are paying more attention to the costs of specific providers and models of care, while insurers and plan sponsors continue looking for ways to drive patient volumes to lower-acuity and lower-cost settings. Urgent care providers have been a direct beneficiary of this shift, say attorneys with McGuireWoods LLP.

  • Self-Collection In E-Discovery — Risks Vs. Rewards

    Alex Khoury

    As judges become better educated about the complexities of collecting electronically stored information, in particular the inefficacy of keyword searching, they are increasingly skeptical of self-collection. And yet, for many good reasons (and a few bad ones), custodian self-collection is still prevalent in cases of all sizes and in all jurisdictions, says Alex Khoury of Balch & Bingham LLP.