While the federal probe into anti-competitive behavior in the private equity industry has ruffled feathers at some firms, the fact that the Department of Justice’s New York office is leading the charge has many breathing a sigh of relief.
Confirming industry fears, the U.S. Department of Justice has launched an inquiry into the possible anti-competitive practices of private-equity firms.
Nixon Peabody LLP is “aggressively expanding” its private equity practice in New York, adding four new attorneys in the past two months, including the new leader of its leveraged buyout practice.
In a bid to block the proposed $21.3 billion purchase of HCA Inc. by three private equity firms, the hospital chain’s shareholders are taking legal action, this week filing a series of lawsuits against the nation's largest for-profit hospital operator.
While the proposed $22 billion purchase of HCA Inc. by three private equity firms will put the company into private hands, it will not pull the hospital chain out of regulatory hot water.
Investment bank UBS AG has accused bankrupt health food maker Nellson Nutraceutical Inc. of overstating its value by $100 million in order to ensure it stays in the hands of a private equity investor.
PlusFunds Group Inc., the hedge-fund manager that went bankrupt in the wake of Refco Inc.’s collapse, has paid $300,000 to a private equity firm that demanded reimbursement for legal costs following a failed bid to acquire its assets.
Although bankrupt hedge fund manager PlusFunds Group Inc. had fielded two promising bids from private equity firm FTVentures and Bear Stearns Asset Management Inc. to purchase its assets just weeks earlier, it failed to secure a buyer and announced its plan to wind down its business.
Bear Stearns Asset Management Inc. is still fixing to purchase PlusFunds Group Inc., even though the sale of the investment-fund manager to private equity firm FTVentures has already been cleared by the bankruptcy judge.
Bad investments made by private equity fund MapleWood Holdings may end up costing the firm and its manager Robert Glaser $7 million if a lawsuit brought by a lending company prevails in court.
Refco Inc.’s former CEO, Philip Bennett, has asked a Manhattan district court judge to throw out a $245 million criminal fraud class action suit brought against him by three funds managed by Thomas H. Lee Partners, a private equity firm that facilitated the commodity brokerage’s initial public offering last year.
Earlier this week, four of the country’s largest buyout firms made public their plan to form a “trade body” to represent the interests of private equity groups worldwide. The move, regarded by many as a response to a recent outcry for increased regulation of private equity groups, highlights the debate over whether or not increased scrutiny of the industry is necessary.
Enron Corp.’s international assets are slated to be purchased for close to $2 billion by a group of private equity and hedge fund managers, according to the Wall Street Journal.
Insurance giant American International Group is headed back to court after filing a lawsuit against the former chief of one of its subsidiaries, alleging that the ex-CEO and several other former employees violated their noncompete agreements by starting their own private equity fund.
Wireless equipment maker Proxim Corp.'s unsecured creditors have won approval of a settlement with the company's top lender, private equity firm Warburg Pincus LLC, lowering the lender's secured claims in its bankruptcy proceedings.
Merchant bank Ocean Tomo has launched an investment fund to provide private equity capital and mezzanine debt to companies with undervalued intellectual property rights, including patents and trademarks.