Desperate Sponsors
May 4, 2010
In the May issue of the magazine, we covered the private equity fundraising market in detail. I've written about this before, but it can be interesting exactly how that drives deal flow on a daily basis.
A source recently described that the sponsor-to-sponsor deals they're seeing involve desperate sellers, who need to notch some wins to raise their next fund, and desperate buyers, who are in 'use it, or lose it' mode with their expiring funds. This, apparently, is how a chain of tire stores can fetch 13x Ebitda.
The way the source described it, any asset that will double a sponsor's equity, if they have a fundraise on the horizon, will be moved.
Of course, it's hard to generalize these things, but it seems pretty clear that some sponsors, who don't quite fit the 'desperate' tag, see this dynamic as a buying opportunity. Oak Hill Capital Partners, in two weeks, has acquired three companies from other sponsors. The firm, whose roots go back to the Robert M. Bass family office, closed its third fund last year at $3.8 billion.
It has acquired companies from Code Hennessy & Simmons, Wellspring Capital and Trinity Equity Investors. Code Hennessy launched its sixth fund in 2008 with a $2 billion cap, but since then, hasn't filed any subsequent closes on the vehicle with the SEC. Wellspring, meanwhile, just trimmed the target on its latest fund, which is now in the market for $1.3 billion.
It's hard to say they're giving these companies away, but if you're going to buy from anybody, you're better off working with someone who needs to sell.
36 Comments
Cheap UGG French beautiful and touching, but also enough chic.
cheapest uggs ever Full of sores, vitality actually so strong! Stones melancholy, authentic piece of the case will have the opportunity to see cut through, so she tmd08cd
cheap uggs for women She should be asked to see the children.
where to buy uggs cheap District do not think that disobedient girl, "stones, fast chips have, no slow hand."
www.cheapestbootsshop.com She slowly struggling to be born, mother was afraid to be old, and all will be too late.
Posted by: cheapuggs b | February 8, 2012 3:08 AM
It's hard to say they're giving these companies away, but if you're going to buy from anybody, you're better off working with someone who needs to sell. custom essay | GCSE Coursework | Custom Dissertation | Custom Thesis
Posted by: padma l | February 1, 2012 11:27 AM
Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It's always nice when you can not only be informed, but also entertained!chiamamiIts a great start of the day with a website like this. very informative, i'm now one of the regular visitor of your web.donna cerca uomo milano
Posted by: Jack L | February 1, 2012 8:54 AM
very informative blog you have, thanks for sharing web site, australia search engine optimization, perth web design
Posted by: paul y | January 31, 2012 3:42 AM
coach outlet online coach outlet louis vuitton uk louis vuitton coach outlet online coach factory outlet coach outlet coach outlet store online louis vuitton sale louis vuitton outlet coach factory outlet coach factory online coach factory outlet coach factory outlet online louis vuitton uk louis vuitton coach outlet online coach outlet coach outlet store coach outlet store online coach bags coach outlet store coach outlet coach outlet store online hermes birkin hermes bags gucci uk gucci uk sale louis vuitton outlet louis vuitton bags
Posted by: CHEN M | January 14, 2012 2:32 AM
This post contains useful information which helps us a lot. I have never seen such a great post. your wonderful post can inspire a lot and helps us. I visit your website often and share with my friends..Osteoporosis symptoms
Posted by: Osteoporosis s | December 31, 2011 3:42 AM
This post contains useful information which helps us a lot. I have never seen such a great post. your wonderful post can inspire a lot and helps us. I visit your website often and share with my friends.Osteoporosis symptoms
Posted by: Osteoporosis s | December 31, 2011 3:42 AM
As today what will happen we can't say..Anyways i am glad their is always some people like you busy making posts like this that actually make a difference. It was nice reading about this. Here I find really very new & valuable information. VigRX Plus and Dental White
Posted by: David J | December 27, 2011 1:42 PM
Thanks a lot mate for putting effort in writing this amazingly useful article! Male Enhancement Pills and Bathmate
Posted by: David J | December 27, 2011 9:51 AM
You have a great knowledge on subject.Thanks for sharing such an article where education of people matters the most. Dental White and Sytropin
Posted by: Bruce M | December 26, 2011 6:40 PM
That's really a marvelous post. This post contains useful information which helps us a lot. I have never seen such a great post. your wonderful post can inspire a lot and helps us. I visit your website often and share with my friends. Best Diet Pills Male Extra and Bathmate
Posted by: Bruce M | December 26, 2011 6:32 PM
That's really a marvelous post. This post contains useful information which helps us a lot. I have never seen such a great post. your wonderful post can inspire a lot and helps us. I visit your website often and share with my friends. Human Growth Hormone GenF20 Plus
Posted by: Bruce M | December 26, 2011 6:23 PM
I have you bookmarked your web site to check out the brand new stuff you post. Should you're keen on having a visitor web blog poster please reply and let me know. I will give you unique content in your website, thanks. HGH Advanced Review and UniqueHoodia
Posted by: Bruce M | December 26, 2011 6:16 PM
Thanks for taking the time to discuss and share this with us, I for one feel strongly about it and really enjoyed learning more about this topic. I can see that you possess a degree of expertise on this subject, I would very a lot like to hear much more from you on this subject matter. Slim Weight Patch and Pure Acai Berry Max
Posted by: Bruce M | December 26, 2011 6:09 PM
Thanks for taking the time to discuss and share this with us, I for one feel strongly about it and really enjoyed learning more about this topic. I can see that you possess a degree of expertise on this subject, I would very a lot like to hear much more from you on this subject matter. Capsiplex and Meratol
Posted by: Bruce M | December 26, 2011 6:06 PM
I have surf the internet looking for topics such as these and it is here where I find it written and stated well. Diet Tea and Tava Tea
Posted by: Bruce M | December 26, 2011 5:54 PM
I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post. Take a look at HGH Advanced or other HGH Supplements
Posted by: Bruce M | December 26, 2011 5:47 PM
Hello,I love reading through your blog, I wanted to leave a little comment to support you and wish you a good continuation. Wishing you the best of luck for all your blogging efforts. Teeth Whitening Reviews or HGH
Posted by: Bruce M | December 26, 2011 5:41 PM
This is a great inspiring article. I am pretty much pleased with your good work. You put really very helpful information. Keep it up. Keep blogging. Looking to reading your next post. Provacyl and GenFX
Posted by: Bruce M | December 26, 2011 5:35 PM
Great posting! I really like the way you are sharing the unique take on this subject. Keep it up! Proactol Plus and Ultimate Maqui Berry
Posted by: Bruce M | December 26, 2011 5:18 PM
Really a very nice discussion is done by you here. I like it and hope, you will continue sharing your thoughts with me in future also. Phen375 Nuratrim
Posted by: Bruce M | December 26, 2011 5:06 PM
The firm, whose roots go back to the Robert M. Bass family office, closed its third fund last year at $3.8 billion. Web Design Glasgow
Posted by: mivpl s | December 25, 2011 2:20 AM
You helped me greatly in my work by writing this article. Kumquat Orange
Posted by: ray z | December 12, 2011 9:05 PM
Of course, it's hard to generalize these things, but it seems pretty clear that some sponsors, who don't quite fit the 'desperate' tag, see this dynamic as a buying opportunity. Oak Hill Capital Partners, in two weeks, has acquired three companies from other sponsors. The firm, whose roots go back to the Robert M. Bass family office, closed its third fund last year at $3.8 billion. android tablet pc
Posted by: Knife M | December 7, 2011 9:52 PM
Those of you not familiar with the latest on now have at least a basic understanding. But there's more to come. pass4sure 1D0-635 Banks have travelled from illiquidity to the borders of insolvency. Banks asset values can no longer support bank liabilities. Capital is insufficient. Swapping troubled assets for cash the essence of the TARP may strengthen asset quality, pass4sure MA0-100 but by crystallising the current distressed price of assets, it does nothing to address the problem of asset levels being too low relative to the level of liabilities. This was the right course 18 months ago, but not now. It is fighting the battle of illiquidity not insolvency. The TARP prayer is that by strengthening asset quality, banks would be able to raise fresh capital, but there is no guarantee of this. pass4sure 4A0-100 Investors will be mindful that even if the quality of the existing assets improves, banks are on the edge of insolvency, their current business models of securitisation, mortgage lending, pass4sure 640-801 equity short-selling and prime brokerage need to be rethought and other investors with as deep pockets as the sovereign wealth funds are nursing large losses for stepping in early.
Posted by: Foana C | November 23, 2011 3:40 AM
The
Coach Outlet Store
officials warned protesters which they do not possess the bestCoach Factory Outlet Online
This philosophy has madeDiscount Coach Purses
are a convenience for theCoach Outlet Store Online
. TheCoach Factory Outlet
of theCoach Outlet Online Store
is the convenient shopping experience free each valuedCoach Factory Outlet
. broadest and most popular categoriesCheap Coach Purses
My family has only a small whiteCheap Outlet USA
If you are interested in , The holder of over 500Prada Outlet
existing. The goal of theNike Air Yeezy
is to meet theGucci Handbags
wishes and requirements of different types ofDunk Shoes
. The shoppingCoach Handbags Outlet
, thePuma Outlet
can be divided into two focalSupra Shoes
. In the shopping preferences, customers have the decision of purchasing a suitableCoach Bags Outlet
which are this approachAir Max
. Potential customers department so they can functionCoach Factory Outlet Online
Search ResultsPosted by: DFGH D | November 20, 2011 9:24 PM
The
Coach Outlet Store
officials warned protesters which they do not possess the bestCoach Factory Outlet Online
This philosophy has madeDiscount Coach Purses
are a convenience for theCoach Outlet Store Online
. TheCoach Factory Outlet
of theCoach Outlet Online Store
is the convenient shopping experience free each valuedCoach Factory Outlet
. broadest and most popular categoriesCheap Coach Purses
My family has only a small whiteCheap Outlet USA
If you are interested in , The holder of over 500Prada Outlet
existing. The goal of theNike Air Yeezy
is to meet theGucci Handbags
wishes and requirements of different types ofDunk Shoes
. The shoppingCoach Handbags Outlet
, thePuma Outlet
can be divided into two focalSupra Shoes
. In the shopping preferences, customers have the decision of purchasing a suitableCoach Bags Outlet
which are this approachAir Max
. Potential customers department so they can functionCoach Factory Outlet Online
Search ResultsPosted by: DFGH D | November 20, 2011 9:22 PM
Thanks for sharing this information dubai property sell location appartement dubai downtown dubai tent rental Dubai
Posted by: mike c | November 20, 2011 5:57 AM
Thanks for sharing such a useful stuff! university dissertation
Posted by: Hannah C | November 18, 2011 4:52 AM
Considering that this approach trend is fashionable and also basically an uncomplicated shape, use brilliant or possibly fancy colors, for example pinks, purples, grapefruits as well as shades of green. If you wish additional quality, demand any tattoo artist to carry out a good report in the canine tattoo supplies. This is able to likely be developed on the dog's natural designs.
Posted by: Jack C | November 18, 2011 2:44 AM
cowboys Jersey,Marion Barber Jersey,Felix Jones Jersey,Miles Austin Blue Jersey Yes, ladies and Terrell Owens Blue Jersey gentlemen, these Rams Deion Sanders Blue Jersey deserve a win. Dez Bryant Blue Jersey And this week they got Troy Aikman Blue Jersey a big shot in the arm Tony Romo Blue Jersey when they picked up Marion Barber Blue Jersey Brandon Lloyd, Tashard Choice Blue Jersey via trade, from the Felix Jones Blue Jersey Denver Broncos. Lloyd knows this offense.
Posted by: kaijili e | November 14, 2011 3:34 AM
Well, since there is this rule that assets of any sort shall be moved provided it doubles the equity of the sponsor, I am sure that some 'non-desperate' sponsors might consider this as a brilliant occasion for buying. However, as stated here, there are those who quite don't fit into the tag of 'desperate' and for them, the only hope for them is to look out for any sort of giveaway by such selling companies.
small business seo services
Posted by: karthik m | October 8, 2011 5:39 AM
Well, since there is this rule that assets of any sort shall be moved provided it doubles the equity of the sponsor, I am sure that some 'non-desperate' sponsors might consider this as a brilliant occasion for buying. However, as stated here, there are those who quite don't fit into the tag of 'desperate' and for them, the only hope for them is to look out for any sort of giveaway by such selling companies. Affordable small business seo
Posted by: karthik m | October 8, 2011 5:38 AM
The sponsors are definitely needing more with this. I am glad to see the work going into this. Keep up the good work. zoloft attorney
Posted by: john j | September 26, 2011 9:06 PM
I think the work being done on this is so good. I see such a great future from this. You will definitely benefit from this. Alarmforce Review
Posted by: james l | September 24, 2011 5:07 PM
Yeah I agree totally with this, sponsors these days are very desperate.
my fast mortgage | money to go | mortgage money blog \ mortgage broker store | power of sales in ontario | private lenders mortgages | private loans lenders | private lenders in ontario | private money loans second mortgages | power of sales in toronto | second mortgages ontario canada 2nd \ 2nd mortgage with bad credit 2nd | mortgage brokers in toronto ontario | mortgage brokers in ontario canada | lender hard money lenders | second mortgages | private loans and mortgages | private loans and mortgages
Posted by: jon p | September 2, 2011 4:23 PM
Add Your Comments...
Already Registered?
If you have already registered to Money Management Executive, please use the form below to login. When completed you will immeditely be directed to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.