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Holman: PE's Forecast

Around this time of year most Americans are gathering at barbecues, beaches and parks to soak up the summer. But, after another round of thunderstorms rolled across the nation this past week the notion of whether summer will actually begin hung around as a question mark in this reporter’s mind much like the clouds shrouding New York’s skyline. It’s not exactly unlike the middle market transaction business where a lack of quality companies for sale, tough credit markets and portfolio company restructurings have combined to create the deal community’s version of an atmospheric low pressure system.

In May it looked, though, as if one corner of the private investment industry was looking up. A pair of private equity consortiums took control of BankUnited Financial Corp. and First Southern Bancorp Inc., respectively. The acquisitions suggest that regulatory hurdles around ownership restrictions on bank investors might be easing, raising the prospect for other troubled banks to be salvaged through acquisitions by financial buyers all too eager to put their funds to work.

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ACG TAMPA BAY WILL HAVE THE OPPORTUNITY TO TOUR THE U.S. MILITARY’S CENTRAL COMMAND (CENTCOM) ON JUNE 18TH, AND LEARN ABOUT THEIR HISTORY, MISSION AND FUTURE. REGISTER SOON!

DEALS

Off-the-Field Issues
The deal market for sports franchises is being driven largely by factors not related to a team’s performance, although winning never hurts.

ASC Signal Divests of Biz Units
The acquirer, Raven Industries, is a portfolio company of Granahan McCourt Capital and Edgewater Funds.

Topspin Buys Vet Biz
PE buyers remain attuned to sectors that historically exceed expectations. That would include veterinary medical technology companies.

Golden Gate Buys J. Jill For $75M
Talbots is selling the retail chain at a significant discount in order to focus on its core brand.

Filene’s Basement Up For Grabs Again
Men’s Wearhouse backs away from its $67 million bid, a report states; competing bidders eager for next auction.

Filene’s Basement Up For Grabs Again
Men’s Wearhouse backs away from its $67 million bid, a report states; competing bidders eager for next auction.

Qwest Keeps Its Long-Distance Unit
Qwest’s strategic review was marked by a gap between the company’s view of the unit and significantly lower bids.

PEOPLE

BSMB Vet Re-emerges
Bodil Arlander is pairing off with Cowen’s Lauren Cooks Levitan, bringing together two titans in retail investing.

Piper Adds Traina and Wirdnam
Traina will head West Coast financial sponsor coverage, while Wirdnam will be posted in Piper's NY leveraged finance group.

FTI Hires Three Senior MDs
The Maryland consultant is looking to meet the needs of a expanding number of unstable companies.

THL Enters BDC Waters
Absent a crippled legacy portfolio, the buyout firm hopes to defy the fate that other business development companies have seen this year.

Mr. Retail
Gordon Brothers' Michael Frieze manages to weave retail through each of the firm's sprawling business segments.

PE Expects New Investors, Despite Credit Crisis
Rothstein Kass survey predicts pressure on management fees in downturn.

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