Filed under: Deals, The Blackstone Group, Financials and analyticals, Private equity industry, Investments, Value and lack thereof

The Blackstone Group L P (NYSE:BX) has announced the closing of three newly created collateralized loan obligation funds totaling $1.3 billion. Those CLO’s are trading again. These were all created over the past month, and these are just the CLO’s that Blackstone participated in.

In March, Blackstone merged its existing CLO group with the team from its newly acquired GSO Capital Partners. This 35 person CLO team has offices in New York and London. The combined CLO group now manages $14 billion across 26 funds in the US and Europe.

This shows a breakdown in the actual amount per CLO, compares it to Q1 and to 2007, and it even puts the lower volume blame now on the lack of AAA rated part needed for each CLO.

Interestingly enough, Blackstone shares are up almost 50% from their post-IPO lows.

Continue reading the full story and spot analysis at 247WallSt.com.

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Filed under: Deals, Raising money, Merrill Lynch, Private equity industry, Value and lack thereof, Public or private?

Cumulus Media Inc. (NASDAQ: CMLS) has announced that the management-led investor group has terminated the planned merger agreement. While there was a glimmer of hope that this was going to be rekindled, the deal spread on this was so wide that a fleet of trucks could have driven between it.

Cumulus has agreed with the investor group led by Lew Dickey, its Chairman, President and CEO, and an affiliate of Merrill Lynch’s (NYSE: MER) Global Private Equity, to terminate the merger agreement which first came on July 23, 2007. The members of the investor group informed Cumulus that after exploring possible alternatives they were unable to agree on terms on which they could proceed with the buyout.

As a result of the termination of the merger agreement, the investor group has agreed to promptly pay Cumulus a merger termination fee of $15 million. In addition, the terms of the previously announced amendment to Cumulus’ existing credit agreement will not take effect. Cumulus had a market cap of $253.6 million based upon a $5.81 close on Friday.

The company has also announced that its board of directors intends to explore the possible implementation of a new stock repurchase plan in the near-term in order to provide liquidity opportunities to stockholders.

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Filed under: Deals, Raising money, Venture capital industry, Private equity industry

It appears that the world of porn is getting more attention from private equity and venture capital investors. And, no, it isn’t that private equity executives and deal makers are spending more time looking at porn than they’re negotiating deals. (Well, maybe.) More importantly, a big investor in the space has won an award and might be opening a floodgate of capital

AdultVest is a private equity venture that we covered on its launch earlier this year. The company concentrates exclusively on adult industry investments, mergers and acquisitions. So far, its initial numbers are pretty stellar.

It claims to have some $7.9 billion in “available capital” to invest in adult themed businesses, and $286 million of that was raised “within the last 7 days.” It also claims to have 3,809 registered investors, with 53 of those signing up in the last week. (This data is from the group’s homepage.)

The huge news is that AdultVest was just selected by Alternative Investment News as one of four funds nominated for the “Hedge Fund Launch of the Year” award. And last month, the company announced it was acquiring iPorn.com.

Reading through the earnings release that Rick’s Cabaret International Inc. (NASDAQ: RICK) produced earlier this day, you might be tempted to conclude that adult entertainment is immune to a slowing economy. On the other hand, the incredibly poor recent performance by Playboy Enterprises inc. (NYSE: PLA) might make you conclude that the gathering slowdown could injured this sector.

There are a number of reasons that the investment community is trying to get into and make money from porn. The most obvious one is that you are reading about it right here right now.

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Filed under: Raising money

Following a trend in new fund formation that has seen the rich get richer, Kleiner Perkins Caufield & Byers Thursday announced that it has hit up eager limited partners for $1.2 billion, closing two new funds.

The blue-chip Sand Hill Road firm launched its 13th general interest fund, KPCB XIII, garnering $700 million for investment across all the firm’s investment sectors of energy and environmental technologies (”which it terms greentech”), information technology and life sciences ventures. It also raised a $500 million Green Growth Fund, which will support later stage greentech companies.

The greentech fund is a tacit acknowledgment that as an industrial sector, much of the new energy and environmental development being funded is fundamentally different from traditional venture areas such as life sciences and information technology. While ideally built on breakthrough technologies, greentech companies are typically more capital intensive in later-stage development, requiring more flexible funding models than traditional venture capital.

Continue reading at TechConfidential.com.

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Filed under: Raising money, Engagements, Venture capital industry, Investments

Israel Cleantech Ventures (ICV) has closed its capital raise at $75 million, according to Reuters. The original target for the fund focused on clean technology exceeded its target of $60 million and they’d to turn away additional investors.

Specifically, the fund will focus on Israel based or related high growth clean technology companies in sectors such as alternative energy, water conservation and purification, emissions reduction, and technologies that allow businesses to operate more efficiently and more environmentally friendly. Funded in 2006, ICV closed its first round of funding, raising $15 million in January 2006. The Globes in Israel reported that this was above target as well.

Funds came from institutional investors as well as family funds in the U.S., Europe, and Israel, such as Robeco Private Equity, a Netherlands-based asset manager, and Piper Jaffray, a U.S. financial institution.

The fund has finished seven investments, including Aqwise (waste water treatment), CellEra (fuel cells), Citrine Renewable Energy (landfill biogas treatment), Emefcy (energy production from wastewater), Metrolight (energy efficient lighting), Project Superior Place (electric vehicle infrastructure), and Pythagoras Solar (solar energy).

Jon Ogg is an editor and producer for the Special Situation newsletter for 247WallSt.com.

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Filed under: Deals, Management, Raising money, Investments

Vinum Capital Management has announced the launch of a $250 million fund targeting the California and west coast wine industry, Vinum Capital Partners I, LP. The fund will focus on mid-size premium and super-premium wine properties that produce 20,000 to 150,000 cases per year.

The California-based company plans to acquire wine companies, grow and expand them, and ultimately sell the assets in this industry that receives relatively tiny attention from equity investors. Vinum put together a solid team with significant experience in the wine industry, totaling $1 billion in winery-related transactions.

I”ll say one thing after reading this new — every worker in private equity probably wants to get hired by this fund.

Investment partners for the fund include Justin Faggioli, former COO of Ravenswood, Scott Setrakian, former Director of Golden Say Vineyards and an M&A and financing expert, G. Craig Vachon.

The portfolio management team for the fund lists Bill Foster from Beringer, Jonathan Pey from Robert Mondavi and Fosters Wine Estates, Doug Rogers from Gallo, Southcorp, and Brown-Forman Wines, and Bob Steinhauer from Beringer.

If you’ve kept up with the wine, beer, and spirits industry, you’ll get the significance of this as both Beringer and Mondavi are formerly public companies. Fosters acquired Beringer earlier this decade. Constellation Brands (NYSE: STZ) also acquired Robert Mondavi.

Jon Ogg produces and edits the Special Situation Investing Newsletter for 247WallSt.com.

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Filed under: Deals, Raising money, Venture capital industry, Investments

Quaker BioVentures shut its second fund that focuses on life science companies in the Mid-Atlantic region at $420 million, beating a target of $120 million.

The first fund closed for $280 million and invested in 24 companies. The fund has been successful, with Amicus Pharmaceuticals going public last Might, while Eximias and MedMark were each acquired in spring of 2006. BioRexis Pharmaceutical Corp. and Precision Therapeutics are pending acquisitions.

The second fund has already invested in five companies including Argolyn BioScience, Diasome Pharmaceuticals, EKR Therapeutics, Optherion, and Transave. Quaker’s partners for the fund include Sherrill Neff, Brenda Gavin, Richard Kollender, Ira Lubert, Adele Cirone Oliva and Dr. Matthew Rieke. The limited partners for the second fund haven’t been disclosed, however, Thomson Reuters reported that the Pennsylvania Public School Employees’ Retirement System and the Pennsylvania Say Employees’ Retirement System have invested.

Jon Ogg produces and edits the Special Situation Investing Newsletter for 247WallSt.com.

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Filed under: Top deals, Raising money, Investments, Shareholders, Value and lack thereof, Public or private?

According to a report from the Ernst & Young’s quarterly US IPO Pipeline Report, IPO activity is flattening as companies are waiting and watching to market to make their move. While that observation is obvious as a heart attack, there are some rather good details that might lead to help determine good IPO’s versus bad IPO’s in that report.

In the first quarter of 2008, 90 IPOs sat in the pipeline, the same amount as the last quarter of 2007. New registration was stable across the quarters, but the slide is still downward sequentially. In January there were 10 while February and March saw only 6 and 7, respectively. While the amount the registrations represent grew this quarter compared to last, $16.8 billion up to $17.3 billion, the numbers slowed toward the end of the quarter. It seems pre-IPO companies are holding tight and watching the market.

As expected, first quarter 2008 weakened compared to the first quarter in 2007. In the first quarter of 2007, 103 deals waited in the pipeline compared to 90 in 2008. In 2007, the registrants represented $22.8 billion compared to $17.3 billion in 2007. The average deal size also dropped, down to $192 million from $221 million. The largest deal in 2007, The Blackstone Group L.P. (NYSE: BX) reached $4.0 billion while in first quarter 2008, the largest was American Water Works at $1.6 billion. Visa Inc. (NYSE:V) was left off because of an end of quarter and for size issues as ‘one of a kind.’ Companies are also sitting in the pipeline much longer, 163 days on average compared to 113 in 2007.

Technology takes up the bulk of the pipeline with 26 registrants and $3.3 billion in dollar amount, up from $2.8 in fourth quarter 2007. Technology attracts foreign issuers with four out of five foreign issuers in the technology sector. While technology went up first quarter 2008, oil and gas dropped 60% from $5.3 billion fourth quarter 2007 to $1.9 billion. Biotech accounts for a solid 12 registrants and pharmaceuticals tally 11. California leads on a state-to-state basis, filing 16.7% of the total filings at 15. Texas and New York followed with 11 and 8, respectively.

Also according to the report… Patience and confidence are apt to ebb by June, but if you’re a good company with solid business plans, practices and proven results, opportunities still await you in the markets.

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Filed under: Financials and analyticals, Raising money, Texas Pacific Group, Investments, Value and lack thereof

There was an interesting report that surfaced over the weekend that took greater hold on Monday morning, yet nothing official has been released.

Washington Mutual (NYSE: WM) shares are rising sharply today on “weekend talk” that they will be supported by an investment from private-equity group led by TPG Inc, also known as Texas Pacific Group. The company has been forced to write-down billions on home-mortgages and loan losses since the credit crisis, and WaMu is also one of the large quasi-money-center banks that is at-risk of being in jeopardy on its own. According to Reuters, it said “a source” says the deal could be announced as soon as today

It could be a substantial investment of some $5 billion, although once you get into details the number mysteriously changes wildly among sources as far as terms and as far as dollars. Whatever it is, it’s working for the banking giant whose stock has been battered. Shares are up $2.70, over 26%, to $12.87 on the speculation. The 52-week range is $8.72 to $44.66.

What is perhaps more interesting than anything, is that this doesn’t necessarily include Wells Fargo (NYSE: WFC). That company has been listed as one of several companies in a position to be a savior for distressed financial companies. This would also lend credibility to a bank or private equity saving grace for National City Corp. (NYSE: NCC), which has also been in the soup.

If private equity ends up being a savior for the banks, even if it is an iconic trend it would be nothing short of ironic if you have been reading about all the private equity deals that have failed.

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Filed under: Rumors, Financials and analyticals, Raising money, Texas Pacific Group, Merrill Lynch, Investments

A report inthe Financial Times says that Merrill Lynch & Co. Inc. (NYSE: MER) is holding talks with TPG about forming closer ties. This may include the possibility of the private equity firm investing in Merrill Lynch if the investment bank needs more capital. John Thain met with key executives from TPG according to the report.

The companies have apparently been in discussions since last fall. One affiliate had offered to put in as much as $3 billion into Merrill Lynch. Merrill Lynch raised some $12+ billion in funds elsewhere for different terms.

What is interesting here is that the article notes that TPG doesn’t want to appear too close to Merrill Lynch, because of the appearance of being too close to a competitor.

The company has also raised additional funds this month by selling fixed income and preferred securities.

John Thain’s suspenders and belt might be a little tighter since he went on record saying Merrill Lynch will not need any more capital.

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