Christopher Witkowsky
Valuation difficulties have prompted the Texas-based mega-firm to cease talks that began more than a year ago with the Kuwait Investment Authority and two California pensions over the potential sale of a single digit stake in its management company.
A survey conducted at PEI Media’s annual CFO and COO Forum in New York Wednesday also revealed that 9% of firms represented have recently experienced a defaulting limited partner.
Infrastructure and renewable energy are the hot sectors right now for private equity firms, but US President Barack Obama's plans for the sectors will determine how attractive they remain to private investors.
David Swensen, chief investment officer of Yale’s $17bn endowment, said efforts to emulate Yale’s investment strategy would fail if other institutions use consultants and funds of funds to make investment decisions, instead of hiring a team of in-house professionals, according to a report.
Lehman Brothers Merchant Banking will partially spin out as an independent firm, while the failed bank will retain ownership of a portion of the funds. Limited partners in Lehman’s most recent buyout fund have been given the option to reduce unfunded commitments by 25%.
The energy-focused private equity firm will get $19m and take over various ‘greenfield’ development projects under consideration in the US.
The Pension Benefit Guaranty Corporation, which guarantees the pensions of about 44 million Americans, has hired gatekeepers as it prepares to allocate a portion of its $5.5bn in assets to private equity and real estate.
The New York-based firm has appointed current investment committee members Alexander Navab and Michael Michelson to the newly created positions of co-heads of the firm’s North American practice.
The former investment bank, which has applied to become a bank holding company, took a loss of $1.8bn in its asset management division, which includes private equity, infrastructure and real estate businesses.
The $17bn endowment has suffered from declining financial markets, and also said it has been establishing reserves in anticipation of 'substantial' write-downs in its private equity and real estate portfolio.