Week in Review: $1 Trillion, Moelis, and Nasdaq

Dry powder is at an all-time high. According to a report from Bain this week, PE firms collected $1.077 trillion of capital overhang in 2013, surpassing the previous record from 2008. It is predicted that the capital will help drive both deal activity and valuations. Then again, similar predictions were also made at the end of 2012.

In other news, Moelis filed for a $100 million IPO. The WSJ commented that the filing is a bet that M&A transactions will increasingly fall under the purview of the shops with “a narrower focus than their larger Wall Street peers and are perceived to be freer of potential conflicts of interest.”

Opinions:

• Purchase of an asset vs. purchase of a business: What’s the big difference?
• Nasdaq launches private market for trading pre-IPO shares
• When it comes to change, being small is enviable
• Can’t get a bank loan? The alternatives are expanding
• When tech titans join forces: The verdict on 6 big mergers
• Wealthy investors are seeking alternatives
• Investor interest in mezz confirmed for 2014
• 8 themes PE advisors should recognize
• Blackstone and the art of flexibile capital
• What’s driving the big spending on mergers and acquisitions
• Leveraged loans: Dividend deals roll thanks to private equity
• Are banks lending too much?

Transactions:

• Marcum Cronus acted as advisor for World Oil Tools in its leveraged recapitalization
• Clearview Capital completes the take-private acquisition of Novik
• LLR closes fourth PE fund with $950 million
• Contellis Group acquires Strategic Social
• Hammond, Kennedy, Whitney adds-on ArmorActive
• HGGC is raising $1 billion for second fund
• Gladstone Capital Corporation acquires Edge Adhesive Holdings
• Falfurrias buys Advanced Control Systems as add-on
• Superior Capital Partners exits Edge Adhesives
• Tower Three Partners invests in Heritage Golf Group
• Great Range Capital buys Mountain Valley Water Company

Member Spotlight

Gateway Partners is a Registered Investment Adviser (RIA) that works with hedge funds, insurance companies, pension funds, endowments, HNW individuals, family offices and other RIA’s to create hedging strategies to reduce market exposure while enhancing portfolio returns.

The firm is focused on helping portfolio managers, endowments, and pension fund managers navigate through volatile market environments and create investment profiles, which make it more attractive to investors and clients alike. Gateway uses proprietary valuation methods across all asset classes to create custom hedging strategies consistent with our clients’ objectives.  Gateway Partners does not take assets under management.  The firm works as an independent Registered Investment Adviser with its clients to help them minimize the risks while maximizing the returns realized from their investment theses.