Week in Review: McColl, CDW, and Entrepreneurs

What’s in store for the IPO market? There was a bit of discussion this week around the anticipated IPOs of CDW and HD Supply, two companies purchased during the buyout boom. The offering prices place valuations well below their 2007 prices. Are firms itching to exit their investments? Or is there a new tide for IPOs?

In other news, Deloitte purchased McColl Partners, Coller Capital publishes its Private Equity Barometer, and PIMCO is not optimistic about the growth of the global economy.

What is “Entrepreneurship” in the 21st Century?: Did you know, “The French word entrepreneur first appeared in the French dictionary in 1723 to describe a person who organizes and operates a business by taking a financial risk”? Faisal Hoque, an accomplished entrepreneur, breaks down how he sees the term in today’s society.

Deloitte Buys Assets of Hugh McColl’s Boutique Bank: Deloitte acquired McColl Partners, and some of its 70 professionals, on Monday in an effort to become a leading advisor to the middle market. Looks like McColl can’t resist consolidation plays — even if he is on the other side of the table.  Will we see more boutiques rolled up in the future?

A Year Later, the Missed Opportunity of the JOBS Act: Although the JOBS Act was partially designed to help spur IPO, the benefits of the various IPO-friendly clauses have done little to move the market. The companies going public now, like Fairway, are reacting to the favorable economy and stock market rather than the JOBS Act.

Coller Capital Publishes Private Equity Barometer: Coller Capital released the summer edition of its PE Barometer this week. Some interesting results include: LPs think dry powder is slightly inflating valuations, private debt funds are popular, large buyouts have limited appeal for investors.

Yankee Candle’s Pulled Dividend Deal Shows Market Turning: On Thursday evening, Yankee Candle announced the cancellation of its plan to borrow money to pay a $187 million dividend to Madison Dearborn Partners. The withdrawal of the plan signifies that PE-execs have begun planning for the tightening of the debt markets.

Did you Hear?

• JPMorgan Private Equity Unit to Become Independent
• PIMCO Sees 60% Chance of Global Recession in Five Years
• Dole Foods Gets Unsolicited Takeover Offer From CEO
• RBS CEO Stephen Hester to Stand Down
• A Global Startup Stock Exchange Platform Just Launched
• Carlyle Seeks up to $4bn Property Fund
• 10 Ways You’re Killing Your Credibility
• Yahoo Buys Rondee, A Conference Calling Startup
• Google Buys Waze for $1 Billion

Member Spotlight:

KLH Capital is a fully capitalized SBIC-licensed private equity firm based out of Tampa, Florida. The firm, which has been a Member of Axial since 2010, manages $165 million in capital across two funds.

KLH Capital is currently seeking opportunities to invest in owner recapitalizations, management buyouts and buy-ins, and family succession recapitalizations. Their focus is on small companies in growing manufacturing, distribution, and business services industries with pre tax earnings of $2+ million.

Click here to connect with KLH Capital or any of the other 12,000+ Axial Members.

Thanks to CDW for the photo.