Week in Review: Secondaries, Entrepreneurs, and Advertising

Between the deluge of general solicitation news last week and the ongoing heat wave on the east coast, middle market news seems to have fallen asleep this week. While a few interesting deals happened — like Blue Wolf Capital receiving $27 million from PNC and Men’s Wearhouse buying Joseph Abboud — probably the biggest event was advancement of the lawsuit against Bain, Blackstone, Carlyle, KKR, and other major PE firms in colluding to drive down prices of target companies.

In other news, we hosted the Axial Summer Summit on Tuesday. With over 125 Members from around the country in attendance — representing a range of deal professionals from mezz lenders to investment banks and corporate acquirers — the deal talk was robust. A big thank you to our 6 Summit Sponsors: Corum Group, DeSilva+Phillips, the Telsey Advisory Group, INTL FC Stone, Western Reserve Partners, and Westwood.

Blackstone Isn’t Planning to Advertise:  There has been no major influx of deal advertising yet (though we do have to wait another 45 days for the ruling to go into effect). And, Tony James of Blackstone doesn’t think there ever will be — at least  not from Blackstone. This poll from peHUB supports his estimation, finding that only 27% of respondents plan to increase their advertising.

Three Rules to Make Your Company Exceptional: Michael Raynor, director of Deloitte Services LP, discusses three traits that have driven the best companies to their success. As it turns out, it’s less about their actions and more about their ideology. Hint: it involves revenues and quality. Check out this related article for more insights.

How to Spot a Future Entrepreneur: VCs might find their job a little easier in a few years, as researchers have begun identifying early-life predictors for entrepreneurship. The study found that while grades don’t really matter, social skills, socioeconomic class, and even gender are correlated to the entrepreneurial spirit.

Private Equity’s Secondary Coming: While LPs have been known to sell their stake in a PE fund, the strategy is apparently picking up speed. Secondaries hit a record $26 billion last year, up from $3 billion in 2002. Might want to spend a little more time ensuring LP satisfaction – especially before you think of raising another round.

Did you hear?

• Capital Markets Climate Change
• Blue Wolf Capital Partners Received $27 Million from PNC
• Private Equity Meets Venture Capital
• Billabong Secures $364 Million in Financing
• Why Getting a Loan May Get Harder
• Why Men’s Wearhouse Bought Joseph Abboud
• Cheap Debt Drives Up LBO Valuations
• IPOs Aren’t Coming Back to the Middle Market
• Internet IPOs: First, RetailMeNot. Next, Twitter?
• What Investors Want to Hear in Your Pitch
• Yelp to Acquire SeatMe
• Monroe Capital Corporation Prices IPO
• My Company Has No Value. Does Yours?

Member Spotlight:

Total Safety is the world’s leading global provider of integrated industrial safety services, strategies and equipment necessary to keep workers, facilities and the environment safe. Headquartered in Houston, Texas, with more than 4,000 employees across 140 locations worldwide, the firm provides comprehensive, cost-effective safety service solutions to customers.

Total Safety is focused on target companies in the Industrials, Energy, and Environmental spaces with revenues greater than $5 million and/or EBITDA greater than $2 million. The company joined Axial in 2010.

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