Week in Review: Ares, Exits, and OECD

Despite the more than $1 trillion in fund reserves, PE managers say they’re doing more sales than buys in 2014. After nearly a decade of long-held portfolio companies, there are roughly 7,500 U.S. companies owned by private equity — and LPs are ready for their returns.

While a flotation was a popular exit strategy for the past six months, the IPO market has become less favorable recently.  Other channels — including sponsor-to-sponsor transactions, selling to strategics, or secondary sales — are becoming more popular.

In other news, KKR sent its first tweet. Here’s our take on it.

Opinions:

• 5 things to know ahead of the Ares IPO – below expected range.
• KKR seeks to attract investments as small as $10,000
• Private equity for ordinary folks
• Megadeals drive takeover activity past $1 trillion mark for 2014
• Energy M&A hits 10-year high
• Why M&A deals have roared back
• What’s with all the healthcare and pharmaceutical mergers?
• The OECD wants to increase tax on carried interest
• Looking for distressed deals in a low-default environment
• How TXU’s ‘bankrupt’ owners could still win

Transactions:

• VRS VeriClaim to acquire Ellis May
• TripAdvisor acquires Vacation Home Rentals
• Snow Phipps buys FeraDyne Outdoors
• Levine Leichtman acquires the material handling products division of FMC Technologies
• ProQuest acquires Pi2
• Vestar completes ISS acquisition
• Genstar Capital to buy Pretium
• Siris Capital acquires Stratus Technologies for $352 million
• Grey Mountain Partners invests in Fleetwood Industries
• Ware Malcomb and Connell Design announce merger
• Flag Capital raises $200 million for energy fund-of-funds
• Niagara Fiber buys Allied Blending and Ingredients

Member Spotlight

ORIX Mezzanine & Private Equity is a Dallas, Texas based provider of mezzanine and/or non-control private equity capital to middle market companies throughout the United States.  OMPE provides flexible capital for buyouts, recapitalizations and refinancings, mergers and acquisitions, and growth/expansion opportunities.  Investments are in companies owned by sponsor groups, companies with independent sponsor involvement, and directly with management teams.

In the past two years, ORIX Mezzanine & Private Equity has deployed over $100 million across 10 transactions.  OMPE typically targets investments of $5-25 million in junior capital interests, utilizing any combination of subordinated debt, convertible preferred/debt, preferred equity, and common equity. As it is not a traditional fund, OMPE does not have specific timing or exit requirements, and may provide additional capital as successive opportunities materialize.

For more information, please visit www.orixmpe.com and reach out to Drew Bagot at [email protected] or (214) 237-2371.