Week in Review: IPOs, Pensions, and Cavanagh

IPOs have been the theme of the week, thanks to the notable offering from King Digital. While many criticized the company’s lack of profits, Dan Primack pointed out that flat profits are hardly an irregular occurrence for IPO’ing tech firms — many have gone public because of their growth potential and total available market, not their profits.

So far, the US has been home to 28% of the 211 IPOs this year — the highest percentage since 2000. The activity is so robust that some are beginning to wonder whether we are in the midst of an IPO bubble. Larger PE firms are paying particular attention, as their deal flow may be thinning with more companies going public than being sold in sponsor-to-sponsor transactions.

In other news, Michael J. Cavanagh may be heir to Carlyle not JPMorgan, pension funds join in fee pushback, and Facebook spends $2 billion on virtual reality firm.

Opinions:

• Can private equity firms act more like Warren Buffett?
• Want to be acquired? Start collaborating
• Should BDCs get more leverage?
• LPs v. public shareholders: Rubenstein weighs in
• Growing number of online lenders aim to disrupt banks
• Private equity funds grab smaller slice of M&A deals
• Bank mergers of equals expected to continue in 2014
• Confidence in global M&A activity remains high
• Hurt in crisis, TPG pursues smaller deals

Transactions:

• Brazos Private Equity Partners is winding down
• GlassRatner forms new investment bank
• Able Logistics completes leveraged recap
• Sentinel Capital buys Newk’s Restaurants
• Synopsys completes Coverity acquisition
• Riverside Management Group advises Counterpoint Systems in its sale
• Farmland Partners announces launch of IPO
• CHR Group acquires JVST
• Golden Gate Capital acquires LiveVox

Member Spotlight:

Focus Acquisition Partners is a buy-side advisor and private equity sponsor representing a network of private equity groups and family offices. Our team excels at working alongside investment bankers and brokers to bring in the most capable buyers in the most efficient manner possible. To date, the firm has completed 23 transactions totaling approximately $700 million in enterprise value.

As you prepare to go to market with your next deal, please consider Focus as a resource for connecting with the most experienced and capable investors. Our team is currently focused on the specialty chemicals, industrial technology, healthcare services and branded consumer products industries. If you are currently working on an opportunity within these industries please contact us to learn more about our investor clients.