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jerryking : cerberus   5

Newton Glassman, a private man in the stressful world of private equity - The Globe and Mail
Dec. 06 2013 | The Globe and Mail| BOYD ERMAN.

Newton Glassman has spent the past 11 years running hard to build what has become Canada’s second-largest private equity firm....Mr. Glassman’s firm, Catalyst Capital Group Inc., now runs $4-billion of assets that it mostly puts to work in messy distressed situations, trying to take control of struggling companies and turn them around....Investing in distressed debt is a gritty, confrontational business. Mr. Glassman's firm typically buys bonds issued by a troubled company, spending countless hours searching for the securities that will provide the most influence, then tries to gain control when the company is restructured. The goal is to buy in cheap, seize power if necessary, fix the business and reap the rewards. It can be a rough job, because there is rarely enough money to go around and someone usually loses out.

When he was at Cerberus, founder Steve Feinberg warned him about the personal cost of building a firm, telling him: “There is a massive difference between being one of the key players and being THE guy in charge.”

Catalyst’s charitable arm also is building a knowledge centre that will work with universities to provide investors, lawyers and judges with more education about credit markets. Mr. Glassman has harsh words for the way credit markets sometimes work in Canada, as judges have sometimes upset the traditional order of restructurings...

Mr. Glassman says that at the time, he thought Mr. Feinberg was “just yakking.” But if he knew then what he knows now about building his own firm, he says he probably would have stayed at Cerberus. “The job of being the guy is if you take your responsibilities seriously, it is all encompassing.”
private_equity  Newton_Glassman  Bay_Street  Boyd_Erman  Catalyst  personal_cost  distressed_debt  turnarounds  Cerberus  vulture_investing  restructurings 
december 2013 by jerryking
Supervalu May Be Just That -
October 29, 2012 | WSJ | By SHARON TERLEP And RYAN DEZEMBER.

Supervalu May Be Just That
Investment Firm Cerberus Aligns With Real-Estate Partners for a Possible Bid
supermarkets  grocery  real_estate  Cerberus 
october 2012 by jerryking
Private equity groups acknowledge the threat hedge fund are making into buyouts
Jun 6, 2005 | Financial Times pg. 10 | PAUL J DAVIES.

The extent to which hedge funds are competing directly for the kind of buy-out deals beloved of private equity firms is less certain. In 2004, hedge funds were successful in about 23 large US deals worth roughly Dollars 30bn (Pounds 16.6bn). This compares with Dollars 300bn in buy-out deals announced by private equity groups the same year.
while the hiring of private equity deal specialists by hedge funds has been on the rise, most still lack the know-how for the value creation that private equity has always aimed at. "Later on, PE firms are more likely to start launching hedge funds than the other way around because the PE firms have the deep teams, the investment specialists and deal expertise," says Mr [John Coyle]. "Hedge funds don't have these kind of resources."
Having a hedge fund arm would give PE firms ways to exploit the expensive due diligence they perform. PE firms examine many deals, but often end up outbid, or deciding that an opportunity is not a pure PE deal. At that point, all their work goes for nought, Mr Coyle says. "So, they see having a hedge fund that can invest in or finance the target in different ways as a way to leverage off all the due diligence they have performed."
private_equity  hedge_funds  Cerberus  Blackstone  KKR  Carlyle_Group  buyouts 
september 2012 by jerryking
Goldman Builds Ambitious Role In Buyout Realm -
October 31, 2006 | WSJ | By HENNY SENDER

Goldman Builds Ambitious Role In Buyout Realm
Loans to Private-Equity Firms Edge Out Commercial Bankers; Wearing Hat as Investors, Too

Investment banks are building their financing capabilities as they build their own buyout, or private-equity, businesses....Goldman's footprint has been especially deep on complicated deals like Texas Genco. The power company was bought by the four buyout firms -- Blackstone Group, Hellman & Friedman LLC, Kohlberg Kravis Roberts & Co. and Texas Pacific Group. When those private-equity firms won Texas Genco in a hotly contested auction, they counted on Goldman for several aspects of their offer.

In addition to arranging the loans, Goldman arranged derivatives transactions that protected the new owners against the possibility of a plunge in energy prices. This hedge gave comfort to other lenders, making the financing less costly than it would otherwise have been.

Similarly, in 2005, when Cerberus Capital Management LP bought paper and timber operations from MeadWestvaco for $2.3 billion, Goldman led the financing and arranged hedges for the new owners against fluctuations in the prices of pulp, natural gas and currencies.

"If a deal requires creativity, Goldman will figure out how to make it work," says Scott Sperling of private-equity firm Thomas H. Lee Partners LP in Boston.
buyouts  private_equity  Goldman_Sachs  funding  LBOs  Cerberus  investment_banking  creativity  derivatives  hedging  owners 
april 2012 by jerryking

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