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jerryking : secondary_markets   17

Secondaries Report
Jul 1, 2003 | Venture Capital Journal | by Carolina Braunschweig.

While the jump in corporate sales is primarily due to macroeconomic factors, each sale is unique. Details on some of the more p...
corporate_investors  secondary_markets  selling_off 
27 days ago by jerryking
Vulture Capital
Jan 7, 2002,

** Scavengers pick through a killing field of corporate investment portfolios.

It's garage sale time at Polaroid. Now in bankruptcy, the company is investment portfolio with stakes in a handful of tech startups, including Colorado MicroDisplay and ActivePhoto of Sunnyvale, Calif.......Such clearance sales are becoming commonplace.... The secondary market saw $1.5 billion in sales in 2001, a 150% increase since 1997. Faced with recession and a collapse in their once-buoyant tech speculations, some firms are rushing to unload venture portfolios, either by closing the fund and writing down the value or by selling the portfolio. Lucent and mobile phone retailer Hikari Tsushin are just two of the companies said to be looking to dump VC portfolios........One of the scavengers picking through the detritus is Nick Harris, general partner of Lexington Partners in New York. Last year Lexington paid $1 billion for 70 partnership interests from Chase Bank after it acquired J.P. Morgan. Lexington dropped another $1 billion buying a portfolio from Royal Bank of Scotland.

With $5 billion under management that it raised from banks, insurance companies and other institutions, Lexington is one of the biggest buyers of secondary stakes. In the mid-1990s buyers got an average 25% discount from the original investors' prices; today they buy at up to 40% discounts. Desperate sellers have even given away their portfolios for free in exchange for a share of future returns. "In some cases we're happy to pay a good price for the assets," says David Park of Paul Capital, in San Francisco. "In other cases they need to give us an extreme discount.
corporate_investors  culling  exits  secondary_markets  selling_off  start_ups  vc  venture_capital 
december 2019 by jerryking
CIBC Acquires Accenture's Tech Venture Portfolio - WSJ
Aug. 6, 2002

In a move that surprised some secondary market executives, CIBC World Markets said Tuesday, Aug. 6, it has purchased most of Accenture Ltd.'s venture capital portfolio for an undisclosed price.

The Hamilton, Bermuda, consulting firm will retain 5% of the portfolio, which comprised 80 early- to mid-stage technology companies, mostly in software. Accenture has paid about $325 million for minority stakes in them.

Accenture, which rode the venture capital investment wave starting in 1999 with an intent to invest $500 million, is one of many corporate venture capitalists to exit the industry now that returns have soured. It has shopped the portfolio around to secondary-market buyers at least since March, when Accenture said it was halting new venture capital investments and selling its venture portfolio because of its losses. At that time, it reported a book value of about $95 million for the portfolio and said it would take a charge of $212 million in the second quarter to cover anticipated losses from the sale. No additional charges are expected in connection with this sale.

CIBC, the New York investment arm of the Canadian Imperial Bank of Commerce, was a surprise buyer. It has not been an active buyer of secondary private equity interests for at least 18 months, despite frenetic dealflow coming from corporate venture portfolios.

"Acquiring portfolios with direct investments is a much different game than buying limited partnership interests in venture funds," said Scott Conners, a principal at Landmark Partners Inc. of Simsbury, Conn. "It's much less diversified, and managers of corporate venture units don't normally have the same disciplines as the traditional venture fund managers. Also, even if they had the requisite management skills, why not handpick your own investments rather than acquire other people's baggage?"

According to sources, Accenture had been negotiating with frontrunner Thomas Weisel Partners LLC of San Francisco. Credit Suisse First Boston, retained as investment adviser, was also believed to be a potential buyer. Neither could be reached for comment.

CIBC gave no details on the transaction, due to close at the end of the year. As with all secondary market transactions, it remains subject to transfer approvals from companies within the portfolio.

Some secondary market sources said they had given Accenture's offer a "quick look" but declined because the portfolio consisted of direct investments that are tougher to manage or require undetermined extra financing to make them viable.

"They've been trying to sell for a long time now, and it didn't look spectacular to me," said one potential New York buyer.

Conners added: "Many corporate venture deals tend to be 'me-too' deals that they pay a high price for."

CIBC executives described the deal as "an attractive investment" opportunity.

"The acquisition clearly demonstrates our commitment to the technology sector generally and software specifically," said Marshall Heinberg, a CIBC World Markets managing director and head of U.S. corporate finance, in a statement.

It isn't clear whether the transaction will include the transfer of any managers from Accenture Technology Ventures, the Palo Alto, Calif., business unit that made the original investments, to help manage the assets.

CIBC's venture group, consisting of six investment professionals, makes direct investments as part of CIBC Capital Partners. Its portfolio currently includes about 50 companies, primarily in North America. Since its inception in 1989, CIBC Capital Partners has invested more than $1 billion.

The firm would not elaborate on its secondary market activities, but one New York-based secondary specialist said CIBC hasn't bought such interests since a $300 million purchase nearly two years ago.

Accenture, which split from Arthur Andersen LLP and was formerly known as Andersen Consulting, said it will continue its existing client relationships with companies in the portfolio.

Accenture made only direct investments in companies, putting in $2 million to $30 million, according to New York financial markets research firm Capital IQ. Portfolio companies include AltoWeb Inc., a Palo Alto-based supplier of application production platforms, and Epylon Corp., a San Francisco-based online procurement company.

Accenture and CIBC World Markets also said they plan to join an alliance to offer CIBC access to Accenture's technology-sector knowledge.
Accenture  CIBC  corporate_investors  early-stage  economic_downturn  exits  mergers_&_acquisitions  portfolio_management  secondary_markets  selling_off  start_ups  venture_capital 
november 2019 by jerryking
The Data Behind Dining
FEB 7, 2017 | The Atlantic | BOURREE LAM.

Damian Mogavero, a dining-industry consultant, has analyzed the data behind thousands of restaurants—which dishes get ordered, which servers bring in the highest bills, and even what the weather’s like—and found that these metrics can help inform the decisions and practices of restaurateurs.....Mogavero recently wrote a book about analytics called The Underground Culinary Tour—which is also the name of an annual insider retreat he runs, in which he leads restaurateurs from around the nation to what he considers the most innovative restaurants in New York City, with 15 stops in 24 hours.....they really understood the business problem that I understood, as a frustrated restaurateur. There was not accessible information to make really important business decisions.

Lam: Why is it that the restaurant business tends to be more instinct-driven than data-driven?

Mogavero: It is so creative, and it really attracts innovative and creative people who really enjoy the art and the design of the guest experience. When I was a frustrated restaurateur, I would ask my chefs and managers simple questions, such as: Who are your top and bottom servers? Why did your food costs go up? Why did your labor costs go up? And they would give me blank stares, wrong answers, or make up stuff. The thing that really killed me is why so much time gets spent in administrative B.S.

They were frustrated artists in their own way, because all those questions I was posing were buried in a bunch of Excel spreadsheets. What I like to say is, nothing good ever happens at the back office. You can't make customers happy and you can’t cook great food there. That was the business problem that I saw. I assembled a chef, a sommelier, a restaurant manager, and three techies as the founding team of the company. The message was: We’re going to create software, so you can get back to what you love to do with a more profitable operation.......Mogavero: Because information is flowing so quickly, you’re likely to see trends from a big city go to a secondary city more often. But you’ll see regional trends come to the big city as well. It’s all part of this information flow that’s more transparent and faster. The secondary-market awakening is coupled with the fact that it’s really expensive for chefs to live in big cities, and we’re seeing many chefs leaving the big cities.
bullshitake  dining  data  books  restaurants  data_driven  New_York_City  innovation  restauranteurs  analytics  back-office  information_flows  secondary_markets 
may 2017 by jerryking
Airbnb and Others Set Terms for Employees to Cash Out - The New York Times
Continue reading the main storyShare This Page
Silicon_Valley  venture_capital  private_equity  secondary_markets  Airbnb  Pinterest  SpaceX  start_ups 
august 2016 by jerryking
Inside the Growing Secondary Market for Venture Capital Assets
Millennium Technology Value Partners, L.P. | By Dan Burstein and Sam Schwerin
Managing Partners,
venture_capital  private_equity  secondary_markets 
july 2016 by jerryking
Auction Houses Muscle In on Art Galleries' Turf
OCTOBER 20, 2013 |-|By MARY M. LANE
Auction Houses Muscle In on Art Galleries' Turf
Contemporary-Art Boom, Margin Pressures Force Christie's, Sotheby's to Evolve.

For decades, the art business thrived on a symbiosis between galleries and auction houses. Galleries and the dealers who ran them traditionally made long-term investments in discovering and developing young artists, placing their artworks with influential collectors whose patronage would further an artist's reputation and ultimately increase his selling prices.

Auction houses, for their part, provided a lucrative secondary market for the most enduring of those artworks, but rarely handled trendy new artists.
[image] Christie's Images Ltd

Sales of highly experimental works, such as 'To Meet My Past,' by Tracey Emin, typically have been handled privately; the work went for $778,900 at a Christie's auction.

Now, a boom in the contemporary-art market and margin pressures in the auction business are changing all that. Those forces are prompting the houses to experiment with new ways of auctioning art and to arrange more private sales of contemporary works outside the auction room, where profits are richer.

Increasingly Sotheby's and Christie's are catering to a new breed of art buyers from the hedge-fund world and emerging economies who prefer to quickly acquire big-name pieces of art instead of building relationships with galleries where they might buy the art more cheaply.

Last year, private-contract sales of fine art accounted for $1 billion of Christie's $6.27 billion of revenue and $906.5 million of Sotheby's $5.4 billion. That's a big jump from before the global financial crisis: In 2006, Christie's sold $256 million of art in private sales, while
art  artists  auctions  dealerships  Christie's  Sotheby's  galleries  London  collectors  patronage  art_galleries  secondary_markets  hedge_funds  symbiosis  contemporary_art 
october 2013 by jerryking
Trends in Private Equity
Winter 2004 | Journal of Wealth Management | by Mark Anson
trends  private_equity  auctions  secondary_markets  LBOs  hedge_funds 
september 2012 by jerryking
Harvard selling $1.5 billion in private equity investments
November 21, 2011 | CBS News| By Larry Swedroe

Harvard selling $1.5 billion in private equity investments
Harvard  private_equity  exits  secondary_markets 
november 2011 by jerryking
Just Past the Ivied Halls, Endowments Suffer -
Published: November 25, 2008

help universities reduce their losses in secondary investments. Negotiate with six more major universities to handle the management, marketing and sales of their private equity portfolios.
Colleges_&_Universities  secondary_markets  endowments  foundations  Claire_Cain_Miller 
november 2011 by jerryking
Should You Buy Facebook at $30 per Share?
January 5, 2011 - by Sarah Morgan. With hot
tech companies like Twitter, LinkedIn and Facebook still officially
off-limits to retail investors, sites like SharesPost and SecondMarket,
which match buyers with sellers of fast-growing firms, have found a
niche...Both sites match qualified investors with employees or
early-stage investors who have shares in private companies -- and need
the cash. Investing is restricted to "accredited" investors...On the
secondary markets, shareholders get an exit, and interested investors an
opportunity. But there are significant drawbacks, including a lack of
disclosure of financial information and the fact that shares don't trade
often, which means it can be hard to cash out when you want to, says
the Financial Industry Regulatory Authority. Also, because many
early-stage companies fail, investment professionals consider pre-IPO
investing very risky.
secondary_markets  Goldman_Sachs  Facebook  Twitter  privately_held_companies  SharesPost  SecondMarket 
january 2011 by jerryking
HEARD ON THE STREET: Private Equity's New Fear Gauge -
OCTOBER 1, 2010 | WSJ | By JOHN JANNARONE. The growing
secondary market could force more transparency from funds. As positions
in a fund trade more frequently, investors can compare market-clearing
valuations for positions with a fund's own assessments. Triago says the
best bid in the secondary market is currently an average of 8% below
reported net asset value, versus a 35% discount in early 2009.

Perhaps the spread will become a new gauge of how enthusiastic investors
are about private equity.
private_equity  secondary_markets  limited_partnerships  asset_values 
october 2010 by jerryking
Business; Private Traders See Gold in Venture Capital Ruins
April 15, 2001 By AMY CORTESE This article is a tickler on the
issue of a KPMG's ICE group selling a service to evaluate and assess VC
and PE portfolio for the secondary market. What conceptual tools would
be needed to automate/systematize the process?
portfolios  secondary_markets  venture_capital  KPMG  due_diligence  exits  relationships  one-of-a-kind  valuations  discounting  bubbles  liquidity  tools 
december 2008 by jerryking
Vengrowth Halts Redemptions
Dec. 10, 2008, G&M article by SHIRLEY WON. Part of idea
for a business service that would assess the risks of individual tech
companies in the portfolio of VC firms. Facilitate the sale of these
assets to other companies.
troubled  VC  portfolios  venture_capital  Vengrowth  secondary_markets  KPMG 
december 2008 by jerryking

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