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Apollo Investment Management posts

Bet on Private Equity (AINV, FIG, BX) for a Second Half Rebound

Posted Jul 7th 2010 1:00PM by Jason Raznick (RSS feed)
Filed under: Private Equity, Blackstone Group L.P (BX)

As stocks continue to drift lower and lower, the risk/reward bias is starting to shift to the long side. Make no mistake, there are still tremendous risks in this market, but for risk-embracing, long-term investors it may be time to start wading back into equities.

If you want to bet on a second half rebound and are looking to get plenty of upside potential in return, the place to look is in the private-equity complex. In particular, Fortress Investment Group (FIG), The Blackstone Group (BX) and Apollo Investment Corp. (AINV) will give you plenty of bang for your buck if the current downtrend reverses itself.

Continue reading Bet on Private Equity (AINV, FIG, BX) for a Second Half Rebound

Texas Pacific looks to cash out

Posted May 1st 2007 10:22AM by Tom Taulli (RSS feed)
Filed under: Private Equity

Private equity pros make the big bucks because they understand market cycles. Interestingly enough, the pros are in the process of cashing out – as seen with Blackstone and perhaps Apollo Management.

Now, according to the Wall Street Journal [subscription required], it looks like the Texas Pacific Group (TPG) is joining the crowd.

Although, TPG doesn't want to do a traditional public offering. Instead, the firm wants to sell a small equity stake – say 20%. The buyers would include some of their loyal investors like pensions and insurance companies.

How much? It's too tough to tell. But, with TPG, we're probably talking a figure with nine zeros or so.

Then again, this may really be the first stage in becoming a public company. That is, these investors may have a registration right and that would mean allowing the shares to trade on public markets at some point.

All of this stuff is in the early stages. But, within the next six months, we are definitely going to see a lot of cash-out action.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Apollo buys Innkeepers USA -- doubles down on real estate

Posted Apr 16th 2007 1:34PM by Tom Taulli (RSS feed)
Filed under: Deals, Private Equity,

The folks at Apollo Management have been loading up on real estate lately. One deal that closed last week was the buyout of Realogy, which has an assortment of residential real estate brokerages such as Century 21, Coldwell Banker, and ERA.

Another part of Apollo -- Apollo Investment Corporation (NASDAQ: AINV) -- is also making a play at real estate. Today, the firm agreed to pay $17.75 for Innkeepers USA Trust (NYSE: KPA). The valuation comes to roughly $1.5 billion.

Innkeepers is a REIT and operates a variety of hotel brands, like Residence Inns, Summerfield Suites and Hampton Inns. While the firm generates consistent cash flows, the deal is not cheap at its 14X EBITDA multiple. Then again, the company probably has expansion possibilities.

On today's announcement, Innkeepers' stock is trading up 8% to $17.77.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.