Only a year ago, the belief was that the private equity world was doomed. But as is common in the financial markets, this was big exaggeration. If anything, private equity firms have shown that they can adapt quite well.

Just look at KKR (KKR). In its latest quarter, the company posted a profit of $180.6 million or $0.86 per share. The consensus estimate was for $0.42 per share.

But private equity firms like to point to another metric: economic net income, which focuses on fees and gains from investments. This came to $714.6 million in the quarter. Yes, the private equity game can be wildly profitable.

Continue reading KKR Gets Its Groove Back

KKR Gets Its Groove Back originally appeared on BloggingStocks on Wed, 23 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Betting on the outcome of a buyout is no easy feat. Will there be a heated auction? Or will the bidders have doubts and want price concessions?

The result is often much volatility. Just look at Beckman Coulter (BEC), a top medical diagnostic instruments company. In early December, the company put itself up for sale and the stock price surged to $72. Since then, the shares have traded in band of $71 to $75.

Continue reading Danaher Shells Out $6.8 Billion for Beckman Coulter

Danaher Shells Out $6.8 Billion for Beckman Coulter originally appeared on BloggingStocks on Mon, 07 Feb 2011 10:00:00 EST. Please see our terms for use of feeds.

For private equity firms, there was much anticipation of the Nielsen (NLSN) IPO. These funds spent huge amounts from 2002 to 2007 on buyouts and they want to get some liquidity, as well as pay down debt.

Well, based on today's trading, private equity firms should definitely be optimistic. Nielsen priced its IPO at $23, which was above its $20 to $22 price range (raising about $1.9 billion). The stock is now up to $25. In fact, this is the biggest private-equity IPO since 2006.

Continue reading Nielsen IPO Gets a Good Rating from Investors

Nielsen IPO Gets a Good Rating from Investors originally appeared on BloggingStocks on Wed, 26 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

Since early September, shares of the major private equity firms Blackstone Group (BX) and KKR & Co. (KKR) have seen strong gains. Of course, part of the reason has been the bull move. But at the same time, the prospects for private equity are looking brighter. In fact, the upcoming year is shaping up to be strong for public offerings.

According to a report from Bloomberg.com, it looks like private-equity backed deals will account for roughly half the volume. And they will generally be massive transactions. Some that are on deck include HCA Holdings, Nielsen Holdings and Kinder Morgan.

Continue reading Blackstone, KKR Get Ready for Mega IPOs

Blackstone, KKR Get Ready for Mega IPOs originally appeared on BloggingStocks on Mon, 03 Jan 2011 11:20:00 EST. Please see our terms for use of feeds.

Beckman Coulter (BEC), a top medical diagnostic instruments company, has been public over 20 years. But it looks like its days of independence may soon be over. According to a report in the Wall Street Journal, Beckman is in the process of selling itself. So far in today's trading, the shares are up 27% to $72.57, with the market cap at about $5 billion.

Beckman's products span many categories like biomedical testing and lab automation. The installed base is roughly 200,000. In fact, a large portion of the revenues come from recurring sources (such as refilling supplies for the machines). In other words, Beckman has sturdy cash flow stream.

Continue reading Is Beckman Coulter Buyout Bait?

Is Beckman Coulter Buyout Bait? originally appeared on BloggingStocks on Fri, 10 Dec 2010 14:15:00 EST. Please see our terms for use of feeds.

Aéropostale (ARO - option chain) shares are soaring today on rumors that the company could go private in a deal with a private equity company worth $40 per share. ARO has not commented on the rumor. Even if ARO executives do not want to sell, this kind of interest could establish a floor for the stock price. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ARO.

ARO opened this morning at $24.62. So far today the stock has hit a low of $23.98 and a high of $25.00. As of 12:25, ARO is trading at $24.61 up 0.95 (4.0%). The chart for ARO looks bearish and S&P gives ARO a negative 2 STARS (out of 5) sell ranking.

Continue reading Aeropostale Takeover Rumors Swirl

Aeropostale Takeover Rumors Swirl originally appeared on BloggingStocks on Tue, 07 Dec 2010 13:50:00 EST. Please see our terms for use of feeds.

Segate Technology (STX - option chain) stock is trading lower today after the company announced this morning it has cut off talks with private-equity firms about taking the company private, saying the potential suitors did not value the company highly enough. STX also announced it has added $2 billion to its stock buyback plan. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on STX.

This morning, STX opened at $13.26. So far today the stock has hit a high of $13.50 and a low of $13.15. As of 12:05, STX is trading at $13.47, down $0.39 (-2.8%). The chart for STX looks bearish and S&P gives STX a negative 2 STARS (out of 5) sell ranking.

Continue reading Seagate Technology Private Equity Talks Fizzle

Seagate Technology Private Equity Talks Fizzle originally appeared on BloggingStocks on Tue, 30 Nov 2010 13:30:00 EST. Please see our terms for use of feeds.

J. Crew Group (JCG) was nearly 17% higher Tuesday morning thanks to rumors of a potential buyout.

The Wall Street Journal (subscription required) reported that a pair of private equity firms are closing in on a deal to purchase J. Crew for $43.50 per share cash, or $3 billion. One of the potential new owners is TPG Capital, a former owner of the company. TPG would hold a 75% stake in the company, with LA-based Leonard Green & Partners owning the remaining 25%. TPG previously owned an 88% stake in JCG in 1997.

Continue reading J. Crew Rallies on Buyout Rumors

J. Crew Rallies on Buyout Rumors originally appeared on BloggingStocks on Tue, 23 Nov 2010 11:00:00 EST. Please see our terms for use of feeds.

Early Monday morning, trading was halted on Gymboree (GYMB) after an announcement that Bain Capital Partners would acquire the children's clothing company. Reportedly, the definitive agreement calls for Bain to pay $65.40 per share for Gymboree, or $1.8 billion.

According to the terms of the agreement, Gymboree stockholders will receive $65.40 cash for each outstanding share of Gymboree common stock owned. This price is a 57.4% premium to Gymboree's share price on September 30, 2010 -- the date that takeover rumors began. And the $65.40 is a 23.5% premium over Friday's closing price of $52.95.

Continue reading Bain Capital to Acquire Gymboree

Bain Capital to Acquire Gymboree originally appeared on BloggingStocks on Mon, 11 Oct 2010 11:30:00 EST. Please see our terms for use of feeds.

ResCare (RSCR), which provides health services to the disabled, are up about 6% on Tuesday morning trading thanks to a sweetened buyout deal. The company got a $370 million buyout offer in mid August by Canadian private equity firm, Onex Corp.

After some negotiation, the parties came to an agreement this week; that is, a deal that is $14 million higher.

Continue reading ResCare Gets a Sweetened Buyout Deal

ResCare Gets a Sweetened Buyout Deal originally appeared on BloggingStocks on Tue, 07 Sep 2010 14:00:00 EST. Please see our terms for use of feeds.

Back in 2002, Burger King (BKC) went private in a $1.5 billion deal (at the time, the food chain was owned by Diageo PLC). Then in 2006, the company came back to the public markets, providing a nice return for the private equity sponsors, which included TPG Capital, Goldman Sachs Capital Partners and Bain Capital.

OK, so how about going private again? Actually, this is the latest rumor making the rounds. Although, it sounds like the negotiations are in the early stages.

Continue reading Burger King Looking for a Buyout?

Burger King Looking for a Buyout? originally appeared on BloggingStocks on Wed, 01 Sep 2010 11:20:00 EST. Please see our terms for use of feeds.

Continue reading One Stock to Play the Financial Industry's Comeback

One Stock to Play the Financial Industry's Comeback originally appeared on BloggingStocks on Thu, 15 Jul 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Radio Shack: Takeover or Acquisition Target

Radio Shack: Takeover or Acquisition Target originally appeared on BloggingStocks on Fri, 02 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

Several takeover rumors cropped up this morning. One of those is that RadioShack (RSH) is in the sights of many possible suitors. Those suitors include Blackstone Group (BX), Kohlberg Kravis Roberts, Bain Capital, TPG, and potentially Best Buy (BBY).

These rumors had the shares trading higher this morning, which is really a continuation of RSH's longer-term trend. Since March 2009, RSH has trekked steadily higher, overtaking the 10-month moving average in the process. That said, the stock is stuck just below the $23 level.

Continue reading Is RadioShack Ready for a Takeover?

Is RadioShack Ready for a Takeover? originally appeared on BloggingStocks on Tue, 01 Jun 2010 12:00:00 EST. Please see our terms for use of feeds.

Private equity firm Apollo Management raised $239.4 million in an IPO for its portfolio company, Metals USA Holdings Corp. (MUSA). The offering came to $20 per share, which was at the top of the $18 to $20 range. In all, Apollo has realized a tidy 266% return on its investment (since 2005).

Continue reading Metals USA IPO a Win for Apollo

Metals USA IPO a Win for Apollo originally appeared on BloggingStocks on Fri, 09 Apr 2010 13:40:00 EST. Please see our terms for use of feeds.

Even for top private equity firms, it's extremely tough to raise new funds. Investors are changing their allocations and also concerned about future returns. For example, private equity firms raised only $13 billion in Q1, which was the lowest since 2004. The peak came in Q1 of 2008, when the amount was roughly $68 billion.

As a result, private equity firms need to get creative, such as focusing on new markets.

Continue reading Carlyle Snags $1.1 Billion for Financial Services Deals

Carlyle Snags $1.1 Billion for Financial Services Deals originally appeared on BloggingStocks on Tue, 06 Apr 2010 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Private Equity Fundraising Up, but Still Soft

Private Equity Fundraising Up, but Still Soft originally appeared on BloggingStocks on Thu, 01 Apr 2010 11:10:00 EST. Please see our terms for use of feeds.

Continue reading Zale Looks for a Private-Equity Lifeline

Zale Looks for a Private-Equity Lifeline originally appeared on BloggingStocks on Tue, 23 Mar 2010 15:20:00 EST. Please see our terms for use of feeds.

The amount of money sitting in sovereign wealth funds grew in 2009. As financial markets around the world recovered from the severity of the financial crisis that struck in September 2008, the coffers of these unique financial entities swelled to $3.51 trillion, according to the latest research from the alternative investment analysts at Preqin.

Nonetheless, some funds did experience withdrawals by their respective governments. In some cases, governments used sovereign wealth fund assets to close budgetary gaps.

Continue reading Sovereign Wealth Fund Assets Up 9% in 2009

Sovereign Wealth Fund Assets Up 9% in 2009 originally appeared on BloggingStocks on Sat, 13 Mar 2010 14:10:00 EST. Please see our terms for use of feeds.

Continue reading Opportunistic Real Estate Buying By Private Equity Poised to Pop in 2010

Opportunistic Real Estate Buying By Private Equity Poised to Pop in 2010 originally appeared on BloggingStocks on Mon, 22 Feb 2010 10:40:00 EST. Please see our terms for use of feeds.