The Corsair Capital-backed bank has declined to extend $175m in debt for Kohlberg & Company’s acquisition of sports caterer Centerplate. Last month, National City agreed to a $5.2bn government-backed merger with PNC Financial Services Group.
Lehman Brothers Private Equity Partners, which is unaffiliated with the collapsed investment bank, saw its losses for the year nearly double during the month of October.
The Texas-based western-style clothing retailer, backed by Sage Capital and Luther King Capital, has sold 22 stores to Marwit Capital on its way to total liquidation. BTWW is one of 35 private-equity backed companies that have crashed into bankruptcy in 2008.
Lehman Brothers Private Equity Partners, which is unaffiliated with the collapsed investment bank, saw its losses for the year nearly double during the month of October.
The publicly traded US firm suffered $698m in third quarter write-downs, $264m of which stemmed from European Capital’s sinking stock price. The firm, which was downgraded and put on a negative watch by S&P, said it was suspending dividend payments.
The Swiss fund of funds investor, which is not a subsidiary to insurance giant AIG, has sold stakes in Avista and Sun Capital at a discount of nearly $7m.
The New York-based private equity firm said it is waiting for real estate valuations to decline further before beginning to invest the capital. However, Blackstone’s real estate portfolio has been written down by 10% owing to the market turmoil.
While fund managers have been busy raising distressed property vehicles, the bitter pill to swallow is that some LPs are unable to allocate equity to such funds at the moment, according to research by a prominent private equity real estate expert.
The UK-based private equity firm had a total negative return of £182m for the first half of 2008, due in part to £411m in write-downs and an £87m drop in value of its quoted portfolio. Its buyout and infrastructure businesses produced positive returns.
Charlie Bott, chairman of Goldman’s European financial sponsors group, is regarded as the first private equity-dedicated banker. He is replaced by John Waldron, previously co-head of leveraged finance.