Fundraising

CIT Capital Finance has delivered financing for the Rutland Partners-led acquisition of Pulse Home Products while Electra Private Equity has carried out a third refinancing on Allflex.

Lehman Brothers’ listing of a fund of funds vehicle has attracted significant investor demand, including an 84 percent allocation of its greenshoe, showing that successful fundraising is still possible despite the recent volatility in the public markets.

Asia’s private equity report card for the first half of this year is out: fundraising has surpassed last year’s record levels but transaction value has fallen compared to the first six months of 2006.

Franklin Templeton Investments’ buyout arm has launched the largest mezzanine fund in central and eastern Europe.

The Dallas-based private equity firm is being sued by Accredited Home Lenders after it said Friday it may back away from its previously agreed $400 million buyout of the subprime mortgage company. Lone Star has extended the tender deadline.

US regional airline Midwest has turned down discount airline AirTran’s buyout offer in favour of a higher, $400m bid by TPG Capital and Northwest Airlines. A formal agreement is expected in days.

Duke Street Capital’s sixth fund has broken the €1 billion mark, providing some welcome news to the buyout firm after a summer where it has had to endure some negative coverage.

A senior leveraged buyout banker has warned cov-lite deals will cease to exist as lenders will refuse to accept loans on terms offered by buyout firms. Mid-market firms are seeing deals fall through as creditors push the price of debt back up.

In Denmark, a law has been passed to remove the favourable tax status enjoyed by leveraged loans.

Separate reports from two leading authorities on the private equity market have thrown a positive light on the recent upheavals in the debt markets.