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Mexican pension funds have agreed to participate in a $852 million placement to support President Andres Manuel Lopez Obrador's administration in financing the purchase of assets from Spanish energy giant Iberdrola SA. Seven out of ten pension funds, known as Afores, have committed to the placement of private equity certificates. The largest contributions are pending approval from the antitrust regulator Cofece. This transaction is seen as a step towards boosting government resources without straining public finances and could serve as a model for future investment projects. [Extracted from the article]

Anchorage Capital Advisors is seeking to raise $1 billion for its Anchorage Credit Opportunities IX fund, which will invest in corporate debt, structured and opportunistic credit in the US and Europe. The fund has already raised over $600 million in its first close. The previous vintage of the fund raised $1.2 billion and has achieved a net internal rate of return of 35%. Anchorage Capital Advisors has raised $4 billion in new capital since January 2022 and manages approximately $23 billion of assets. [Extracted from the article]

Arcmont Asset Management is seeking to raise over €12 billion for a new European direct-lending fund. This will be the fifth fund from the London-based firm, which focuses on supporting European buyouts with private loans. Private lenders like Arcmont are becoming increasingly popular among private equity firms looking for debt to finance their acquisitions. Arcmont is offering investors a net internal rate of return between 8% and 14% for the new fund. The firm, which was acquired by Nuveen last year, has raised over €29 billion since its establishment in 2011. [Extracted from the article]

Israeli venture capital firm Cyberstarts has reported yearly returns of 170% for its first fund, which was formed in 2018. The firm focuses on Israeli cybersecurity startups and is backed by investors such as Sequoia Capital. Its portfolio includes several successful acquisitions and further funding rounds, with a total value of $1.5 billion. Cyberstarts has also seen success with its second fund, generating an internal rate of return of 115%. The company attributes the continued growth of the cybersecurity market to increased cybersecurity budgets and the introduction of generative AI. Despite ongoing conflicts, Israel's cybersecurity industry has remained resilient, with significant fundraising and acquisitions taking place. [Extracted from the article]

New York City's $86 billion pension fund for civil employees, NYCERS, is investing $60 million in a partnership led by the Community Preservation Corp. The partnership aims to preserve nearly 35,000 rent-stabilized units affected by the collapse of Signature Bank. The majority of the apartments are located in Manhattan and the Bronx, with the remaining units in Brooklyn and Queens. The investment is part of an effort to protect and expand affordable housing in the city. [Extracted from the article]

Kedaara Capital, an Indian private equity firm, has raised a record-breaking $1.7 billion, putting it on par with global players like Blackstone and Carlyle Group. The firm plans to leverage its local expertise in the health, consumer, and finance sectors to collaborate with these global firms. Kedaara aims to make four investments per year from its latest fund and take three companies public by 2025. The firm has a strong track record, with a gross internal rate of return of 40% for its first fund. Kedaara is also expanding its investment focus to include the intersection of health and consumers, as well as exploring opportunities between India and the US. [Extracted from the article]

Pension plans and insurers are investing in funds that focus on the riskiest part of the collateralized loan obligation (CLO) market, raising concerns about the potential pitfalls of these investments. CLO equity, which is deeply subordinated debt, offers high returns but is last in line to receive payments and first to take losses. While traditionally risk-averse investors have been attracted to these investments, the recent influx of pension funds adds a potentially large buyer to the market. However, some investors worry that pensions may be taking on too much risk for returns that may not meet expectations. [Extracted from the article]

According to a study by Lincoln International, borrowers of private credit capital are facing a deepening liquidity crunch. Many businesses are struggling to cover costs, with the average fixed charge coverage ratio falling from 1.23 times to 1.04 times compared to the same period last year. Borrowers, along with their private equity owners, are finding ways to avoid defaults and stay afloat until interest rates decrease or the M&A market improves. Amendments and structured capital are being used to address the challenges faced by struggling companies, while companies performing well are seeking to reduce their debt load. Direct lenders are also feeling pressure to cut costs on existing loans due to competition from the leverage loan market. Despite the difficulties for borrowers, direct lenders have been generating higher internal rates of return than equity counterparts. However, the higher interest rates are impacting the long-term growth of companies. [Extracted from the article]

KKR & Co. has raised $11 billion for its latest global infrastructure fund, which is more than half of its $20 billion target. The firm began fundraising in November and has not yet held a first close on the fund. KKR's infrastructure business has grown significantly in recent years, reaching $59 billion from $13 billion in 2018. The previous global infrastructure funds have delivered strong returns, with the first fund achieving a gross internal rate of return of 17.6% and the second fund generating a gross IRR of 19.7%. [Extracted from the article]

Mavik Capital Management LP is seeking to raise $515 million for a new fund called Mavik Real Estate Special Opportunities VS2. The fund aims to finance US middle-market commercial real estate, which has been facing a liquidity shortage due to regional banks pulling back from the space. Mavik is creating this fund as regional banks retreat amid tougher regulatory requirements and higher interest rates, pushing borrowers towards private credit lenders. Mavik's investors include pension funds, family offices, and institutional investors such as Blackstone. [Extracted from the article]

TPG Inc. is set to close its eighth Asia buyout fund at around $5 billion, with a significant reduction in its China allocation compared to previous funds. The new fund will allocate about 10% of its capital to China, down from 25% in previous funds, while increasing its allocation to Australia, India, and Southeast Asia to over 80%. TPG's decision to reduce its exposure to China reflects a trend among global asset managers diversifying away from China due to economic growth concerns and escalating political tensions with the US. The final close of the Asia VIII fund is expected to be announced next month. [Extracted from the article]

Shell Plc has announced plans to divest 500 retail sites annually over the next two years in response to the increasing demand for electric vehicle (EV) chargers. The company aims to focus on public chargers, with a goal of increasing the number to 200,000 by the end of the decade. Shell will roll out these chargers in China and Europe, where demand for EV charging is growing rapidly. The company expects a return on investment of 12% or higher as the EV charging business expands. Last week, Shell updated its energy transition strategy, adjusting its carbon-emissions reduction targets for the next decade while maintaining its commitment to achieving net-zero emissions by 2050. Additionally, Shell introduced a new target to reduce customer emissions from the use of its oil products by 15% to 20% by 2030. [Extracted from the article]

Carlyle Group Inc. has decided to abandon its plans to raise an open-ended fund for long-term infrastructure investments due to rising interest rates. The firm recognized that an inflationary environment would pose challenges for this strategy. This decision comes as investors have been committing less capital to core infrastructure funds globally. As a result, Carlyle's investment in Tillman Global Holdings will remain on its balance sheet. Carlyle will continue to pursue infrastructure investments through its Renewable and Sustainable Energy Fund and Global Infrastructure Opportunity Fund. [Extracted from the article]

Blue Owl Capital Inc. has hired Zachary Tcheyan, a managing director at Goldman Sachs Group Inc., to work in its business that purchases stakes in other managers. Tcheyan, who previously worked at Goldman's Petershill arm, will join Blue Owl in the coming months. Blue Owl's Co-Chief Executive Officer, Marc Lipschultz, has highlighted the increasing consolidation in the alternative asset industry and the value of scale in this sector. The firm's general partnership-stakes business has seen strong returns, with Funds III, IV, and V delivering net internal rates of return of 24%, 43%, and 17% respectively. [Extracted from the article]

According to researchers at the Federal Reserve, the competition between banks and direct lenders to secure deals could lead to compromised underwriting standards. The growth of available funds and the need for returns may push managers to choose riskier deals and offer looser terms. This deterioration in deal quality could result in higher defaults and lower investor returns. Moody's Investors Service has also warned about the potential systemic risks of a "race to the bottom" in leveraged buyout terms and pricing. Additionally, partnerships between banks and direct lenders could have implications for financial stability, particularly in relation to synthetic risk transfers. The researchers also highlighted concerns about spillover effects on nonbank institutions, such as property and casualty insurers, who invest in private debt. [Extracted from the article]

Blackstone Inc. is making changes to the leadership of its team that buys stakes in other private equity firms. Mustafa Siddiqui, who previously led the business, has decided to leave. The team will now be under the secondaries arm, led by Verdun Perry, which buys and builds portfolios of fund assets. This move is an attempt to reinvigorate the group, which has faced increased competition for deals and talent. Blackstone is continuing to search for deals for its latest stakes fund and plans to move forward with a new fund. [Extracted from the article]

Private equity firms are experiencing a significant decrease in payouts, with distributions dropping by 49% in the past two years. Investors are now prioritizing the metric of distributed to paid-in capital over the traditional measure of internal rate of return. This shift is due to higher borrowing costs and a lack of deals, which have made it difficult for buyout firms to exit investments and return money to investors. The focus on cash returns is putting pressure on private equity firms to perform in a challenging dealmaking environment. The industry is hoping for a rate cut by the Federal Reserve to stimulate buyer activity and increase distributions. However, the distribution yield for US private equity firms was only 9% last year, the lowest level since the 2008 financial crisis. In response to the distribution drought, buyout firms are using creative methods to generate liquidity without selling assets at a discount, such as extending ownership periods and selling minority ownership in portfolio companies. The decrease in distributions is impacting limited partners, who rely on the cash returns to fund pensions, philanthropic activities, and other endeavors. On the other hand, private equity firms distribute cash to free up money for investors to commit to future funds. [Extracted from the article]

Hong Kong's real estate funds are facing challenges due to the city's worst commercial property slump. Many funds are trying to sell office towers at discounted prices to avoid mounting interest payments on loans, while others are dealing with record-high vacancies and rising borrowing costs. The pandemic has caused a decline in demand for office space, making it difficult to find buyers. Some office owners have stopped repaying their mortgages because rents no longer cover costs. Despite recent disposals breaking even or achieving a profit, funds will eventually have to realize their earlier investments. The market downturn has also affected larger players, with vacancy rates rising and office rents and values expected to drop further. However, the situation in Hong Kong is not as dire as in the US, where distressed commercial real estate values are at a decade-high. While there have been few enforced sales in Hong Kong, the pressure to sell remains, especially for closed-end funds that need to protect returns. [Extracted from the article]

Vanguard Group Inc., a major asset management firm, has faced backlash from the crypto community for refusing to offer Bitcoin exchange-traded funds (ETFs) on its trading platform. The firm's decision aligns with its conservative investment approach, which follows the philosophy of its late founder, Jack Bogle. Vanguard has a long-standing aversion to commodities and speculative investments, and it has removed all crypto products from its platform. Despite the #BoycottVanguard movement, the company continues to attract significant investments and maintain a loyal customer base due to its low fees and trusted reputation. [Extracted from the article]

According to analysts at Barclays Plc, private equity groups may target more European internet companies following recent offers for Kahoot! ASA and Adevinta ASA. Analyst Andrew Ross identifies Allegro.eu SA in Poland, Trainline Plc and Moneysupermarket.com Group Plc in the UK as potential candidates. Other companies that screened well for leveraged buyout models include Ionos SE, eDreams Odigeo SA, and Auction Technology Group Plc. Ross believes that the Adevinta offer demonstrates the availability of debt financing and attractive internal rates of return for private equity. However, he does not expect take-private deals in the food delivery and online fashion sub-sectors due to their lack of profitability and cash flow. [Extracted from the article]

According to analysts at Barclays Plc, private equity groups may target more European internet companies for acquisition, following recent offers for Kahoot! ASA and Adevinta ASA. Analyst Andrew Ross identifies Allegro.eu SA in Poland, Trainline Plc and Moneysupermarket.com Group Plc in the UK as potential candidates. Other companies that screened well for leveraged buyout models include Ionos SE in Germany, eDreams Odigeo SA in Spain, and Auction Technology Group Plc in the UK. Ross believes that the availability of debt financing and attractive internal rates of return make further private equity involvement in the European internet sector likely in 2024. [Extracted from the article]

Brookfield Asset Management Ltd., a property fund, has sold a significant portion of its manufactured housing portfolio for $325 million. The deal includes 19 manufactured housing communities across seven US states, totaling 3,166 home sites. The sale resulted in a gross internal rate of return of approximately 24%. Brookfield has been capitalizing on the growing demand for the sector but has recently been seeking to sell some of its assets. The company has not disclosed the buyer's identity. The manufactured housing sector has experienced strong demand, according to Swarup Katuri, a managing partner at Brookfield Real Estate. [Extracted from the article]

Private credit firms, including Oak Hill Advisors, Carlyle Group, and KKR & Co., are profiting from their investment in the leveraged buyout of Citrix Systems Inc., while Wall Street banks have suffered losses of around $1.3 billion. Citrix recently raised $1 billion in leveraged loans to pay down some of the preferred equity provided by these investors. The private credit firms are realizing a more than 30% internal rate of return on their investment, thanks to an improving outlook for Citrix and a rally in its debt. The banks, including Goldman Sachs and Bank of America, struggled to sell the debt they underwrote for Citrix's buyout last year due to spiking interest rates. The private credit firms attached unique conditions to the preferred equity's structure, such as a special claim on the startup Wrike, acquired by Citrix, and stiff call protection, which have contributed to their success. The Citrix preferreds pay 12 percentage points over the Secured Overnight Financing Rate, which has increased significantly since the LBO was inked. Citrix is expected to achieve significant savings and earnings margins in the coming years. [Extracted from the article]

Brinley Partners, an asset management firm led by Kerry Dolan and Kirsten Hagen, is aiming to raise $1 billion for its second private credit fund. The New York-based firm has begun discussions with potential investors for the Brinley Private Debt Fund II. The firm's first fund has achieved a 13% internal rate of return after fees. Brinley focuses on first-lien and unitranche loans to companies with earnings before interest, taxes, depreciation, and amortization of at least $40 million, primarily in sectors such as technology, healthcare, financial services, industrials, and business services. [Extracted from the article]

It has been buying loans at a discount from other private credit funds as well as loans from collateralized loan obligations, which repackage them and sell them as bonds. (Bloomberg) -- Charlesbank Capital Partners is aiming to raise $1.25 billion for its third opportunistic credit fund, looking to invest in new corporate loans as well as to purchase them from other private credit shops to take advantage of market dislocations. [Extracted from the article]

Robard's deal works like this: Whitehorse offers the investor, typically a limited partner in a private equity fund, cash equal to around 70% of the net asset value of their private equity portfolio. (Bloomberg) -- Private equity can seem a little too private when investors are trying to raise cash in a down market and no one comes forward with decent bids on their stakes. [Extracted from the article]

The refinancing of the law firm's credit facility brought a windfall for North Wall's GCF II legal assets fund, which generated a net internal rate of return of 100%, according to the investor letter. (Bloomberg) -- North Wall Capital LLP has more than doubled its money from funding a UK law firm's pursuit of mass claims linked to environmental cases including a Brazilian dam disaster and Dieselgate. [Extracted from the article]

About one in eight companies in the Nasdaq Biotech Index are currently valued below their enterprise value, meaning their market capitalization is less than the net amount of cash they have on hand, Wright said. "The traditional model is almost like a lottery", with hopes of a rare home run keeping many companies and investors going, Song said, in an interview from her offices in downtown Hong Kong. (Bloomberg) -- Simone Song isn't afraid of the numbers. [Extracted from the article]

Fund Investors Investors in the new fund include the New York State Common Retirement Fund, Texas County & District Retirement System, Missouri State Employees' Retirement System and Cathay Life Insurance. (Bloomberg) -- H.I.G. Capital raised $6 billion for its latest middle-market leveraged buyout fund, a figure that includes $450 million of co-investment capital. The latest vehicle - H.I.G. Middle Market LBO Fund IV LP - is a successor to a $3.1 billion fund, on which the firm closed in late 2019, and has so far backed companies including audiobook publisher RBmedia and materials distributor Formerra. [Extracted from the article]

(Bloomberg) -- SoftBank Group Corp. is selling some of its investments in Latin America for the first time, turning a profit on the holdings even though startups in the region have been shut out of the market for initial public offerings. Another divestment is the Mexican payment firm Yaydoo SAPI de CV, which is being acquired by PayStand Inc., a leader in blockchain-based payments between companies that's also backed by SoftBank. [Extracted from the article]

Apollo Global Management Inc. dialed back its fundraising goals for its flagship private equity fund, and Cinven Ltd. has extended the deadline for its eighth flagship fund, Bloomberg News previously reported. Onex has been affected by the turmoil, and chose to pause fundraising for its flagship buyout fund amid tough market conditions earlier this year. [Extracted from the article]

The majority of investments in the new pool, Growth Fund 5-B, will focus on companies the firm hasn't previously backed, according to people familiar with the matter. The firm is offering those in its $7.6 billion Growth Fund 5 a chance to invest in a companion vehicle that seeks to snap up stakes in late-stage startups at better prices and terms. [Extracted from the article]

Valuations of Vision Fund investments are challenging to estimate due to the high proportion of unlisted companies in the portfolio, making SoftBank's earnings reports the best barometer. (Bloomberg) -- SoftBank Group Corp.'s Vision Fund investment arm may report a smaller quarterly loss or break even when it announces earnings Thursday, thanks to a global rally in tech stocks. [Extracted from the article]

(Bloomberg) -- RX3, the venture firm co-founded by football star Aaron Rodgers, Nate Raabe and Byron Roth, has raised $150 million from athletes and celebrities for its second consumer-focused growth equity fund, The new fund counts athletes such as Buffalo Bills quarterback Josh Allen, Detroit Lions quarterback Jared Goff, retired swimmer Michael Phelps and celebrities including Christina Aguilera, Josh Duhamel, Machine Gun Kelly and Vanessa Hudgens as investors, Raabe, RX3's managing partner, said in an interview. RX3 has achieved a 62% blended internal rate of return from its first four exits, including pet food brand Nom Nom's sale to Mars and eyewear firm Prive Revaux's majority stake purchase by Safilo. RX3's roster of celebrity and athlete investors often want to "do whatever they can" to bolster a business, whether it's through social media posts, podcast mentions or other means, Raabe said. [Extracted from the article]

Apollo, which previously told investors it would wrap up a $25 billion buyout fund by the end of last year, has come up well short of that target. (Bloomberg) -- Apollo Global Management Inc., struggling to overcome an industrywide slump, has approached some of its investors about raising money for its newest private equity fund by cashing them out of an old one at a discount. [Extracted from the article]

(Bloomberg) -- Private equity trailblazer Gerry Schwartz brought leveraged buyouts to Canada and delivered outsize gains for much of his nearly four decades at the helm of Onex Corp. Overall, the firm's flagship Onex Partners funds were flat last year, outpacing public markets, with gains in some funds being offset by losses in its fourth buyout fund. [Extracted from the article]

(Bloomberg) -- SeaTown Holdings, indirectly owned by Temasek Holdings Pte., is planning to raise about $1.5 billion for its new Asia-focused private credit fund, people familiar with the matter said. Temasek indirectly owns SeaTown through its asset management group Seviora Holdings Pte. SeaTown's first private credit fund, launched in December 2019, has $1.23 billion in committed capital, according to the firm's website. [Extracted from the article]

Ip's fund was on a four-member committee that negotiated a relatively swift debt revamp for Kaisa, which was China's first developer to default on offshore bonds. (Bloomberg) -- An investor that profited from the aftermath of China's first dollar bond default by a developer nearly a decade ago is turning its back on the nation's distressed property debt, after losing more than its peers in the past two years. [Extracted from the article]

The London-based outfit made around $150 million in its wager on Norske Skog ASA, representing a 20% unlevered internal rate of return for investors in Oceanwood's funds, according to a person familiar with the numbers. (Bloomberg) -- Oceanwood Capital Management LLP's bet on a bankrupt Norwegian newsprint manufacturer has finally paid off, nearly five years after the hedge fund bought it out of bankruptcy. [Extracted from the article]

(Bloomberg) -- Oceanwood Capital Management LLP's bet on a bankrupt Norwegian newsprint manufacturer has finally paid off, nearly five years after the hedge fund bought it out of bankruptcy. While the Norske Skog takeover was profitable for Oceanwood in the long term, the losses sustained by the company's bond and shareholders also helped the hedge fund's balance sheet. [Extracted from the article]

The key for SoftBank lies with Arm's IPO, which was once said could be valued at $60 billion and hold the ability to jump start SoftBank's stalled investment machine. (Bloomberg) -- SoftBank Group Corp. is staring at another quarter of bleak results, but for the first time on record, Masayoshi Son is going to miss the earnings call. [Extracted from the article]

As of March 31, Thoma Bravo's Fund XIV generated an internal rate of return of 1.8% since inception, according to documents from the Santa Barbara County Employees' Retirement System. The Thoma Bravo buyout funds distributed over $8 billion to its limited partners this year, James said. (Bloomberg) -- Thoma Bravo LLC raised $32.4 billion for three new tech-focused funds in one of the biggest hauls by a private-equity firm this year even as some rivals struggle to close out funding rounds. [Extracted from the article]

Infrastructure investors are drawn to network assets like electricity grids and gas transmission systems because of their ability to generate steady, long-term returns. Macquarie is a prolific buyer of network infrastructure and has already invested heavily from the core fund. (Bloomberg) -- Macquarie Group Ltd., one of the world's largest infrastructure investors, raised €12.6 billion ($13.1 billion) to bet on everything from gas networks to water treatment facilities. [Extracted from the article]

(Bloomberg) -- Singapore's state-owned investor, Temasek Holdings Pte, has decided to write down its entire $275 million investment in FTX, saying its belief in Sam Bankman-Fried was likely "misplaced." Temasek invested $210 million in FTX International and $65 million in FTX US across two funding rounds from October 2021 to January this year, the company said in a statement. [Extracted from the article]

The Sydney-based firm will allocate A$284 million for early-stage investments in Australia, A$668 million for follow-on bets and NZ$75 million ($44 million) for early-stage investments in New Zealand, the company said in a statement on Wednesday. Investors in the firm's fifth fund include Australian superannuation funds such as AustralianSuper and Hostplus as well as sovereign wealth funds of Australia and New Zealand. (Bloomberg) -- Blackbird Ventures has raised the largest Australian venture capital fund yet, securing more than A$1 billion ($640 million) from sovereign wealth funds and individual investors. [Extracted from the article]

The fund will also make "opportunistic follow-on investments" in Tiger Global's existing roster of global portfolio companies, including through secondary share purchases. Read more: Tiger Global Partner Curtius Leaving Firm Amid Venture Woes This year has been the most tumultuous since Tiger Global's founding in 2001, with the firm's total assets tumbling to about $63 billion from $100 billion. The new vehicle, Private Investment Partners Fund 16, will invest in startups, "largely in enterprise themes and in India" and "in a lower-valuation environment", New York-based Tiger Global said in a letter to investors Thursday. [Extracted from the article]

KKR is expected to introduce infrastructure and private equity strategies for individual investors in the next two to three quarters, Larson said on the Aug. 2 call. (Bloomberg) -- KKR & Co. is seeking regulatory approval to give accredited individuals the ability invest in the private equity giant's $49 billion infrastructure business. [Extracted from the article]