March 2, 2008 |
State-subsidized pension funds for Pennsylvania state workers and teachers said last week that their 2007 investment returns were far in excess of U.S. stock and bond market indexes. The returns were so good that they left many investing professionals wondering how they could have been achieved in such an awful environment. The $76 billion Pennsylvania Public School Employees' Retirement System said it earned 13.8 percent for the year. The $35 billion State Employees Retirement System said it did even better, at 17.2 percent.
January 29, 2008 |
The deal by two private equity firms to acquire Harrah's Entertainment Inc. for $27.8 billion closed yesterday and shifted control of the world's largest gambling company to private hands for the first time. The transaction includes four Atlantic City casinos and six on the Las Vegas Strip. The deal by Apollo Management L.P. of New York and Texas Pacific Group Capital L.P. of Fort Worth, Texas, for Harrah's Entertainment is ranked as one of the largest leveraged buyouts in U.S. history, according to Thomson Financial.
January 19, 2008 |
The private equity business is in "purgatory," and professional investors need to polish their tarnished public image, Carlyle Group cofounder David Rubenstein told the Wharton Private Equity Conference in Center City yesterday. As if to underline his point, Rubenstein's talk to more than 300 investors and students was delayed half an hour when two dozen activists from the Service Employees International Union heckled the head of the $70 billion-asset investment firm, jostling Park Hyatt Hotel security and draping a giant banner in the meeting hall reading, "Carlyle, fix Manor Care nursing homes now. " Manor Care is a Toledo-based chain of 500 residences, which Carlyle bought last month for $6.3 billion.
November 14, 2007
The Hershey Co. has forced out six directors and two others resigned, raising new concerns about the future of the venerable Pennsylvania company. The bold shake-up - which included adding two board members from private equity buyout firms - has sparked questions as to whether the company may again explore a sale. The Hershey Trust, which controls the majority of company stock and pushed for the board ousters, said that the changes were not about finding a buyer, but rather to secure the company's financial future.
October 19, 2007
Senate Democrats are caving to a well-financed lobbying blitz aimed at stopping them from imposing a new tax on the super-wealthy. Senate Majority Leader Harry Reid (D., Nev.) has quietly squelched plans in Congress to increase taxes on some of the richest wage-earners in the land: private equity managers. These wealthy individuals often earn hundreds of millions of dollars per year, which should subject them to an income tax rate of 35 percent. But because of a wrinkle in federal tax law, private equity managers pay only a capital gains tax rate of 15 percent on most of their income.
October 16, 2007 |
Tengion Inc., an East Norriton start-up developing regenerated human organs, said yesterday that it had raised $33 million from private-equity investors. The company earlier had raised $89 million in venture capital. Tengion's first product is a replacement human bladder constructed from a patient's own cells. The replacement bladders are now being evaluated in two midstage Phase 2 trials in 10 children with defective bladders attributed to spina bifida and in 10 adults with spinal-cord injury.
September 18, 2007 |
Faltering debt markets might torpedo the sale of PHH Corp. to a unit of General Electric Capital Corp. and the Blackstone Group L.P. for $9.61 billion, PHH said yesterday. The Mount Laurel mortgage lender and vehicle-fleet manager said the investment banks raising billions toward Blackstone's purchase of the mortgage operation were leaving the private-equity firm $750 million short. PHH employs about 4,500 people in Mount Laurel, according to undated data on the Web site of the Burlington County Department of Economic Development.
August 6, 2007 |
There's nothing worse than being an angry woman in the workplace. Even if a colleague blows an important client relationship by not showing up for a sales call and losing the account in the process. Nope, she can't get angry. Not if she wants to get hired. Not if she wants to get paid. Not if she wants some status in her firm. A man can blow his top, stomp his feet, and shout, and what'll it get him? A raise. Respect. Status. What it'll get a woman? $14,000 less a year.
June 29, 2007 |
Although still flush with cash, equity markets are becoming a bit more demure with their investments over fears about interest rates and potential changes in tax rules for private-equity firms. And that's bad news for Trump Entertainment Resorts Inc., an underperforming company with lots of debt, as it tries to sell itself, according to Wall Street analysts. If that wasn't enough, there are three major leveraged buyouts involving the gambling industry: Harrah's Entertainment Inc., Penn National Gaming Inc., and Station Casinos Inc. All three are being bought by private-equity firms.
June 24, 2007 |
The class president stood in the gym at Abington High School, all set to deliver his reelection speech. He found his fellow sophomores distracted, more restive than rapt. So the erstwhile track star - the self-assured smart kid who always came prepared - raised a starter's pistol above his head and fired, stunning his audience into silence. Stephen A. Schwarzman, circa 1963. "And then I beat his ass," Glenn Price, Schwarzman's long-ago high school political rival, said with a chuckle, recalling the episode last week.