Good morning, Hubsters. MK Flynn here with the Wire. This just in …. an investor group led by Apollo and including J.F. Lehman and Hill City Capital just announced the closing of the previously announced $3.2 billion take-private buyout of Atlas Air Worldwide, a Purchase, New York-based provider of outsourced aircraft and aviation operating services. Fueling the deal is “long-term demand for global air cargo services,” said the buyers. Beyond private equity, bank deals are dominating the headlines today, between UBS buying Credit Suisse (WSJ) for more than $3 billion and New York Community Bancorp's Flagstar Bank taking on nearly all of Signature Bridge Bank's deposits (FT). I’ve been asking our sources for insights on how the collapse of Silicon Valley Bank may be affecting private equity deals, and I’ve received some interesting insights. We’ll also take a deep dive into a water deal and hear insights about women in private equity in our Women’s History Month series. Cash on hand Small and midsize businesses, including private equity-backed companies, are rethinking how they’re handling cash on hand in the wake of SVB's collapse. How are PE firms advising their portfolio companies? “Our companies are generally profitable and/or have revolvers, so cash on hand isn’t usually excessive (e.g., fewer than 15 percent of our micro-cap companies have more than $5 million of cash on hand),” a partner at a large PE firm that invests in companies in the lower middle market told me. “In general, cash deposits on hand for LBOs would usually be single digit percentage of enterprise value, while for a VC-deal it could be more likely that it’s a double-digit percentage of enterprise value.” Even so, said the firm, “SVB/Signature/etc. is causing us to review where we keep deposits. Half our companies already had their deposits at a top-5 bank. For the others, we asked those at the small handful of banks whose stocks were fluctuating wildly to move money over to a major bank account while the dust settles.” If you’ve got insights to share, send them to me at [email protected]. Water, water everywhere Earlier in March, Aetos Capital acquired WestWater Research, a consulting firm that provides advice on water entitlement valuation, trading and M&A. Clients include municipalities, agriculture participants and Native American tribes. PE Hub’s Obey Martin Manayiti spoke with Aetos CEO Chris Allwin about the deal. “The combination of climate change and population flows have made water a scarce resource in the western states, and there has been a dearth of principle capital invested in the space for quite some time,” Allwin said. “Our strategy is focused around increasing supply, access and building out infrastructure that will allow for increased sustainability of water.” 50 percent of the population Throughout the month of March, we’re featuring women dealmakers. Today, we’ve got an interview with Sunaina Sinha Haldea, global head of the private capital advisory group at Raymond James, by PE Hub Europe editor Craig McGlashan. Sinha Haldea had some strong words about the opportunities for women in private equity, particularly when it comes to winning senior positions. Sinha Haldea hears the same arguments from GPs on diversity, including that they can’t find any women. “Really? It’s 50 percent of the population last time I checked.” “I hear all those remarks. Most of them are excuses. You have to be deliberate about how you seek out female talent.” First, she said, identify potential women hires, introduce yourself and track them. Second, recruit from pools of talent where diversity is higher, such as female-only universities. Third, be more patient. “I’ll often say to the recruiters, this talent pool isn’t diverse enough. Take a few more weeks, find a few more resumes to bring diversity to the talent pool.” Women of influence Time is running out to nominate candidates for PEI Group’s third annual Women of Influence in Private Markets list, which recognizes trailblazing women in alternative assets. The deadline for nominations is Wednesday, March 22. The list – which will include women from private equity, infrastructure, private debt, real estate and venture capital - will be published in July by Private Equity International, Private Debt Investor, Infrastructure Investor, Venture Capital Journal and PERE. Click here to learn more. On that note, I’ll sign off for today, but I’ll be back with more tomorrow. Happy dealmaking, MK Read the full wire commentary on PE Hub ... | 