Former Carlyle exec’s new firm gets inves tment; SEC proposes more paperwork for PE

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The Wire

Jan. 27, 2022

Former Carlyle exec’s new firm gets investment; SEC proposes more paperwork for PE

Good morning, Hubsters. MK here with today’s Wire.

Reaction to the SEC’s new proposed rules for the Form PF, announced late yesterday, is top of mind this morning. I reached out to the American Investment Council for a comment. “We have concerns that this new proposal will burden firms with unnecessary paperwork, even though private equity poses no systemic risk,” said a spokesperson for the advocacy group. “We encourage regulators to support private capital investment in small businesses and communities across America.”

As Chris writes in his story on the SEC regs, “An immediate question is whether the rising activity around GP-led deals will be curtailed by enhanced disclosure requirements of GP-led deals that could trigger an examination.”

I’d love to hear what you think about the proposed rules. Shoot me an email at [email protected].

Deal news. Aaron got an exclusive this morning: Broad Sky, founded by former Carlyle exec Tyler Zachem, has received a strategic investment from Capital Constellation, a group of institutional investors managed by Wafra.

Value creation. In a contributed article, Andrew Dunn from One Equity Partners shares insights on working with portfolio companies.

Deal of the Year: Get your nominations in now for your best exits (either full or majority) that closed in 2021. Awards are given in seven categories: overall deal of the year, large-cap, middle-market, small-cap, international, turnaround and secondaries. Deadline is Friday, Feb. 11. Send to Chris Witkowsky, private equity editor, at [email protected]. Go here for all the rules and regs!

That’s it for today.

Until tomorrow,

MK

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Bill Ackman, the hedge fund billionaire, has bought a $1.1 billion stake in Netflix as he seeks to capitalize on a sharp sell-off that has almost halved the streaming company’s market value in the past few months. (Financial Times)

Facebook’s ambitious effort to bring cryptocurrency to the masses has failed. The Diem Association, the consortium Facebook founded in 2019 to build a futuristic payments network, is winding down and selling its technology to a small California bank that serves bitcoin and blockchain companies for about $200 million, a person familiar with the matter told the Wall Street Journal.

"Europe’s biggest private equity firm CVC Capital Partners plans to overhaul its operations as part of a potential initial public offering, a move that would keep in private hands most or all of the lucrative profits it makes buying and selling companies." (Financial Times)