How bad is the reputation of private equity? Months after private equity companies began to back away from deals that no longer seem promising in our credit crunched world, the Royal Bank of Scotland has told many of the biggest private equity firms they aren’t welcome in the first round of the auction of the bank’s insurance business, according to the Financial Times reports.
Kohlberg Kravis Roberts, Blackstone and Apax Partners had reportedly planned to bid in the auction, but were told by RBS that they were being excluded. Exclusion from the auction is widely being interpreted as demonstrating a clear vote of no-confidence in the ability of private equity buyers to secure financing necessary to close acquisitions.
RBS spurns buy-out groups [Financial Times]
Posted by guest , May 14, 2008 3:47PM
wow, RBS ain't exactly the sh!t either
Posted by guest , May 14, 2008 4:08PM
This is great news. Blackstone, KKR, Apax and other hedgers may get the message if more banks besides RBS shut them out.
The message is: "Hedgers have been fucking up for so long already that we don't want to encourage them to continue. Also, we don't want to pay any more of their fucking fees."
Posted by guest , May 14, 2008 4:16PM
Yes, and I am sure that those PEs won't remember this when they decide who sits to the left on the next deal they do. Looks like RBS just decided to sit out the next 5 years or so of large LBOs. Or maybe they figured they were f-ed anyway when they tried to scuttle Clear Channel....so why the f*ck not? Let's see who else they can piss off?
Posted by guest , May 14, 2008 4:21PM
RBS had to write down $11 billion for the subprime thing. So, do I put the dollar sign in the "loss" brackets like this:
($11 billion) or,
$ (11 billion). You see I don't lose money (I print it, you know) so I have never had to do the loss thingy. It's a lot like being an airplane without a partner in many ways.
Posted by Anal_yst , May 14, 2008 4:39PM
@ 4:08
Do you have any idea what you're talking about? Any, whatsoever?
Posted by guest , May 14, 2008 4:41PM
@4:08
Hedgers? Paying THEM fees? WTF are you talking about? You are joking right?
Posted by guest , May 14, 2008 5:41PM
@4:39PM,@4:41PM,
No, I guess I must not know WTF I'm talking about. Perhaps you two stars can tell me where I went wrong.
The @4:08PM Poster
Posted by AJ , May 14, 2008 5:51PM
@4:08/5:41: Well, just as an initial stab, Blackstone, KKR, Apax, et al are (primarily) private equity funds not hedge funds. Second, they are major *clients* of the investment banks, which mean they pay the banks fees, not the other way around...
Posted by GinNTonic , May 14, 2008 9:25PM
Guys,
It's a $14Bn deal, even if they decided to put in 50% equity it would be tough to raise $7bn in this market. So since there would be no serious bids, RBS doesn't want to open up the books for non-serious bidders.
Posted by guest , May 15, 2008 2:17AM
So who are the serious strategic bidders for the insurance unit if PE guys are out?
Is it true that Buffett's Berkshire is the front-runner?
Posted by guest , May 15, 2008 9:16AM
Read the article:
Bidders are: Allianz, Zurich, Generali, Berkshire, Allstate, Travelers, Ping An and AIG.
Though, I'd drop AIG and Generali and add Hancock (Manulife)
Posted by guest , Oct 11, 2008 1:33AM
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Posted by guest , Oct 11, 2008 1:34AM
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For The High Net Worth Client
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321 206-6766 Direct
888 808-1717 Efax
I would like to introduce you to our “Securities Based Program” for your High Net Worth Clients. In today’s market, as you know, it is difficult to get clients the financing they need without an outrageous high interest rate, the frustrating underwriting process with lender and the “broker daisy chain!” This program is specifically for your wealthy client which allows them to utilize their current liquid assets. Financial instruments allowed for collateral, but not limited to, mutual funds, securities, treasuries, cash etc. Hence, they are using their “own” funds to obtain a low interest rate starting at 3.50% and still earning interest on their financial instruments. Let me demonstrate how your client can benefit by a “wash transaction.” If they have a significant amount of cash sitting in an account reaping no monetary advantages, we recommend purchasing Treasuries earning 4% and the amount borrowed against their “own” securities at 4%, thus this creates a “wash transaction” for them! The process is seamless with a 48 hour prequalification process with a simple application and recent statement showing liquid assets used for collateral. After approval, their funds are wired into their account within 5-7 business days! This is a five-year interest only program with NO prepayment penalty; NO closing costs (with exception of investor fee and referral fee) and can borrow up to 97% LTV. There is NO credit required, appraisal, VOE or your standard lender guidelines. Any currency is available. The funds can be used for whatever they desire. The minimum is $1,000,000 and there is NO maximum!
We will pay the referring person a substantial “Referral Fee.” This will be a prosperous opportunity and a win-win situation for all parties involved! Please call me today for more details at 321 206-6766. I look forward to speaking with you.
Respectfully,
Michelle Alexis Cartier
"It Is What It Is~Wisdom is knowing the right path to take…Integrity is taking it”