No Exit: PE Turns To Blank Check Companies For Exits


Are private equity firms relying on blank-check companies to monetize their acquisitions? That's what Bloomberg all-star reporter Jonathan Keehner and Elizabeth Hester are saying.
"We're definitely seeing private-equity firms talk to SPACs as possible exits for their portfolio companies,'' Thomas Ivey, a partner in the Palo Alto, California, office of Skadden, Arps, Slate, Meagher & Flom LLP, tells them. (Note: Carney worked for Skadden back when he was a lawyer.) "The M&A market for traditional private-equity purchasers is closed. The other piece is that the IPO market is closed.''
The real question, of course, is how much of a haircut the PE bigs are taking for these deals. It's good to have cash in a credit crunch but we're wondering how good.
Kohlberg, Madison Find Blank-Check Buyers as IPO Prospects Dim [Bloomberg]


New Tax on Sales of PE Firms Discovered in Carried Interest Bill

Private equity firms picking through the proposed tax hike on carried interest have discovered an alarming provision buried in the legislation that will raise taxes on sales of their firms.