Secondary Market for Buying and Selling Limited Partnership (LP) Interests in Private Equity Funds, Hedge Funds and Funds of Funds

Limited Partnership Interests

Market Description

Limited partnership (LP) interests are ownership rights in investment vehicles such as venture capital, buyout, real estate and hedge funds, as well as funds of funds (collectively known as alternative investment managers or AIMs). Over the past several years the appetite for limited partnership investments, which are typically longer term in scope, has grown tremendously to over $2 trillion. In parallel, the secondary market for interests in these funds has grown as well. The secondary market is expected to continue to grow at a rapid pace as many limited partners such as pension and other retirement funds seek to reduce their alternative investment exposure. Many are requesting redemptions or simply seeking to get out of their positions largely due to poor fund performance, a need for capital or a desire to rebalance their portfolios. To fund these redemption requests, many AIMs are selling their positions at sub-optimal levels, artificially decreasing capital availability and asset prices as well as increasing market volatility. SecondMarket is well poised to take advantage of this newly launched market, with its deep buyer base and limited partnership relationships and expertise.

Mar 4 2010

Goldman scaling back second infrastructure fund-sources — www.reuters.com

Goldman Sachs Group has cut the $7.5 billion fundraising target for its second infrastructure fund by more than half after failing to secure enough commitments, people familiar with the matter said
The investment bank has been seeking money for the fund, dubbed Goldman Sachs Infrastructure Partners II, for two years and is working towards final close having reached the time limit allowed under its private placement rules, sources said

Mar 2 2010

Hall Capital Partners Raising Fund Two — www.pehub.com

Hall Capital Partners has entered the market with its second fund, according to an SEC filing. The Oklahoma-based small-market private equity firm is seeking $100 million for its Hall Capital Partners II LP.
The firm invests between $2 million and $25 million into family-owned businesses.

Mar 1 2010

THL Partners Acquires CKE Restaurant — www.pehub.com

CKE Restaurants, Inc., owner of Carl’s Jr. and Hardee’s quick-service restaurant chains, and Thomas H. Lee Partners today announced that they have entered into a definitive merger agreement under which THL will acquire CKE for approximately $928 million, including the assumption of approximately $309 million of net debt
Under the terms of the agreement, CKE stockholders will receive $11.05 in cash for each share of CKE common stock they hold, representing a 24% premium to the Company’s closing share price on February 25, 2010 and a 29% premium to the Company’s volume weighted average closing share price of approximately $8.60 during the 30 trading days ended February 25, 2010