From Bloomberg | New York-based private equity giant Blackstone Group has taken ownership of a Chicago hotel — the Wyndham Chicago Downtown, located at 633 N. St. Clair St. Along with this, Chicago Real Estate Daily is reporting that Blackstone Group has also taken control of a suburban Westin as part of a 14-property distressed deal set in motion two months ago.
Inside these posts: Private equity
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AOL, firms mull bid for Yahoo
AOL Inc. and several private equity firms are exploring the possibility of buying Yahoo Inc., according to people familiar with the matter.
Shares of Yahoo jumped more than 9 percent on Thursday on the news, fueled by the prospect that the Internet company could be the target of a buyout by private equity firms, possibly in conjunction with another media company like AOL or News Corp. Get the full story »
Illinois private equity fundraising outpaces nation
Illinois’ private equity industry is doing a better job of raising funds than the buyout industry nationally.
According to figures released by Dow Jones LP Source, an industry database that tracks private equity fundraising, 279 U.S. funds raised $68.8 billion in the first nine months of 2010, a 10 percent drop in capital from the same period last year.
But in Illinois, 22 funds raised $4.4 billion, up from $2.5 billion in the first three quarters of 2009, Dow Jones LP Source said. Get the full story »
Madison Dearborn to buy software firm Fieldglass
Private equity firm Madison Dearborn Partners LLC has struck its third deal in the past year to buy a Chicago-area company.
The Chicago-based buyout firm plans to acquire a majority stake in Fieldglass Inc., a software provider that helps such companies as Johnson & Johnson, American Airlines and GlaxoSmithKline manage their contract and temporary workforces. The deal values Fieldglass at more than $220 million.
It’s the fifth purchase that Madison Dearborn has made with its sixth fund, which raised $4 billion from universities, pension funds and other institutional investors. Get the full story »
Mesirow Financial reports robust revenues for 2010
Chicago-based Mesirow Financial said fiscal 2010 was its best year ever, despite lingering sluggishness in the economy.
Revenues for its fiscal year ended Mar. 31 rose 13 percent to $526 million, due to “spectacular” performances from the privately-held and employee-owned firm’s institutional sales and trading and advanced strategies businesses, as well as “strong” contributions from private equity, consulting and insurance services.
Stockholders’ equity, held by about 300 of its employees, increased nearly 20 percent to $299 million. Get the full story »
Notebook: Canning’s son opens grocery store
In 2006, Madison Dearborn Partners LLC Chairman John Canning told the Tribune that he’d love to see his son, then a chef in Boston, return to Chicago to start his own business.
The private equity executive has gotten his wish.
Tim Canning, 34, has opened Lemon Tree Grocer about 100 yards from the Metra stop in Downers Grove. The high-end market has more than 40 full- and part-time workers, including a butcher that can work his way through a whole cattle and explain cuts of beef. It’s the first business that the younger Canning has started. Get the full story »
Blackstone buys Dynegy, sells its natural gas assets
Private equity firm Blackstone Group Friday struck a deal to buy power producer Dynegy Inc. for $543 million in cash and sell some of the company’s best assets to NRG Energy in the latest shake-up in the electric industry.
The deal values Dynegy at $4.7 billion including debt, which would make it one of the biggest buyouts of a power company since Kohlberg Kravis Roberts, TPG Capital and Goldman Sachs bought TXU for $32 billion in 2007. Get the full story »
Water Street Healthcare adds specialty provider
Chicago private equity firm Water Street Healthcare Partners said Friday that it has purchased a Massachusetts maker of infusion therapy products and supplies.
Water Street, which did not disclose a purchase price, said it will commit “up to $75 million of equity to invest in and grow” Stoughton, Mass.-based Medical Specialties Distributors.
The deal brings Water Street’s portfolio of health care companies to 12, the company said.
Water Street said Medical Specialties has more than 4,000 customers, including specialty pharmacies owned by Walgreens, Accredo Health Group and Coram Specialty Infusion Services. The business of specialty pharmacy such as home infusion is fast-growing given the need for more aging baby boomers to get care in their homes.
Caterpillar unit buys locomotive maker for $820M
Associated Press | Heavy equipment maker Caterpillar Inc. says its railroad service unit will spend $820 million cash to acquire locomotive maker Electro-Motive Diesel.
Caterpillar says that its Progress Rail Services division has agreed to buy EMD from private equity firms Berkshire Partners and Greenbriar Equity Group.
Chicago Ponzi schemer pleads guilty to fraud
Associated Press | The former president of a Chicago-based private equity firm has pleaded guilty to conspiracy and securities fraud, admitting he misspent millions of dollars in investor money.
Steven Byers, the former head of WexTrust Capital, entered the guilty plea in federal court in Manhattan Tuesday. He agreed that millions of dollars raised from investors since at least 2003 was not used as promised.
