Private Equity: Taking Profits, Retaining Exposure

The high asset values of 2004 provided an outstanding opportunity for private equity firms to exit their investments either through public offerings or private sales – and that is exactly what we saw in 2004. Although there was some institutional buying, such as Temasek with Neptune Orient Lines, Castle Harlan with Horizon Lines and Fortress’ attempt at Stelmar, the predominant theme of the year was private equity firms selling down enough of their holdings to pay back their initial investment with a nice return – and letting their residual holdings remain in their portfolio companies. In addition 2004 saw private equity sponsors like Wexford and Oak Tree selling significant amounts of stock in General Maritime.

Private equity firms contribute more to the companies they buy than money. What you will find particularly impressive about the private equity firms mentioned in these pages is how much value their capital, financial discipline and management expertise has created and the systematic way they go about the process of acquisition, growth and disposition. Not surprisingly, the fingerprints of private equity were all over merger and acquisition, public equity and debt deals outlined in our two award issues.

This is only an excerpt of Private Equity: Taking Profits, Retaining Exposure

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.