The Deal Unveils Its Selection of the Most Significant Private Equity Deals of the Year

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The recession tested buyout funds, turning The Deal's annual special report into a tableau of winners, losers and survivors

The Deal , the business and financial magazine, today offers a sophisticated look at the challenges confronting a new era of private equity investment as it showcases its annual Private Equity Deals of the Year special report.

As in previous years, The Deal's Private Equity Deals of the Year issue spotlights noteworthy buyouts over the past 12 months that cover a gamut of returns--from crushing losses to lapses in due diligence to marketplace hurdles and profitable exits. The Deal's editors and writers dig deeply into 11 key deals, describing the elements that made them so significant.

With its examination of the industry's past year, Vyvyan Tenorio, the special report's editor, looks toward the future and says: "If the past 12 months are any indication, there will be more pain and paltry profits, if at all. Private equity investors may ultimately turn adversity into opportunity, as they've been shown to do in times of distress, but somehow their wizardry in profiting from them appears to greatly exceed their capacity to learn from them."

The Private Equity Deals of the Year are as follows:

  •     "Car chase" by David Carey examines Cerebus Capital Management LP's ambitious turnaround ploy at Chrysler and GMAC.
  •     "Crossover appeal" by Richard Morgan delves into how noteholders of Microsoft co-founder Paul Allen's bankrupt cabler, Charter Communications Inc., recognized a mutual self-interest and agreed to a broad restructuring.
  •     "Second time around" by Andrew Bulkeley looks at J. Christopher Flowers' investment in German commercial real estate and public sector lender Hypo Real Estate Holding AG, an investment now estimated to be worth just 13 percent of its entry price.
  •     "Go shop till you drop" by David Marcus notes how two recent deals, Barclays plc and SumTotal Systems Inc. used go-shops to get better offers, and in a third, Entrust Inc., generated three alternate proposals but stood the initial agreement.
  •     "Transactions from hell" by Chris Nolter recounts how a trio of bankrupt newspaper companies sought to defy predictions of newspapers' demise but ultimately had to seek Chapter 11 protection instead.
  •     "The risks of derisking" by Christine Idzelis traces how covenant-lite structures could not prevent the slide of TPG Capital's $3.3 billion take-private purchase of aluminum products maker Aleris International Inc. into Chapter 11.
  •     "Fatal attraction" by Claire Poole examines Carlyle/Riverstone Global Energy & Power Fund II LP's blind faith in SemGroup LP.
  •     "Road to perdition" by Christine Idzelis follows how turnaround investment firm Sun Capital Partners Inc.'s Mark IV Industries Inc. became the first major private equity-owed auto parts company in the U.S. to crash this year.
  •     "Hard-won from start to finish" by David Carey shows how TPG Capital stands poised to reap a five- to ninefold gain on the sale of its stake in China's Shenzhen Development Bank.
  •     "A bright light" by Christine Idzelis describes how in a year of rare IPOs and exits, GT Solar International went public and generated profits for its sponsors, GFI Energy Ventures LLC and Oaktree Capital Management LP.
  •     "The cheers, the groans" by Vyvyan Tenorio shares some noteworthy exits, the good--Rosetta Stone Inc., Aquilex Holdings LLC, Regency Energy Partners LP and Nordco Inc.--to the bad--Masonite International Corp. and Merisant Worldwide Inc.

About The Deal LLC
The Deal LLC , ( ), is a diversified media company that is the authoritative voice of the deal economy. We serve the global deal community-corporate and financial dealmakers, advisers and institutional investors-by providing business and financial news and information that offers fresh insights on the deal economy, a set of interrelated activities, focused on dealmaking of all kinds, whose purpose is to generate corporate growth in a continually changing global market. We offer a comprehensive line of print and electronic products - The Deal Pipeline, The Deal, The Daily Deal and - and live annual events including Private Capital Symposium, Distressed Investing Forum and The Deal Economy. The Deal LLC, a privately held company, is owned by private investment funds, including U.S. Equity Partners LP, sponsored by Wasserstein & Co. LP.

Marielena Santana
Phone: 212-313-9275

Martha Brown
Phone: 212-313-9218

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