F&D Reports/Creditntell Releases U.S. Private Equity Retail Review

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Report Outlines the State of the Market and Major Private Equity Firms with Top Retail Holdings

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As trade credit executives, we must know who we are dealing with and be mindful of their likely exit strategy, which is often predictable through analysis of the previous deals covered in this report.

Industry-leading credit consulting firm Information Clearinghouse Inc. (ICI), through its divisions F&D Reports and Creditntell, is pleased to announce the release of its “U.S. Private Equity Review,” which details the state of the industry, recent key events, and the major retail holdings of close to 30 top private equity firms.

The private equity industry gained public interest during the buyout boom in the early part of the century, particularly as they began acquiring many big-name retailers. Since the credit crisis and recession, the industry has been slowly recovering; over the past five years the top 300 private equity firms raised an estimated $1.300 trillion, with the top 50 firms accounting for $700.00 billion of that total, led by TPG, the Blackstone Group, KKR, Goldman Sachs and the Carlyle Group. However, with U.S. growth still sluggish, unemployment high, and the housing market still constraining consumer confidence, funding levels remain below the high volume achieved through 2007 and another boom cycle is not expected as investors are focused on prudent acquisitions.

Though recent transactions have been light in the retail sector, a number of significant deals have closed, including mergers and acquisitions, fundraising resulting in new capital commitments, IPOs, and portfolio turnovers (exits). The report details the initial investments and subsequent events for private equity firms across several sectors, including retail and wholesale food, restaurants, mass merchandisers, drug, department stores, sporting goods, building materials, apparel, and specialty. A few of the major players examined include Sun Capital (Marsh Supermarkets, ShopKo/Pamida, Friendly’s), Yucaipa (Pathmark/A&P), Leonard Green (Whole Foods, BJ’s, Rite Aid), Willis Stein (Roundy’s), Lone Star (BI-LO/Bruno’s), KKR (US Foods, Dollar General, HCA), and Apollo (Smart & Final, Sprouts Farmers Markets).

Commenting on the “U.S. Private Equity Review” report, Lawrence Sarf, CEO of ICI, stated, “There is a tremendous amount of capital on the sidelines and a significant number of candidates for private equity investment. When the economy begins to recover from a protracted downturn, the well-capitalized businesses historically leave those with too limited financial resources behind, with stepped-up investment capturing a growing share of consumer spending. Unable to respond, these cash-poor entities fail. Spotting these situations is the job of the hedge funds and without any question they are circling today looking for opportunities. As trade credit executives, we must know who we are dealing with and be mindful of their likely exit strategy, which is often predictable through analysis of the previous deals covered in this report.”

Information Clearinghouse, Inc. (publisher of F&D Reports, Creditntell, & ARMS) is a comprehensive retail credit consulting firm specializing in the analysis of public and private companies in numerous retail segments. The focus of its analysis is to deliver the key intelligence today’s busy credit executive needs to make a highly informed decision without sifting through pages of non-essential data. For a complimentary copy of our U.S. Private Equity Review, please contact Mike Blackburn at 1-800-789-0123 ext: 131. To learn more, visit our websites at http://www.fdreports.com, http://www.creditntell.com, http://www.fdarms.com.

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Mike Blackburn
F&D Reports/ Creditntell
1-800-789-0123 131
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