Preview

Private Equity Alert Jan 09 1

Powerful Essays
Open Document
Open Document
2753 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Private Equity Alert Jan 09 1
Private Equity Alert
January 2009 Weil News n n

n

n

n

n

n

n

The 2009 Edition of Best
Lawyers in America named our following partners in the areas of Leveraged Buyouts, Private
Equity Law or Private Funds Law:
Christopher Aidun, David Duffell,
Shukie Grossman, David Kreisler,
Steven Peck, Charles Robins,
Jay Tabor, Jeffrey Tabak, Doug
Warner, Glenn West, James
Westra and Barry Wolf
Weil Gotshal advised Lehman
Brothers Holdings Inc. in connection with the management buyout of Neuberger Berman and certain of its alternative asset businesses Weil Gotshal advised NBC
Universal Inc. in connection with the consummation of the $3.5 billion acquisition of The Weather
Channel by NBC Universal Inc., The
Blackstone Group and Bain Capital
Weil Gotshal advised Providence
Equity Partners in connection with its $290 million going private acquisition of eTelecare Global
Solutions, Inc.
Weil Gotshal advised Getty
Images Inc. in connection with its
$2.4 billion public-to-private sale to Hellman & Friedman
Weil Gotshal advised WL Ross &
Co. in connection with its $1.1 billion acquisition of Option One Mortgage
Corporation from H&R Block
Weil Gotshal advised Advent
International Corporation in connection with its acquisition of
Hudson Group’s retail business
Weil Gotshal advised Avista
Capital Partners in connection with the $4.1 billion acquisition of the ConvaTec business unit of
Bristol-Myers Squibb Company

Fear and Greed
By Doug Warner (doug.warner@weil.com) and Michael Weisser (michael. weisser@weil.com) Let’s cut to the chase. This past year was an annus horribilis for the private equity industry. The financial crisis that started with the credit crunch in the summer of
2007 and accelerated with the collapse or bailout of numerous financial institutions worldwide in the fourth quarter of 2008 left many victims in the private equity industry in its wake.
Pundits have recently predicted that this financial crisis would result in a secular change in the market for

You May Also Find These Documents Helpful

  • Good Essays

    Inside the Meltdown

    • 490 Words
    • 2 Pages

    Fannie Mae and Freddie Mac, the two largest mortgage lenders in the world, lost 60% of their stock value in July 2008. The government fired the management and the feds took over both companies. Then in the beginning of September, Lehman Brothers, another investment bank, had their stock dropping quickly. It was once again toxic investments that once made them money before, but now was responsible for their company plummeting. The government would not intervene with Lehman and they let them fail. It turned out that Lehman Brothers was even more interconnected than anybody thought. Because of Lehman’s bankruptcy, no one could get a loan and everything freezes. The meltdown had begun.…

    • 490 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    The Gramm-Leach-Bliley Act

    • 1796 Words
    • 8 Pages

    The financial crisis of 2008 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. First signs of the crisis started to show in 2007 when the price of houses started to fall rapidly in the United States and then around the world. This financial crisis resulted in the failure of many large US financial institutions, banks to be bailout by the United States government, and the stock markets around the world were affected. One of the major issues leading to the financial crisis was the rising default on subprime lending. Large financial institutions were in completion with each other for revenue and market share,…

    • 1796 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    In 2008 there was a significant banking crisis that led to "the great recession," during which millions of people lost their homes, their jobs, and their standard of living. This disaster was caused by reckless behavior on Wall Street.…

    • 222 Words
    • 1 Page
    Good Essays
  • Good Essays

    Ocenaography

    • 2062 Words
    • 9 Pages

    a. In September 2008 the bankruptcy of Lehmann Brothers and the collapse of AIG led to the onset of the financial crisis which doubled the U.S. national debt and rendered 30 million people unemployed…

    • 2062 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    The dog days of August and September have often spelled trouble for the world’s economy. In 2008 it was no different, at 1:45AM on September 15, 2008, the US fourth largest financial firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in…

    • 1432 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Due Date: Nov 11, 5pm. Please include the names of all group members at the top of the report.…

    • 295 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    In Fall 2007, it became visible that the financial market could not solve the crisis by itself and that the problems and the crisis also influenced banks on the whole globe. The interbank market froze completely because of the fear of the unknown risks of other banks. Northern Rock, a British bank, had to approach the Bank of England for emergency funding due to a liquidity problem. (New York Times, 2007)…

    • 2394 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    The Federal Reserve

    • 3909 Words
    • 16 Pages

    The world financial crisis began in 2006 in the United States housing and related mortgage markets. Soon it spread to the entire U.S. economy and then to the rest of the world. In August 2007, the turmoil moved from the securitized U.S. mortgage markets to the interbank lending market, causing it to freeze up. Before long people became concerned about the extent and distribution of the mortgage related losses, market participants lost confidence in one another’s credit-worthiness, and the market that provides U.S. banks and other financial institutions with their liquidity became illiquid as a result. Institutions such as large commercial banks, investment houses, and insurance companies are the base of the U.S. financial system and because of the crisis they lost the ability to borrow short-term from one another. The general macro economy had weakened causing debt deflation, falling asset prices, falling real estate prices, and falling commodity prices; feeding one another into a downward spiral. Finally in September 2008, the breakdown of the international banking system based on the dominance of the major U.S. investment banks, commercial banks and insurance companies amplified the turmoil, sending severe shocks through the world economy. The economic crash international in its reach was characterized by falling employment, income, and output across the globe. The entire U.S. banking and financial system collapsed as a social financial system similar to banking crisis of 1931. From this point forward, what at first appeared as a U.S. “subprime mortgage market crisis” revealed itself to be a world economic crisis of major proportions.…

    • 3909 Words
    • 16 Pages
    Better Essays
  • Good Essays

    2008 Crisis

    • 660 Words
    • 3 Pages

    The major cause of the 2008 Financial Crisis is the Subprime Mortgage and Subprime Landing. Economists warned of the dangers, but one wants to interrupt the party. Consumers were happy to marking money. By the end, “When the United States sneezes, the world catches a cold” which will result in it happening again. Eventually everyone is affected. The people who are specifically affected are house owners, investors, lenders, brokers, Wall Street, and Bankers. Other causes…

    • 660 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The White Underclass

    • 2101 Words
    • 9 Pages

    The United States economy took a turn for the worse in 2008, and has been steadily declining ever since. The reason for the financial crisis began with the failing of the financial institutions, which threatened the global economy. The reason for the failing of the largest financial institutions can be debated, but many believe that it was due to the failure of accurately and safely evaluating the risks involved in their lending procedures. Whatever the reason, the recession had a massive impact on the country, and none were affected more than the Americans living at or below the poverty level. These people are known as the American underclass.…

    • 2101 Words
    • 9 Pages
    Good Essays
  • Good Essays

    American Dream Barriers

    • 659 Words
    • 3 Pages

    culture, one with enduring significance. During the years preceding the credit market collapse in 2008, the subprime mortgage industry thrived. Individuals with bad credit were given access to loans that weren’t supposed to be able to go to them. But as long as home prices were on the rise, these poor lending practices were simply ignored. Lenders could afford to write poorly used loans as long as the homeowner's equity outpaced their desire for new debt. If borrowers were to fail to payback their loans, lenders could always foreclose on the home, since it was an asset with ever-increasing value. The credit market's problems began when housing prices started to fall in 2007. Homeowners frequently found themselves with underwater loans, owed lenders more than the home was worth and when faced with these facts, homeowners began to fear the threat of foreclosure. Even more disturbing was the fact that some families abandoned their homes; choosing to start their lives anew elsewhere rather than worry about paying off their debts. Many Americans had wages lowered, resulting in strike, others were laid off or fired. This caused a major debt in the economy and stunted the growth of…

    • 659 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In 2008, USA experienced another tragic downfall when her market went down and unemployment rate charged up. Millions of workers lost their jobs; from the young, the old, the whites, Asians, Latinos, both men and women. Distress filled every household as prices rose and income fell. The whole country was in turmoil back then.…

    • 980 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    [11] Ferreira, M., Massa, M., Matos, P., 2009. Shareholders at the Gate? Institutional Investors and…

    • 14652 Words
    • 59 Pages
    Powerful Essays
  • Good Essays

    to specialist services and property assets. With total assets under management of $16.2 billion and 327 business…

    • 827 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems.…

    • 558 Words
    • 3 Pages
    Good Essays

Related Topics