Ares Capital Corp. (Nasdaq: ARCC) has agreed to acquire Allied Capital Corp. (NYSE: ALD). The all-stock deal is valued at $648 million, or approximately $3.47 per Allied share (27.38 percent premium to its closing price the day before the deal was announced.)
Blackstone Group (NYSE: BX) recently won a dismissal of a class-action lawsuit aimed at holding the firm responsible for losses on its stock, but the plaintiffs are now appealing that dismissal.
CIT Group Inc., a provider debt capital to small and mid-market companies, has acknowledged receipt of a letter from Carl Icahn sent to the lender’s Board of Directors regarding its efforts to secure financing and offering to underwrite an alternative $6 billion loan. This letter is CIT’s first indication of Icahn’s interest in underwriting an alternative financing, and the lender intends to ask Icahn for more information regarding his proposal.
First Reserve Corp., an energy-focused buyout firm based in Greenwich, Conn., has adopted the United Nations’ Principles for Responsible Investing. The principles consist of “a set of global investment best-practices that incorporate environmental, social and governance criteria into investment decision making.”
General Electric has formed a $250 million fund to invest in healthcare technology companies. It’s called the GE Healthymagination Fund, which aligns with the company’s Healthymagination initiative.
Imperial Capital, a Los Angeles-based mid-market investment bank, has filed for a $150 million IPO. The firm also has opened a new office in Boston. It will be staffed by Chip Mellen and Diana Knightly, who are both joining as managing directors of high yield sales.
Jon Moulton, the founder of Alchemy Partners who earlier this year left the British buyout firm in a public disagreement over its direction, has plans to launch a new buyout firm according to reports. Moulton will hire six executives to begin the firm, called Better Capital, which will invest in distressed companies in the U.K.
NewWorld Capital Group has launched as a private equity firm focused on mid-market companies and related infrastructure projects in the clean energy and environmental services space. It will focus on opportunities in the U.S., but also will invest selectively in Europe. Founding partners include: Bradley Abelow (former chief of staff to NJ Governor Jon Corzine, former NJ treasurer and ex-Goldman pro), Bill Hallisey (managing director with GSC Group), Ali Iz (venture partner with CMEA Capital) and Everett Smith (managing director with New Energy Capital). The firm’s chairman is Carter Bales, former managing partner of The Wicks Group of Companies.
Omega Funds, a direct secondaries firm focused on the health care sector, has completed three transactions totaling 25 companies at an original sellers’ cost of more than $125 million. The only identified seller was Lombard Odier, which sold stakes in nine portfolio companies.
Stanford Management Co., investment manager for the Stanford University endowment, confirmed that it is considering a secondary sale of up to $1 billion of its private equity portfolio (plus related unfunded portions, pro rata). As previously reported on peHub.com, a sister publication of Buyouts, Stanford does not plan to sell majority stakes in its partnerships, but rather minority positions that would enable it to maintain relationships with its general partners. Cogent Partners is managing the process, although is not identified by name in the Stanford statement.