Bloomberg reported Wells Fargo sold $2 billion of private equity assets to other private equity underwriters (PEU). It's not clear what they sold, stakes vs. affiliates or a combination of the two. Until the sale Wells Fargo was the sole institutional LP in NMP and NEP.
Norwest Mezzanine Partners made two SEC filings today, one for NORWEST MEZZANINE PARTNERS V, LP and another for NORWEST MEZZANINE PARTNERS V-A, LP. Lazard was listed as the firm receiving compensation for selling the offerings. Both filings stated:
The general partner is entitled to a carried interest. The investment manager is entitled to a management fee. The carried interest and management fee are fully discussed in the Issuer's confidential offering materials.
Bloomberg Law reported how the greed and leverage boys plan to screw their limited partners:
Investors with money stranded in private equity funds are weighing an expensive solution: borrowing against their stakes, sometimes at double-digit interest rates, until the market for their holdings turns around.
“Net-asset-value” financing to free up cash has already taken off among private equity firms holding $4.8 trillion of assets who’ve balked at selling investments amid a soft market for mergers and acquisitions.
Now lenders are pitching those firms’ clients on the loans as well. Lenders such as 17Capital, Apollo Global Management Inc. and Ares Management Corp.see a growing market targeting investors in the PE funds.
The dash for cash is on. Oh, and the Bank of England established a special loan facility to help non-banks, i.e. insurers, pensions and PEUs..... Oh my!
Something wicked this way comes.
