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 4/10 Good --- privateequity.bloggingstocks.com http://privateequity.bloggingstocks.com/rss.xml
Saturday, April 12, 2008 --- 104 days ago http://www.bloggingstocks.com/2008/04/10/tpg-a-big-appetite-for-risk/
| Filed under: Russia , Private equity TPG , which is a top private equity firm, is known for its ingenuity. And, with the credit crunch, this trait is extremely important.
For example, TPG has formed an investor group - that includes some major existing institutional holders -- to invest $7 billion into Washington Mutual (NYSE: WM ). The deal includes a blend of common and convertible preferred shares. In fact, this transaction is likely to be a template for more deals in the banking industry.
Well, TPG has also structured another interesting deal (which hasn't gotten much notice). That is, the firm has invested roughly $800 million for a 50% ownership stake in SIA International.
The company, which is the largest pharma distributor in Russia, generates revenues of about $2.7 billion and has deals with more than 30,000 pharmacies. If anything, this could be a platform for more acquisitions in the sector. After all, the Russian pharma market is in excess of $12 billion.
For the most part, TPG realizes that - with a lack of debt financing in the global markets - it needs to find investment opportunities that require lots of equity to fuel growth. But, at the same time, it involves a good amount of risk.
Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements . He also operates MergerBook.com . Permalink | Email this | ... |
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