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The Deal Economy: Guggenheim looks for ” a new hotness”, PE , Europe alive to business | Monday Round up

Guggenheim looks to enter Top 25 in US

Guggenheim Partners look to add nearly $500 bln in Assets under management for a cheap sale from Deustche Bank lands them the entire US portfolio of the bank equally split in Institutional and Insurance Investment assets and a just over $50 bln in Scudder, the retail fund company Deutsche Bank acquired in the US in 2002. According to the last public grapevine, the price has dropped to less than $2 bln for Deutsche Bank.

In 2009 Guggenheim added Claymore ETFs and in 2010 Rydex SGI alternative MFs and ETFs. The DWS sale includes DB’s Muni team led by Phil Condon that manages around $8 bln

Treasury eager to sell AIG holdings

Treasury still holds 1.46 bln shares of AIG , a figure comparable to Bruce Berkowitz who holds about 92 mln shares in the insurance behemoth. AIG itself wants to hold cash when Treasury starts the inevitable sale to recover its $42 bln still in AIG, and is selling another 11% of its AIA stake to recover $6 bln. It earlier sold a 66% stake in AIA in October 2010 for $3 bln.

Feds have already sold $19 bln worth Maiden Lane securities to CS and Goldman Sachs in January and its $42 bln stake in AIG is the last bit remaining from which only one tranche could be sold above the $29 cut off in 2011

Carlyle buys 85% in Ri Happy

VC firm Carlyle bought most of Brazil’s largest toy chain as the Brazilian retail consumption joined in the global uptrend, promising to add a further $117 mln in the toy retailer. Carlyle has been improving its share of venture in Brazil with a stake in touristy CVC and lingerierie retailer Scalia. Mattel sells $1 bln worth of Barbies in Brazil

European PE holding exchanges hands

Private Equity shows signs of improving confidence in Europe with a Goldman Sachs investment with european Cinven exchanging hands allowing Goldman Sachs and Cinven to exit at the oft heard but never achieved 100% levels to anew PE firm CVC Capital Partners even as the investment, nordic manufacturer Ahlsell reached EUR 2.3 bln in sales in 2011

BTG Pactual IPO

Brazil’s homegrown Investment Bank looks to outshine Goldman Sachs, unhindered by any such Dodd Frank limitations on trading and investment Banking. The bank closed 532 deals in Brazil M&A  last year and the last institutional placement of equity to GIC of Singapore and Abu dhabi Investment Authority among others valued the Investment Bank at $10 bln. An IPO for 10% of its stake valued at $15 bln puts it above IPOs by Goldman Sachs and Glencore among others as it plans to enter the Top 20 Brazilian companies on listing. it’s $412k per employee compensation was 33% higher than Wall Street and still only 25% of its 2011 revenues.

The IPO will be listed in Amsterdam annd managed by Banco Bradesco ( also custodian of ADRs), Goldman Sachs and JP Morgan. The founder Andre Estevez rose thru the ranks, sold the bank to UBS and bought in back in 2009 for $1.1 bln less at $2.5 bln. The bank has a Solvency Capital of nearly 18% against the required 11% margin for lenders in Brazil. Goldman Sachs itself is currently valued at around $60 bln

 

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