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The Wire

Oct. 21, 2021

ICV generates 6x return on sale of Outpatient Imaging Affiliates, Private equity gets skewered in Warren-led Senate hearing

 

Happy Thursday! 

 

Sen. Elizabeth Warren led a hearing of the Senate Committee on Banking, Housing and Urban Development Wednesday about private equity. She used the hearing to re-introduce her sweeping private equity regulatory bill called the “Stop Wall Street Looting Act.”

 

Perhaps the speaker that most caught my attention was Illinois State Treasurer Michael Frerichs, who said private equity has done very well for the Illinois pension system. Frerichs’ message was that private equity needs stricter disclosure requirements to make sure institutional investors get the information they need to make decisions about their portfolios. 

 

“In my own experience, the lack of transparency surrounding private equity investments, specifically related to fee arrangements and the calculation of the internal rate of return creates significant challenges for institutional investors like my office and our state retirement plans,” Frerichs said in prepared testimony. More on this later today.

 

Also, ICV Partners generated a 6x return on its sale of Outpatient Imaging Affiliates to Cranemere Group in a deal valued at about $400 million, writes Sarah Pringle on PE Hub today. Read it here. 

 

That’s it for me! Have a great rest of your day. Reach me with tips n’ gossip, feedback or The Drama at cwitkowsky@buyoutsinsider.com or find me on LinkedIn.

 

Read the full wire commentary on PE Hub... 

 

Also of note (may require subscriptions)

Lawsuit: OMERS rejected a wrongful dismissal lawsuit brought by one of its former private equity professionals, arguing that related comp claims fly in the face of its duty to pensioners. The litigation provides a rare glimpse inside a pension’s direct PE incentive plan. Read more here on Buyouts.

 

WFH: PE firms, like most businesses, are trying to strike the right balance between providing workers with flexibility they have come to expect after the pandemic and maintaining a strong culture that infuses a sense of community across the workforce. A panel at Private Equity International’s Operating Partners Forum 2021 Wednesday talked about talent retention in the post-Covid environment. Read it here.