Regulation
CalPERS criticizes PE industry on tax breaks
Joe Dear, CIO of the California Public Employees’ Retirement System (CalPERS), waded into debate on how private equity is taxed in the US, saying that buyout firm executives “risk becoming the robber barons of the 21st century” if they don’t back down....
SEC inquiry targets PE asset valuation mechanisms
Private equity firms have been asked to disclose to US regulators information on how they value assets, as well as on areas including fundraising and fund formation, as part of an informal inquiry into the industry. The Securities and Exchange Commission...
PE and Chinese outbound investment
Who writes CITIC Private Equity's scripts? The day after the conclusion of the World Economic Forum’s annual meeting, where China and its role in the global economy was inevitably an area of focus, it was announced that Sany Heavy Industry would purchase...
CDB fails to land RBS aviation unit despite making highest bid
China Development Bank (CDB) made the highest bid for Royal Bank of Scotland’s aviation-leasing unit but lost out on the transaction due to concerns about its ability to close the deal. The asset was sold to Sumitomo Mitsui Financial Group (SMFG) for...
FBI searches offices of firm linked to Chinese reverse takeovers
The Federal Bureau of Investigation has conducted a search of the offices of New York Global Group, a private equity investment and corporate advisory firm. New York Global, led by Benjamin Wey, helped Chinese companies go public in the US through reverse...
US increases disclosure requirements for foreign listings
The US Securities and Exchange Commission (SEC) has introduced rules that compel foreign companies seeking US listings to file their registration documents publicly. Previously, IPO documentation remained confidential until the issuers were ready to launch...
China targets illicit PE fundraising
Horror stories of individual investors being talked into committing capital to suspect private equity funds have prompted regulatory intervention in China. But progress is slow and the road is long.
Indian commodity exchange in talks with PE firms
India’s fourth largest exchange, the National Multi-Commodity Exchange of India (NMCE), is in talks with five private equity firms and banks to raise INR300-350 million ($5.9-6.9 million) to comply with minimum capital rules.
KPMG resigns as China Forestry auditor
KPMG has resigned as auditor of China Forestry Holdings, a portfolio company of The Carlyle Group and Partners Group, which became embroiled in an accounting scandal early last year. The accounting firm will not stand for reappointment.
Indian regulator unveils plans to help promoters reduce holdings
The Securities and Exchange Board of India (SEBI) has released proposals designed to make it easier for entrepreneurs or promoters to lower their stakes in companies in order to meet minimum public shareholding limits. Share buybacks via tender offers...
Sino-Forest bondholders may face 100% write-down
Sino-Forest bondholders could face a near-100% write-down on their investment as the company received a default notice on two of its bonds after failing to file third-quarter results on time.
The growing importance of investor relations
As Asian private equity continues to evolve into a true asset class, the role of investor relations and fundraising professionals has become increasingly important. Over the years, I’ve watched as private equity firms place ever more emphasis on the role,...
New Chinese rules clamp down on illegal fundraising
Illegal fundraising in China could soon be a thing of the past, as the country has issued its first national regulations for private equity and venture capital investment.
Hana's board approves $3.5b KEB purchase
Hana Financial Group has approved a plan to acquire the 51% stake in Korea Exchange Bank (KEB) held by US buyout fund Lone Star for KRW3.92 trillion ($3.5 billion). Pending regulatory approval, the transaction could be completed by the year’s end, signaling...
Half of Chinese GPs 'challenged by regulatory issues'
More than half of Chinese private equity firms find the industry’s regulations a struggle, according to new survey conducted by Alvarez & Marsal, coming at a greater rate than their overseas peers.
Update: Lone Star may sell KEB for 11% less
Lone Star is reportedly looking to sell its stake in Korea Exchange Bank (KEB) to Hana Financial Group at an 11% discount to its previously discussed price of KRW4.4 trillion ($3.8 billion). That price is a further reduction on the 7% discount reported...
Chinese regulators poised to clamp down on illegal fundraising
China’s National Development and Reform Commission is looking into domestic private equity firms’ fundraising operations with a view to tightening regulatory oversight on the sector.
Korean regulators to investigate KEB
South Korean regulators have launched a probe into the inside operations of Korea Exchange Bank (KEB) to ensure that the lender complied with court orders to fire members of its board related to embattled owner Lone Star.
India alters rules on anchor investors, PE disclose for IPOs
Anchor investors in IPOs by Indian companies must put in at least INR50 million under new rules introduced by the Securities and Exchange Board of India (SEBI). The threshold, designed to ensure that only serious players enter the fray, comes alongside...
Indian investors reconsider structures
Proposed tax reforms are threatening Mauritius’ dominant position as the preferred foreign investment conduit for India
Lone Star ordered to sell down KEB stake within six months
Lone Star has been ordered to sell down the majority of its 51% stake in Korea Exchange Bank (KEB), South Korea’s sixth-largest bank by assets, to 10% or less within six months. This has reportedly prompted US-based Lone Star to seek out buyers as its...
Sino-Forest runs low on cash, bonds suggest default
Sino-Forest, the private equity-backed forestry firm that last week issued a report denying short-seller claims that it is engaged in a massive fraud, is still in danger as its bonds trade at prices that imply an extremely high risk of default. The negative...
Rules and standards: A new era of investor reporting
A combination of limited partner pressure and government regulation is setting the stage for standardization and regulation to replace private equity’s traditional free-wheeling ways
Sino-Forest denies fraud claims
Private equity-backed Chinese forestry firm Sino-Forest has denied allegations by short-seller Muddy Waters that it engaged in fraudulent activity related to its assets and revenue reporting.