privateequity

Vibe, the urban music magazine, is clawing its way back to life. New owners and editors are trying to make the magazine a success reality again, and they are making the web a priority ... which shouldn't be news but is for an ailing print industry.

The new editor-in-chief, Jermaine Hall, told AdAge that "Vibe.com is really the hub," and that everything needs to point back to the online presence. The print publication will be just one part of the Vibe Lifestyle Network, a move we're also seeing with the likes of Rolling Stone, where the website is being brought back into the fold (and may actually get some resources).

Over the past decade we seen at least $1 trillion dollars spent by private equity firms. These firms have taken over companies for a pittance and then pillaged them by slashing employees and cutting costs. They then used the money to pay down debt rather than rebuilding the company.

Now all of the debt thrown on the acquired companies is coming due and it could cause another economic disaster, even bring down the economy.

The clean technology private equity momentum continues. In New York, a group of partners has launched NewWorld Capital Group, a private equity firm that will focus on mid-market investments in clean energy infrastructure companies in the United States and selectively in Europe.

The new fund will work closely with Ambienta, a European environmental assets private equity firm in Italy. Both said they plan to collaborate on finding and analyzing investment opportunities -- with NewWorld taking care of the United States and Ambienta addressing Europe.

What has Blackstone (NYSE: BX) been doing with all those theme parks it's been buying? Well, the answer is becoming a bit clearer now. The private equity firm is getting ready to take theme park operator Merlin Entertainments public early next year.

Several investment banks have already been called to advise on the transaction, including Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Deutsche Bank (NYSE: DB), UBS (NYSE: UBS), and Nomura (NYSE: NMR). If all goes as planned, the deal could be good for $3.33 billion.

There are chills spreading across the executive suites in Corporate America. As seen with the latest from the U.S. pay czar, there will be 50% pay cuts -- on average -- for 175 executives of firms that received federal money.

Might this spread like a virus?

It's too soon to tell. However, there has been a refuge; that is, private equity. Right?

Activity continues to buzz in the private equity world. For example, according to the Wall Street Journal (subscription required), it appears that IMS (NYSE: RX) is in advanced talks to take the company private. As a result, the shares of the company soared 22% in Monday's trading.

No doubt, a deal could fall apart. But, the fact remains that IMS has definitely attracted interest. Some of the suitors include: TPG, Silver Lake, and BC Partners. The deal could be worth as much as $3.5 billion.

IMS got its start in the mid 1950s when the founders -- Bill Frohlich (an advertising executive) and David Dubow -- saw an opportunity to build a unique information company for the pharma industry. The timing was perfect as the company quickly grew.

In the U.S., the prevailing sentiment is that the consumer is tapped out. And, even for those that have money, there will continue to be a good deal of frugality.

So, it would seem that theme parks would suffer, right?

Perhaps not. This is the thinking of Stephen Schwarzman, who is the chief of the Blackstone Group (NYSE: BX). Interestingly enough, he's doubling down on theme park investments, according to Reuters.com.

The amount of investable assets available to venture capital funds has basically been a growth story since 2003. Dry powder slipped 7% in 2004 and 10% in 2008, but increased in every other year over this period.

Now, the dry powder number sits at $155 billion, according to alternative investment research firm Preqin, just off its December 2007 peak of $160 billion. The big number, however, masks a wide range of market situations for venture capital funds. Dry powder levels vary by strategy and region. To get a sense of what's going on behind the scenes, check out the five facts below about venture capital dry powder.

Family offices are quite active in the hedge fund space, according to Preqin, with the average family office in North America allocating 14% of its assets to this class.

It's not exactly a shock, but tangible confirmation is always nice. Alternative investment research firm Preqin found in a recent survey that institutional investors are happier with their hedge fund returns now than they were a year ago. But, the gaps between happy and sad aren't as wide as you might expect.

A September 2009 survey of institutional investors revealed that 62% say "hedge fund returns have met expectations," compared to 53% in October 2008, when the market was consumed by all kinds of calamity. Only 11% responded this year that "hedge funds have exceeded expectations," which is up slightly from last year's 9%. Remember, though the market hit its worst late last year, the problem was building momentum for a while. Participants who do not feel that hedge funds have hit the mark shrank from 38% last year to 27% this year. And 66% are confident or very confident that their hedge fund investments will reach their objectives.

When you smell an IPO coming, look for Kleiner Perkins Caufield and Byers. The Sand Hill Road institution has a knack for sniffing out high-potential deals and putting its venture capital coffers to work. Mobile phone music discovery service Shazam could have a liquidity event coming, according to the Financial Times, which caught Kleiner Perkins' attention. So, the VC company has decided to take a stake in Shazam.

Up until the credit crisis, private equity firms had it made. They had plenty of leverage to play with and could load up their acquisition targets with it. So, they could realize a fantastic return on equity, mitigate their own risks, and show that they were the studs of the Street.

Then, all that went away. Credit markets dried up, and private equity companies lost their acquisition fuel. The numbers aren't as big as they used to be, but it looks like the private equity market is back in action.