October 19, 2016

Shaky Foundations at Forterra: Lone Star Funds’ Foray into the Building Materials Industry

Texas-based Lone Star Funds has moved heavily into the United States residential sector, and is planning an IPO of Forterra, its building materials manufacturer. But with its portfolio company facing high debt and ongoing control by Lone Star Funds, will outside investors benefit? A new report by UNITE HERE investigates Lone Star Funds’ ownership of […]

October 17, 2016

Why did True North Real Estate Fund III pay a $5 million placement agent fee?

The business of placement agents, or firms acting as intermediaries between firms seeking to raise capital and potential investors, is one that has been marked by noteworthy scandals. Kentucky, New York, California, and other states conducted bribery investigations surrounding their use in high profile cases. The SEC proposed banning their use, and New York, Illinois […]

August 15, 2016

Sticker Shock: Can Ares Management Sell Neiman Marcus?

As Ares Management looks to invest its newly-raised Corporate Opportunities Fund V, a new report by UNITE HERE examines the track record of Neiman Marcus, one of Ares’ largest leveraged buyouts. Ares’ ACOF III and IV and a partner purchased the Neiman Marcus in 2013 for $6 billion. Three years later, the New York Post […]

July 27, 2016

Is Ares Management Building a Pipeline to Nowhere?

In May 2015 UNITE HERE raised questions about Ares Management’s $195 million commitment to the Pilgrim Pipeline, which had failed to overcome growing community opposition. Over one year later, the 170-mile proposed oil pipeline from Linden, NJ to Albany, NY now faces additional political and regulatory hurdles. Pilgrim Pipeline is opposed by all of the […]

July 27, 2016

Will Ares Capital’s Senior Direct Lending Program (SDLP) be able to replace the Senior Secured Loan Program (SSLP)?

Ares Management’s business development corporation (BDC), Ares Capital Corporation (ARCC), formerly operated a lending program entitled the Senior Secure Loan Program (SSLP) through a joint venture with Antares Capital—a company owned by GE Capital up until last year. This deal primarily offered senior credit to middle market companies. Under this arrangement, GE Capital provided the […]

July 11, 2016

Ares Energy Funds Underperformance Exacerbated By Failed Kayne Anderson Merger

In May 2015, as Ares Management launched Energy Investors Fund V, UNITE HERE noted that with the company’s acquisition of Energy Investors Funds (EIF), Ares inherited a history of underperformance. The last three of the four EIF funds performed substantially below peers and benchmarks.[i] One year later, the EIF funds continue to underperform. Ares’ collapsed […]

June 23, 2016

Apollo Global Management submits bid for “Valeant Clone” Concordia Healthcare

Over the past year, pharmaceutical firms Valeant Pharmaceuticals and Turing Pharmaceuticals have been in the news because of their practice of acquiring rival pharmaceutical companies and then drastically increasing the price of the drugs they acquired in the deal. Valeant’s stock price has declined by 88% since last August amidst numerous investigations. In early June, […]

May 13, 2016

Divided loyalty? How will GEM Realty Capital manage interest alignment as it deploys GEM Realty Fund VI, GEM Realty Evergreen Fund?

GEM Realty Capital, a private equity real estate manager, is in the process of raising GEM Real Estate Fund VI, its newest non-core real estate fund. In late 2015, GEM also launched the GEM Realty Evergreen Fund, which seeks to make “long-term investments in real estate properties in the United States.” GEM Realty Evergreen Fund […]

May 5, 2016

Employees at GEM Realty Capital-owned Sofitel Los Angeles allege violations of safety rules on bloodborne pathogens

On April 25th, employees at GEM Realty Capital's Sofitel Los Angeles hotel filed a complaint with the California Division of Occupational Safety and Health (Cal/OSHA) asking the agency to investigate the hotel’s compliance with regulations designed to minimize exposure to bloodborne pathogens.

May 2, 2016

Apollo & ADT: Will ADT become the next Caesars?

This report analyzes the effects of private equity firm Apollo Global Management’s 2008 buyout of casino company Caesars Entertainment and draws parallels to the announced buyout of home security company ADT.