Articles to Read 8/19/09

1. Tishman Faces Office Downturn

The Speyers point out that their firm has made more than 20% annual returns on investments since its inception three decades ago, and currently has more than $2 billion of liquidity to invest in new deals.

2. Private Equity Holds Its Cash ...And Waits

IFSL's research showed the private-equity industry manages $2.5 trillion in funds, a 15% increase from the 2007 figure, which IFSL said was because of strong fund raising in the first half of last year. Funds available for investment totaled $1 trillion, about 40% of total assets under management.

3. KKR Affiliate Sees Value Increase

"We characterize the current environment as one of stabilization," said firm co-founder Henry Kravis on an earnings call Tuesday. "Capital markets have calmed, liquidity has improved, but, as a general rule, businesses continue to drive earnings growth more through cost reductions than earnings growth."

KKR's assets have fallen from $60.8 billion a year ago to $50.8 billion today, a reflection largely of depleted values across the firm's portfolio. KPE closed Tuesday at $8.38, up 29 cents. That price is a sharp discount to its $14.66 net asset value, indicating shareholders are still skeptical of the valuations of KPE's assets.

4. Lincoln Sells Fund Unit to Macquarie in Post-TARP Cash Raiser

Lincoln National Corp., the insurer that took a $950 million U.S. bailout, agreed to sell its asset management unit to Macquarie Group Ltd. for $428 million as the firm positions itself to repay a portion of the federal funds.

Delaware, founded in 1929, has more than $125 billion assets under management and provides investment services to retail and institutional investors, Macquarie said in a statement. The combined assets under management of Macquarie and Philadelphia-based Delaware are expected to be over $300 billion once the purchase is completed.

-So LNC sold its Delaware asset management business to Macquarie for .34% of AUM. While we do not know the debt being assumed by Macquarie, this looks like a distressed purchase at a very cheap price.

5. Contango Apparent High Bidder at Western Gulf of Mexico Lease Sale No. 210 and Updates Operations

Since the Company first announced its $100 million share repurchase program in September 2008, we have purchased 1,224,354 shares of our common stock at an average cost per share of $42.30, for a total expenditure of approximately $51.8 million. Our fully diluted share count now stands at 16.5 million shares.”

“With the natural gas futures market trading at a seven year low, it is no surprise that this year’s Western Gulf of Mexico Lease Sale attracted half the bidders on half the number of blocks and half the dollar value of bids, as last year. This is really good new

-We continue to hold MCF and plan to increase the position greatly in the near future.

5. U.S. Gets $115 Million for Offshore Oil, Gas Leases

Today’s sale was a fraction of a March 19, 2008, sale that generated $3.7 billion for the Interior Department.

The U.S. Gulf of Mexico produced 1.2 million barrels of oil a day in 2008, about 24 percent of the nation’s total production, according to government estimates. Gulf drilling produced 21 trillion cubic feet of natural gas, about 11 percent of the U.S. total for last year.