Fundraising may be down in the private equity world, but it’s going strong for firms in the right niches.
Marlin Management Co., a private investment firm in El Segundo, said last week that it closed a $650 million private equity fund to be invested in companies “undergoing varying degrees of operational, financial or market-driven change.”
The fund, Marlin Equity III, was originally supposed to be $450 million, but was oversubscribed, the firm said.
“Our increased capital base will enable us to fully take advantage of the vast number of attractive opportunities we see in the market today,” said David McGovern, managing partner of Marlin, in a statement.
Marlin, founded in 2005, has more than $1 billion under management. Since its inception, the firm has completed more than 30 acquisitions, such as the 2008 purchase of Commerce cutlery maker Furi Brands Inc.
Despite Marlin’s latest move, many private equity firms have found the fundraising environment difficult in the down economy. According to a recent Dow Jones report, U.S. private equity firms raised $80 billion through the first three quarters of 2009, less than half the amount during the same period last year.
M&A Pickup
Imperial Capital LLC, a Century City investment bank with plans to go public, announced last week the acquisition of the Mercanti Group, an advisory firm specializing in mergers and acquisitions.
Terms of the deal were not announced.
Through the deal, Imperial will gain 12 employees and an office in Minneapolis, where Mercanti was headquartered. The move raises Imperial’s head count to 170 in six offices while strengthening the bank’s reach in the Midwest, where Mercanti has naturally focused much of its business.
“The Mercanti Group will add significant depth to Imperial Capital’s investment banking group, in providing merger and acquisition and capital markets advisory services, particularly in the consumer sector,” said Jason Reese, chief executive of Imperial, in a statement.
The firm declined to comment further, citing a regulatory quiet period after its October filing of a prospectus for an initial public offering. In the filing, the firm said it hopes to raise $150 million to expand product offerings and grow the business.
Regulatory Order
Saehan Bancorp, the beleaguered Koreatown holding company for Saehan Bank, said its bank subsidiary has entered into a consent order with regulators directing it to boost capital levels and overhaul management.
Additionally, the order, issued by the Federal Deposit Insurance Corp. and the California Department of Financial Institutions, requires the bank to provide regulators with regular progress reports, and obtain approval before changing management, opening branches or altering lines of business.
The bank, which is undercapitalized and has a large number of problem assets, was previously operating under a less stringent memorandum of understanding, issued in November 2008.
The bank said it is exploring capital-raising options with private sources in the United States and South Korea.
Branch Reduction
The county’s second largest credit union, Wescom Credit Union in Pasadena – which has grappled with rising home equity, credit card and auto loan losses – announced last week that it will close 12 branches as it repairs its finances.
Among the closures are three locations in Los Angeles County – in Monrovia, San Pedro and Santa Monica – as well as all branches in San Diego and Santa Barbara counties. After the closures, to be completed by Jan. 29, Wescom will have closed more than two dozen branches since 2007, leaving it with 29 locations.
The institution said it plans to offer affected employees positions in operating branches. The credit union, with assets in excess of $3 billion, has lost $67 million through the first three quarters of this fiscal year.
C-Suite News
FirstFed Financial Corp., the L.A. parent of First Federal Bank of California, announced that James Giraldin, the company’s chief operating officer, was chosen to succeed Chief Executive Babette Heimbuch, who resigned from the company Dec. 9. Director Brian Argrett will take over her post chairing the board. … JPMorgan Chase & Co. announced the opening of a private wealth management division in Los Angeles, to be headed by Simon Wise. Wise will be joined by six new wealth management professionals. … 1st Century Bancshares Inc., the Century City holding company for 1st Century Bank, announced that Bradley Satenberg was appointed executive vice president and chief financial officer. … K-Fed Bancorp, the Covina parent of Kaiser Federal Bank, announced the resignation of Gerald Murbach from the company’s board.
Staff reporter Richard Clough can be reached at [email protected] or at (323) 549-5225, ext. 251.
