Private Equity Bigwig Opts to Go Small
Alan Patricof, one of the original investors in Apple and a titan of the venture capital world is leaving the $20 billion private equity firm he founded, Apax Partners, to run his own $50 million venture capital fund focused on early-stage companies. “There is a market down there at the smaller end that we shouldn’t ignore,” says Patricof. “If you happen to hit it right, there can be an exponential growth factor.” And if he doesn’t hit it right? No matter, it’s not like he needs the dough.
New Fund for Prominent Investor [NY Times]
Alan Patricof Bio [Leading Authorities]
Where Money Triumphs Over Looks
Blackstone CEO Steve Schwarzman should hang out with real estate developer Aby Rosen more often. He looks positively svelte by comparison! The two turned out for one of the moneyed-set’s favorite events of the year--the Museum of the City of New York’s annual ball. Where else can you see so many hard-bodied young women paired off with so many out-of-shape middle aged financiers?
Museum of the City of NY [NY Social Diary]
Stan Puts One Over on Mack with BlackRock Deal
In yet another defeat for Morgan Stanley, the firm’s inability to get a deal done with publicly-traded asset manager BlackRock is looking all the more embarrassing as news of the Merrill Lynch’s success got out this morning. According to The Times, egos and self-interest may have been the spoilers at Morgan Stanley, with Zoe Cruz fearing that BlockRock chief Laurence Fink could trump her to succeed Mack. Meanwhile, a close personal relationship between Merrill’s Greg Fleming (who took BlackRock public in 1999) and the security of Stan O’Neal’s reign greased the wheels in the sale of Merrill’s asset management business. That, and a recognition that The Bull wasn’t exactly kicking ass in this arena.
Merrill and BlackRock Near Deal [NY Times]
Morgan Pursuing Other Asset Managers [Reuters]
Grasping at Stability at Morgan Stanley
The Blackrock deal is dead, reports The Journal. After months of flirtation with the investment firm, Morgan Stanley’s John Mack decided to pass on a deal that would have traded its own asset management unit for a stake in BlackRock, which is 70% owned by PNC Financial Services. Instead, Mack is shoring up his own internal team, removing the word “acting” from president Zoe Cruz’s title while naming veteral banker Robert Scully as co-President. Once James Gorman comes on board next week from Merrill, Mack’s inner circle will be complete. The move was descirbed by an industry analyst as “the lowest risk, safest route to resolving the leadership issue and keeping options open for the future.”
Morgan’s Mack Takes Safe Route [Wall Street Journal]
