Christopher Witkowsky

The US government has selected nine private investment firms, including Oaktree, Invesco and Angelo Gordon, to help take real estate loan-backed securities off banks’ balance sheets.

The business development company, which has seen its share price slide 37% from its 52-week high, will use the proceeds of the capital raise for investments and to maintain liquidity.

Private equity firms would have to comply with tighter standards for capitalisation, hold periods and disclosure requirements if proposed rules from US banking regulator FDIC are approved.

Platinum entered an agreement to buy almost all of Delphi’s assets for $3.6bn but some Delphi lenders have objected to the arrangement, saying it was conducted in secret.

The mid-market firm, established by Robert Bass in the 1980s, secured the backing of major pension investors for its latest investment vehicle.

Clothing retailer Eddie Bauer filed for bankruptcy Wednesday and agreed to be acquired by CCMP Capital Advisors for $202m. CCMP becomes the high bidder for the company but could still be outbid.

Cash-strapped LPs have been given a reprieve as GPs have slowed capital calls, but that in turn has kept fund interests off the secondaries market, writes Christopher Witkowsky.

The Los Angeles-based turnaround firm will operate Delphi out of bankruptcy. General Motors, which filed for bankruptcy Monday, will take over certain Delphi plants and provide the company with $250m in bankruptcy financing.

In its annual report, the mega-buyout firm frankly addressed setbacks it suffered last year, including the liquidation of Blue Wave and Carlyle Capital, but stressed it is poised to take advantage of current opportunities.

Experts presenting at the PEI Active Portfolio Management Forum in New York described sellers in the secondaries market reluctant to agree deals at steep discounts, and buyers waiting on the sidelines.