IMF Pushes Austerity For Commodity Producers
The International Monetary Fund’s telling some commodity-exporting countries to save their pennies or risk getting walloped if prices fall. The fund’s World Economic Outlook report forecasts a decline in commodity prices during 2012 and 2013, which could hammer emerging and developing economies.
The canary in the coal mine is, of course, China. The country’s imports are down and, despite the IMF’s expectation of growth over the long term, stockpiling by Chinese businesses could mean fewer commodities will be needed there in the future.
Bain Capital May Drop Fees To Profit On Back End
Bain Capital’s back in the news but, this time, Mitt Romney has nothing to do with it.
The Boston firm’s looking at raising up to $8 billion in capital for a new global buyout fund. The pot will be slightly smaller than its 2007 Fund X, which garnered $10.7 billion in capital but, then, things have changed a bit since 2007.
Bain, in a bid to bring more investors into the fold, is looking at cutting management fees and increasing its slice of the returns. The firm’s been in discussions to charge as little as 0.5% -- a far cry from the 2% typical of the 2/20 model. Moreover, its cut-rate approach may entice investors to ask other private equity firms to match or beat Bain’s fee.
Ichan Targets Harbinger’s Mining Stock
Carl Ichan’s getting close to taking a stake in the Brazilian iron ore mining company Ferrous Resources off Harbinger Capital Partners’ hands. Ichan is reportedly seeking 14.9% of the current 19.5% held in the Harbinger Capital Master Fund.
Harbinger valued its stake in Ferrous at $486 million. Ichan, however, is looking at prices closer to $180 million.
Any one-percenter will tell you $180 million’s nothing to sneeze at, but Harbinger has a long, long way to go if it’s going to dig its way out of the $3 billion hole into which its failed LightSquared bid sent it. Fire sales will only make that journey much more difficult.