Washington Mutual demanda a la FDIC por 17 billones US$ + daños

UPDATE--KKR just raised a new $2 billion “special situations” fund for “distressed and event-driven investments.” Articles indicate they’ll be taking advantage of opportunities in Europe and U.S.

Run by credit specialists; brings to mind possibilities of swapping reinsurance contracts for other instruments discussed in recent posts in Ken Walker’s WMMRC thread.

det

KKR Closes $2.0 Billion Special Situations Fund
NEW YORK--(BUSINESS WIRE)-- Thu, Jan 9, 2014, 1:48pm EST
[[ Excerpts ]]
KKR, a leading global investment firm, today announced the final closing of KKR Special Situations Fund L.P. (“KSSF” or the “Fund”), a $2.0 billion global fund focused primarily on distressed and event-driven investments.

The Fund, for which KKR began soliciting third party capital in 2012, received strong backing from a diverse group of new and existing global investors, including public and corporate pensions, sovereign wealth funds, insurance companies, foundations, private banking platforms, family offices and individual investors. The Fund closed at two times its original target of $1 billion.

…Launched in 2010, KKR’s Special Situations platform is part of KKR’s $20.9 billion credit business, which is expected to grow to approximately $29 billion with close of the announced acquisition of Avoca Capital. The global special situations strategy is managed by Co-heads Nat Zilkha and Jamie Weinstein. The global team includes 15 dedicated investment professionals located in London, New York, San Francisco and Sydney and is supported by the broader KKR Asset Management credit investment team, comprised of over 40 dedicated credit investment professionals.

The special situations strategy invests across the capital structure in both privately negotiated transactions and in the secondary markets, seeking to earn strong risk adjusted returns from market dislocations, complex situations and distressed assets. KKR employs a partnership approach when working with companies and seeks unique opportunities to offer solutions to its various counterparties. The special situations strategy is dynamic and able to deploy capital in multiple ways in order to capture opportunities arising from market dislocation.

Nat Zilkha, Co-Head of KKR’s Special Situations and the firm’s Head of Credit, added: “Across the globe, we have identified a number of opportunities to invest in good companies in need of a partner with long-term capital to help them grow or to restructure a challenging situation. In each case, our goal is to be a constructive partner of choice while also delivering strong returns for our investors.”

KSSF held its first close in December 2012 and began investing shortly thereafter. Prior to raising the Fund, KKR’s special situations team primarily invested on behalf of large institutional clients through separate accounts. Today, with the new fund, KKR’s special situations platform has approximately $4 billion in assets under management. Since the inception of the strategy in 2010 through Q3 2013, the strategy has generated a gross internal rate of return of 20%, significantly outperforming the S&P 500, MSCI World, and ML High Yield Indices over the same period. Since inception, the strategy is ranked in the top quartile of similar vintage distressed and special situations funds.

Since the start of the new Fund’s investment period, approximately 30 percent of the Fund’s capital commitments have been deployed in investment opportunities across the globe....
Full article: http://finance.yahoo.com/news/kkr-closes-2-0-billion-110000341.html

KKR Raises $2 Billion Credit Fund to Invest in Distressed Debt
By Christine Idzelis Jan 9, 2014 12:00 AM ET
[[ Excerpts ]]
KKR & Co. (KKR), the New York-based private-equity firm run by Henry Kravis and George Roberts, raised a $2 billion for a fund that will provide financing to distressed companies globally.

KKR Special Situations Fund LP will invest in North America, Europe and Asia, according to Jamie Weinstein, the firm’s San Francisco-based co-head of special situations. Most of the distressed debt and rescue lending opportunities the firm sees are in Europe, where businesses are still de-leveraging after the 2008 financial crisis, he said.

…Rescue Financing
…The Madrid-based company turned to KKR as it was the only fund that would provide long-term financing without any dilution to its equity, he said. The firm is present for Uralita’s monthly executive meetings and has shared “valuable contacts” from companies in its portfolio, Luján wrote in the statement.

…The new fund has a similar target for returns, according to Zilkha and Weinstein, and a flexible mandate to invest in below-investment grade loans and bonds, as well as equity.

KKR’s debt business is poised to expand further with the acquisition of Avoca Capital, a European credit-investment manager with about $8 billion of assets. The firm said in October that the deal is expected to be completed in the first quarter of this year.
Full article:
http://www.bloomberg.com/news/2014-01-09/kkr-raises-2-billion-credit-fund-to-invest-in-distressed-debt.html?cmpid=yhoo

http://www.sec.gov/Archives/edgar/data/933136/000119312514008068/d655028dex991.htm

Refleja una perdida mínima de $28.000... los movimientos de KKR no se reflejan pues la info es hasta 30 noviembre 2013.

http://www.elconfidencial.com/empresas/2014-01-13/deutsche-bank-para-los-pies-a-damm-y-da-vida-a-centerbridge-en-pescanova_74575/

Estan metidos en todas las macrooperaciones a nivel mundial.

http://www.law360.com/banking/articles/500535/jpmorgan-on-hook-for-wamu-leases-5th-circ-rules

http://www.sec.gov/Archives/edgar/data/1545078/000090951814000007/mm01-1014_8k.htm

Section 1.3 of the Agreement was revised to permit the Litigation Subcommittee to release remaining portions of the $20 million of funding (the “Litigation Funding”) allocated to the Litigation Subcommittee to be used for the prosecution of Recovery Claims, subject to its right to direct the transfer back to the Litigation Funding of an amount up to the amount of the released funds, so long as certain conditions are met.

Twenty Million Dollars ($20,000,000.00) of the Funding (the “Litigation Funding”) shall be allocated to the Litigation Subcommittee, with both the first Ten Million Dollars ($10,000,000.00) of the Litigation Funding (the “First Tranche”) and the second Ten Million Dollars ($10,000,000.00) of the Litigation Funding (the “Second Tranche”) to be used for the prosecution of the Recovery Claims (as defined herein); provided, however, that, prior to the allocation and use of any portion of the Second Tranche, the Litigation Subcommittee shall obtain the approval of the Trust Advisory Board as to the reasonable expenditure of such funds; provided, further, that the Litigation Funding may be increased during the term of the Liquidating Trust upon the request of the Litigation Subcommittee and the approval of a Supermajority of the Trust Advisory Board, which approval may be granted or withheld by the Trust Advisory Board in its sole and absolute discretion, and provided that any additional

http://www.zenolytics.com/2014/01/december-performance-summary-and-looking-ahead-to-january/

Largest winning position in December: WMIH +145.22%

Top 3 winning positions in 2013: WMIH +236% (unrealized), IWSY +165% (realized), SPNS +44% (realized)

Top 3 losing positions in 2013: PRXI -16% (realized), MITL -6% (realized), PTGI -3% (realized)

Portfolio Highlights For December

WMIH experienced an extraordinary month of gains following an announcement early in December that renowned private equity firm KKR would make a strategic investment in the company. This announcement created a gain of 145% for shares of WMIH during the month of December.

The KKR deal, assuming it is fully-consummated over the coming weeks, immediately alleviates a number of pressing issues for the company:

1. It takes away the possibility of any further discounts in the value of the WMIH NOL shell, accompanied by WMMRC (reinsurance entity), due to fears of equity somehow being shelved in a future deal that puts equity holders at a severe disadvantage. The structure of the deal between KKR and WMIH provides, among other things, a hefty grant of 5 year warrants collectively totaling 61.4 million shares of WMIH common stock at an average exercise price of 1.36. KKR upon exercise of the warrants becomes a significant shareholder in WMIH, therefore removing the risk of any devious, underhanded type deals that will diminish or exclude the upside for equity holders.

2. It confirms that the NOL shell, with a reinsurance company attached, that is WMIH will more than likely be cultivated into an entity within the financial arena that is substantial in nature. Companies like KKR and Blackstone, not to mention the all star board of directors that has been assembled, do not come together in this manner to simply put up lemonade stands seeking profits that are inconsequential in nature. These are home run hitters. They seek out situations that in 2, 3 or 5 years can provide profits of an exponential nature. The modus operandi here is to seek out opportunities where relatively small amounts of capital are deployed, leveraged and cultivated into large amounts of gains. That will be the goal with WMIH, with details emerging throughout 2014.

The eventual shape the company will take is still up for debate. I have thought since the very first day I purchased shares in July 2012 that the reinsurance entity (WMMRC) contained within the holding company was a more valuable commodity than investors were giving it credit for. It is this investors opinion that KKR will merge WMIH into a company that is insurance related, with the reinsurance entity playing a role in the future creation of value for shareholders, alongside the tax advantaged profit potential that the NOLs bring.

Whatever shape WMIH takes going forward, the company now needs to be valued on the basis of future earnings potential as opposed to purely looking at it from the standpoint of a company that is an NOL shell. The value of the NOLs was a reference point for valuing the shares when only Blackstone was involved, without any type of leveraged structure that promised the shell would be turned into a revenue producing entity. With the involvement of KKR, given the structure of the deal, we now have grounds for assuming capitalization and a vague, initial idea of what size company we will be dealing with going forward.

With that said, future models of valuation should look at WMIH from a multiple to possible earnings standpoint considering both the value of the NOLs and the structure of the KKR deal.

Finally, it should be noted that our investment in WMIH has now yielded a total profit of near 500% since being initiated in July 2012.

************************************************
ABOUT ME

I’m Ali Meshkati. I have been trading and investing in the markets since 1994. I started my career working on the equity trading desk for Waterhouse and later, Bank of America. I have run an advisory service catering to individuals and institutions. I was previously Principal/General Partner of Trillian Capital Management and Trillian Capital Partners.

I currently manage client accounts through my investment firm - T11 Capital Management.

My articles have appeared on numerous financial websites, including Forbes, TheStreet.com, Yahoo Finance, MSN Money, and Fidelity.

ABOUT ZENOLYTICS

Zenolytics is a website focused on three things:

1. Uncovering long-term investment opportunities in small-cap stocks using both fundamental and technical data. Once an opportunity is uncovered a detailed research report is provided.

2. Analyzing broad market sectors utilizing technical analysis that is primarily focused on generational support and resistance levels that I like to call “trajectory points.” This is done numerous times throughout the trading week.

3. Providing alternative viewpoints to traditional, dogmatic methods of portfolio management.