Week in Review: Volcker, Valuations, and Vivacity

After years of concern and speculation, the Volcker Rule has been finalized. Since its inception as a one sentence inclusion in the Dodd-Frank Act, the Rule has evolved into a veritable tome. Many believe the new legislation, which goes into effect April 1, 2014, will make the system safer — but not safe.

In other news, dealmakers are eyeing a solid 2014, Fulcrum Capital sold A&B Rail, and Intrix Technology acquired Merchant Processing USA.

Opinions:

• Dealmakers predict 2014 will be a great year for middle market M&A
• Why is everybody sitting on huge piles of cash?
• The operational consequences of PE buyouts: Evidence from the restaurant industry
• Why valuations are ready to tumble
• Private equity community optimistic about the future
• Here’s what the 2014 tech IPO pipeline looks like
• Stop asking if the Volcker Rule will work — it already has
• It’s been a strong year for private equity with record fundraising levels since 2008

Transactions:

• Fulcrum Capital sells A&B Rail
• Riverstone invests $300 million in Eagle Energy Exploration
• Morgenthaler sells Avtron Aerospace
• WestView Capital recaps Apex Information Technologies
• Intrix Technology acquires Merchant Processing USA
• Auberge Resorts receives strategic investment from Friedkin Capital Partners
• DXP Enterprises acquires B27 from Champlain Capital Partners

Member Spotlight:

Saugatuck Capital Company is pleased to announce its investment in APCT Holdings, LLC, headquartered in Santa Clara, California. Read the full announcement here.

Founded in 1982, Saugatuck is a long-established private investment firm committed to leveraged recapitalizations, buyouts, and growth equity investments in the lower middle market. The firm invests in service-intensive businesses demonstrating a proven ability to generate stable, growing cash flows where it has the requisite experience to drive accelerated portfolio company performance.