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(July 9, 2008) Despite the challenges posed by the credit crunch, businesses controlled by private equity investors outperformed their publicly traded counterparts for the third consecutive year, according to a report from Ernst & Young.

“Private equity continued to be successful in 2007,” said Joe Telebar, transactions advisory services partner at Ernst & Young in Toronto. “Our findings show private equity is creating real, sustainable value with its investees.”

A study of the 100 largest global private equity exits in 2007 found that the annual growth rate in enterprise value was 24%, double the growth rate of public companies. The results held up across industry sectors and company size.

“Private equity investors have really shown they can deliver profits, value and investment returns,” said Telebar. “We’ll likely see exit volumes contract somewhat, but when the market recovers, private equity firms will be well-positioned with thriving businesses ripe for exit.”

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IIAC names head of capital markets

(July 9, 2008) The Investment Industry Association of Canada has named Jack Rando to the position of director, capital markets, for the organization.

Rando’s new role includes working with member firms in presenting the industry’s positions on important topics such as tax reform, operational efficiency and market advancement to government, regulators and industry stakeholders.

Prior to today’s appointment, he held the position of assistant director, IIAC, and capital market analyst with the Investment Dealers Association of Canada (IDA).

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MFDA launches hearing against Levy

(July 9, 2008) The MFDA has launched disciplinary proceedings against Jeffrey Levy, alleging various infractions, including losing track of nearly $20,000 in client money, and accepting fees for services he failed to render.

Levy allegedly lied to the Ontario Securities Commission and his firm in June 2000, about the circumstances that led to him being disbarred by the Law Society of Upper Canada.

The MFDA also alleges that he accepted $150 from two clients to prepare a will for them, which he failed to deliver. A third client gave him $10,000 to invest, which he is unable to account for. He accepted more than $9,000 from another client as payment for services on behalf of his firm, contrary to MFDA Rule 2.4.1.

Finally, when the MFDA launched its investigation in March 2007, he failed to produce requested copies of bank statements and declined to attend an interview.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA Central Regional Council in the Hearing Room located at the offices of the MFDA at 121 King Street West, Suite 1000, Toronto, Ontario, on Wednesday, September 10, 2008, at 10 a.m. (Eastern) or as soon thereafter as it can be held.

(07/09/08)