More on hedge funds vs. private equity funds

There seems to be a bit more tension these days between hedge funds and private equity funds. One example: The $8 billion buyout of Aramark Corp. Goldman Sachs, CCMP Capital Advisors and J.P. Morgan Partners, Thomas H. Lee Partners and Warburg Pincus took it private earlier this month, with shareholder approval. But Metropolitan Capital Advisors, led by Karen Finerman, argued that the deal undervalued the company. We may be in for more activist type hedge funds voting against deal proposals. ClearChannel offers another example of sorts (see next item). It agreed to a deal by Thomas H. Lee Partners and Bain Capital, but the likes of Highfields Partners and Fidelity have put up a fight. They'll vote against the deal, which they say undervalues the company. The biggest area of controversy has been over debt covenants. Some private equity firms are said to have black lists.

For more:
- here's a MarketWatch article