PE Firm J.C. Flowers Will Lose $47.8 Million In Its MF Global Stake

Private equity firm J.C. Flowers lost $47.8 million on its stake in MF Global's, Bloomberg TV reporter Cristina Alesci is reporting.

J.C. Flowers had around $87 million invested, she says. They were paid back some of that in coupons.
The company has deep ties to MF Global - founder J. Christopher Flowers sat on the board of directors and helped install Jon Corzine into the top position at MF Global back in 2010. J.C. Flowers currently owns a 6% stake in the derivatives brokerage, and the firm had reportedly been in discussions with MF Global about a private equity buyout last week.
Corzine is an operating partner at the PE firm, and Flowers is also used to work at Goldman Sachs (where Corzine was formerly CEO).
The biggest losers here will be J.C. Flowers' investors - that includes pensions funds, mutual funds, individuals, etc. It will also have far-reaching effects - Bloomberg's Alesci reports that some of the investors in the fund include a German company and a Japanese bank.

Lisa Du
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