Had the New York Yankees won last night, I would be using this space to gloat over the Bronx Bombers' latest victory over the hated Boston Red Sox. Instead I'll take solace in the fact that a new Yankee fan was brought into the world this week (see Happy News below) and plug the latest issue of Buyouts.

It is fitting that Dan is in Canada today, as both this month's Venture Capital Journal and this coming Monday's Buyouts each feature special sections dedicated to the state of private equity in the Great White North.

O Canada
In next week's Buyouts, I take a look at the current state of the buyout market in Canada and find that it is growing quite well without a large invasion by U.S. firms. American firms are active in Canada, of course, but are overwhelmingly on the large end of the market. It is the KKRs and Bains of the world that are doing the most business with our neighbor to the north. While middle market U.S. firms have done deals also, most of the Canadian buyout pros I spoke with did not think there is much of an opportunity for U.S. middle market firms in Canada. Canadian private equity professionals agreed that Canadian middle market firms have grown significantly in size and possess enough of a local advantage to make the Canadian middle market buyout market very competitive already. Some also said that it would be too cost prohibitive for U.S. firms to move onto the Canadian middle market in a significant way. Some Canadians told me that U.S. buyout pros seem to suffer the misconception that Canada is less competitive than it actually is. What do you think? I'm interested to know. Email me at matthew.sheahan@thomson.com.

Pray for Locusts
Also in Monday's edition of Buyouts, my colleague Ken MacFadyen examines The Blackstone Group's recent $3.3 billion investment in Deutsche Telekom. The deal is a sign that foreign private equity firms' reputation may be improving in a country whose vice chancellor described them as “locusts” only a year ago. I'm all in favor of publicizing and prosecuting corporate malfeasants, but I think politicians of every country realize that private equity firms don't make great political boogey men. If a locust is a firm that's going to make a multi billion-dollar investment in one of your country's companies and take an active board seat, maybe locusts aren't so bad. When foreign private equity firms don't see your country as a place for their money, that's when it's time to worry.

However good it may be for German-Private Equity relations, the deal may get Blackstone in hot water with its own LPs, who didn't give the firm $13 billion to make minority investments. Read more about it next week's Buyouts.

Happy News
Buyouts editor Danielle Fugazy delivered a healthy baby girl, her and her husband's first, on Wednesday evening. Both mother and baby are doing well. Danielle will be on maternity leave for three months, though she'll be keeping tabs on things from home, and will return to the office in September.

Thomas H. Lee Partners has closed on $4 billion for Thomas H. Lee Equity Partners VI, according to PrivateEquityOnline. The fund has a goal of $9 billion and began marketing earlier this year. It is the firm's first fund raising effort since the departure of its founder and namesake, Thomas H. Lee. www.thlpv.com