Exclusive group poised to take advantage of offerings. (Banking & Finance: Special Report - To Deal or Not to Deal).

IT'S a select group flush with cash and ready, under the right circumstances, to do deals.

The repositories of Southern California wealth looking for the right investment include the usual suspects -- Marvin Davis and Haim Saban among them -- but available money is also coming from private equity shops.

"This market is terrific because there aren't that many buyers out there' said Peter Nolan, a managing partner at Los Angeles private equity firm Leonard Green & Partners.

Looking to expand its portfolio, Green recently closed a $1.9 billion private equity fund, which it raised from public and private investors, and plans to deploy it in middle-market companies.

The firm recently announced plans to acquire a majority stake in mapmaker Rand McNally & Co. for $75 million in a debt-equity swap. Earlier this year the firm purchased a stake in Phoenix Scientific Inc., a veterinary pharmaceutical firm in Missouri, for $100 million.

Leonard Green, which typically has focused on consumer-oriented businesses in Southern California, has cashed out portions of some old investments, selling stakes in local veterinary hospital chain VCA Antech Inc. and Petco Animal Supplies Inc., which is based in San Diego.

"If it is easy to buy businesses, the price starts to go up," Nolan said. "What we have now is a much more rational market -- which is great."

For private equity shops, there is a relatively small number of competitors bidding on deals right now, in part because most public companies are too busy licking their wounds to explore new lines of business.

But there are some opportunities.

At least two Los Angeles buyout shops, Gores Technology Group and Platinum Equity LLC, have been actively pursuing technology investments. The two firms are headed by brothers Alec (Gores Technology) and Tom Gores (Platinum Equity).

Gores Technology plans to buy the assets of videoconferencing company Forgent Networks of Austin, Texas, for $18 million, including $10 million in cash. Gores also has agreed to two overseas buys: the Philips Business Communications unit of Dutch conglomerate Royal Philips Electronics for an undisclosed sum, in addition to Anker BY, a British software and consulting firm, also for an undisclosed sum.

Platinum Equity recently purchased a unit of business software company Applix Inc. for $8.8 million, including debt. In November, it bought Diagnostic Imaging Inc., a unit of PSS World Medical Inc. for $45 million and merged that with an earlier purchase.

"Typically our targets are either under-performing or non-core divisions of larger companies that have a stable base of customers and revenue stream' said Mark Barnhill, a senior vice president at Platinum Equity.

Now, Platinum is actively seeking investments in Asia.

"There is significant opportunity right now in North America and Europe, but we continue to be interested in Asia as well," Bamhill said.

Yukuo Takenaka, president and chief executive of Takenaka & Co. LLC, an investment banking firm in Los Angeles specializing in cross-border mergers and acquisitions, said he is involved in helping Platinum find acquisition candidates in Japan and Korea.

There are also a number of wealthy individuals that could be induced to spend big money in a hurry.

Billionaire Davis has emerged as a potential buyer for Vivendi Universal's film, music and theme park businesses. Haim Saban, who collected $1.5 billion after selling his 50 percent stake in Fox Family Worldwide Inc. to Walt Disney Co. in late 2001, has explored various investments, according to news reports, including KirchMedia and Jim Henson Co.

A spokeswoman for Saban declined comment.

Local media investor Shamrock Holdings Inc., which manages funds for the Disney family, is seeking media and entertainment assets.

"The market is very attractive right now. A number of properties are available and there are plenty of mid-size companies looking for capital for expansion purposes," said Cliff Miller, a Shamrock managing director.

Miller would not discuss specific deals, other than to say that, "we have a number of transactions in the hopper."

He said competition is limited. "We're a little surprised that others are pulling back," Miller mid. "You can't ignore what's going on geo-politically, but life goes on and business goes on."

RELATED ARTICLE: Marvin Davis

Acquisition Target: Assets of Vivendi Universal including film studio, music division and theme parks

Haim Saban

Acquisition Targets: KirchMedia and Jim Henson Co.

Tom Gores

Acquisitions: Purchased Applix Inc. unit, Diagnostic Imaging Inc.