private equity Features Archive > 2003 Good news at last for European venture capital? 17/12/2003. Limited partners are mildly optimistic; general partners claim that it’s the best time to be investing. Could it be that Europe’s venture capital industry has finally turned the corner? IAS 27 and the issue of consolidation - a retrograde step for the European private equity and venture capital industry 10/12/2003. The new proposals for consolidated accounts from the International Accounting Standards Board could have serious implications for the ways in which general partners report to their investors, says EVCA chairman Jean-Bernard Schmidt. Institutional investor profile: Britta Lindhorst, Managing Director, AMB Generali Private Equity 10/12/2003. Lindhorst on the increasing attractions of the European market, on setting up a formal private equity investment programme and on why it’s so important, on the necessary balance of taking top-down and bottom-up approaches to fund selection and on why she expects to be pleasantly surprised. The future of mezzanine 03/12/2003. Mezzanine has become an increasingly popular area of private equity for investors over the last few years. But just how far can the market grow? And how will the rising levels of capital flowing into the market affect returns? Amy Carroll reports. Investor profiles 2003: a review 03/12/2003. Alignment of interest, growing concern about secondary buy-outs and investors’ roles in the creation of the boom-bust private equity cycle. These are just some of the issues that preoccupied our institutional investor profile interviewees this year. Institutional investor profile: Hans van Swaay, Head of Private Equity, Pictet & Cie 26/11/2003. Van Swaay on private equity as a maturing industry, on the failed ambitions of some mid-market firms, on the negatives of negotiation and on the problems of secondary buy-outs. Corporate venturing? Make sure it’s cautious venturing 26/11/2003. Working with corporate venturers can provide venture capital and private equity firms with a rich source of investment opportunities. But they should be wary of a corporate’s objectives and ensure they are well protected if circumstances change, says Edengene’s Julian Wheatland. Institutional investor profile: Austin M Long III, Managing Partner, Alignment Capital Group 19/11/2003. Long on the difference between a series of pleasant meetings and building a portfolio, on the persistence of performance among private equity managers, on faith in financial markets and on avoiding conflicts of interest. What does ‘early stage’ mean these days? 19/11/2003. The concept of early-stage investing means different things to different people, depending on industry focus and stage in the economic cycle, says NIB Capital Private Equity’s Otello Stampacchia. But what does this mean for limited partners and for the companies being funded? Hurdle? What Hurdle? 12/11/2003. Like many terms, the preferred return has become something of a standard in limited partnership agreements. But has it actually served any useful purpose, asks Invesco Asset Management's Ray Maxwell? Maria Kozlokski, Principle Investment Officer, and Jean Laprevotte, Investment Officer, International Finance Corporation 12/11/2003. Kozloski and Laprevotte on balancing socio-economic responsibilities with the need to generate returns, on finding quality managers in developing markets and on the importance of local knowledge in a management team. Institutional investor profile: Rafael Astruc, Partner, and Rob Voeks, Managing Director, Private Advisors 04/11/2003. Astruc and Voeks on the definition of proprietary deal flow, on the opportunities and threats in the US mid-market, on buzzwords and operational experience and on the increasing importance of value-add. The UK mid-market: what's the appeal? 04/11/2003. The shape of the UK's mid-market has changed beyond recognition over the last ten years or so. So what does it consist of now? And what do investors think of this segment of the private equity industry? Chris Davison reports. Institutional investor profile: Kevin Kester, Director of Alternative Investments, Colorado PERA 29/10/2003. Kester on changing return expectations, on the importance of integrity, on the difficulties of emerging markets and on what it takes to get a re-up from Colorado. In it for the long haul 29/10/2003. The results of a recent competition to design a 20-year pension fund mandate contained some good news for the private equity industry. But much will have to change if the winning entry is to provide a blueprint for responsible, long-term investing. Asian investors: a healthy source of capital for Europe? 22/10/2003. European fundraisers, like those in other regions, have suffered from a slower and more deliberate investment pace among institutions. Many have looked west to the US for capital. But should they now be travelling east? Amy Carroll reports. Institutional investor profile: John Barber, Managing Partner, Citigroup Private Equity 20/10/2003. Barber on the need for diversification in a fund of funds portfolio, on the negative impact of mark to market in the private equity industry, on the danger of an imbalanced management team and on the importance of a consistent strategy to add value. When access is an issue 15/10/2003. Funds of funds have become an increasingly popular route for institutions to gain exposure to the private equity market – a trend that looks set to continue. What are the drivers behind this? And what is it that funds of funds have to offer their limited partners? Institutional investor profile: Philip S Paul, Chairman, Paul Capital Partners 15/10/2003. Paul on the outlook for US early stage, on the lessons that GPs have learned over the last few years, on who is selling in the secondary market and on the impact of negative media coverage on the industry. Time to look ahead 08/10/2003. It's something of an understatement to say that European venture capital has been in a state of shock over the last couple of years. There may not be a huge amount of optimism even now, but there are at least some signs that the industry is finally starting to look towards the future. Institutions shift towards Europe 01/10/2003. There is no doubt that the experience of the last few years has affected and informed the investment decisions of European and US investors. So what are their thoughts on private equity? The results of a new AltAssets survey highlight a shift away from the US and from venture capital and towards European buy-outs. Chris Davison reports. Institutional investor profile: Geoffrey G Clark and J Christopher Kojima, Managing Directors and Michael J Brandmeyer and Harold P Hope III, Vice Presidents, Goldman Sachs Private Equity Group 24/09/2003. The Goldman Sachs team on the growth of direct (or synthetic) secondary transactions, on the need for liquidity in the private equity market, on the increasing sophistication of sellers and on why auctions don't always fetch the best price. Getting funding - the truth 24/09/2003. Any firm that has attempted to raise money over the last couple of years will know just how difficult and frustrating the market is at the moment. So what can prospective fundraisers do to increase their chances of accessing that vital institutional capital? Getting funding - the truth 24/09/2003. Any firm that has attempted to raise money over the last couple of years will know just how difficult and frustrating the market is at the moment. So what can prospective fundraisers do to increase their chances of accessing that vital institutional capital? Operations: more than a buzz-word? 17/09/2003. Institutional investors are placing increasing emphasis on ‘operational experience' when analysing private equity fund managers. About time, say some industry observers. But is there a danger that the phrase becomes little more than a mantra with scant substance behind it? Institutional investor profile: Dr Rolf Wickenkamp, Co-Founder and Managing Partner, CAM Private Equity 17/09/2003. Wickencamp on independent versus captive funds, on the attractions of continental Europe, on the cyclical behaviour of investors, on the problems caused by US Freedom of Information Acts and on the fragile nature of investor confidence. Institutional investor profile: Christopher S Bödtker, Principal and Head of Private Equity, Lombard Odier Darier Hentsch & Cie 10/09/2003. Bödtker on the attractions of the mid market in Europe, on firms that raise too much money, on looking beyond IRRs, on increasing self-awareness among managers and on firms that aren't meant to outlive their founders. Forecast for US venture: clearing skies 10/09/2003. Conditions have not been clement for US venture capitalists for a few years now: difficult economic conditions, falling company valuations and a practically non-existent exit market have all dented confidence in the sector. But, says VenCap International's Allen Latta, it looks as though things are starting to improve. It's all in the Mind 03/09/2003. All investors consider risk before reaching for their chequebooks. But how accurate is their assessment? And doesn't perception of risk play a greater role in their decision-making than actual risk, asks Invesco's Ray Maxwell. Institutional investor profile: Ronald Sandquist, Managing Director - Private Equity, Advantus Capital Management 03/09/2003. Sandquist on telling the bad news as well as the good, on being passionate about building businesses, on the tricky business of judging a fund by its track record, on the irritations of management fees and on patient investing. Is now the time for European entrepreneurialism? 27/08/2003. European entrepreneurial spirit has started showing some positive signs over recent years spurred mainly by the late nineties' boom. But now the party is over, has the region been left with a pool of talented and experienced entrepreneurs and an infrastructure in which they can thrive? Institutional investor profile: Hanse Halligan, Chairman and Chief Investment Officer, Fairview Venture Management 27/08/2003. Halligan on emerging managers, on fund investing prospects in the near-term, on why unsuccessful deals are often orphans, on the difficulty of judging past performance in the current environment and on instant experts. Institutional investor profile: Daniel Keller, Director, LUMA Capital 19/08/2003. Keller on the attraction of fund innovations, on the difficulties of co-investing as a small investor, on why he's optimistic about the US venture capital market, and on the over-dependency of private equity on institutional money. Do good things come in small packages? 19/08/2003. With huge sums of capital to deploy but limited resources dedicated to private equity, many larger institutions feel that their only choice is to commit to the established mega-funds. But there are ways of reaching the smaller end of the market, as some US public pension plans are currently discovering. Institutional investor profile, Barry Kohout, Managing Director, Glenmede Trust 13/08/2003. Kohout on the lack of fund opportunities in the market, on deciding which funds to re-up with, on annex funds and conflict of interest issues and on why we'll all make the same mistakes we made in the past. Why venture capitalists need guardian angels 13/08/2003. Angel investors are an essential component to any healthy entrepreneurial economy. But it's a point that many in the venture community appear to be forgetting right now. Isn't it about time that we as VCs stopped to think about how our behaviour is affecting the financing chain, says MTI's Ernie Richardson. Institutional investor profile: Reinhard Hartl, Director, Global Vision Private Equity Partners 06/08/2003. Hartl on the fading attractions of the large buy-out market, on the cyclicality of private equity, on the need for dynamic incentive structures, on the prospects for Germany and on the lack of patience among fund managers and investors. Where banks fear to tread 06/08/2003. With traditional venture capital financing on the scarce side right now, there are opportunities opening up for Europe's handful of venture debt providers. But what is this form of financing? And should investors be interested? We offer an introduction to this niche sub-set of the venture capital industry. What's up in private equity turnarounds? 30/07/2003. The current economic downturn is bad news for most people, but not for those who specialise in turning ailing companies around. With all that choice in the market, where are the most – and least – promising opportunities appearing? And what stumbling blocks do private equity turnaround professionals come up against? We asked a panel of specialists for their views. Institutional investor profile: Roberto Pilotto, Funds Director, PPM Ventures 30/07/2003. Pilotto on the attraction of mid-market country-specific funds, on adding value as an investor, on the changing nature of competition in private equity, and on what terms can tell you about a manager's motivations. Hard Terms 23/07/2003. A lot of investors claim to be much tougher on negotiating terms these days than they used to be. But how much ground are they gaining (if any)? And what are the areas subject to discussion? Helix Associates' Sarah Clarke examines. Institutional investor profile: Sam Armstrong, Managing Partner, Quay Partners 23/07/2003. Armstrong on the challenges of servicing the appetite for private equity among Australian institutions, on the latent promise of early-stage venture capital in Australia, on fund of fund innovation and on never saying never. Getting fat on fees? 16/07/2003. The management fees charged by private equity firms have come under increased scrutiny by investors as fund sizes have crept up. But what of the amounts charged to portfolio companies in the form of transaction fees, monitoring fees, directors' fees, and so on? Institutional investor profile: Martin V Hansen, Investment Director, Danish Investment Fund 16/07/2003. Hansen on the opportunities in the Danish market, on what proprietary deal flow should mean, on the virtues of appointing independent directors and on the need for differentiation among funds of funds. Taking a different path 09/07/2003. Private equity's success and growth has so far been dependent on the growth in corporate values. That's fine when public markets are booming, but it's problematic when they're not. Daniel R Revers of ArcLight Capital Partners sets out his vision for a new type of private equity – investment based on asset values. Institutional investor profile: Charles Froland, Managing Director, General Motors Investment Management Corporation 09/07/2003. Froland on going beyond arbitrage opportunities, on improving the top line as well as the bottom line, on empire builders, on why taking a conservative approach will not serve most LPs and on investors and their comfort food. The French mid-market: bursting with opportunities or overcrowded? 02/07/2003. After years of frustration and a worsening regulatory environment, many firms and investors are turning their backs on Germany in favour of France's mid-market. But does France deserve this new focus? And what makes this market attractive, ask Elvire Perrin and Jenny Finlay of Altius Associates. Institutional investor profile: Ashton Newhall, Principal and Co-founder, Montagu Newhall 02/07/2003. Newhall on the promise of early-stage opportunities, on the difference between US and European venture capital markets, on the persistence or otherwise of brand names and on the lack of experience of many VC fund managers. Institutional investor profile: Brad Heppner, Chairman and CEO, The Crossroads Group 25/06/2003. Heppner on the opportunities presented by the recent US tax changes, on the optimism creeping into the market, on the lack of exit focus among many firms, on the public disclosure of private equity numbers and on deliberate defaulting by institutions. All wound up 25/06/2003. With the current economic downturn, exits have become increasingly harder to execute. For firms with mature funds, realising investments in companies lingering in the tail end of their portfolio is harder still. But it looks as though a solution may be on the horizon, if only the industry will open up to the proposition. Institutional investor profile: Harold Weiss, Head of Private Equity Fund of Funds Unit, Swiss Re 18/06/2003. Weiss on the increased need for operational skills in private equity, on wishful thinking among general partners, on the unfairness of deal-by-deal carried interest and on sticking to the areas you know best. Why is fundraising so arduous right now? 18/06/2003. Many limited partners are now negotiating hard before they will invest in funds. That is as it should be. But there is a danger that these discussions are making the fundraising process too complex and too lengthy. Surely there is some way of simplifying it all. Institutional investor profile: Helen Steers, Managing Director, Private Equity Europe, Russell 10/06/2003. Steers on why private equity will continue to outperform other asset classes, on firms manipulating their track records, on whether private equity is a scaleable business and on how it can become a mainstream asset class in Europe. So far, so good 10/06/2003. The private equity industry has come a long way in the last 20 years, developing into a sophisticated and, some would argue, mainstream asset class for investors. But these developments have not been without cost – demands on general partners have increased, as have competition and public scrutiny. To Disclose or Not to Disclose? That is the Question 03/06/2003. Many public pension plans in the US are coming under pressure to disclose their private equity performance to the wider world. Transparency is essential between general and limited partners, but publishing the figures to the wider world will only hamper the flow of information between the two and lead to a focus on the short term, says Invesco's Ray Maxwell. Institutional investor profile: Peter Hielscher, Head of Private Equity, Gerling Insurance 02/06/2003. Hielscher on the difficulties of co-investing, on the lack of comparable performance information in the industry, on private equity's fall from grace in Germany and on why things could still take a turn for the worse. Institutional investor profile: Jason Andris, Principal, Venture Investment Associates 28/05/2003. Andris on the opportunities in the US venture capital market, on the lack of opportunities in the secondaries space, on the dangers of constantly re-upping, on GP hubris and on the short-sightedness of punitive terms and conditions. Improve your relations 28/05/2003. It's something of a truism that private equity is a ‘relationship business' and yet few firms consider the investor relations function important enough to hire a professional to manage it or to integrate it fully into the business. But in the wake of various corporate governance scandals and with the toughest fundraising environment we've seen for years, many players will need to rethink their strategy, says Claus Stenbaek of Danske Private Equity Partners. Institutional investor profile: Tom Thompson, Director, Private Equity Group, WestAM 21/05/2003. Thompson on the dangers of style drift, on the importance of strong deal flow, on the return to fundamentals in private equity, on the lack of operational capability among many fund managers and on the opportunities stemming from the succession issue. Looking beyond national boundaries 21/05/2003. With the increasingly international reach of many of its members, the British Venture Capital Association is broadening the focus of its activities to tackle issues that affect the wider European market. But that doesn't mean that it has stopped pushing for reforms at a national level, says its new chairman Richard Green. Time to deviate from the standard? 14/05/2003. Alignment of interest between general and limited partners has become a hot topic among investors of late. But what can fund managers do to demonstrate that they are sharing the risks and rewards of their private equity investments? And will it all matter in the long run anyway? Institutional investor profile: Giuseppe Campanella, Chief Investment Officer, Mediolanum State Street 13/05/2003. Campanella on the difficulties of co-investing, on the Italian market's potential, on why general partners are storing up trouble for the future and on the need for education among limited partners. Institutional investor profile: Gus Long, Managing Partner, Fort Washington Capital Partners 07/05/2003. Long on the attractions of specialist funds, on the dangers of following the crowd, on the effect of Sarbanes-Oxley on smaller companies, on the acceptance of private equity as an asset class and on the disclosure debate. Getting the most from the US market 07/05/2003. As European investors increase their allocations to private equity, they will need to look at some of the smaller funds in the market. This may not be too much of a problem in Europe, but sourcing and accessing under the radar funds in the US is harder, if ultimately more rewarding, says Marc der Kinderen of 747 Capital. Will the mid-market boom lead to bust? 30/04/2003. European mid-market funds are flavour of the month among investors, lured by the promise of low entry multiples and little competition between firms. But look a little closer, and you'll see that prices have barely moved downwards and the competition for deals is as fierce as ever at the larger end. Access Capital Partners' Philippe Poggioli offers institutions some advice. Institutional investor profile: Xavier Caron, Managing Partner, CPR Private Equity 30/04/2003. Caron on maintaining discipline in private equity, on the importance of genius in fund managers, on the consequences of further bad news from the asset class, on exit opportunities and on why private equity can be difficult for European investors. Institutional investor profile: Stephen Lowe, Investment Consultant, Railways Pension Trustee Company 23/04/2003. Lowe on the complications of private equity investing, on the downward pressure on fees, on being a contrarian investor and on the promise held by Asia. LPs get a voice (or two) 23/04/2003. Private equity fund investing is an inherently difficult activity for many investors, faced as they are with limited information available on funds, markets and performance. But the efforts of a couple of organisations are now seeking to address some of the problems faced by limited partners by creating networks and providing them with a voice in the industry. Institutional investor profile: Thomas Dorr, Managing Director, Morgan Stanley Alternative Investment Partners 16/04/2003. Dorr on the attractions of entrepreneurial firms, on the importance of judgment in private equity, on the herd mentality, on the irrelevance of since inception IRRs and on the difficult exit environment. We're not out of the woods just yet 16/04/2003. Levels of private equity deal activity may look positive when compared with the sluggishness of the rest of the economy. But firms are facing a number of issues and the short-term picture isn't looking as rosy as some might expect. Institutional investor profile: John Hess, Chief Executive Officer and Director, Altius Associates 09/04/2003. Hess on why manager selection is not astrophysics, on the persistence of outperformance, on what it will take to drive the European secondaries market forward and on the difficulties of secondary buy-outs for investors. The role of institutional capital in early-stage venturing: 2003 and beyond 09/04/2003. Many investors and entrepreneurs have lost faith in US venture capital. LPs may point the finger at the industry, but they themselves are not without blame, says Initium Capital's Mark Montgomery. Institutional capital still has an important role to play in funding early-stage technology businesses, he argues, but it must be invested in a more discriminate manner. Why can't a partnership be more like a company? 02/04/2003. Since the industry's birth the limited partnership has generally been assumed to be the best vehicle for private equity investment. But isn't it about time we started questioning this received wisdom, asks Invesco's Ray Maxwell. Institutional investor profile: Stefan Mårelid, Head of Private Equity, SEB Asset Management 02/04/2003. Mårelid on the dangers of over-diversification, on the problem of staff retention among institutions, on why general partners should commit more of their own money to their funds and on the difficulty of investing with preferential terms. Institutional Investor Profile: Chris Manser, Head of Alternative Investments, Winterthur Group 26/03/2003. Manser on wishful thinking among limited partners, on the lack of discipline among some funds, on incoherent strategies, on the perils of direct investing and on hopes for a pick-up in trade sales. All change 26/03/2003. Despite the problems faced by many private equity firms over recent years, the industry has reached a stature that would have been inconceivable even five years ago. But its increasing visibility could cause it a few problems along the way. Institutional investor profile, Marc Brugger, Senior Project Manager, Venture Capital and Private Equity, KfW Group 19/03/2003. Brugger on the German market, on tough financing decisions, on the promise of later stage deals and on whether it is possible for the private equity industry to regain investors' confidence. Acting now to avoid disappointment 19/03/2003. The anticipation of a prolonged bear market is finally being reflected in lower returns expectations among limited partners, according to a new report out this month. Yet despite this downward shift, many are looking to increase their allocations to the asset class. Chris Davison reports. Germany: country profile 12/03/2003. Expectations for the German private equity market were certainly too inflated. But should investors be completely writing off the region? Institutional investor profile: Rod Selkirk, Head of Private Equity, Hermes Pensions Management 11/03/2003. Selkirk on the hazards of relying too much on past performance, on the attractions of spin-out groups, on the prospects for exits and on what it will take to change management fee structures in private equity. John Greenwood and Stuart Waugh, Managing Directors, TD Capital 05/03/2003. Greenwood and Waugh on wanting to be an investor of choice, on the untapped pool of Canadian capital, on the effect of the capital overhang on the industry and on the opportunity for newer markets to change private equity investment patterns. (Full profile available in AltAssets Institutional Investor Profiles, Volume III.) On equal terms? 05/03/2003. If private equity is meant to be a partnership between fund managers and their investors, why is one side suffering and the other not? Institutional investor profile: John Greenwood and Stuart Waugh, Managing Directors, TD Capital 04/03/2003. Greenwood and Waugh on wanting to be an investor of choice, on the untapped pool of Canadian capital, on the effect of the capital overhang on the industry and on the opportunity for newer markets to change private equity investment patterns. Secondaries grow in stature 25/02/2003. The completion of the Deutsche Bank secondary deal marks a milestone in this burgeoning area of the private equity market and may pre-empt the flood of activity that failed to materialise last year despite high expectations. Its size and complexity bear testament to the increasing sophistication of the industry. We take a look at some of its characteristics. Institutional investor profile: Roger Wilkins, Private Equity Manager, Morley Fund Management 25/02/2003. Wilkins on why investors should not be lowering their return expectations, on the increasing power of limited partners, on the attractions of France versus Germany and on investors that dip in an out of the market. Funds of funds - an industry in transition 19/02/2003. The number of funds of funds has increased dramatically over the last few years, but how has the industry shaped up? And how many players will survive the current downturn? A new research paper explores these issues. Institutional investor profile: Richard Allanic, Investment Manager, 123Venture 19/02/2003. Allanic on the attractions of the French market, on the value of the large buy-out funds for the private equity industry as a whole, on why the US venture capital market is not applicable to Europe and on the prospects for the buy-out arena. Institutional investor profile: Lou Gerken, Founder and Chairman, Gerken Capital Associates 12/02/2003. Gerken on the sophomoric attitude of some private equity fund managers, on why the industry missed an opportunity in the disclosure debate, on why he's positive about private equity and on the difficulty of judgment calls. The mega-fund puzzle 12/02/2003. Investors increasingly say that they are turning away from mega-funds. And yet many large funds are closing well above their original targets. How can this be? Vive la France 05/02/2003. The French buy-out market holds a lot of attraction for investors at the moment and the recent levels of activity it has witnessed only serve to underline its potential. We look at some of the most promising areas – and some of the pitfalls. Institutional investor profile: Thomas Kohlmeyer, Partner, Extorel Private Equity Advisers 05/02/2003. Kohlmeyer on the gap between logic and the actions taken by some investors, on the limited scalability of private equity, on the frustrations of the German tax and legal situation and on what the future holds for the fund of funds market. The building blocks for success? 29/01/2003. More and more funds in the market are looking for cornerstone investors. Many limited partners may be considering such an offer. But what is in it for them? And what are the issues they need to consider? Institutional investor profile: Anders Stromblad, Head of Alternative Investments, Second Swedish National Pension Fund - AP2 29/01/2003. Stromblad on taking a step-by-step approach to private equity, on why private equity is challenging for investors, on the importance of finding good managers and on the value of investing with teams with a broad mix of skills. The GP-LP relationship: at the heart of private equity 22/01/2003. With the talk of increased limited partner unrest, the relationship between private equity fund managers and their investors has come under intense scrutiny over recent months. But, says Dominique Peninon of Access Capital Partners, those criticising the current state of affairs should be careful what they wish for. Institutional investor profile: James Pitt, Managing Director, Primary Fund of Funds, AXA Private Equity 22/01/2003. Pitt on the attraction of small, regional funds, on the inherent inertia in private equity investing, on the living dead of the asset class and on faddish funds. How will we fare in 2003? 15/01/2003. Many private equity firms are entering 2003 in the same spirit as they started last year – relatively upbeat. But is that optimism justified? We look at some of the successes and failures of the last 12 months and examine some of the key trends likely to play out over the next year. Institutional investor profile: Brian Stewart, Managing Director, Private Markets, University of Toronto Asset Management Corporation 15/01/2003. Stewart on the importance of partnership in private equity investing, on why now is a good time to be in the asset class, on the publication of IRRs and on why mergers between firms will not improve the market. Wading through shifting sands 08/01/2003. Despite its limitations, track record has always been one of the most important factors for limited partners when making their investment decisions. But the problem now is they are so skewed by the events of the last few years that they have become little short of meaningless. This, taken together with the uncertain economic outlook, means that investors are going to have to do far more homework if they are to be successful. Institutional investor profile: Marc der Kinderen, Managing Partner, 747 Capital 08/01/2003. Der Kinderen on the hunger of smaller funds, on finding teams with an ‘edge', on the pitfalls of cornerstone investors, on investors who blame the industry for their own mistakes and on not following the herd. Distributions in kind: avoiding the pitfalls 11/12/2002. Distributions in kind can dramatically enhance the returns of a given private equity programme, but the practices of some GPs and LPs threaten to tarnish the image of the asset class. Hugh Evans and Andrew Marks of T Rowe Price* explain why and deliver a stern warning to the industry. Investor profiles 2002: a review 11/12/2002. Private equity fund investors have faced a challenging time over the last 12 months. As the year draws to a close, we take a look at some of the issues that have preoccupied our institutional investor profile interviewees in 2002. How due was my diligence? 04/12/2002. Our industry is littered with bulk phrases that are used so indiscriminately that they have come to mean very little. One phrase that can be added to this cannon is ‘due diligence', which covers a multitude of sins, says INVESCO's Ray Maxwell. First there was the mega-fund… 20/11/2002. Time was when $8m was a large private equity fund; these days, some funds are raising up to $8bn. Just how large can funds get and what will they be doing for their investors?