private equity Features Archive > 2006 Whole business securitisations 20/12/2006. Recapitalisations have been a hallmark of 2006, says SJ Berwin. Not without some controversy, many funds have taken advantage of buoyant credit markets to refinance their portfolio companies and so take cash out before being ready to exit. Following an interesting development last month, next year could see more re-financing activity - but this time taking advantage of a different financing technique. The upside of investing in African markets 13/12/2006. Africa's political leaders are taking major steps to build a better foundation for investment, according to the chairperson of Circle Capital Ventures, Mamphela Ramphele, addressing the 14th annual Wharton Africa Business Forum. Ramphele, a former managing director of the World Bank, said that the continent has made historic efforts to affirm good governance, build strong institutions and fight corruption. Private equity and hedge funds: a meeting of giants 06/12/2006. There's a blurring of the line between private equity and hedge funds, driven primarily by hedge funds seeking higher returns, says the ACG and Grant Thornton, as well as more capital to manage and diversification of risk. Institutional Investor Profile: Frank Brenninkmeyer, Principal, Performance Equity Management 30/11/2006. Frank Brenninkmeyer on fund selection criteria, on the qualities his team seeks in a good GP, and on portfolio construction issues. European Commission proposes common private placement regime 29/11/2006. The European Commission’s two-year project to review and update the European legislative framework for investment funds culminated recently in the publication of a White Paper, says SJ Berwin. ERISA update: good news for fund managers 22/11/2006. Generally speaking, says SJ Berwin, when legislators pass new law without considering the needs of the private equity industry, it is bad news. However, this summer, the new US Pension Protection Act of 2006 bucked the trend - tucked away in the legislation was a provision that will benefit many private equity fund managers who take commitments from US pension fund investors. Land of buy-out promises 15/11/2006. Australia has further consolidated its position as the land for mega buyouts When Kohlberg Kravis Roberts & Co. announced that it has clinched the deal to acquire the waste management and industrial services businesses from Brambles Industries, it was another confirmation that Australia is fast becoming the land for mega buy-outs, says the APER. Institutional Investor Profile: Giorgio Buggio, Portfolio Manager, Compagnia di San Paolo 07/11/2006. Giorgio Buggio on Compagnia di San Paolo's allocation to private equity, on what kind of funds his team seeks, and on the foundation's mission to support the Italian economy and society. Institutional Investor Profile: Roberto Pilotto, Funds Director, PPM Managers 18/10/2006. Roberto Pilotto on investing in Asia, the CEE region and Europe, on why his team benefits from the firm's background in direct investments, and on the increasing challenges for country-specific funds in Europe. Institutional Investor Profile: SPF Beheer bv 11/10/2006. SPF Beheer's private equity team talked to AltAssets about its investments in Europe and the US and about how the team's strategy has developed over the past five years. Institutional Investor Profile: Giuseppe Campanella, Chief Executive Officer, State Street Global Investments 04/10/2006. Giuseppe Campanella on his team's focus on companies investing in and/or from Italy, on high management fees and the misalignment of LP/GP interests, and on why he is keen to invest in first-time funds. Institutional Investor Profile: Emmanuel Roth, Managing Director, Paris Orléans 27/09/2006. Emmanuel Roth on Paris Orléans's fund and direct investments, on the firm's global investment strategy, and on being part of the Rothschild Group. Access to finance 20/09/2006. In April 2003, the UK Government declared its intention to create a new type of venture fund - a public/private partnership, modelled on the Small Business Investment Company in the United States, which would help to bridge the equity gap for businesses seeking small amounts of finance. So far this year, says SJ Berwin, the Government has announced six pathfinder Enterprise Capital Funds (ECFs), which together will raise over £160 million (€230 million) for equity investments that are each less than £2 million (€2.9 million). Institutional Investor Profilea: Carsten Schmeding (managing director), Mark Lippert and Mathias Radeck (both investment directors), Equity Partners 13/09/2006. Carsten Schmeding, Mark Lippert and Mathias Radeck on Equity Partners´ approach to private equity investing, on the advantage of being a direct investor into companies as well as a fund investor, and on how you can further differentiate yourself as an institutional investor in the current environment. Turnaround specialist Jon White on working with private equity portfolio companies 06/09/2006. Turnaround specialist Jon White, head of the Turnaround & Change Management Practice at interim management provider AshtonPenney talked in an interview with AltAssets about how his team works with private equity firms and their portfolio companies, the structure of turnarounds, and the hurdles that turnaround professionals need to overcome in a very limited period of time. Managing risk in venture capital investing 30/08/2006. Risk is part of the landscape when investing in start-up firms, and venture capitalists need to approach this peril across a range of dimensions, including geography, industry and the timing of investments in the product development cycle, says Knowledge Wharton. Institutional Investor Profile: Thomas Kubr, a Managing Director and the Chief Executive of Capital Dynamics 23/08/2006. Thomas Kubr on ideal portfolio composition, on giving GPs enough freedom to adjust their strategies to changing market conditions, and on mega versus smaller buy-out funds. A European PIPE-dream, or a new pipeline? 16/08/2006. Last year, Britain’s biotechnology companies rallied around calls to make it easier for them to raise new money after they had floated on London’s stock exchange, says SJ Berwin. Many were frustrated by the inflexibility of the British system - which requires any new issue of shares to be offered first to existing shareholders in proportion to their shareholdings, unless the shareholders have agreed in advance to waive their anti-dilution rights. How not to legislate 09/08/2006. Unfortunately, notes SJ Berwin, it isn't the first time that a European government has made a mess of introducing new rules - and it certainly won't be the last - but the process of changing the regime that applies to protect British employees when businesses are disposed of following insolvency is an object lesson in how not to legislate. Institutional Investor Profile: Paul G Renaud, Senior Vice President and Chief Financial Officer, OMERS 02/08/2006. Paul G Renaud on why OMERS is increasingly interested in alternative assets, on the pension fund's investment strategy, and on why this year is a good year for private equity investors looking to invest in top-tier funds. Institutional Investor Profile: Ralph Günther, Managing Partner, bmp AG 26/07/2006. Ralph Günther on analysing track records, on the prospects of venture capital investing in Europe, on access issues and how to overcome them, and on the role of retail investors in private equity. Aiming High 18/07/2006. Research published in April by the British Venture Capital Association showed the importance of healthy stock markets for the venture capital and private equity community, says SJ Berwin. About one-fifth of divestments in the UK since 1998, measured by acquisition cost, have been by way of an IPO. Experts report on private equity 12/07/2006. When policy makers take an active interest in private equity it is hard not to get worried, says SJ Berwin. The industry is still not well understood by politicians, the media or the public, so it is rarely good news when it is put under the spotlight. Are emerging markets striking back, or out? The view from investors 05/07/2006. This Knowledge Wharton roundtable on investing in emerging markets features, among others, such luminaries as Assaad Jabre, acting executive vice president of the International Finance Corporation and Harry Alverson, managing director of The Carlyle Group, who is responsible for investor relations and fund formation in the Middle East and Europe. Institutional Investor Profile: Peter Keehn, Head of Alternative Investments, Allstate Investments, LLC 29/06/2006. Peter Keehn on Allstate's preference for industry sector-specific funds, on the qualities that his team is keen to see in a good GP, on what puts them off investing with certain funds, and on Allstate's thorough due diligence process. Looking through the PIPE - opportunities for private equity investors 28/06/2006. Private equity sponsors have historically invested in PIPE transactions, says Weil, Gotshal & Manges, but to a lesser extent than venture capital and hedge funds. PIPE transactions are typically structured as a minority investment in a publicly listed company and the investor does not receive the full panoply of control rights and protections that a private equity sponsor is used to receiving in a customary leveraged buy-out transaction. The best things come to those who wait … 14/06/2006. Carried interest - the management team’s share of fund profits - is a critical factor in motivating private equity executives, says SJ Berwin, and suggests that carried interest arrangements for European funds may be shifting a little in favour of managers Institutional Investor Profile: Jens Bisgaard-Frantzen, Managing Partner, ATP Private Equity Partners 06/06/2006. Jens Bisgaard-Frantzen on the qualities ATP Private Equity Partners looks for during the due diligence process, on the importance of long-term LP-GP relationships, on why the firm is keen to invest in industry sector-specific funds, and on the firm's position on Asia. Institutional Investor Profile: Alexander Jira, founder and CEO, MFonds AG 30/05/2006. Alexander Jira on why he co-founded MFonds, on their progress and strategy and on private equity investment opportunities in Germany. In pursuit of better regulation 24/05/2006. The regulatory environment in which business operates has a major effect on competitiveness, performance and growth, says SJ Berwin. But it's getting simpler, and that is good news for the private equity industry, which itself suffers from an over-burdensome regulatory environment. The importance of open relationships 16/05/2006. The industry took a huge step forward last year when the European Private Equity and Venture Capital Association, and the French and British national associations, published a single set of valuation guidelines, says SJ Berwin. It's making it harder to criticise the PE industry for lack of transparency. Institutional Investor Profile: David G Proctor, Senior Vice President, Wind River Holdings 10/05/2006. David G Proctor on fund selection, due diligence and on the necessity to really understand how fund managers add value to their portfolio companies. Limited partner roundtable 02/05/2006. Four limited partners representing, in total, $30bn of alternative asset buying power, talk about issues such as hedge fund convergence, distressed debt and new horizons in venture capital in this Knowledge Wharton article. The roundtable members include Kristin Gilbertson of the University of Pennsylvania, Sandra Pajarola at Partners Group, Cory Pulfrey at Morgan Stanley Alternative Investment Partners, and Michael Taylor at HarbourVest. Institutional Investor Profile: Greg Kulka, Director of Alternative Investments, New Mexico State Investment Council 25/04/2006. Greg Kulka on investing in buy-out and venture capital funds, making co-investments within New Mexico, being not too keen on generalists, and on why a consistent track record over time is the number-one criterion for any GP that is going to make the grade in his portfolio. Director's duties 18/04/2006. Simon Witney of SJ Berwin reports on the British government's amendments to company law. Their proposal to introduce a statutory statement of a director's duties has caused unexpected controversy, and the unintended consequences could be very damaging - with profound effects for the private equity industry. US imports 10/04/2006. The exodus of technology companies to the US is building, says Crawford Beveridge of SEP, with some of Europe's best entrepreneurial companies moving across the Atlantic. The European venture capital community must think about how they respond to this. Institutional Investor Profile: Godfrey Albertyn, Portfolio Manager, Futurebuilder, Metropolitan Asset Managers 06/04/2006. Godfrey Albertyn on Metropolitan's private equity fund investments, on private equity investing in South Africa, and on the role that private equity fund managers need to play in the South African transformation process. A discussion on the J-Curve in private equity 05/04/2006. First-time investors in private equity funds are often introduced to the J-Curve effect. This is the circumstance when early interim valuations of a private equity portfolio decline relative to the capital the investor has contributed. This can create considerable angst. LPs become very concerned that they have somehow lost value over the time they have funded capital calls. Why does this sometimes happen? How should limited partners look at this? And, how can the J-Curve be reduced? Institutional Investor Profile: Pierre Fortier, Vice President, Funds, Private Equity, Caisse de dépôt et placement du Québec 22/03/2006. Pierre Fortier on the Caisse de dépôt et placement du Québec's private equity investment strategy, the need for being highly selective when picking funds and on the firm's strategic partnership with AXA Private Equity. Institutional Investor Profile: Veronica L John, Senior Investment Officer, Asian Development Bank 15/03/2006. Veronica L John on private equity investment opportunities and risk in Asia, the countries ADB has invested in, and on investment trends in Asia's emerging markets. Institutional Investor Profile: Michael Taylor, Director of Resources, Surrey County Council 08/03/2006. Michael Taylor on Surrey County Council's global investment approach, his targets and on why he has chosen to move away from direct investments. Institutional Investor Profile: Graham McDonald, Head of Fund Investments, Bank of Scotland 24/02/2006. Graham McDonald on why Bank of Scotland is increasing its allocation to private equity investment and on why the bank prefers to significantly increase its average investment size rather than the number of funds in its portfolio. George Moore on turnarounds in the UK 22/02/2006. In this AltAssets interview, turnaround expert George Moore talks about the current state of the UK turnaround business, his approach to saving distressed businesses, and about his work with private equity houses. Institutional Investor Profile: Dr Rolf Wickenkamp, Managing Partner, CAM Private Equity 15/02/2006. Dr Rolf Wickenkamp on why CAM Private Equity likes Continental Europe, on why the firm has increased its investments in venture capital funds globally and on why he thinks that it is a major advantage to have people with direct fund investing experience in a fund of funds management team. Institutional Investor Profile: Dr Hanspeter Bader, Managing Director in Charge of Private Equity, Unigestion 01/02/2006. Dr Hanspeter Bader on fund investments, secondaries transactions and on why Unigestion's private equity team believes that building strong relationships with funds is getting increasingly important. Chosen 18/01/2006. Hong Kong has firmly established its position as the bourse for Chinese companies and a principal exit route for private equity investors, says the Asia Private Equity Review. In at the start 10/01/2006. A large swathe of the venture capital community in the UK remains inactive in what they perceive to be the risky end of the market, says Scottish Equity Partners. As a result, there are real concerns in some quarters that a lack of developed early stage businesses will create problematic gaps in years to come.