Features - By Author Name - -

Opinion pieces from leading private equity experts invited to address topical issues

• -
• a
• b
• c
• d
• e
• f
• g
• h
• j
• k
• l
• m
• n
• p
• r
• s
• v
• w
• y

More articles

• Limited partner roundtable 02 May 2006. Source: Knowledge Wharton. Wharton Private Equity Club. 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.

• Confidentiality agreements - staying competitive while avoiding potential pitfalls 08 Feb 2006. Source: Weil, Gotshal & Manges. Kevin Sullivan and Alex Cohen. The execution of a confidentiality agreement is a necessary first step for private equity sponsors in the evaluation of any potential transaction, says Weil, Gotshal & Manges. But while confidentiality agreements are often perceived as benign agreements that should be signed as is, these agreements can contain provisions that present potential long-term exposure to private equity firms and their portfolio companies.

• Is it possible to sell a portfolio company for too much? 25 Jan 2006. Source: Weil, Gotshal & Manges. Christopher Aidun and Debra Dandeneau. Weil, Gotshal & Manges investigates the implications of private equity houses selling off portfolio firms at prices that may be higher than the intrinsic value of a GP's investment. Is a good exit the end of the story? Not necessarily.

• Unblocking the PIPE - a tale of two countries 01 Jan 2006. Source: Weil, Gotshal & Manges LLP. Graham Defries and David Chijner. PIPE transactions are much more common in the US than in Europe. Chief among the reasons for this is that European corporate laws and stock exchange rules tend to be more restrictive than their US equivalents in certain key areas, says Weil, Gotshal & Manges. Given the recent difficult climate in Europe for small and mid-cap public companies in securing other means of funding, however, PIPEs have developed into a useful tool for private equity investors.

• Hedge fund investment in private equity 02 Nov 2005. Source: Practical Law Company. Stephanie Breslow and Paul S Gutman, Schulte Roth & Zabel LLP. The number of hedge funds worldwide now exceeds 8,000, and these funds control nearly $1tn (about €826bn) in assets, says the Practical Law Company. Hedge funds have recently begun to be active players in the private equity market, as they have become capable of taking large equity positions, have assumed more shareholder-activist stances, and have invested in what are, for hedge funds, non-traditional assets.

• Freedom of Information Act 2000: The implications for private equity funds 12 Oct 2005. Source: Weil, Gotshal & Manges. Ian Hamilton and Katy Walton-Jones. Weil, Gotshal & Manges note that since the final provisions of the UK Freedom of Information Act 2000 came into force in early 2005, information that could be required to be disclosed by public authorities may include information held by authorities in their capacity as private equity LPs. But there are potential exemptions.

• A VC approach to seed investing 05 Oct 2005. Source: Israel Venture Capital Journal. Zvi Schechter, Giza Venture Capital. Zvi Schechter, co-founder and managing director of Giza Venture Capital, looks at seed investing from the venture capitalist's perspective. Success has many fathers he says, but failure is an orphan.

• Staying out of the courthouse 25 May 2005. Source: Weil, Gotshal & Manges. Douglas Warner and Peter Feist. In recent months at least three private equity sponsors have been sued or threatened with US lawsuits by creditors committees or litigation trusts in bankruptcy based on various allegations, including breach of fiduciary duty, self-dealing, corporate waste and having taken actions that deepened the insolvency of their portfolio companies. Weil, Gotshal & Manges look at managing the risks.

• Israel's VC fund raising takes encouraging turn 17 Jan 2005. Source: Israel Venture Capital & Private Equity Journal. Zeev Holtzman, Giza Venture Capital. Israeli venture capital firms are in the midst of a new wave of capital raising. Zeev Holtzman, Chairman and CEO of Giza Venture Capital, assesses the current environment for fund raising and discusses those ingredients that can increase a fund’s chances for success.

• Employment related securities and the private equity market 01 Jan 2005. Source: SJ Berwin. Michael Trask and Jill Hallpike. In May 2003, the UK government delivered a shock to the private equity industry by unveiling an entirely new system for taxing 'employment related securities', says SJ Berwin. This was itself a new term, encompassing any share or security, or interest in a share or security, obtained by reason of employment, with the exception of Inland Revenue approved share schemes.

• Pensions: the new counterparty 29 Nov 2004. Source: SJ Berwin. Wyn Derbyshire and Steven Davis. Creditors play a critical role in most business sales, says SJ Berwin. Some creditors have extensive rights: senior banks, for instance, may have a right to be repaid in full on a change of control; others, including trade creditors, play a critical part in the financial stability and working capital needs of the business going forward, even if they do not have any direct voice at the time of the transaction.

• Why China? Why Now? 01 Nov 2004. Source: Ernst & Young. Gil Forer and John de Yonge. Anyone who has regularly attended venture capital conferences in the U.S. or Europe over the past year will have noticed the remarkable increase in the industry buzz about China, says Gil Forer and John de Yonge of Ernst & Young. Where a year ago one heard about China only from a small avant garde of venture capitalists, now panel discussions on how to make sense of the opportunities in China are de rigeur conference fare. Pair this with increasing venture capital commitments to China by the likes of 3i, Nokia Ventures, Intel Capital, Motorola Ventures, Warburg Pincus and The Carlyle Group, and the rush from West to East is on.

• BDCs: Is Private Equity Going Public? 09 Aug 2004. Source: Testa, Hurwitz & Thibeault. Kathy A. Fields and Edwin C. Pease. By now, anyone with more than a passing interest in the private equity industry is aware of the recent spate of initial public offering filings for business development companies that have taken place following Apollo's success in raising $930 million in April. But what does this mean for the industry as we know it? Are BDCs the death knell of traditional private equity, as a few pundits have suggested, or are they simply the latest 'flavour of the month'? The truth lies somewhere in between, according to Kathy Fields and Edwin Pease of Testa, Hurwitz & Thibeault.

• Hedge Funds: A threat to Private Equity? 10 May 2004. Source: Unigestion. Dr. Isabelle Borello and Dr. Hanspeter Bader. Due to various common characteristics, private equity and hedge funds are often mentioned in the same breath. Some investors have even come to view the two asset classes as being in direct competition with one another. Dr. Isabelle Borello and Dr. Hanspeter Bader of Unigestion argue that the comparison is often over simplified and that rather than representing a substitute for private equity, hedge funds can provide a rewarding complimentary investment strategy.

• European public to private transactions: What the future may hold 13 Apr 2004. Source: Weil Gotshal & Manges. Will Rosen and Alicia Hardy. Despite the inherent complexities of public to private transactions, last year saw a record number of companies departing from European stock exchanges. But with major new legislation pending, it remains to be seen whether the take-private market can maintain this momentum going forward. Will Rosen and Alicia Hardy of Weil, Gotshal & Manges discuss what the future may hold for public to private transactions in Europe.

• The Israeli venture story, a GP's perspective 08 Mar 2004. Source: Gemini Israel Funds. Ed Mlavsky, Chairman and Founder. High-tech venture capital activity in Israel, a country with a population of just six and a half million, is equal to half of that in the whole of Europe. Ed Mlavsky, chairman and founder of Gemini Israel Funds, explores the root of the Israeli entrepreneurial spirit and looks ahead to what the future may hold for the nation's venture industry.

• The French mid-market: bursting with opportunities or overcrowded? 02 Jul 2003. Source: Altius Associates. Elvire Perrin and Jenny Finlay. 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.

• LPs get a voice (or two) 23 Apr 2003. Source: Vicky Meek. AltAssets. 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.

• Distributions in kind: avoiding the pitfalls 11 Dec 2002. Source: T Rowe Price. Hugh Evans, Andrew Marks. 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.

• Don't expect too much 17 Sep 2002. Source: Dewey Ballantine LLP. Frank E Morgan II. The potential for advisory boards of private equity firms to make any kind of difference is, and always will be, limited, argues Frank E Morgan II of US law firm Dewey Ballantine. In a response to an article we ran on the subject last month, he explains why.

• Queen for a year 19 Jun 2002. Source: Vicky Meek. AltAssets. The new BVCA chairman Michael Queen may not have known what he was getting into when he first started in private equity 15 years ago, but his focus now is clear – a better deal for the industry from the regulators and government and a better deal for investors. We spoke to him to find out what was on his mind.

• Ad van den Ouweland, Managing Partner, Robeco Private Equity 24 Apr 2002. Source: Robeco Private Equity. Ad van den Ouweland. Van den Ouweland on the consistency of performance, on avoiding mediocre funds, on decreasing expected returns and on moving private equity from a product-based industry to a service-based one (full profile available in AltAssets Institutional Investor Profiles: Volume II).

• Venture capital sports a new look 03 Apr 2002. Source: Boston Millennia Partners. A Dana Callow Jr. The 2000 meltdown and the consequent shift in investor expectations have undoubtedly changed the face of venture capital. So what are the key characteristics for VC fund success now and in the future? Boston Millennia Partners' A Dana Callow Jr takes a look.