Learning Curve

17 December 2001

In the absence of reliable data, how are investors supposed to evaluate performance? $

From John McCrory, chief executive, Westport Private Equity: Private equity has made great strides over the last five years in terms of performance data. Figures compiled by venture capital associations and other organisations have increased the industry's transparency, but there is still a long way to go.

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11 December 2001

My pension fund has been investing via a fund of funds for a few years. We’re now looking to make our own fund investments, but the due diligence seems endless. What should we really be looking at? $

From Jeremy Golding, Golding Capital Partners: You should be able to get some advice from the fund of funds you have been investing with. However, you can follow a structured approach that takes into consideration the past, present and future of the funds that you are looking at.

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11 December 2001

Legal pitfalls in the fundraising process $

What do venture capitalists look at when they invest in portfolio companies? Written from an entrepreneur's perspective, this article by Janine Canham and Wen Leung of CMS Cameron Mckenna helps investors to understand the considerations VCs must take into account.

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5 December 2001

We have been advised to start investing in private equity with just a one per cent allocation. Isn’t that a lot of extra work for a minimal difference in overall returns? $

From Peter Murray, chief executive, Railways Pension Trustee Company: No, because it makes sense to start with a small allocation and increase that gradually as you become more familiar with private equity.

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3 December 2001

How to build a successful private equity programme $

To achieve long-term success in private equity investments, institutions need to take a structured approach. LGT Capital Partners provides an overview of the phases that investors should go through when programme-building at a time when the market is proving challenging.

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21 November 2001

My pension fund has decided to invest in private equity, but with such a lack of information available, it’s hard to know where to start. Can you suggest a structured approach? $

From LGT Capital Partners: Investments made in the first years of the portfolio will have an important impact on overall portfolio performance and will be prominently visible in the first years.

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20 November 2001

An introduction to understanding venture capital funds $

Creating and managing a venture fund is not any easy task. Selecting one can be even more complex. There are numerous accounting, tax and business issues that need to be addressed. Joel Press and Bonnie Kennedy from Ernst & Young offer some initial insights.(Extract)

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14 November 2001

Why should I pay my private equity manager so much more than my other fund managers? $

From Wol Kolade, managing director, Friends Ivory & Sime Private Equity. Comparing a private equity fund manager to, say, a quoted equity fund manager is rather like comparing apples with oranges. It's an unfair comparison because they do entirely different jobs.

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14 November 2001

Exit strategies $

In the current difficult climate, investors should be questioning their private equity firms about their exit strategies. Here, Neil Brown of Apax Partners offers an overview of the exit routes available.

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13 November 2001

Taxing issues for private equity funds $

Investors in private equity and venture capital funds come in all shapes and sizes. Some are wealthy individuals investing $1m or less. Others are major public sector pension funds that may invest $100m or more in a single fund. Their tax status also varies widely – Paul Megson from KPMG discusses the issues.

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