The Institutional Limited Partner Association (ILPA) today released "a set of best practices to address important issues relating to the alignment of interest between general partners and limited partners, fund governance and providing greater transparency to investors." I'm still working through it, but have posted it after the jump so that you can read along...
1 min read · 08 September 2009
Earlier today I chatted with Brian Rich, managing partner and co-founder of growth equity firm Catalyst Investors. We talked media deals, SaaS and PIPEs:
1 min read · 08 September 2009
Do you work at a private equity firm that is having trouble raising money? Then beware the green-eyed monster that may follow... KPS Capital Partners will announce this morning that it has raised $800 million in new commitments for its third fund, which originally closed in early 2007 with $1.2 billion. This is not a so-called "annex fund," in which firms raise extra capital to support existing portfolio companies. Instead, it's more of a "top-off," because KPS sees more opportunities than the original fund size can support. The New York-based turnaround firm informed LPs of its plans to raise another $800 million on June 12, asking for orders by June 28. It held a $700 million first close in mid-August, with the final close occuring last Thursday (two LPs needed extra time).
2 min read · 08 September 2009
Kai-Fu Lee, who last week resigned as president of Google China, has launched Innovation Works, an incubator for Chinese IT startups. It has been funded with $115 million, including from lead investor WI Harper Group and individual backers like Steve Chen (co-founder of YouTube), Terry Gou (chairman of Foxconn), Liu Chuanzhi (chairman of Legend Group) and Yu Minhong (chairman of New Oriental). I spoke to Lee on Friday, and what follows is a transcript (we had agreed to embargo the news until this evening): peHUB: Innovation Works sounds much like a Chinese version of Idealab or Y Combinator. Are those fair comprisons, and are there other such programs already in China? Lee: There are similar programs in China, and at least one public company based on similar ideas. But I think our model is different, for several reasons: First, I think we are specifically targeting the spaces in which this idea works. These are the spaces were you can move quickly: Cloud computing, ecommerce and mobile Internet. Second, I think that I bring a unique ability to draw talent. I’ve hired thousands of people at , and many joined because of me. When I joined Google, for example, it was basically an unknown brand in China. The first people joined because of my brand, not because of the company’s brand.
5 min read · 07 September 2009
Prism VentureWorks has closed its West Coast office, several months after the Needham, Mass.-based firm suspended efforts to raise its sixth fund. Prism originally opened the Venice, Calif.-based satellite to accomodate partner Gordie Nye, who wanted to move west. He will continue to serve as a general partner with Prism, but will be based out of a home office. Venture partner Tony Natale will relocate east, while principal Bong Koh will spend most of his time on
1 min read · 04 September 2009
Earlier today, we posted about how a new pay-for-play scandal could be brewing at CalPERS, the nation's largest private equity investor. Here's a file detailing placement agents that have pitched funds to CalPERS between 2002 and 2008. There are X's placed next to funds that received commitments.
1 min read · 04 September 2009
3 min read · 04 September 2009
Tim Geithner today sent a letter to finance ministers from the G2 and developing nations, calling for tougher capital requirements for the world's largest banks. You can download it here, or read it after the jump...
1 min read · 04 September 2009
Jon Moulton today stepped down as head of Alchemy Partners, a UK-based private equity firm he founded in 1997. But he is not going away quietly. Rather than officially say that everything was "amicable," Moulton penned a letter absolutely savaging his apparent successor and Alchemy's move toward a financial services focus. He writes that he had no intention of retiring shy of his 60th birthday (Moulton is 57), but that he saw no other viable option. Moulton writes that he owes investors a number of apologies, including "too many investment and people errors." One of those errors is apparently Dominic Slade, who is expected to climb into the Alchemy throne. Not only does Moulton specifically recommend that Slade not be promoted, but he adds that there "have been continuing concerns about performance." peHUB has obtained a copy of the full letter, which you can read after the jump...
1 min read · 03 September 2009
Just did a run of venture capital fundraising, from the beginning of 2007 through now. Source is Thomson Reuters. You can download it here.
1 min read · 03 September 2009
