July / August 2003 Issue


    Month: July
    Year: 2003

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    Steven Hart, Connecticut State Treasury

    Steven Hart, the chairman of the Investment Advisory Council (IAC) of the Connecticut State Treasury, sees private equity from an institutional as well as individual perspective. Appointed to his position four years ago by then-governor John Rowland, Hart and his committee advise on investments for the $18bn fund, presided over by the current state treasurer, […]

    PEMI

    Fund Altor 2003 Fund Firm Altor Capital Partners Investors Adams Street Partners, Allianz Capital, Fund Type Buyout Goldman Sachs Private Equity Group, Status Final close Harvard Management Company, Geographical Focus Nordic region NIB Capital, Nordea Private Equity, Sectoral Focus Mid-market Pantheon Ventures, Skandia Life Amount Raised €650m Insurance Company Amount Targeted €500m Advisors Monument Group, […]

    Social mission

    A group of private equity practitioners are importing venture philanthropy from North America to Europe. Impetus Trust, the UK's first charitable venture philanthropy fund, is leading the charge.

    The market's reaction

    Varel Freeman, senior partner, Baring Private Equity Partners. Freeman is in charge of Latin American operations for the globally active private equity firm.

    Private equity, but not as we know it

    Look beyond the US and Western Europe and the private equity and venture capital industry shrinks to a single digit percentage of global capital under management. But with mature economies showing far less compelling growth figures than many developing markets, why should this be the case? Now two leading academics are investigating the reasons behind this and are planning to offer some hard answers – and some hard suggestions to help remedy it. Ted Wilson reports on the initiative and the findings so far.

    Shari'ah compliant

    With bank loans, bonds and other interest-related forms of finance off-limits to many Middle Eastern investing institutions, equity investments, including private equity, are the focus of activity. But Western private equity professionals seeking access to the vast capital reserves of the Middle East must first understand how shari'ah applies to the asset class. Simon Sheppard examines a distinctly Islamic form of compliance.

    Middle Eastern equity

    Private equity in the Middle East represents a compelling opportunity, but educating business owners, local and Western investors about this opportunity has been difficult. A small handful of Middle Eastern private equity firms are stepping up the effort in anticipation of major growth. Simon Sheppard presents the case for private capital in the cradle of trade.

    Fees, sweat and tears

    In the jungle that is private equity, perhaps the most feared animal is the turnaround consultant. The appearance of these creatures generally means something has gone wrong with an investment, and that the end may be near. But turnaround consultants can spell relief as much as disaster. Alex J. Stockham explores the world of consultants who make good money while helping their clients avoid losses.

    The players

    The turnaround market, it would seem, has more characters than a Fellini movie. Each plays an important role in this sprawling market, and each is eager not to be confused with the other, often deceptively similar protagonists.

    Trouble seekers

    American turnaround and restructuring consultants are expanding operations in Europe, and private equity firms are prime targets. Many of their clients, it turns out, are US private equity shops that have bitten off more than they can chew on the Continent and in the UK. Are these pond-crossing trouble seekers headed toward a similar culture shock? David Snow investigates.

    IK IQ

    Björn Savén is the chairman and CEO of Industri Kapital, one of the firms that pioneered big buyouts in Europe. Now raising its fifth fund, the firm is having to get used to the scrutiny that the new mood amongst private equity investors has instilled in the market. Philip Borel talked to Savén about investing, investments and investors in this environment.

    Knockout bid

    In June, a syndicate of private equity firms agreed to pay €5.65bn for Telecom Italia's yellow pages business Seat Pagine Gialle, €600m more than the nearest bidder. Was that too much? Deal Mechanic looks at the deal and wonders: who gets knocked out when the multiples are this big?

    Placement power

    It's a truism that raising a private equity fund is much harder than it used to be for many firms – although a much smaller group of “halo funds” are now succeeding in attracting more commitments than they themselves had planned. And evermore embedded in the fundraising process is the placement agent. Here's why.

    Adaptability

    Adaptability Staff 2003-08-01 Writer In this month's Privately Speaking interview with Industri Kapital's Björn Savén, we refer to the new mood in private equity. Part of that relates to the attitude investors have towards the asset class as a whole ? and to an extent towards certain types of f