May 2004 Issue

When Swiss Life took the decision to rework their investment strategy to concentrate on traditional asset class management, the private equity team saw an opportunity to make their mark. Alpha Associates, which began operations on 1 April 2004, was established, with 10 of the original 17 strong team joining. Alpha currently manages Private Equity Holding, a Swiss listed private equity investment company; 5E Holding, a fund of funds dedicated to private equity investment in Central and Eastern Europe; and ALPHA 2001, LP, a diversified partnership for institutions. Zurich-based Petr Rojicek, partner and chief investment officer, talks about the beginning of Alpha.

INTERMEDIATE CAPITAL GROUP 2004-05-01 Staff Writer SNAPSHOT Intermediate Capital Group Plc (ICG) is a public principal investment firm, specialising in the provision of mezzanine financing to companies in Europe and the Asia Pacific region. The firm invests from its ow

In the wake of the recent accounting fiascos of corporate America, the FASB revisits a decade-dormant debate about expensing stock options – only this time, the powerful rule-setting body just might have its way. Art Janik reports

Poland has seen a surge of activity from private equity firms seeking to invest in its robust economy. But until recently, Polish pension funds have been effectively barred from participating. Art Janik weighs the impact of regulatory changes in the largest economy of the incoming European Union member states

On 1 May 2004, eight Central and Eastern European countries – Poland, Hungary, Czech Republic, Slovakia, Slovenia, Lithuania, Latvia and Estonia – will join the European Union in the most far-reaching enlargement of its history. Colm Gilmore looks at current private equity developments in the accession countries and finds that the emergence of a Central and Eastern European private equity model that is broadly similar to its Western European counterpart is well under way

The head of the nation's largest publicly traded ‘business development company’ is flattered that his model for private equity investment is winning so many followers. David Snow reports

Unlike their private equity fund cousins, mezzanine funds have been faring quite well over the last several years. In particular, smaller mezzanine funds say they are facing less competition for deals. Their end of the sector, they say, is poised to produce strong risk-adjusted returns as overhang private equity capital floods the market and lowers pricing. Art Janik reports

Europe's mezzanine market is flush with capital, and more investors are looking to gain access. Philip Borel finds out what market practitioners make of it all

What is my portfolio worth? Valuation guidelines remain a big topic for every LP and GP active in the asset class. As private equity investments by both venture capital and buyout funds grow increasingly complex and spread across borders, the necessary uniformity in valuation practices is becoming more of a reality, say Colin Blaydon and Fred Wainwright of the Center for Private Equity and Entrepreneurship at the Tuck School of Business at Dartmouth.

GPs who use fair-value performance figures in marketing materials, while reporting more conservative valuations in financial statements, further complicate the debate over standards. David Snow reports

GPs, LPs, regulators and industry groups are pushing for more transparency in private equity. The current debate over valuation is a key part of this process

Bruce Rauner's GTCR Golder Rauner has one of the most intense, relentless and successful focuses on CEO recruitment in the private equity industry. Rauner's secret? Before he endeavors to make money, he makes friends. David Snow traveled to Chicago to learn more about ‘wooing’

US VENTURE TURNS THE CORNER 2004-05-01 Staff Writer According to US performance numbers for 2003 released by Thomson Venture Economics and the National Venture Capital Association, one-year returns for the entire private equity asset class came in at a healthy 18.3 percent. Buyouts posted a 24.1 percent year

Academics seek to measure entrepreneurial ‘passion’

Recent developments in France suggest quality Internet companies are becoming increasingly attractive to stock market investors and corporate buyers alike

The US private equity firm has its eyes on China's $860bn of distressed assets

Opportunity knocks as Japanese investors give private equity a chance

Thanks to a recent succession of successful IPOs, private equity is firmly on Australian investors' agenda

The blue-blooded broker wants to leverage its quoted funds expertise in private equity fund placement

Zurich-based funds of funds manager aims to place a team of investment pros in New York by 2005

The London-based mid-market group is betting on theme park operator Six Flags

Private equity backed IPOs are back, but getting their timing right is a challenge

A scandal survivor is banned from doing business in Connecticut

The recruitment of talented portfolio company managers is so important that some private equity firms are bringing executive recruiters in-house

A new buyout fund has benefited from a strong bootstrapping track record and a couple of business school chums

A new survey highlights boom times for US buyouts amid a glut of committed capital

Signs abound that investors are taking a shine to newer, smaller, up-and-coming GP groups. But hopefuls without a verifiably strong track record need not apply

FICTION IMITATES CARLYLE 2004-05-01 Staff Writer A recent spy thriller from best selling author Robert Ludlum, The Altman Code, describes a shadowy ‘multiproduct, multinational conglomerate’ that may be at the center of an ‘international cabal… thrusting the world to the very brink of war.’

DEGREES OF SEPARATION 2004-05-01 Staff Writer The degrees of separation between Sir Ronald Cohen, founder and chairman of London-based global private equity firm Apax Partners, and David Beckham, England and Real Madrid football star and leading celebrity.  - Sir Ronald Cohen is founde

THE LONELINESS OF THE LONG DISTANCE RUNNER 2004-05-01 Staff Writer Private equity is not a sprint, it's a Marathon, as one of the industry's favourite sayings has it. So you'd think that all the self-proclaimed long-distance runners in the industry would have jumped at the chance of giving it their all at th

SILVER LAKE'S RESIDENT ROCK STAR 2004-05-01 Staff Writer If you want an audience with Roger McNamee, you have a couple of options. You can try calling the Menlo Park, California office of technology buyout firm Silver Lake Partners, of which McNamee is a co-founder, to set up an appointment.

Editor's letter 2004-05-01 Staff Writer This month's edition of Private Equity International is filled with examples of the struggle to find and retain good people. Bruce Rauner, the head of Chicago private equity firm GTCR Golder Rauner, recently told us he believes the industry's cap