July / August 2007 Issue


    Month: July
    Year: 2007

    Back to Print Editions

    SOARING SUCCESS(2)

    US distressed specialist MatlinPatterson has collected a 10.5x return on its investment in Brazilian airline Varig.

    BIG IN EGYPT(3)

    Abraaj Capital's $1.4 billion purchase of an Egyptian fertiliser business in June was a rare mega-deal for MENA private equity.

    BIG IN EGYPT(2)

    Abraaj Capital's $1.4 billion purchase of an Egyptian fertiliser business in June was a rare mega-deal for MENA private equity.

    WHO BLACKSTONE KNOWS(3)

    The high profile and personal network of Blackstone's Asia chairman helps explain how the firm came to do a $3 billion deal with the government of China.

    PEO 2.0:<br/>BLACKSTONE'S AWESOME FUND IV(3)

    Nicholas Lockley, editor of PrivateEquityOnline.com, looks through our online window on the industry.

    WHO BLACKSTONE KNOWS(2)

    The high profile and personal network of Blackstone's Asia chairman helps explain how the firm came to do a $3 billion deal with the government of China.

    PREPARATIONS FOR A SENATE HEARING(3)

    Seeking to produce a comprehensive defence of the industry, Australia's private equity association has left no stone unturned.

    ON THE RECORD(3)

    In June, London-based Duke Street Capital hit the headlines over pending job losses at portfolio company Burton's Foods and creditor losses at former portfolio company Focus DIY. Following Duke Street's investment in Burton's in March, UK MP Angela Eagle has been campaigning against the firm's plans for a Burton's biscuit factory in her Wallasey constituency, which may cost 660 jobs. Meanwhile the investment in Focus has been branded an example of lenders and bondholders being at risk in LBOs after sponsors cash out through recapitalisations. Duke Street recapitalised what was then Focus Wickes in 2002 and, having sold the Wickes business to a trade buyer, refinanced Focus once more in 2005 on a stand-alone basis. In January, Focus was put up for sale after it became obvious that the company was no longer able to service the £280 million of debt on its balance sheet. In June, US distressed debt specialist Cerberus bought the company for £1. The new owner will pay back £185 million of bank debt while the holders of £100 million worth of bonds will receive 40p in the pound. PEI caught up with Duke Street's managing partner Peter Taylor, who has been asked to appear before the Treasury Select Committee in the House of Commons in the coming weeks (at press time, a date had not yet been agreed), to quiz him about the recent events.

    PEO 2.0:<br/>BLACKSTONE'S AWESOME FUND IV(2)

    Nicholas Lockley, editor of PrivateEquityOnline.com, looks through our online window on the industry.

    PREPARATIONS FOR A SENATE HEARING(2)

    Seeking to produce a comprehensive defence of the industry, Australia's private equity association has left no stone unturned.

    NEW FIRM TAPS STAR POWER(3)

    VMG partner David Baram will leverage his seven-year tenure as president of Hollywood talent agency The Firm to work branding magic at portfolio companies.

    VENTURESCOPE(2)

    Tesla Motors recently completed a $45 million Series D financing round, pushing the Silicon Valley start-up's VC funding past the $100 million mark. As the star-studded waiting list for the company's flashy roadster continues to grow, investors are lining up for a piece of the action. Amanda Janis reports.

    ON THE RECORD(2)

    In June, London-based Duke Street Capital hit the headlines over pending job losses at portfolio company Burton's Foods and creditor losses at former portfolio company Focus DIY. Following Duke Street's investment in Burton's in March, UK MP Angela Eagle has been campaigning against the firm's plans for a Burton's biscuit factory in her Wallasey constituency, which may cost 660 jobs. Meanwhile the investment in Focus has been branded an example of lenders and bondholders being at risk in LBOs after sponsors cash out through recapitalisations. Duke Street recapitalised what was then Focus Wickes in 2002 and, having sold the Wickes business to a trade buyer, refinanced Focus once more in 2005 on a stand-alone basis. In January, Focus was put up for sale after it became obvious that the company was no longer able to service the £280 million of debt on its balance sheet. In June, US distressed debt specialist Cerberus bought the company for £1. The new owner will pay back £185 million of bank debt while the holders of £100 million worth of bonds will receive 40p in the pound. PEI caught up with Duke Street's managing partner Peter Taylor, who has been asked to appear before the Treasury Select Committee in the House of Commons in the coming weeks (at press time, a date had not yet been agreed), to quiz him about the recent events.

    NEW FIRM TAPS STAR POWER(2)

    VMG partner David Baram will leverage his seven-year tenure as president of Hollywood talent agency The Firm to work branding magic at portfolio companies.

    DE SHAW'S PRIVATE EQUITY PLAY(3)

    The hedge fund giant's recent take-private deal is part of a stealth strategy to become a force in global private equity.

    DE SHAW'S PRIVATE EQUITY PLAY(2)

    The hedge fund giant's recent take-private deal is part of a stealth strategy to become a force in global private equity.

    VENTURESCOPE

    The Cleantech Group is launching a new web project to connect entrepreneurs and investors. If their recent forum in Frankfurt is any indication, it could receive a lot of interest. By Dave Keating.

    YUCAIPA'S UNION ANGLE(3)

    The firm controlled by Ron Burkle is eyeing a huge ‘worker-friendly’ fund.

    YUCAIPA'S UNION ANGLE(2)

    The firm controlled by Ron Burkle is eyeing a huge ‘worker-friendly’ fund.

    SOARING SUCCESS

    US distressed specialist MatlinPatterson has collected a 10.5x return on its investment in Brazilian airline Varig.

    UNION CAMPAIGN GATHERS PACE(3)

    Germany's most powerful trade union body is on a collision course with private equity.

    UNION CAMPAIGN GATHERS PACE(2)

    Germany's most powerful trade union body is on a collision course with private equity.

    BLACKSTONE 1, HATERS 0(3)

    BLACKSTONE 1, HATERS 0 2007-08-01 Staff Writer In an article profiling Stephen Schwarzman that appeared on the front page of the Wall Street Journal just days before Blackstone's initial public offering, the firm's c

    BLACKSTONE 1, HATERS 0(2)

    BLACKSTONE 1, HATERS 0 2007-08-01 Staff Writer In an article profiling Stephen Schwarzman that appeared on the front page of the Wall Street Journal just days before Blackstone's initial public offering, the firm's c

    Horse-trading over private equity(3)

    In Europe's largest economy, private equity has long endured an uneasy relationship with public opinion – and with politicians. The economy is in its healthiest state for some years, but Angela Merkel's coalition government's latest display of ambivalence towards private equity is bound to hamper the industry's ability to grow further. For home-grown private groups, pending legislation could be disastrous. If domestic funds are driven abroad, the economy could suffer, too. James Taylor and Philip Borel repor/.

    Horse-trading over private equity(2)

    In Europe's largest economy, private equity has long endured an uneasy relationship with public opinion – and with politicians. The economy is in its healthiest state for some years, but Angela Merkel's coalition government's latest display of ambivalence towards private equity is bound to hamper the industry's ability to grow further. For home-grown private groups, pending legislation could be disastrous. If domestic funds are driven abroad, the economy could suffer, too. James Taylor and Philip Borel repor/.

    BIG IN EGYPT

    Abraaj Capital's $1.4 billion purchase of an Egyptian fertiliser business in June was a rare mega-deal for MENA private equity.

    TOUGH GIG(3)

    The BVCA is looking for a new chief executive. Finding one will not be easy.

    TOUGH GIG(2)

    The BVCA is looking for a new chief executive. Finding one will not be easy.

    WHO BLACKSTONE KNOWS

    The high profile and personal network of Blackstone's Asia chairman helps explain how the firm came to do a $3 billion deal with the government of China.

    EVENING NEWS(3)

    The BBC is no friend of private equity.

    PEO 2.0:<br/>BLACKSTONE'S AWESOME FUND IV

    Nicholas Lockley, editor of PrivateEquityOnline.com, looks through our online window on the industry.

    LPs shun the limelight(3)

    As the chorus of criticism against private equity grows, general partners are surprised that they are not receiving glowing testimonials from their customers. Nicholas Lockley investigates.

    EVENING NEWS(2)

    The BBC is no friend of private equity.

    PREPARATIONS FOR A SENATE HEARING

    Seeking to produce a comprehensive defence of the industry, Australia's private equity association has left no stone unturned.

    LPs shun the limelight(2)

    As the chorus of criticism against private equity grows, general partners are surprised that they are not receiving glowing testimonials from their customers. Nicholas Lockley investigates.

    DANISH BOMBSHELL(3)

    In Denmark, a law has been passed to remove the favourable tax status enjoyed by leveraged loans.

    ON THE RECORD

    In June, London-based Duke Street Capital hit the headlines over pending job losses at portfolio company Burton's Foods and creditor losses at former portfolio company Focus DIY. Following Duke Street's investment in Burton's in March, UK MP Angela Eagle has been campaigning against the firm's plans for a Burton's biscuit factory in her Wallasey constituency, which may cost 660 jobs. Meanwhile the investment in Focus has been branded an example of lenders and bondholders being at risk in LBOs after sponsors cash out through recapitalisations. Duke Street recapitalised what was then Focus Wickes in 2002 and, having sold the Wickes business to a trade buyer, refinanced Focus once more in 2005 on a stand-alone basis. In January, Focus was put up for sale after it became obvious that the company was no longer able to service the £280 million of debt on its balance sheet. In June, US distressed debt specialist Cerberus bought the company for £1. The new owner will pay back £185 million of bank debt while the holders of £100 million worth of bonds will receive 40p in the pound. PEI caught up with Duke Street's managing partner Peter Taylor, who has been asked to appear before the Treasury Select Committee in the House of Commons in the coming weeks (at press time, a date had not yet been agreed), to quiz him about the recent events.

    DANISH BOMBSHELL(2)

    In Denmark, a law has been passed to remove the favourable tax status enjoyed by leveraged loans.

    NEW FIRM TAPS STAR POWER

    VMG partner David Baram will leverage his seven-year tenure as president of Hollywood talent agency The Firm to work branding magic at portfolio companies.

    INFIGHTING(3)

    At a time when unity would be an asset, different factions within the European private equity industry appear deeply divided.

    INFIGHTING(2)

    At a time when unity would be an asset, different factions within the European private equity industry appear deeply divided.

    DE SHAW'S PRIVATE EQUITY PLAY

    The hedge fund giant's recent take-private deal is part of a stealth strategy to become a force in global private equity.

    The rise and rise of Partners Group(3)

    In 1996, three Swiss investment bankers took the plunge and set up a tiny investment firm with a penchant for complicated investment products. In the years that followed, Partners Group gained a reputation for product innovation and turned itself into a leading investor in alternative assets. Last year the firm went public in a blow-out IPO in Zurich. Here, co-founder Urs Wietlisbach and Steffen Meister, CEO, discuss life as a public company, how to find investment management talent in Argentina and, crucially, the future of private equity. By Philip Borel.

    The rise and rise of Partners Group(2)

    In 1996, three Swiss investment bankers took the plunge and set up a tiny investment firm with a penchant for complicated investment products. In the years that followed, Partners Group gained a reputation for product innovation and turned itself into a leading investor in alternative assets. Last year the firm went public in a blow-out IPO in Zurich. Here, co-founder Urs Wietlisbach and Steffen Meister, CEO, discuss life as a public company, how to find investment management talent in Argentina and, crucially, the future of private equity. By Philip Borel.

    FIRST ROUND(9)

    The EVPA has grown to 54 members from 14 countries.

    FIRST ROUND(8)

    The EVPA has grown to 54 members from 14 countries.

    YUCAIPA'S UNION ANGLE

    The firm controlled by Ron Burkle is eyeing a huge ‘worker-friendly’ fund.

    The biggest show in town(3)

    Big private equity in the dock – the Treasury Select Committee had rarely seen the like. James Taylor was there.

    UNION CAMPAIGN GATHERS PACE

    Germany's most powerful trade union body is on a collision course with private equity.

    The biggest show in town(2)

    Big private equity in the dock – the Treasury Select Committee had rarely seen the like. James Taylor was there.

    FIRST ROUND(7)

    A Hong Kong venture capitalist takes sweat equity to the extreme.

    FIRST ROUND(6)

    A Hong Kong venture capitalist takes sweat equity to the extreme.

    BLACKSTONE 1, HATERS 0

    BLACKSTONE 1, HATERS 0 2007-08-01 Staff Writer In an article profiling Stephen Schwarzman that appeared on the front page of the Wall Street Journal just days before Blackstone's initial public offering, the firm's c

    FIRST ROUND(5)

    June saw private equity in the eye of media storms on both sides of the Atlantic. The quotes on this page about carried interest, partnership tax law, investment risk and the price of stone crabs tell the story of the past few weeks.

    Horse-trading over private equity

    In Europe's largest economy, private equity has long endured an uneasy relationship with public opinion – and with politicians. The economy is in its healthiest state for some years, but Angela Merkel's coalition government's latest display of ambivalence towards private equity is bound to hamper the industry's ability to grow further. For home-grown private groups, pending legislation could be disastrous. If domestic funds are driven abroad, the economy could suffer, too. James Taylor and Philip Borel repor/.

    FIRST ROUND(4)

    June saw private equity in the eye of media storms on both sides of the Atlantic. The quotes on this page about carried interest, partnership tax law, investment risk and the price of stone crabs tell the story of the past few weeks.

    TOUGH GIG

    The BVCA is looking for a new chief executive. Finding one will not be easy.

    Editor's letter(3)

    Editor's letter 2007-08-01 Staff Writer Given the intense level of scrutiny that private equity has been subject to over the past month, market participants are almost nostalgic for the good old days (that is, two or three months ago) when it seemed that private equity's perception problems had mainly to do

    Editor's letter(2)

    Editor's letter 2007-08-01 Staff Writer Given the intense level of scrutiny that private equity has been subject to over the past month, market participants are almost nostalgic for the good old days (that is, two or three months ago) when it seemed that private equity's perception problems had mainly to do

    EVENING NEWS

    The BBC is no friend of private equity.

    LPs shun the limelight

    As the chorus of criticism against private equity grows, general partners are surprised that they are not receiving glowing testimonials from their customers. Nicholas Lockley investigates.

    DANISH BOMBSHELL

    In Denmark, a law has been passed to remove the favourable tax status enjoyed by leveraged loans.

    INFIGHTING

    At a time when unity would be an asset, different factions within the European private equity industry appear deeply divided.

    The rise and rise of Partners Group

    In 1996, three Swiss investment bankers took the plunge and set up a tiny investment firm with a penchant for complicated investment products. In the years that followed, Partners Group gained a reputation for product innovation and turned itself into a leading investor in alternative assets. Last year the firm went public in a blow-out IPO in Zurich. Here, co-founder Urs Wietlisbach and Steffen Meister, CEO, discuss life as a public company, how to find investment management talent in Argentina and, crucially, the future of private equity. By Philip Borel.

    FIRST ROUND(3)

    The EVPA has grown to 54 members from 14 countries.

    The biggest show in town

    Big private equity in the dock – the Treasury Select Committee had rarely seen the like. James Taylor was there.

    FIRST ROUND(2)

    A Hong Kong venture capitalist takes sweat equity to the extreme.

    FIRST ROUND

    June saw private equity in the eye of media storms on both sides of the Atlantic. The quotes on this page about carried interest, partnership tax law, investment risk and the price of stone crabs tell the story of the past few weeks.

    VENTURESCOPE(2)

    Tesla Motors recently completed a $45 million Series D financing round, pushing the Silicon Valley start-up's VC funding past the $100 million mark. As the star-studded waiting list for the company's flashy roadster continues to grow, investors are lining up for a piece of the action. Amanda Janis reports.

    VENTURESCOPE

    The Cleantech Group is launching a new web project to connect entrepreneurs and investors. If their recent forum in Frankfurt is any indication, it could receive a lot of interest. By Dave Keating.

    SOARING SUCCESS

    US distressed specialist MatlinPatterson has collected a 10.5x return on its investment in Brazilian airline Varig.

    BIG IN EGYPT

    Abraaj Capital's $1.4 billion purchase of an Egyptian fertiliser business in June was a rare mega-deal for MENA private equity.

    WHO BLACKSTONE KNOWS

    The high profile and personal network of Blackstone's Asia chairman helps explain how the firm came to do a $3 billion deal with the government of China.

    PEO 2.0:<br/>BLACKSTONE'S AWESOME FUND IV

    Nicholas Lockley, editor of PrivateEquityOnline.com, looks through our online window on the industry.

    PREPARATIONS FOR A SENATE HEARING

    Seeking to produce a comprehensive defence of the industry, Australia's private equity association has left no stone unturned.

    ON THE RECORD

    In June, London-based Duke Street Capital hit the headlines over pending job losses at portfolio company Burton's Foods and creditor losses at former portfolio company Focus DIY. Following Duke Street's investment in Burton's in March, UK MP Angela Eagle has been campaigning against the firm's plans for a Burton's biscuit factory in her Wallasey constituency, which may cost 660 jobs. Meanwhile the investment in Focus has been branded an example of lenders and bondholders being at risk in LBOs after sponsors cash out through recapitalisations. Duke Street recapitalised what was then Focus Wickes in 2002 and, having sold the Wickes business to a trade buyer, refinanced Focus once more in 2005 on a stand-alone basis. In January, Focus was put up for sale after it became obvious that the company was no longer able to service the £280 million of debt on its balance sheet. In June, US distressed debt specialist Cerberus bought the company for £1. The new owner will pay back £185 million of bank debt while the holders of £100 million worth of bonds will receive 40p in the pound. PEI caught up with Duke Street's managing partner Peter Taylor, who has been asked to appear before the Treasury Select Committee in the House of Commons in the coming weeks (at press time, a date had not yet been agreed), to quiz him about the recent events.

    NEW FIRM TAPS STAR POWER

    VMG partner David Baram will leverage his seven-year tenure as president of Hollywood talent agency The Firm to work branding magic at portfolio companies.

    DE SHAW'S PRIVATE EQUITY PLAY

    The hedge fund giant's recent take-private deal is part of a stealth strategy to become a force in global private equity.

    YUCAIPA'S UNION ANGLE

    The firm controlled by Ron Burkle is eyeing a huge ‘worker-friendly’ fund.

    BLACKSTONE 1, HATERS 0

    BLACKSTONE 1, HATERS 0 2007-08-01 Staff Writer In an article profiling Stephen Schwarzman that appeared on the front page of the Wall Street Journal just days before Blackstone's initial public offering, the firm's c

    UNION CAMPAIGN GATHERS PACE

    Germany's most powerful trade union body is on a collision course with private equity.

    TOUGH GIG

    The BVCA is looking for a new chief executive. Finding one will not be easy.

    Horse-trading over private equity

    In Europe's largest economy, private equity has long endured an uneasy relationship with public opinion – and with politicians. The economy is in its healthiest state for some years, but Angela Merkel's coalition government's latest display of ambivalence towards private equity is bound to hamper the industry's ability to grow further. For home-grown private groups, pending legislation could be disastrous. If domestic funds are driven abroad, the economy could suffer, too. James Taylor and Philip Borel repor/.

    EVENING NEWS

    The BBC is no friend of private equity.

    DANISH BOMBSHELL

    In Denmark, a law has been passed to remove the favourable tax status enjoyed by leveraged loans.

    LPs shun the limelight

    As the chorus of criticism against private equity grows, general partners are surprised that they are not receiving glowing testimonials from their customers. Nicholas Lockley investigates.

    INFIGHTING

    At a time when unity would be an asset, different factions within the European private equity industry appear deeply divided.

    FIRST ROUND(3)

    The EVPA has grown to 54 members from 14 countries.

    The rise and rise of Partners Group

    In 1996, three Swiss investment bankers took the plunge and set up a tiny investment firm with a penchant for complicated investment products. In the years that followed, Partners Group gained a reputation for product innovation and turned itself into a leading investor in alternative assets. Last year the firm went public in a blow-out IPO in Zurich. Here, co-founder Urs Wietlisbach and Steffen Meister, CEO, discuss life as a public company, how to find investment management talent in Argentina and, crucially, the future of private equity. By Philip Borel.

    FIRST ROUND(2)

    A Hong Kong venture capitalist takes sweat equity to the extreme.

    The biggest show in town

    Big private equity in the dock – the Treasury Select Committee had rarely seen the like. James Taylor was there.

    FIRST ROUND

    June saw private equity in the eye of media storms on both sides of the Atlantic. The quotes on this page about carried interest, partnership tax law, investment risk and the price of stone crabs tell the story of the past few weeks.

    Editor's letter

    Editor's letter Staff 2007-08-01 Writer Given the intense level of scrutiny that private equity has been subject to over the past month, market participants are almost nostalgic for the good old days (that is, two or three months ago) when it seemed that private equity's perception problems had