November 2012 Issue

    Month: November
    Year: 2012

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    The too-quick flip?

    Castle Harlan made a $25m profit in just seven hours on Canadian mining services business Norcast. It’s now being sued by the company’s previous private equity owner, writes James Taylor

    Starting FLAG

    Does FLAG’s recent acquisition of Squadron Capital presage a major shake-out for the funds of funds sector in Asia? It may be overdue, writes Vicky Meek

    Viva España

    At a time when many investors are steering clear of Europe altogether, US-focused private equity group JZ Capital Partners has been ramping up its exposure to the region – and to Spain in particular.

    Unpicking the Private Equity Network

    For domestically-focused private equity firms in Europe, the need to seek out pockets of growth outside their traditional markets is becoming ever more pressing. Now four European firms – UK-based Graphite Capital, Paris-headquartered Activa Capital, Frankfurt-based ECM and Madrid-headquartered MCH – are trying to address this issue with the creation of a new alliance called the Private Equity Network (PEN).

    First Round: Social investment

    First Round doesn’t really get social media. OK, so the fascination with what Stephen Fry is having for lunch/ how Justin Bieber’s hair looks/ what Bill Gates thinks about toilets is understandable. But as a magazine intro section with Very Many Important Responsibilities, First Round is far too busy living the private equity dream to spend its time tweeting.

    Australia: Feeling the squeeze

    Restricted funding availability, changing super fund appetites and a tough exit environment are hampering private equity’s incipient recovery in Australia, writes Alexandra Cain

    Deal Mechanic: The Carlyle Group/ Talaris

    Over a 4-year period, Carlyle increased earnings by 40 percent at money handling business Talaris thanks to a series of improvements to the company's products and services

    Investor Base: Oxford CIO turns up the heat

    Delegates at the 2012 BVCA Summit in London probably expected an uneventful industry conference. Instead, they got a scathing criticism of GPs from one of the UK’s leading investors

    J-curves: Looking for the next exit window

    Despite the positive news that distributions of private equity funds have risen in recent quarters, many investors still have the feeling that they’re waiting longer for the return of their invested capital. Is this a misconception, driven by the ongoing discussion of the adverse economic environment and dried-up exit channels? Or is private equity in fact returning less cash right now than historically? Christian Diller and Marco Wulff examine the evidence.

    Nicholas Pye: King of the boardroom

    Our hero finally gets to pitch his big idea to the investment committee - including legendary managing partner John T. Leviathan

    How the US Election could change private equity

    Five ways in which the US election campaign might change private equity, regardless of the result of tomorrow's election.

    Nordic Roundtable: Magnetic North

    The Nordic region is largely free of the macroeconomic issues afflicting the rest of Europe, so it’s attracting an ever greater share of the region’s private equity capital. But these small, export-driven economies are still exposed to the problems further south, which is constraining dealflow. And in Sweden, the threat of swingeing tax hikes – not helped by an ongoing image problem – is putting the entire future of the local industry under real threat. James Taylor went to Stockholm in October to ask five leading players how they’re adapting to the changing world

    On the Record: Emily Aldous of Best&Co

    Do private equity firms really need to worry about their brand? And is it really possible to differentiate between firms in the same segment? Absolutely, says Emily Aldous of branding strategist

    A taxing negotiation

    In light of potential changes to the taxation of carried interest, some general partners are asking to modify limited partner agreements

    Privately Speaking: Summit Partners

    With its unusual deal sourcing model and its willingness to back entrepreneurs throughout the cycle, US-based growth investor Summit Partners continues to plough a profitable furrow in a crowded segment, writes Christopher Witkowsky

    Anti-social investors?

    A new report suggests the social investment market could hit £1bn in the UK alone by 2016. Could a time come when investors see it as an alternative to alternatives?