May 2019 issue

    ‘Brookfield aims to be relevant at every point in the cycle’ – Flatt

    In buying Oaktree and capturing its credit business, Brookfield now has capital to serve its clients at all times, says chief executive Bruce Flatt.

    Why GPIF’s Hiro wants better alignment, not lower fees

    Hiromichi Mizuno was tasked with guiding the world's largest pension fund into alternatives. He tells PEI what he learned in his four-year tenure.

    Howard Marks on the Oaktree-Brookfield tie-up

    Oaktree Capital Management wasn’t looking for a partner when Brookfield Asset Management approached it about a deal. Founder and industry luminary Howard Marks talks PEI through the transaction, and what lies ahead for private markets.

    Secondaries gets bigger and better

    Richer, deeper, more complex, more diverse, more granular: all could describe the evolving secondaries market. We gathered six experts to discuss the intricacies of an industry that is blooming and booming.

    LPs continue to raise the operational bar

    Oklahoma’s TRS is the latest to pay more attention to its private equity managers’ calculations; more scrutiny should be welcomed.

    A frothy cup of private equity

    Fundraisers can now head down to Starbucks for a $100m fund commitment, but what does this tell us about the market cycle?

    The GPs that want to see you in court

    For distressed debt firms concerned about a lack of dealflow, there’s a simple solution: do litigation funding instead.

    Carlyle’s Rubenstein on family offices, fund duration and why some investors shun emerging markets

    Here are five key takeaways from the Carlyle Group co-founder's speech on private equity's top trends at a recent industry conference in Geneva.

    RBC on how depositaries are adapting to a changing market

    The depositary’s role is changing as firms and service providers adapt to shifting regulation and the need to stay ahead of technological developments, says RBC’s Priya Nair.

    Q1 fundraising: a record start for growth equity

    Funds focused on the strategy closed on almost $25bn in the first quarter of this year, the best such period for growth equity since at least 2008.

    PwC: Crystallising returns

    With high prices and fierce competition for assets, PwC Germany partner Dr Oliver Schulte Ladbeck, head of business development for PwC Europe Deals, considers whether GPs can sustain the current level of returns

    Baker McKenzie: The ‘huge potential’ of healthcare

    Technological advances are creating opportunities in the medical sector for private equity firms prepared to embrace innovation, say Baker McKenzie partners David Allen and Jane Hobson

    Pomona Capital: The evolving secondaries market

    Secondaries firm Pomona Capital celebrates its 25th anniversary this year. Chief executive and founder Michael Granoff discusses how the secondaries environment and Pomona have evolved and what he sees for the future

    Goldman Sachs: In search of ‘managerial alpha’

    Private equity firms should direct as much energy in maximising the potential of their teams, cultures and business-of-the-business as they do in generating investment alpha, if they want to secure a competitive edge for the next decade, suggests Goldman Sachs’ Chris Kojima

    L Catterton: Tipping the playing field

    Building a bespoke operating model and reinforcing a distinctive culture in which people can perform their best is the path to maximising value for specialised private equity firms and generalists alike, explains L Catterton’s Scott Dahnke

    eFront: Making alternatives less alternative

    Today’s tech revolution will reshape private equity in major ways, leading to greater specialisation, transparency and rigour, according to eFront’s Thibaut de Laval. That will make it easier than ever to discern the best from the rest and will open up alternative investing

    Alter Domus: Facing up to stricter standards

    The private equity industry is not immune from public scrutiny, as well as demanding investors. Aidan Connolly, CEO of Luxembourg-based fund services provider Alter Domus considers what buyout firms need to learn from other industries

    RSM: How data became an ESG issue

    Validated data and reporting excellence are the future of corporate responsibility, says Anthony DeCandido, RSM partner and financial services senior analyst

    How automation will affect operations

    AI and other automation technologies will offer plenty to the operational side of private equity firms, but these cutting-edge solutions will still need in-house expertise to live up to their potential

    Facing the challenges of the future

    What changes can we expect in private equity over the next decade? We asked a panel of our 40 Under 40 Future Leaders of Private Equity for their views

    The changing face of the LPA

    Calls are growing for the standardisation of the limited partnership agreement, but moves towards uniformity are fraught with difficulties, lawyers say

    Keeping dealmaking personal

    Attempts to look into the future can conjure up images of a disturbing, even dystopian world, but observers of the private equity market offer a rather more reassuring picture. Technology will be important, but so too will human input

    Inside the spin-out of Standard Chartered’s private equity unit

    The spin-out of 55 people, 35 companies across three continents and the need to juggle the interests of several LPs that happen to be secondaries firms: the deal shows just how far things have come.

    How technology could shape the future of fundraising

    Online fundraising platforms could become more common over the next decade, but obstacles to their growth remain

    RBC on why domicile matters when launching a new fund

    Fund structuring is becoming ever more complex, driven by more stringent LP requirements, tighter regulation and increasingly global investment strategies, says Dirk Holz, director at RBC Investor and Treasury Services.

    The future of investing

    LPs will push for more transparency and customisation of their investments, liquidity will play a greater role but robo-advisors won’t negate the need for trust between LPs, GPs and service providers

    RBC survey: Search for stability in a shifting environment

    In a complex investment market, managers are sticking with traditional fund domiciles and opting to outsource more operational functions, survey findings reveal.

    Kurt Summers: Chicago is on an ESG mission

    As treasurer of the City of Chicago, Kurt Summers has taken the lead on developing and implementing robust ESG policies and measures. He explains why the city took a stand, and what he considers the biggest threat to private equity as we know it.

    Legal special: litigation after a ‘unicorn’ valuation

    In the wake of the Theranos scandal, some managers fret that when their own unicorns fail to meet expectations, investors may resort to litigation. It’s unlikely, but that doesn’t mean it’s impossible.

    Legal special: 7 crucial questions on California’s privacy law

    The California Consumer Privacy Act is coming, and the time for PE firms to take action is now, experts say.

    Legal special: OCIE sharpens exam focus

    The increasing sophistication of the Office of Compliance Inspections and Examinations may prove a mixed blessing, as exams take less time but prove more rigorous.

    Legal special: How to navigate conflicts in GP-leds

    LPs can find the options are limited when a fund manager restructures the leftover assets in a fund nearing the end of its life.

    Legal special: The five hot topics on lawyers’ minds

    From the implications of Brexit to the growing number of GP-led restructurings, fund managers are wrestling with some weighty legal issues.

    Legal special: Family offices need solid foundations

    Private foundations can be attractive investment partners, but deals need to be structured with the exit in mind to avoid some tricky tax issues, say Stephanie Pindyck-Costantino, P Thao Le and Christopher Bird of Pepper Hamilton.

    Legal special: The funding gap facing German PE

    Worried that its venture capital market is lagging its European neighbours, the German government is doing all it can to provide more start-up support, says Andreas Rodin of P+P Pöllath + Partners.

    Legal special: The jury is out on jurisdictions

    Luxembourg is winning favour as a fund jurisdiction, but the UK still holds plenty of attractions for investors, say Sam Kay and Emily Clark of Travers Smith.