October 2017 Issue

    Privately Speaking: UPS on sizing up managers

    Brady Hyde, private equity portfolio manager at the world's largest package delivery company, is banking on active portfolio management as the firm joins the ranks of LPs doing more direct investing.

    Private equity firms saddle up for private debt

    Increasing numbers of private equity firms are attempting to squeeze into the financing space, but finding enough high-quality deals will be a challenge.

    Debt special: loosening the reins on covenants

    Leverage levels are creeping up to 2007 levels, but this time around there’s another factor to consider – the continued loosening of covenants. Should private equity investors be worried?

    Debt special: leveraged finance going strong

    The sun is shining on private equity, and private debt is largely to thank. With financing from funds and banks readily available, Alistair Hay of Cavendish asks whether PE has ever had it so good and how these funding solutions can co-exist.

    Debt special: increased popularity pushes up tail-end prices

    As funds come to the end of their lives with considerable remaining NAV, secondaries investors have upped their pursuit of tail-end deals.

    Debt special: waiting for a downturn

    Private equity managers are building war chests as they prepare for the market to sink, but forecasting when it will happen is tricky.

    Exploring the travails of a Dallas pension

    The plight of the Dallas Police and Fire Pension System raises questions over pension fund governance and the risk for asset managers and advisors.

    Spotlight: Growth capital

    The first half of 2017 saw $27.5 bn of growth equity funds reach final close. Rod James takes a look at how it fits into the space between VC and buyout.

    Deal Mechanic: How Permira guided Netafim to becoming a global leader

    Private Equity International looks under the bonnet of the private equity firm's investment in a kibbutz-oriented irrigation business.

    Asia roundtable: the region gathers momentum

    On a typically humid September day in Hong Kong, four industry veterans gather to discuss the opportunities stemming from China’s developing buyout market, and the overall private equity environment in the region. On one point, they are in agreement: investors have a lot more choice. The industry is maturing: fundraising focused on the region has […]

    Carlyle CFO: LPs ‘mixed’ on credit lines

    What are some of the ways to take advantage of credit lines?  There are a range of ways in which managers have utilised fund lines of credit for many years beyond the IRR enhancement objectives that have received a lot of attention over the last 12 months or so. The most obvious and basic is […]

    When tax-exempt might not mean exempt

    The use of subscription lines of credit by private market funds has significant tax implications for their tax-exempt limited partners that both LPs and fund managers should be aware of. Howard Marks, co-chairman of Oaktree Capital Management, brought this issue up in his list of negatives when he wrote about fund finance in April. “Some […]

    The SEC raise the stakes for secondaries deals

    When the US Securities and Exchange Commission spent a week at New York-based private equity firm Leeds Equity Partners as part of a routine exam in January, it spent considerable time looking at a single fund stake sale in one of the firm’s existing funds. “My understanding was that fund restructurings were something the SEC […]

    China looks outwards

    Regulations expected to slow the country's outbound deals are instead paving the way for more cross-border buyout funds targeting government-favoured industries.

    Tech deals outperform post-recession

    Technology investments have significantly outperformed other private equity buyouts since the recession, according to data from investment decision platform CEPRES. Deals in the sector, which includes computer hardware, telecoms and internet companies, were on average sold for an enterprise value of 11.14x EBITDA. This compares with a median sale price of 9.67x EBITDA for non-tech […]

    Waterland makes a splash

    Fundraising can be a lengthy process. So for Waterland Private Equity Investments to hold a first and final close on €2 billion for its seventh fund less than two months after launch was no mean feat. The oversubscribed Waterland Private Equity Fund VII, which will target mid-sized companies in northern European growth markets, held a […]

    Ahead of the cove

    Private equity firm Cove Hill Partners closed its debut fund in September on more than $1 billion, three months after launch. The Boston-based firm received commitments from family offices, university endowments and foundations to make five to eight investments in the consumer and technology sectors in North America. Cove Hill Partners Fund I has a […]

    Regulation Watch: mind the gap

    The European Commission is clamping down on regulatory arbitrage, while venture capitalists are using third-party administrators to come to market.

    Life Less Limited: Divide and conquer

    Separately managed accounts present investors with several advantages. They can help reduce fees and the number of GP relationships, while increasing transparency into costs and investments. “SMAs provide this unique capability to capitalise on investment strategies that you’re not going to get access to through typical private equity funds, venture capital funds, secondaries funds and […]

    The Side Letter: Norwegian should

    Norway’s giant Government Pension Fund Global thinks it is too big and too late for PE; it is wrong.

    Big-name managers put themselves on a staple diet

    It is happening: the prediction that highly regarded managers would start tapping the secondaries market is becoming a reality. We broke the news that Swedish buyout stalwart EQT was running a stapled process involving stakes in its strong-performing 2011-vintage flagship fund and a commitment to its latest Asia-focused fund. The deal is worth looking at […]

    A locust’s redemption

    Since 2004 the mere mention of the winged insect has struck fear – or at least mild annoyance – into the heart of private equity professionals everywhere, but could it be due a rehabilitation?

    Shroom at the top

    Countryside advice from Final Close.

    Human capital proves key to value creation

    GPs are waking up to the role of employees in generating value in a portfolio company, Victoria Robson finds.

    The ultimate deal mechanic

    What’s right for one portfolio company may not be right for another, but there are several common operational levers private equity firms can employ to jump-start growth and enhance returns.

    Lessons from a serial entrepreneur

    Vue Cinemas has worked with multiple private equity sponsors since its creation in 1999. Tim Richards, the founder and chief executive, shares his views on working with private capital.

    Procurement award: Strength in numbers

    Nordic Capital has adopted an effective approach to value creation with its community-driven procurement system, but implementing such a programme is not without its challenges.

    Due diligence: Operational excellence begins at home

    Investors in private equity need to pay closer attention to the operational infrastructure of their managers, writes Hamilton Lane's Mario Giannini.

    Value creation: Generalists with a twist

    Ten things we learnt when Europe’s leading value creators gathered for our Operating Partners Forum in London.

    Corporate strategy: Underestimating the competition

    Financial sponsors in growth markets forget a crucial element of their business plan, says Robert Bing Maybe it’s just that business plans are written from the wrong perspective.

    Value creation: How Permira achieves critical mass

    Adding operational focus to the deal team is an essential part of designing a value creation plan.

    Viteos tackles outsourcing’s continental divide

    Profound differences remain between the way that European and US private equity managers administer their funds, says Shankar Iyer, CEO of Viteos.

    Secret squirrel: the CEO on finding the right private equity partner

    Heading up a private-equity backed business means looking to the future rather than staying stuck in the present, says our anonymous CEO

    Blue Ridge nurtures the growth strategies that work

    Blue Ridge Partners' Jim Corey spotlights the behaviours that boost revenue at high-performing B2B businesses.

    SEI on how LPs are driving change

    Heightened investor expectations are forcing fund managers to review their operations, says Ross Ellis, managing director at SEI.

    Knowledge sharing leverages the portfolio, says Partners Group

    The next step in the evolution of operational value creation should be dubbed the ‘portfolio approach’, says Fredrik Henzler of Partners Group.

    KPMG on the Brexit effect

    Portfolio companies need to be agile to ensure that they don’t lose out to rivals when Britain leaves the European Union, say Mark Essex and Mike Mills of KPMG.

    RSM on the data opportunity for CFOs

    Updating operations to the latest technology can create high-impact returns for portfolio companies and provide much-needed support for hard-pressed finance chiefs, explains Gavin Backos, a principal at RSM.