Side Letter: Apax bounce-back, Carlyle’s Youngkin, HarbourVest’s Espinal’s summer reading

Looking at Apax's fund valuations, you'd think the covid-19 crisis is over. Here's today's brief, for our valued subscribers only. 

He said it

“As the world continues to face so many challenges today, and as Carlyle is well-positioned, now is a natural point to focus my full-time efforts on community and public service efforts that I believe can make a meaningful impact”

Glenn Youngkin explains his decision to step down as co-CEO of Carlyle.

Just happened

Apax bounce-back
Apax Partners said valuations of its $9.5 billion, 2016-vintage Fund IX and its $7.5 billion, 2012-vintage Fund VIII have recovered from the battering received amid the covid-19 chaos of Q1. Both funds are now marked ahead of their December 2019 valuations, according to an update on Wednesday from Apax Global Alpha, the firm’s listed trust. Apax wrote down $1.4 billion from its ninth flagship buyout fund last quarter as coronavirus battered global markets. Both funds valuations’ are up at least 14 percent in euro terms as of end-June, compared with Q1.

Apax investment committee member Salim Nathoo said the uplift has been driven by “an overall rebound in public equity markets and by the overweight exposure of these funds to sub-sectors such as software, tech-enabled services, and online marketplaces which have proven more resilient to covid-19’s economic impacts”.

“The balance of the portfolio of Apax VIII and Apax IX felt the impact of covid-19 with varying levels of severity. These portfolio companies are generally experiencing sales rebound post-lockdown at different rates, but cost actions are mitigating some of the negative impacts and preparing the portfolio for uncertain economic conditions ahead.”

Youngkin bows out at Carlyle

Carlyle’s Glenn Youngkin (pictured above left) is retiring as co-chief executive at Carlyle after 25 years at the firm and two-and-a-half years in the top job. Kewsong Lee (pictured above right), who joined Carlyle in 2013 and has served as co-CEO with Youngkin since co-founders David Rubenstein and Bill Conway stepped out of the roles on 1 January 2018, will take over as sole chief executive of what is the second-largest private equity firm in the world according to the latest PEI 300 ranking. Carlyle will present its second quarter results next week – see how the firm’s private equity funds fared in Q1 through our interactive charts.


Investcorp’s new D&I head

Investcorp has named Jordana Semaan, currently head of HR Gulf and Asia, as its diversity and inclusion champion, according to a statement. Alongside Semaan’s appointment, the Bahrain-headquartered firm has introduced new talent acquisition, retention and engagement policies and will require from fiscal year 2021 at least half of shortlisted candidates to come from diverse backgrounds. Read our deep dive on Investcorp’s rise here.

Number crunch

Subscribers can download our interactive H1 fundraising presentation here.

Summer reads: HarbourVest’s Carolina Espinal

Carolina Espinal, managing director at HarbourVest Partners recommends Dare to Lead by Brené Brown. Espinal said: “Never has the need to embrace vulnerability in leadership and having the courage to rise strong been as important.”

Dig deeper

Institution: Los Angeles Fire & Police Pension System
Headquarters: Los Angeles, US
AUM: $23.35 billion
Allocation to alternatives: 23.04%

Los Angeles Fire & Police Pension System has confirmed $70 million-worth of private equity commitments to two vehicles, according to a document from its July board meeting.

The commitments comprise of $60 million to Silver Lake Partners VI and $10 million to Summit Partners Venture V-A. The $23.35 billion US public pension has a 12 percent target allocation to private equity that currently stands at 10.71 percent.

For more information on LAFPP, as well as more than 5,900 other institutions, check out the PEI database.

Today’s letter was prepared by Toby Mitchenall with Isobel Markham, Rod James, and Carmela Mendoza.

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