Marks ‘n’ Flatt
In two exclusive interviews, Howard Marks (pictured right) of Oaktree Capital Management (see here) and Bruce Flatt of Brookfield Asset Management (see here) reflect on the announcement of the groundbreaking tie-up between the two firms. It transpires the industry luminaries have somewhat different views on the relevance of timing to the deal.
Marks, Oaktree’s co-chairman, says the sale of the firm he founded had nothing to do with timing, telling us that it was a “fundamental transaction” that “would have been right a year ago” or a “year from now”.
Flatt, Brookfield’s chief executive, views it differently. He says there was indeed a timing element to it. “Our view is that [Oaktree] is a great firm that can thrive in any environment,” he says. “Despite that, obviously when stress in credit is robust, they excel even more.”
Abraaj’s Naqvi denied bail
Arif Naqvi, founder of collapsed private equity firm Abraaj, was denied bail on Friday as he fights extradition to the US on fraud charges. The size of the alleged fraud, the involvement of the US government and Naqvi’s high-level political connections in Pakistan meant he was too great a flight risk, according to chief magistrate Emma Arbuthnot. On his arrest at Heathrow on 10 April, Naqvi gave the police seven contact phone numbers. One of them belonged to the president of Pakistan, Westminster magistrates’ court in London heard on Friday. Naqvi will be back in court on 24 May for a case management hearing.
Everstone eyes co-investors
One of South and South-East Asia’s biggest mid-market firms is hoping to increase its pool of potential co-investors with the appointment of a former UTIMCO director to its New York office, says Sanjoy Chatterjee, president of the Americas. Everstone has hired Suneel Kaji in part to build new co-investment relationships with domestic LPs. Kaji formerly founded a PE consultancy called Accordian Partners. The firm opened its New York office last year to expand its fundraising efforts globally as it gears up for its next fundraise. Last time it raised $730.5 million in 2015 for Everstone Capital III.
Paris bound. Richard Clarke-Jervoise, formerly head of private equity for multi-family office Stonehage Fleming, has been hired to lead PE for the wealth management unit of BNP Paribas, which has €361 billion in assets under management.
Glass, door. Eric Glass, who managed more than 50 percent of Arizona State Retirement System’s private markets and equities portfolio, has quit. He has co-founded Fortuitous Partners to raise multiple project-driven opportunity zone funds focused on developing sports infrastructure and affordable housing.
LP meetings. It’s Monday, so here are some LP meetings to watch out for this week.
- 30 April – Swiss Life is holding an annual general meeting; Massachusetts Pension Reserves Investment Management Board is holding an investment committee meeting
- 1 May – Marin County Employees’ Retirement Association is holding a board meeting
- 2 May – Virginia Retirement System is holding a board meeting; Teachers’ Retirement System of Louisiana is holding a committee and board meeting; San Bernardino County Employees’ Retirement Association is holding an investment committee meeting; Los Angeles Fire & Police Pension System is holding a board/investment committee meeting
- 3 May – Indiana Public Retirement System is holding a board meeting
She said it
“It’s a labour of love.”
The European Bank for Reconstruction and Development’s director for equity funds Anne Fossemalle describes the job of seeding fund managers in difficult geographies such as the Central and Eastern Europe region.
We would love your feedback to help us make this newsletter more useful; click here to give us your opinion.
Subscribe now and get Side Letter delivered to your inbox each day
To find out how, email email@example.com, or call our team:
London: +44 207 566 5432
New York: +1 646 545 6296
Hong Kong: +852 2153 3140