Home Comment


2005 is drawing to a close, and the private equity industry is looking back on a year filled with superlatives.  
More than 300 delegates from over 50 countries at this week’s Emerging Markets Private Equity Forum in London were left in little doubt: emerging markets private equity has become meaningful, and it is here to stay.  
When you hear that new funds are in effect oversubscribed before they’ve even been officially launched, there can be only one conclusion. Private equity fundraising has hit warp speed.  
Much of the discussion surrounding succession planning at private equity firms has assumed that company founders are typically loathe to step aside.  
PEO was in Hong Kong recently talking to private equity people about the market that sits across the harbour: China.  
North America is frequently described by general partners as a buyout market without borders. KKR, Bain, Teachers’ and other private equity investors have moved effortlessly between Canada and the US, with success stories such as Shoppers Drug Mart and BCE Yellow Pages confirming the “borderless” claim.  
Ah, the beauty of private equity. Acres of column space have been filled with analysis of the allure of corporate life away from the obsessive short-termism of the public markets.  
Competition is good for business - especially if you are part of a management team helping take your company through a sale involving multiple bidders. And few GPs need reminding that most transactions today are indeed auctions.  
Anti-money laundering controls are a pain – no wonder many private equity firms in the UK have little to zero systems in place in this regard. But failure to comply could lead to even more painful penalties from regulators.  
A placement agent and friend of PEO once summed up the two commandments of his sales team as such: “Be popular, and don’t smell”.  

Copyright PEI Media

Not for publication, email or dissemination