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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”.  
For private equity firms, exits via IPO can be great. A successful floatation of a portfolio company at an attractive valuation will get the champagne corks popping, especially if the share price climbs in the aftermarket.  
The private equity mega-pond is getting bigger, and the California Public Employees’ Retirement System (CalPERS) wants to remain a big fish within it. The California pension, according to an agenda item on its website, has agreed to commit a whopping $750 million to the latest offering from Apollo Management.  
Investors in private equity worry about many things. For instance: will the mounting wave of money kill returns in the asset class? Or: have I picked the right funds? Or: what are management fees doing to manager motivation? And: are club deals good or bad?  

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