private equity funds

Financial investors look to see first light

2011-12-09T23:30:00.001-08:00

PRIVATE EQUITY
Financial investors in Germany have a difficult year behind him, their investments plummeted tremendously. For the current year, but again, they expect better business. Hopes now rest among other IPOs of portfolio companies.

In Germany, international private equity firms like Kohlberg Kravis Roberts (KKR) on the road.
FRANKFURT. After the collapse last year, the investment companies for 2010 are cautiously optimistic mood. According to the "Private Equity Outlook 2010" by the industry association BVK expect more than two-thirds of the respondents an increase in investments, almost one in five expects at least a consistent level of investment. The companies also tend to expect stable to slightly declining company valuations.
"The trend has clearly upward," said Association Executive Director Dorte Hoeppner Handelsblatt. The industry has high hopes for their words on the capital needs of SMEs. "Companies have a real financial issue and look for alternatives," added Hoeppner. Also could be the start IPO market to help facilitate the participation of companies to profitable exits from their investments back.
In the current year, the top dogs of the counting private equity firm KKR's entry at the Heidelberg flavors and ingredients manufacturer Rudolf Wild GmbH & Co KG had been talked about. Earlier, the Swedish company EQT acquired jointly with a state fund the specialist publisher Springer Science. In addition, currently three portfolio companies of financial investors are to jump on the stock market: the chemicals distributor Brenntag, Germany Cable and fashion brand Tom Tailor.
Experienced its first boom in the financial investors between 1999 and 2001, before the Internet bubble burst on the stock exchanges. In 2006/2007, they marked records again, then sent the financial crisis the industry into a tailspin. In recent years invested holding companies within Germany only 2.4 billion euros, compared with 9.1 billion euros in 2008. The number of funded companies fell slightly to 1179th The declines dragged on through all market segments, ranging from acquisitions of industrial companies to finance young entrepreneurs.
In the buy-out area based companies expect more business in 2010, especially in takeovers of insolvent companies and family businesses. Expected growth in the SME financing and minority interests dominate. Also, the majority of the surveyed financial investors is given banks more cautious in lending by even higher proportions of equity in transactions.
Restrained provide the affiliates with respect to their fundraising plans - that is finding more resources for their funds. Therefore, they are likely not to 2010 with a significant increase. Probably the fundraising will come back on the road until 2011, BVK manager said Hoeppner.

LHI: Private Equity focuses on its strengths

2010-08-11T03:03:00.001-07:00

08/10/2010

The 2008 shock is overcome: the fundraising of European private equity industry continues its stable growth trend with a profit of 5.6 billion euros in the first quarter of 2010 compared to 3.6 M € billion on the previous quarter. According to the industry information, "Alt Assets," the funds mainly from growth capital and buyout funds were raised, the traditional fields of activity of private equity. In these segments, therefore, investors have the most confidence, the business model they trust most stable returns over the typical holding period of five to eight years.

Clear favorites recognizable

The medium-term bond system together with the relative to other asset classes far less breathless assessment practices of private equity investments portfoliostabilisierenden the effect of corporate shares. The industry likes to point out that realism is moved into the market: Particularly popular are enterprises from the information technology, medical technology, biotechnology and clean tech, including renewable energy.

Europe outperformed U.S.

Also, the deal volume remained fairly stable. In the fourth quarter of 2009, lists the statistics of Prequin 11.4 billion U.S. dollars in 120 buyout deals in the first quarter of this year 11 billion U.S. dollars in 113 transactions. The development in Europe runs so much more positive than in the U.S. and encourages the Fund Managing Private Equity Fund II LHI European middle class in his decision to put the investment focus on European companies with solid growth potential.

SMEs increasingly opens

Especially the middle class will open a study of Rödl & Partner increasingly According to financial investors. This has to do with the resolution to a traditional bank relationships that make it difficult for medium-sized clear and get some cheap credit financing.

On the other hand there is the striking capital shortage even of German small and medium enterprises, the results from this very intimate relationship with the former bank. Long-term private equity managers, who do not want to make quick profits on recapitalizations, but in fact and provable pursue strategic growth of its portfolio companies, medium-sized companies provide valuable support other than equity in regard to strategic direction of the company, optimizing processes and funding issues.

Decrease of reservations

Also on the part of the private equity industry reservations are removed. Minority interests are now for most fund managers no more No Go, but are also part of the investment universe. However, here in advance of the investment detailed consultation and due diligence processes required in order to avoid legal pitfalls and to ensure synchronization between the interested partners.

Private Equity has demonstrated its flexibility in a lot of market phases and is clearly on track to provide for any period after the financial crisis right answers to questions from investors and capital-seeking entrepreneurs to be able to, is the conclusion of the LHI-capital market experts

Introduction to Private Equity

2010-06-08T04:42:00.000-07:00

Books on investment banking are few and far between and mostly out of date. Usually they are very academic or written by lawyers rather than by someone who understands the business. This one, written by a former practitioner, gives students of investment banking just the insights they need into the nexus of investment banking, private equity and hedge funds. --Brian Scott-Quinn, Chair in Investment Banking, ICMA Centre, Henley Business School, University of Reading

Investment banking is in permanent change. This new book on investment banking describes the most recent trends that have taken place in the industry, in particular the interaction between investment banking and the hedge funds and private equity businesses. This is an exhaustive and up-to-date guide to the major banking activities. The different themes covered in the book are illustrated by fascinating real life cases. The book by David Stowell will become the new reference on investment banking. --Pierre Hillion, INSEAD

private equity funds formation and operation book review

2010-02-03T01:11:00.000-08:00

Private Equity Funds: Formation and Operation (2009) was published by Practising Law Institute; 'Hedge Fund Investment in Private Equity' and co-authored by Ms Stephanie Breslow.

The book helps you to choose the right organizational setting for funds and their sponsors; structure and implement ownership and compensation arrangements that work best for each fund; hire and retain the best fund talent; and qualify for the Securities Act’s private placement exemption, the IAA’s exclusion from registration as an investment adviser, and other exemptive relief.

The text of Private Equity Funds: Formation and Operation does explain the features, advantages, and drawbacks of PIPEs, SPACs, mezzanine funds, credit opportunity funds, and distressed funds, as well as the efficiencies created when private equity funds and hedge funds do converge. Private Equity Funds discusses the negotiation of terms between fund sponsors and investors, including fund size, the investment program, capital commitments and contributions, distributions, and related documentation.

private equity

2008-02-08T04:48:00.000-08:00

information on private equity