Private Equity Blogger.com by Theo O'Brien

Family Offices in Singapore

2012-02-08T12:25:00.001-08:00

Family Offices in Singapore

Family Office Industry Growth in Singapore and Southeast Asia

The following is a free white paper created by Richard Wilson of FamilyOfficesGroup.com on the family office industry growth in Singapore. You can download the Singapore Family Offices Whitepaper in PDF format.

I recently was asked to speak at a few investment conferences for IQPC in the Cayman Islands this month and Singapore next month. The following is a short whitepaper/report that I typed up for them explaining what really makes Singapore such a unique location for family office and fund management activities.

Background on Singapore

A brief introduction to Singapore: international trade has helped jettison Singapore above leading Western countries in terms of GDP per capita (the IMF and World Bank both place Singapore in a range of three to five in the rankings and consistently ranked above the United States, Switzerland and other wealthy, developed countries). Singapore has a healthy, free-market-based economy that has excelled in recent years.

Singapore’s economy has grown significantly in the last decade (as evidenced by Figure 1) with financial services playing a vital role in that growth. However, like other international business and financial-focused economies, Singapore’s economy was hurt by the global financial meltdown, but it has managed to rebound impressively by earning more than 14% GDP in 2010.

Figure 1; Source: Singapore Dept. of Statistics

The Singapore city-state is a popular financial destination due to its business- and wealth-friendly tax environment. It is also an island nation that draws a lot of tourists and vacationers as well as wealthy individuals looking for an international hub that is both attractive and enjoyable from which they can conduct their business. As one fund of funds manager put it, “Singapore has turned out to be a great destination for wealthy individuals to relocate to because of Singapore’s smart government, conducive tax and regulatory environment and because it’s a great place to live.”

In fact, Singapore has the highest concentration of millionaire households, with15.5% of all households having at least $1 million in AUM; Singapore has the ninth highest concentration of ultra-high-net-worth households that have over $100 million in AUM, according to the Boston Consulting Group. As you can see in Figure 2, Singapore is perhaps the most vital access point to high net worth families due to its high proportion of wealthy households and its proximity to other key locations like Hong Kong, Tokyo and Taiwan.

Figure 2; Source: BCG

Singapore is also an attractive location for firms and investments funds looking to establish an Asian hub for their business as it is a brief flight to Tokyo, Shanghai or Mumbai. This access to emerging markets has led to a growth in foreign investment and made Singapore a highly attractive place to live and do business. Singapore’s status as Southeast Asia’s financial and high-tech center has drawn a great deal of wealth and investment to the country and this has, in turn, led to a wealth management solution: family offices.

Family Offices in Singapore

The family office concept, once almost exclusively available to the wealthy families in Europe and the United States, is quickly migrating to new pockets of wealth in places like Brazil, Australia and Singapore. Only a few years ago, a wealthy family or ultra-high-net worth individual would be hard pressed to find a customized family office wealth management solution; now, there are dozens of family offices operating in Singapore and the number of single and multi-family offices is only expected to increase in the coming years.

As the amount of wealth in Singapore has steadily grown, so too has the need for family offices. Asia is, of course, a region of great wealth and Singapore is one of the wealth capitals for the region. It is estimated that there are 17,500 ultra-high net worth individuals in Asia and the region accounts for 18.5% of ultra-high net worth individuals in the world. In Asia, Singapore serves as one of two primary hubs for Asian family offices–the other being Hong Kong. Singapore has developed a reputation among the high-net-worth community as a financial capital and a popular destination for wealthy families, so many family offices have established offices in the country to service local families and individuals.

Singapore has been attracting a great number of these ultra-high net worth individuals and more and more are moving from mainland China to reside in Singapore. Accordingly, the number of family offices in Singapore is growing; however, many high-net-worth individuals and wealthy families have relied less on typical single family offices in favor of a different model. One study by VP Bank found that wealthy Asian families turn to “‘a plurality of players that are independently (e.g. global banks) or collaboratively (e.g. asset managers, lawyers and independent advisors) providing family office services for wealthy Asian clients … these structures work as a dynamic network of different players’ discussed as a ‘Hybrid network Family Office Model.’” Yet, as single and multi-family offices gains traction among the Asian investment community, we expect Singapore to fully embrace the more traditional family office model.

We asked one fund of funds manager based in Singapore to list some of the advantages to managing and investing wealth in Singapore, he listed a number of advantages, “the tax and regulatory regime is favorable, it’s an excellent location in Asia in terms of proximity to other countries, infrastructure, and ancillary services to investment firms also have offices in Singapore.” This reflects a growing consensus among fund managers and alternative investors that Singapore is a great location for investing and wealth management and the opportunities here are only growing.

Why Are We Focused on Singapore?

Wealth accumulation has steadily increased in Singapore from a low point in 2001, along with the number of family offices. The country has a high concentration of billionaires compared to other Asian countries, making it a very attractive destination for family offices. The number of high-net-worth individuals in the country is estimated to be 60,000 although that number has likely grown since.

Despite the huge number of high-net-worth individuals and billionaires currently residing in the country, there are relatively few family offices, but that is expected to change in the coming years. As one report on Singapore family offices concluded: “Even if only a few family offices are identifiable in Singapore today, the market will clearly play an important role in the family office business for Asian clients in the future.” It is clear that Singapore will continue to play a big part in the future growth of the family office industry. According to Singapore-based hedge fund manager Anson Zeall Partner at Stoxster Capital LLP there is a continuous rise in money flowing into the area, which is fueling demand for family offices.

Anecdotally, when I attended past conferences in Asia, I was always surprised by the relative lack of family offices compared to other ultra-high-net worth hotbeds around the world. However, in my most recent trip to Singapore, I saw mounting evidence that Singapore is on the cusp of a surge in the local family office industry. For one, there are already dozens of family offices working in Singapore and has made the concept more familiar to Singapore and Southeast Asia’s wealthy, laying the groundwork for future family office growth. Furthermore, I met with several family offices considering or actively establishing an office in Singapore because they, too, see the huge growth potential in the region.

You can see other signs of this coming boom by the number of family office and wealth management conferences in Southeast Asia and Singapore and the number of hedge funds and private equity firms setting up new offices to service clients in the region. I am constantly talking to hedge fund and private equity marketers who are eager to find new investors for their funds and yet few have a clear strategy for targeting family offices and even fewer have a specific plan for raising capital from Singapore investors. The fact that investment funds are undervaluing Singapore is not atypical; for years, investors in Singapore and, more generally, Asia, have been underserved and overlooked in favor of investors more local to American and European funds. However, this trend is reversing as forward-thinking hedge funds and private equity firms realize the potential in Singapore and Southeast Asia.

At the Family Offices Group association, and at my capital raising firm, Richard Wilson Capital Partners we are looking to Singapore as one of the top emerging hot beds for family office activity. For those looking for a foothold in Asia and an access point to under-served wealthy investors, you need look no further than Singapore. If you would like to discuss the Singapore family office marketplace or learn more about the Family Offices Group please email me at Richard@RichardWilsonCapital.com, download our report on family offices, or visit our About Us page here.

Richard C. Wilson

Family Offices Group

Richard@RichardWilsonCapital.com

Richard Wilson Capital Partners, LLC

http://FamilyOfficesGroup.com/about-us

Tags: investments, private equity firm, private equity, management, contact, website, LP, group, news

Private Equity at Work

2012-02-08T09:16:00.000-08:00

Private Equity at Work

PEGCC Launches "Private Equity at Work" Campaign

In the face of sweeping criticism of private equity and carried interest in the media as of late, the private equity industry's lobbying group, the Private Equity Growth Capital Council, has sought to reverse the negative spotlight on the industry by explaining what private equity firms really do. The campaign, Private Equity at Work, is a great look at some of the success stories in private equity and provides some information to counter all the bad press surrounding private equity this year.

Perhaps the most impressive aspect of the campaign is that it was planned in anticipation of this election, rather than conceived as a reaction to recent attacks on Mitt Romney's work at Bain Capital. It was inevitable that with Mitt Romney's presidential campaign would come some media focus on private equity; so, rather than let President Obama or Romney's Republican rivals define private equity, the Private Equity Growth Capital Council developed the Private Equity at Work campaign last summer and launched it in January 2012 as attacks on the industry started to heat up--largely from Newt Gingrich and his Super PAC.

How successful the Private Equity at Work campaign will be in persuading the public that private equity can be a source of capital for business and a key driver of economic growth remains to be seen, but the PEGCC has shown that it will not sit on the sidelines as private equity firms are assaulted left and right.

If you want to check out the Private Equity at Work campaign, click here.

To see how Mitt Romney has faced criticism of his compensation and his work at Bain, see this post

Tags: Mitt Romney, Private Equity Growth Capital Council, Private Equity Growth Capital Council Private Equity at Work, Private Equity at Work, Private Equity at Work PEGCC, Private Equity Mitt Romney, Private Equity and Mitt Romney, Private Equity Mitt Romney President, Mitt Romney Bain, Mitt Romney Bain Capital

Private Equity Foreign Corrupt Practices Act

2012-02-07T10:14:00.001-08:00

Foreign Corrupt Practices Act

Private Equity and the Foreign Corrupt Practices Act

I just came across an interesting read on the Foreign Corrupt Practices Act and how it can affect private equity firms and hedge funds. In an interview with FinAlternatives, Matthew Reinhard of the Washington, D.C.-based law firm Miller & Chevalier, talks about why private equity funds should be concerned with complying with the Foreign Corrupt Practices Act.

Why do hedge fund and private equity managers need to think about the FCPA?

There are several reasons why managers need to consider FCPA issues. First, FCPA liability can present a significant economic risk from an investment perspective. The size of FCPA penalties has increased exponentially over the last decade, with resolutions in the tens, or hundreds, of millions of dollars not uncommon. Often, these penalties include disgorgement of profits attributable to the corrupt transaction. Furthermore, there are tremendous costs and expenses in responding to an FCPA investigation. Thus, from an investment risk standpoint, like any other potential liability, managers should consider whether a potential investment presents FCPA risks that, if prosecuted, could significantly diminish the value of the investment.
Second, the FCPA provides for successor liability. Particularly for private equity investors, the purchase of a controlling interest in a company with FCPA liabilities could cause the new owners to become liable for past violations.

Third, the actions of affiliated agents and business partners can create FCPA liability directly for managers. For instance, if a hedge fund manager or private equity group uses foreign agents to help secure an investment in a foreign country, and that agent paid a bribe to a local government official to gain an advantage, the managers may be liable under the FCPA.

Read More

Tags: private equity, private equity news, private equity Foreign Corrupt Practices Act, Private Equity firms Foreign Corrupt Practices Act, Private Equity Foreign Corrupt Practices Act definition, Private Equity Foreign Corrupt Practices Act law, Private Equity Foreign Corrupt Practices Act compliance

Facebook IPO Share Class

2012-02-02T09:21:00.000-08:00

Facebook IPO Share Class

What are you Really Getting in the Facebook IPO?

There's an interesting article I saw today on The Street about Facebook's impending IPO. If you missed it, Facebook, the massive social network, has filed for its long-anticipated initial public offering where it will finally sell shares of the company to the public. The article, dramatically titled, "Facebook to Future Stockholders: Bow Down to Mark Zuckerberg" focuses on one issue with the Facebook IPO: the difference in what Class A shareholders will be getting vs. what Class B shareholders get and how your shares could be diluted now and in the future.

Facebook has finally filed to go public, but investors itching for a chance to hitch their wagon to Mark Zuckerberg's star should give the company's S-1 filing a close read. Because rather than getting a real stake in the social networking giant, it looks like purchasing the stock will at best be the equivalent of being a peasant in Farmville.

This is the result of the company's decision to opt for a dual class structure for its stock, a practice that's not very prevalent on Wall Street these days. Facebook is selling Class A stock in its IPO, but the real power (and value) will be retained by holders of the Class B shares.

All S-1 filings contain plenty of caveats about how poorly the company or its stock could do in the aftermarket if certain events do or don't come to pass. Facebook, though, is opting to tell potential investors that buying its stock will result in "substantial and immediate dilution" from the undisclosed pro forma tangible book value of the shares as of year-end.

"This dilution is due in large part to the fact that our earlier investors paid substantially less than the initial public offering price when they purchased their shares of our capital stock," the filing read. "You will experience additional dilution upon exercise of options to purchase common stock under our equity incentive plans, upon vesting of RSUs, if we issue restricted stock to our employees under our equity incentive plans, or if we otherwise issue additional shares of our common stock." Source

Tags: Facebook, Facebook investments, how to invest in Facebook, FB stock, Facebook share class, Facebook Class A Shares, Facebook Class B shares, Facebook shares public, Facebook IPO, investments

TPG Capital GlobeOp

2012-02-01T09:16:00.001-08:00

TPG Capital GlobeOp

TPG Capital Buying GlobeOp for $800 million

TPG Capital Group, one of the largest private equity firms in the world, has agreed to buy a hedge fund administration firm, GlobeOp (GO.L), for $800 million. This is a win for TPG, which hopes to establish a presence in the area of hedge fund administration services, as it beat out a competitor, Advent International.

TPG is offering 435 pence per share in cash for London and New York-based GlobeOp, which administers $173 billion in client assets and which last month kicked off a strategic review to try and boost its share price.

The deal marks a premium of nearly 50 percent to GlobeOp's January 5 share price, just before it announced it was in talks with TPG, which beat private equity rival Advent International to the deal, according to a source familiar with the situation.

GlobeOp shares, which had fallen from 440p last July to below 300p early last month, were up 22 percent at 432.13p by 1136 GMT.

TPG intends to invest in expanding GlobeOp's business and hopes to bolt on other businesses serving the hedge fund industry, the source said.

The U.S. private equity group has significant experience in the so-called financial technology sector, with investments that have included account processing group FIS Global and insurance software business Vertafore. Source

Tags: TPG Capital GlobeOp investments, TPG private equity firm, TPG private equity, management, contact, website, LP, group, news, TPG Capital GlobeOp takeover, TPG Capital GlobeOp acquisition, TPG Capital GlobeOp buyout

Steve Judge Private Equity Growth Capital Council

2012-01-30T10:29:00.000-08:00

Steve Judge PEGCC

Steve Judge Heads Private Equity Growth Capital Council

The private equity industry's lobbying group has selected its new chief executive. Steve Judge will head up the Private Equity Growth Capital Council after serving as interim head following the departure of past CEO Douglas Lowenstein. The Private Equity Growth Capital Council, formerly the Private Equity Council, has been in the news for offering a spirited defense of Governor Mitt Romney's work at Bain Capital and the private equity industry as a whole. For more information on this transition, review the press release below from the Private Equity Growth Capital Council:

The Private Equity Growth Capital Council (PEGCC) today announced that Steve Judge has been appointed president and chief executive officer. Judge succeeds Douglas Lowenstein, who stepped down last year. Since August 2011, Judge served as interim president and chief executive officer, prior to that he served as the Council’s vice president for government relations. The appointment is effective immediately.

Mark B. Tresnowski, chairman of the PEGCC and managing director and general counsel of Madison Dearborn Partners, a PEGCC member firm, said, “After a search and several months of Steve’s leadership, it became clear that Steve’s effective advocacy during a challenging and dynamic time for our industry make him the right person for this important role. With the full support of the PEGCC membership, we are confident that Steve and his team will succeed in their mission.”

Mr. Judge said, “I am extremely proud of what we’ve accomplished in just a few years since the founding of the PEGCC and I look forward to building on that record of success. Our goal is to engage policymakers, the media, and the public in a national dialogue about how private equity and growth capital firms drive economic growth, strengthen and improve businesses, and provide financial security for millions of Americans. The year is already off to an exciting start, and the Council is ready for the challenges to come.”

Judge has a long and distinguished career in Washington. Before joining the Council in March 2007, Judge was Senior Vice President, Government Affairs and Head of the Washington Office for the Securities Industry Association (SIA), now the Securities Industry and Financial Markets Association (SIFMA). Judge also served as a member of several congressional staffs. From 1987 to 1991 he was Deputy Staff Director of the Committee on Banking, Finance and Urban Affairs of the U.S. House of Representatives. Judge came to Washington, D.C. in 1978 with Congressman Bruce Vento (DFL-MN), eventually becoming the Congressman’s Legislative Director. He began his legislative career in the Minnesota State Legislature as Staff Assistant with the Senate Committee on Education. Judge holds a Bachelor of Science degree in government from St. John’s University in Minnesota.

About Private Equity

The private equity industry in the U.S. comprises nearly 2,300 investment firms in all 50 states. They operate nearly 14,000 U.S.-based companies that employ approximately 8.1 million people. In 2010 alone, U.S. private equity firms invested nearly $150 billion in over 1,200 companies. Through 2009, the private equity industry worldwide has distributed nearly $1.6 trillion to its limited partner investors.

About the Private Equity Growth Capital Council

The Private Equity Growth Capital Council (PEGCC) is an advocacy, communications and research organization and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Established in 2007 and formerly known as the Private Equity Council, the PEGCC is based in Washington, D.C. The members of the PEGCC are 36 of the world’s leading private equity and growth capital firms united by their commitment to growing and strengthening the businesses in which they invest. More information about the PEGCC can be found at www.pegcc.org.

Tags: Steve Judge Private Equity Growth Capital Council, Steve Judge Private Equity Growth Capital Council CEO, Steve Judge CEO Private Equity Growth Capital Council, President of the Private Equity Growth Capital Council, Private Equity Growth Capital Council, Private Equity Steve Judge, Who is Steve Judge?, Steve Judge Bio, Steve Judge PEGCC

Private Equity Mitt Romney

2012-01-20T09:47:00.000-08:00

Private Equity Mitt Romney

Mitt Romney, Private Equity, and Carried Interest

The Republican presidential primary has taken a particularly nasty turn with countless negative ads and mudslinging in the latest debates. One attack against Governor Mitt Romney has been particularly surprising in a GOP primary: that Mr. Romney made millions through the private equity firm that he founded, Bain Capital, often by slashing benefits, cutting jobs and stripping value from the portfolio companies his firm invested in. Linked to this attack is questions over his compensation at Bain Capital which was largely through capital gains which is taxed at 15%, much lower than ordinary income.

The attacks, largely from former House Speaker Newt Gingrich, have drawn new attention to private equity and capital gains tax on carried interest (somewhat ironically, Mr. Gingrich was paid about $60,000 for a speech praising private equity--that income was probably taxed higher than 15% though). As the news media and the American public focus their attention on this industry, which has so often been the focus of derisive attacks and criticism, the Private Equity Growth Capital Council has delivered a response with a fact sheet aimed to "set the record straight" on private equity that you can read here:

PEGCC Sets the Record Straight on Private Equity

Statement from Steve Judge, Interim President and CEO of the Private Equity Growth Capital Council (PEGCC) in response to recent political attacks that mischaracterize the industry:

“There is a lot of misinformation being spread, purely for political purposes and on both sides of the aisle, as it pertains to private equity. What’s been lost is an understanding of the critical role that private equity investment plays in growing the U.S. economy and delivering more than a trillion dollars in investment returns to pension funds, endowments and charitable foundations. While the business model has evolved over time, the fact of the matter is private equity provides capital and operational expertise to companies that are often underperforming or on the brink of failure. In 2010 alone, private equity invested nearly $150 billion in U.S. companies. As a result, many businesses grow and are strengthened and often jobs are created over the long term.”

The Facts About Private Equity

Private Equity Fast Facts

There are 2,300 private equity firms in the U.S. In 2010, private equity firms invested more than $148 billion in 1,234 U.S. based companies in 2010.
There are 14,200 companies in the United States that are backed by private equity investment.
Private equity-backed companies employ approximately 8.1 million people worldwide.

Private Equity: An Overview

What is Private Equity? Private equity is a vital source of capital investment in the U.S. and global economies. Our investment model is simple: We buy companies that have significant potential for growth. Over time, we invest capital, time and effort to improve their performance and increase their value. Eventually, we sell the improved companies, hopefully at a profit, and undertake a new investment.

How Does Private Equity Work? Private equity firms seek out underperforming or undervalued companies. By working with these companies managers unlock significant value —by changing the business strategy, injecting new managerial expertise, or improving sales and marketing, production, distribution or sourcing. Ultimately, private equity firms succeed when their investments are able to achieve long-term success.

Who Benefits? Private equity investment is a steady source of income for its investors such as public and private pension funds, university endowments and charitable foundations. Public and private pension funds make up 42 percent of all private equity investment. Private equity also provides enormous benefits to the company, its employees and investors, and the U.S. economy. According to the most recent research, through 2009 private equity funds worldwide have distributed more than $1.6 trillion to limited partner investors.

The Benefits of Private Equity

Private equity drives growth. The mission of a private equity firm is to strengthen the businesses in which they invest. A study by Ernst & Young found that the average value of businesses in the U.S. acquired by PE firms grew 83 percent over the course of private equity ownership.

Private equity creates value. Private equity firms seek out companies in which they believe they can unlock significant value by changing the business strategy, investing new capital or injecting new managerial talent.

Private equity makes companies and the American economy more competitive.The PE investment model is built on the premise that companies can improve their performance and better position themselves for long-term success by aligning the interests of owners and managers and removing the short-term pressures of public ownership.

It's clear that if Mr. Romney wins the primary he will be forced to endure much more sustained criticism over his role at Bain Capital, his taxes, and how the companies he invested in ultimately performed. You can bet that President Obama's team is cooking up ads similar to the ones that Senator Ted Kennedy used to defeat Governor Romney in his 1994 senatorial campaign. It will be interesting to see whether Mr. Romney can mount a stronger defense of private equity as the spotlight once again turns to the world of buyouts.

Tags: Private Equity Mitt Romney investments, private equity firms Mitt Romney, Romney private equity, Bain Capital management, contact, website, LP, group, news, Mitt Romney, Bain Capital, Mitt Romney's role at Bain Capital, Mitt Romney private equity investing, how private equity firms make money, private equity and Mitt Romney, Mitt Romney Carried Interest Taxation, what is Bain Capital

New Markets Movement

2012-01-05T11:31:00.001-08:00

New Markets Movement Seeks to Bring Back IPOs

I rarely pass along press releases, which I receive almost daily, but this one was especially intriguing and relevant to the private equity industry. IPOs represent an important exit path for private equity firms looking to make a return on their portfolio investments, but the IPO market has been less than welcoming despite some small internet successes like Groupon and LinkedIn and a few other IPOs in 2011. Now, there is a "movement" to revive the IPO market and make it a better environment for these would-be public companies.

Weild Says Changes Will Boost Economic Growth, Employment at No Cost to Taxpayers

NEW YORK, N.Y., Jan 4, 2012 – Former NASDAQ Vice Chairman David Weild IV and media entrepreneur Brett Johnson today announced the formation of the New Markets Movement (NMM) with the goal of reviving the stagnant market for initial public offerings (IPOs) and aftermarket support for public companies.

The NMM will advocate for passage of legislation to stimulate IPOs, and investments to fix the financial ecosystem and provide support for public companies. Its first goal is drafting and passage of the Issuer Choice Jobs Act, which would make the market structure more favorable for IPOs and public companies. NMM will also support other legislation that favors market improvements.

“Wall Street doesn’t need to be occupied, it needs to be fixed,” said Weild. “The United States has a proud history of launching and nurturing innovative job creators. Today, U.S. public stock markets, once the envy of the world, have become our weakest link and are failing to support job-generating growth companies.”

Weild will kick off the launch of the New Markets Movement as the keynote speaker at the Fifth Annual OneMedForum SF2012, an emerging company finance conference, at 12:30 p.m. on Tuesday, Jan. 10, 2012 at the Sir Francis Drake Hotel in San Francisco, Calif.

Weild, who is Director of Capital Markets at Grant Thornton and Chairman and CEO of Capital Markets Advisory Partners, is the country’s leading expert on U.S. capital markets and specifically the dramatic drop in IPOs and aftermarket support for public companies. In addition to serving as Vice Chairman of NASDAQ, he was head of equity capital markets at Prudential, where he priced over 500 IPOs and another 500 follow-on offerings.

Weild’s research with colleague Edward Kim inspired Johnson to contact him and suggest the formation of the New Markets Movement. Johnson publishes OneMedResearch, which is dedicated to lesser known microcap public companies, and the founder and CEO of OneMedPlace, a research and media firm that aggregates information for investors in emerging growth companies in healthcare and life sciences.

“Innovative companies no longer go public in adequate numbers to drive growth and job creation,” Johnson said, “because our system rewards computerized trading, not investors. Markets today cater to backward-looking computer-based trading strategies at the expense of forward-looking fundamental investment strategies.”

The number of IPOs in the U.S. dropped 77% in the first decade of the millennium – from an average of 520 a year during the pre-bubble years of 1991 through 1995 to just 126 a year from 2001 through 2009. There were 154 in 2010 and 125 in 2011, but many recent IPOs were for brand-name social media companies and most performed poorly after public trading began.

A Grant Thornton study found that if the number of companies going public between 1998 and 2009 had not plummeted, theeconomy could have generated an additional 11.6 million to 22.7 million new jobs.

Weild and Johnson believe that new legislation to fix the economic model, if signed into law, would incent equity research coverage, capital commitment and market making, encourage investment and discourage speculative trading.

The Issuer Choice Jobs Act that the New Markets Movement is proposing would empower the Boards of Directors of public companies to optimize the market for their shares by giving them the authority to establish the “tick size” in the trading of their stock. Since decimalization of stock prices, tick size, which is the monetary increment in which stocks trade, has defaulted to one cent per share and as low as 1/10^th of a penny for some stocks.

Penny and sub-penny ‘tick sizes’ have induced high frequency and speculative trading in large-cap stocks, according to Weild, while in small and micro-cap stocks these tiny tick sizes have removed the economic incentive for traders to provide liquidity and for research analysts and brokers to create order flow.

“By replacing one-size-fits-all stock markets with an elegant and cost-effective mechanism to create ‘mass customization’ of markets,” Weild said, “it will give corporations a seat at the table to determine what the quality of their markets should be, rather than allowing trading interests to treat them like so many casino chips.”

Johnson said NMM will support other initiatives that can “resuscitate the IPO and put America’s job creation engine into high gear.”

About the New Markets Movement

The New Markets Movement was created to advocate for changes that will spur economic growth and job creation by stimulating initial public offerings (IPOs) and aftermarket support for public companies.

Tags: new markets movement, initial public offerings, IPOs, New Market Movement IPO, What is the New Market Movement?, investments, private equity firm, private equity, management, contact, website, LP, group, news

Private Equity Seed

2011-12-07T09:20:00.000-08:00

Private Equity Seed Capital Strategies

Free Private Equity Video on Seed Capital Strategies

The following video is borrowed from the Certified Private Equity Professional training program. I am frequently asked for advice on how to connect with seed capital providers for a private equity fund. In this video, I cover some strategies for obtaining seed capital for a private equity startup. If you are reading this via email or RSS, please click here to watch.

Video Transcript/Summary: The strategies and tips provided within this video module include:

Coming soon.

If you're interested in learning more about private equity through our private equity training program, visit http://businesstraining.com/Private-Equity-Certification.html

Tags: private equity investments, private equity firm, private equity seed capital, private equity seeders, private equity seed, private equity seed funds, private equity investors, private equity seed investors, management, contact, website, LP, group, news

Private Equity Southeast Asia Summit 2012

2011-12-06T08:41:00.001-08:00

Join Us at the 7th Annual Private Equity Southeast Asia Summit!

Greetings,

My name is Richard Wilson and I want to personally invite you to a private equity conference that I will be speaking at in March. The 7th Annual Private Equity Southeast Asia Summit 2012 is a great opportunity for you to capitalize on the pre-eminent gathering of Southeast Asia-focused private equity professionals and LPs.

Private equity firms ignore Southeast Asia at their own peril; as this Summit shows, leading private equity investors have long-recognized the huge potential for returns in the region. Don't miss this opportunity to broaden your reach in Southeast Asia, meet with investors, and better understand how others are investing in the region. The event takes place in Marina Mandarin, Singapore on March 7-8, click here to learn more about the summit.

I will be delivering a speech on a topic that I have spent the last year researching in-depth: family office investment preferences. I can't think of a topic more important for private equity firms looking to raise capital and yet I rarely see GP's devoting significant time to understanding and focusing marketing efforts specifically on family offices. If you sign up to attend the Private Equity Southeast Asia Summit 2012 you will hear my talk on what family office investors look for in private equity fund managers as well as many other presentations from private equity authorities--from prominent limited partners to top-tier fund managers.

With 40 speakers already committed, and over 40 LP decision makers confirmed to attend, this summit is dedicated to providing the Southeast Asia Private Equity sector with the definitive forum to network and learn. It will enable you to understand how you can capitalize on the buoyant PE market in South East Asia.

Establish local connections within Southeast Asia’s growing markets to facilitate your entry and growth into the regions hottest sectors and industries looking for investors
Meet institutional LPs waiting to capitalize on rapidly emerging private equity investment markets in the region
Develop a deeper understanding of Southeast Asia’s often complex GP-LP and GP-investee company relationships to warrant greater success in deal sourcing, structuring and fundraising.

If you're ready to secure your seat at this valuable program then simply sign up here.

See you this March in Singapore!

Richard C. Wilson
Founder, Private Equity Investment Group

Tags: private equity event, private equity summit, private equity conference, private equity southeast Asia, private equity Asia, Private Equity Southeast Asia Summit, 7th Annual Private Equity Southeast Asia Summit 2012, private equity capital raising, family offices, events

Invest in Private Equity

2011-12-05T12:23:00.000-08:00

Why Invest in Private Equity

Free CPEP Video: Why Invest in Private Equity

The following video is borrowed from the Certified Private Equity Professional training program. A common question we receive is simply, “Why invest in private equity?” In this video, you will learn some of the common reasons that investors choose to invest in private equity. If you are reading this via email or RSS, please click here to watch.

Video Transcript/Summary: The strategies and tips provided within this video module include:

Coming soon.

I hope that this video has given you some reasons to consider investing in private equity if you meet the requirements and have sought counsel with a financial and/or legal professional. If you're interested in learning more about private equity through our private equity training program, visit http://businesstraining.com/Private-Equity-Certification.html

Tags: private equity training, private equity certification, what is private equity, invest in private equity, why invest in private equity, investing in private equity, how to invest in private equity, private equity investors

Leveraged Buyout Models

2011-09-30T08:37:00.001-07:00

Leveraged Buyout Modeling
Training Series | Leveraged Buyout Modeling | Part 3
The following video is borrowed from one of our BusinessTraining.com training programs, where you can also learn about the Certified Private Equity Professional program. This video is the second of a series on leveraged buyout modeling that I am including here as a free educational resource. If you missed the first video in this series, be sure to watch Leveraged Buyout Modeling Part 1 and Leveraged Buyout Modeling Part 2. Note: if you're reading this via email or RSS feed, click here to watch this free video on leveraged buyout modeling.

Video Transcript/Summary: The strategies and tips provided within this video module include:
Coming soon.

Please stay tuned for our free training videos from the Certified Private Equity Professional designation.

Private Equity Tracker Tool

Private Equity Career Guide

Private Equity Training

Private Equity Directory - List of Private Equity Firms

Tags: leveraged buyout modeling, leveraged buyout, leveraged buyouts, leveraged buyout definition, models leveraged buyout, how to construct a leveraged buyout model, leveraged buyout modeling example, leveraged buyout models, leveraged buyout model, what is a leveraged buyout?, LBO, LBO modeling

Leveraged Buyout Model

2011-09-28T16:41:00.000-07:00

Leveraged Buyout Modeling

Free Training Series on Leveraged Buyout Modeling - Part 2

The following video is borrowed from one of our BusinessTraining.com training programs, where you can also learn about the Certified Private Equity Professional program. This video is the second of a series on leveraged buyout modeling that I am including here as a free educational resource. If you missed the first video in this series, be sure to watch Leveraged Buyout Modeling Part 1. Note: if you're reading this via email or RSS feed, click here to watch this free video on leveraged buyout modeling.

Video Transcript/Summary: The strategies and tips provided within this video module include:

Coming soon.

Please stay tuned for our free training videos from the Certified Private Equity Professional designation.

Tags: leveraged buyout modeling, leveraged buyout, leveraged buyouts, leveraged buyout definition, models leveraged buyout, how to construct a leveraged buyout model, leveraged buyout modeling example, leveraged buyout models, leveraged buyout model, what is a leveraged buyout?

Leveraged Buyout Modeling

2011-09-23T10:47:00.000-07:00

Leveraged Buyout Modeling

Free Video Training Series on Leveraged Buyout Modeling

The following video is borrowed from one of our BusinessTraining.com training programs, where you can also learn about the Certified Private Equity Professional program. This video is the first of a series on leveraged buyout modeling that I am including here as a free educational resource. I will add the second and third parts to this series on leveraged buyout modeling next week. Note: if you're reading this via email or RSS feed, click here to watch this free video on leveraged buyout modeling.

Video Transcript/Summary: The strategies and tips provided within this video module include:

Coming soon.

Please stay tuned for our free training videos from the Certified Private Equity Professional designation.

Full Day Capital Raising Workshop in Boston

2011-09-16T11:06:00.000-07:00

Northeast Capital Raising Workshop

Attend a Full Day Capital Raising Workshop in Boston

Only 37 Seats Left for Next Thursday's Full Day Capital Raising Workshop in Boston

If you want to raise capital more effectively, join your peers at the Harvard Club of Boston next week for a premier capital raising workshop this September. Although it is hosted by the Hedge Fund Group, the event is not exclusive to hedge funds. Private equity funds and other investment fund managers looking to raise capital from family offices are welcome.

At this workshop you will learn how to effectively raise capital from elusive single and multi-family office wealth management firms. If you do not have a targeted approach to raising capital from family offices then you can't afford to miss this full day workshop.

By attending this workshop you will receive training on capital raising best practices, family office marketing, capital networks, and the compliance pitfalls of raising capital from UHNW and HNW investors. Enjoy the fully catered breakfast, lunch, and the peer networking sessions included with your registration. If you'd like to attend this workshop or learn more about how it can improve your capital raising efforts visit this page.

This workshop costs $797 for one participant, $997 for two participants, and it is scheduled for Thursday September 22nd, 2011 from 8:00AM to 4:00PM EST at the Harvard Club of Boston located at 374 Commonwealth Avenue Boston, MA 02215 (Directions)

Don't Delay!

Seating is Limited Due to Room Size & Catering: As of 9/16/2011, there are just 34 seats left for this event. Seats are sold on a first-come, first-served basis. To register or learn more about this full-day workshop please read below. If you need to print out the details on this workshop please download our workshop brochure in PDF format.

Our team has hosted dozens of workshops and events and we structure them so that no service providers are allowed to participate, no guest speaker pitching is allowed, and we guarantee that you will get massive value from the workshop. If you are not satisfied we will give you all of your money back, no questions asked.

What You Will Gain

If you're still debating whether this conference will help you raise capital, consider what you'd be missing out on (and what your competitors will be learning):

The 7 Proven Strategies for Raising Capital Every Quarter from family offices and high net worth prospects; these are actionable strategies that anyone can implement to raise more capital.
The common compliance pitfalls of raising capital in this area including: a live Q & A session with a leading fund compliance attorney with specific experience in crafting capital raising agreements
Four $100,000 capital raising mistakes are almost always made and how you can avoid those and use these lessons to your advantage
Some of the capital raising tactics and concepts that we will present include The Capital Raising Funnel, The Angels & Demons Strategy, the Horse Betting Wedge, and the HNW Avatar Model
1 full-hour of post-event capital raising strategy and marketing material feedback on your pitch book and marketing materials directly from Richard Wilson. This allows you to apply what you have learned, explain how you are trying to raise capital and get direct email feedback from Richard Wilson on what you should consider changing and improving.

Why Not Attend This Conference?

We understand that your time and your money are valuable to you. That is why we have instituted a guarantee that this will be a productive use of your day. If you attend this conference and find that you don’t get at least $5,000 of value, we will give you 100% of your money back. You will also be allowed to keep the e-books and swipe files for your trouble.

You may be wondering how can we afford to make this offer. We can make this offer because we have included so many valuable interviews, reports, tips, strategies, templates and best practices that we are confident you will benefit from this workshop. The last time our organization offered this workshop not a single person in the crowd requested a refund and everyone received a ton of value from the full-day training workshop. If you are ready to secure your seat for this capital raising workshop simply click here.

Related to: Full Day Capital Raising Workshop in Boston

Tags: Full Day Capital Raising Workshop in Boston, Boston Investment funds, Investment funds in Boston, Boston Conference, Private Equity Capital Raising, Family Office Conference, Capital Raising Conference, Fund Marketing Conference, Investment Fund Marketing Conference, Third Party Marketing conference, Capital Raising Workshop

Private Equity 2012 Presidential Election

2011-08-31T10:17:00.001-07:00

Private Equity 2012 Presidential Election
Will Private Equity Back President Obama in 2012?
Many private equity and hedge fund managers made major donations to President Obama in his 2008 presidential campaign. Now, however, there are questions of whether professionals in the private equity and hedge fund industries will support him again or back a Republican challenger. One big concern is taxation and whether new revenue increases will come in the form of closing the so-called carried interest loophole or other measures that will mean private equity and hedge fund execs pay more.
Tax increases will almost certainly play some part in the Democrats’ proposal to the bipartisan Congressional committee, when they assemble to consider the minutiae of the $1.5 trillion in deficit cuts that are required pursuant to the debt ceiling deal agreed last month between Obama and Congress.
Where will the new taxes come from? Most likely, attempts will be made to close the so-called “carried interest loophole”, thereby taking a piece of 20% profit share participation better known as “carried interest.” Traditionally, carried interest is taxed at lower capital gains rates, so long as the underlying investments are held for at least one year.
Democrats have frequently campaigned to repeal this rule and charge tax on all such revenues at the significantly higher ordinary income rates.
Will the days of Obama’s high-profile courtship of these financial titans become a thing of the past, as concerns over tax hikes take center stage? Source

Tags: private equity donations, private equity donor, Private Equity Democratic Donor, Private Equity President Obama, Private Equity Barack Obama, Private Equity Funds Obama, Private Equity Fundraiser, Private Equity Presidential Election 2012

Pension Fund Investment Jobs

2011-08-24T16:41:00.001-07:00

Pension Fund Investment Jobs
BE PART OF THE RETIREMENT FUND INCORPORATED TEAM IN LONDON,UK

A pension fund based in Malaysia is looking for qualified applicants for three positions: fund manager, investment analyst and office manager. Hiring preference is given to applicants who have completed Certified Private Equity Professional (CPEP), Certified Hedge Fund Professional (CHP) designation or Financial Analyst Specialist (FAS) training programs.

Kumpulan Wang Persaraan (Diperbadankan) (“KWAP”) or Retirement Fund (Incorporated) (“RFI”) is a Malaysian based Pension Fund Institution established on 1^st March 2007. Our main business functions are to manage contributions from the Federal Government, Statutory Bodies, Local Authorities as well as administration, management and investment of the Fund in equity, fixed income securities, money market instruments and other forms of investment as permitted under the Malaysian Retirement Fund Act (Act 662).

In line with our business expansion plans, we are in the midst of opening an office in London, UK which will focus on International Equity Investment. In driving to achieve the above objective, we believe that high performance talent is the most crucial element in creating our organization’s success.

As an organization that is in constant pursuit of high performance and excellence, our Employee Value Proposition are as follows:

v  We provide an opportunity for individuals to contribute towards the growth of the Malaysian pension fund industry.
v  We provide personal and professional career growth.
v  We offer competitive reward and conducive work environment.

We believe our Employee Value Proposition offers a great opportunity for you to be part of our high performance team members to drive the expansion of our business plan in London, UK.

We welcome you to apply for the following vacancies in our organization that suits your background and expertise. The detailed of the job descriptions of the positions can be further viewed at www.kwap.gov.my

FUND MANAGER
·         At least 3-5 years experience in managing equity funds with good track records.
·         Bachelor’s Degree in related field e.g. Accountancy, Finance, Business Administration, Economics and/or professional qualification.
·         Strong analytical skills and mastery in qualitative and quantitative techniques of equity investment.
·         Good knowledge of investment related systems i.e. Bloomberg, Reuters, Datastream.
OFFICE MANAGER
·         3-5 years of experience in office management preferably in investment and financial industry.
·         Bachelor’s Degree in Business Administration, HRM or Public Administration.
·         Ideally, experience in using Bloomberg and Reuters.

RESEARCH ANALYST

·         3-5 years related experience.
·         Bachelor’s Degree in Accountancy, Finance or related field.
·         Possess strong technical and analytical skills.
Good knowledge of investment related to Bloomberg,
Reuters and Datastream.

For interested candidates, please submit your full CV stating the current and expected salary, contact numbers together with a recent passport-sized photograph to:

The Vice President
Human Resource Department
Retirement Fund Incorporated
Level 4, Menara Yayasan tun Razak
200, Jalan Bukit Bintang
55100 Kula Lumpur

Email: career@kwap.gov.my
Closing date: 30 September 2011

Only shortlisted candidates will be notified

Tags: Certified Hedge Fund Professional Designation, Certified Private Equity Professional program, Financial Analyst Specialist Certification, job listings, jobs, finance jobs, investment jobs, careers, KWAP, Kumpulan Wang Persaraan, Kumpulan Wang Persaraan job, Malaysia

AXA Private Equity Funds

2011-08-12T07:53:00.001-07:00

AXA Private Equity Funds

AXA Private Equity Raises $3b for Secondary Fund of Funds

AXA just completed a buying spree of secondary private equity portfolios from banks to the tune of $5 billion. Now, AXA Private Equity has reportedly raised $3 billion for a secondary private equity fund of funds. AXA Private Equity is looking to raise as much as $4 billion for the fund, AXA Secondary Fund V, a $1 billion increase from the last secondary fund of funds that the firm launched in 2006.

New regulations like the Volcker Rule and the Basel III capital requirements have forced many banks to sell off non-core assets which secondary fund of funds like AXA Private Equity will hope to buy up at a discount. If you are looking for contact details on AXA Private Equity please see PrivateEquityDirectory.com

AXA Private Equity has been raising capital for the new fund since fall last year, and aims to raise $3.5 billion for AXA Secondary Fund V, with a $4 billion hard cap or the maximum amount, the person said. It raised $2.9 billion for its last secondary fund of funds in 2006.

The fund, to be used in buying private-equity fund stakes from investors globally, will provide AXA Private Equity with additional ammunition to scoop up non-core bank assets as the lenders seek to free up their balance sheets.

The “Volcker rule,” a part of the financial regulatory overhaul, limits banks’ ability to invest with their own capital. Meanwhile, increased capital requirements under Basel III mean banks need to keep a bigger capital buffer relative to their assets, which also encourages sales of units.

AXA Private Equity, with $25 billion assets in Europe, North America and Asia including $14 billion in funds of funds, acquired a $740 million portfolio from the U.K.’s Barclays PLC and $1.7 billion in private-equity assets from Citigroup in June. Last year, it bought $1.9 billion in private-equity funds from Bank of America Corp. and a $718 million portfolio from French bank Natixis. Source

If you are looking for contact details on AXA Private Equity please see PrivateEquityDirectory.com

Tags: AXA private equity investments, private equity firm, AXA private equity, AXA private equity management, AXA private equity contact, AXA private equity website, AXA private equity LP, group, news

Fortress Investment Group Loss

2011-08-05T10:15:00.001-07:00

Fortress Investment Group Loss

Fortress Investment Group Posts 13% 2Q Revenue Loss

Fortress Investment Group continues to boost assets under management despite stiff losses in the second quarter of 2011. A decline in segment revenue contributed to losses for the hedge fund and private equity fund management firm. CEO Daniel Mudd expressed his dissatisfaction with the second quarter loss, "Our earnings today were just off expectations, but further off what we expect from ourselves."

Fortress Investment Group LLC's (FIG) second-quarter loss widened on a double-digit decline in revenue, in what the private-equity and hedge-fund manager admitted were disappointing results.

Losses in the firm's liquid hedge funds, which invest in liquid assets like equities and commodities, wiped out "substantially all" of the accrued performance fees recorded in the first quarter, Fortress said.

Fortress Macro Fund Ltd. posted a 5.4% net decline in the second quarter, while Drawbridge Global Macro Fund Ltd. and Fortress Commodities Fund L.P. recorded losses of 6% and 6.4% respectively. The funds were still down between 4.1% and 5.7% this year through July. But its Asian fund held up with a 3% gain in the first seven months.

Alternative-investment managers like Fortress have posted poor hedge fund performance recently amid the volatile economy and weakness in commodities.
But Fortress said it's optimistic about the second half, saying its credit business continues to generate strong returns and its private equity business has continued valuation gain. Source

If you are looking for contact details on Fortress Investment Group and over 1,000 other private equity firms please see PrivateEquityDirectory.com

Tags: private equity investments, private equity fortress group investment, Fortress Investment Group Loss, Fortress Investment Group investments, Fortress Investment Group Loss buyout, Fortress Investment Group Loss assets under management

Blackstone Group Emdeon

2011-08-04T10:12:00.001-07:00

Blackstone Group Emdeon

Blackstone Group Taking Emdeon Private for $3 Billion

The healthcare IT provider Emdeon Inc (EM.N) has agreed to a buyout from Blackstone Group. Blackstone Group (BX.N) will take Emdeon private for $3 billion. This deal is part of a larger trend of private equity activity in the healthcare sector. If you are looking for contact details on Blackstone Group and hundreds of other private equity firms please see PrivateEquityDirectory.com

The private equity firm's offer of $19.00 per Emdeon share represents a 17 percent premium to Emdeon's Wednesday close of $16.25 on the New York Stock Exchange.

"I think $19 per share is fair," said Caris & Co analyst Leo Carpio.
Shares of Nashville, Tennessee-based Emdeon, rose 14 percent on Thursday morning to $18.57, just shy of Blackstone's offer.

Blackstone's offer for Emdeon follows the recent $5 billion buy-out of medical devices firm Kinetic Concepts Inc (KC.I) by Apax Partners and two Canadian pension funds, and TPG Capital's TPG.UL $2 billion deal to buy diagnostics firm Immucor Inc (BLUD.O).

Carpio also added that private equity's interest in healthcare IT providers stems from the fact that while the fiscal deficit would result in Medicare and Medicaid reimbursement cuts, hospitals and healthcare providers will seek healthcare IT providers to cut costs. Source

Tags: private equity investments, private equity firm, private equity assets, Blackstone Group management, Blackstone contact, website, LP, group, news

Private Equity Corporations

2011-07-29T09:33:00.001-07:00

Private Equity Corporation

Private Equity Firms Look to Corporate Division Primary Deals

Private equity firms looking for new deals are increasingly turning to corporate divisions. Instead of buying out whole corporations, private equity firms are buying out corporate divisions such as GlaxoSmithKline's (GSK.L) non-prescription drugs, fashion group PPR's (PRTP.PA) catalogues and online retail division Redcats, and Oberthur's (FCOFDO.UL) smart cards business. Private equity firms are not the only ones trying to make these type of deals, they are also facing competition from corporate rivals.

For private equity, the rewards can be greater than with companies that pass from one firm to another: the buyer can have the first go at cutting costs and optimizing performance, though the risks of failure can be higher.

Such deals also seem to go down better with some investors who have been particularly critical of the so-called "pass the parcel" deals that have been the mainstay of private equity activity for the last 18 months.

"The pipelines in Europe are more active than in the United States. I think there are more carve-outs to come. There is not a huge trend here but there is certainly more than there has been in the last 12 months," one banker familiar with the processes said.

Also on the block is Schneider Electric's (SCHN.PA) Custom Sensors and Technology (CST) unit and France Telecom's (FTE.PA) subsidiary Orange Switzerland. Source

Tags: private equity corporation, private equity corporations, private equity corporate division, private equity primary deal, private equity primary deals, private equity firm, private equity, management, contact, website, LP, group, news

Private Equity Funds Pay

2011-07-28T10:22:00.001-07:00

Private Equity Funds Pay

Private Equity Face Regulations on Bonuses, Pay Disclosure

Hedge funds and private equity firms thought they had escaped curbs on pay from Britain's Financial Services Authority and other European regulators, but that doesn't seem to be true, according to PwC. Hedge funds and private equity firms are running into rules on how and when bonuses are paid and more pay disclosure.

Many managers thought they would be able to avoid the pay regulation of financial institutions in Europe's Capital Requirements Directive but many of the new policies actually apply to asset management firms including private equity and hedge funds, an unwelcome surprise to many.

The AIFMD paper, published last week, targets asset managers, extending the reach of regulations made in Europe's Capital Requirements Directive, which referred only to "financial institutions" and which many managers thought they could avoid, Wright said.

"The rules will mean sweeping changes to the pay policies and practices of many asset management firms. Many thought they'd escaped the brunt of banking pay regulations, but they're coming back to bite," said Tim Wright, reward director at PwC.

Under earlier rules from the FSA, many asset managers fell into the most leniently treated group, while most private equity houses were exempt.

Most managers will now ultimately face much tougher rules, PwC said.

The new measures in the AIFMD -- a controversial piece of legislation that raised hackles when first proposed in the wake of the credit crisis -- require firms to pay at least half of bonuses in stock and defer between 40 and 60 percent of variable pay for around three to five years. Source

Tags: private equity pay, private equity salary, private equity average salary, private equity compensation, private equity bonus, private equity analyst pay, private equity manager pay, private equity manager salary

TA Associates DNCA Finance

2011-07-28T10:00:00.000-07:00

TA Associates DNCA Finance

Press Release: TA Associates Invests in DNCA Finance SA

The following press release on TA Associates covers the private equity firm's recent investment in DNCA Finance SA. Click here to gain access to the contact details for TA Associates and more than 1,000 other private equity firms in our private equity firm directory.

BOSTON and LONDON, July 28, 2011 – TA Associates, a leading global growth private equity firm, today announced that certain of its private equity funds (collectively “TA Associates”) have completed an investment in DNCA Finance SA, a French asset management firm with €5.8 billion in funds under management. Terms of the investment have not been disclosed.

TA Associates purchased its stake in DNCA from majority shareholder Gruppo Banca Leonardo, the pan-European, Milan-based investment bank. Following the transaction, the shareholder base is now comprised of TA Associates, who will become the largest shareholder, the incumbent management team and Gruppo Banca Leonardo. The management team, which will continue to be led by executive chairman Joseph Chatel and CEO and CIO Jean-Charles Mériaux, will increase their shareholding as part of the transaction and will hold in excess of 40 percent of the equity. Gruppo Banca Leonardo will hold around 10 percent of the equity.

Headquartered in Paris and staffed by 45 employees, DNCA is one of the largest independent fund management boutiques in France. The company was founded in 2000 by Xavier Delaye, Charles Nouailhetas and Joseph Chatel, and now manages a diverse range of equity, bond, convertible and absolute return products investing both in France and internationally. DNCA’s fund stable includes the €1.8 billion Centifolia, one of France’s largest equity funds, managed by renowned fund manager Jean-Charles Mériaux. In March of this year, DNCA was awarded best French Asset Manager in its class at the Grand Prix Eurofonds-FundClass 2011 Awards.

“Having previously made investments in the likes of Jupiter Fund Management in London and First Eagle in the U.S. among many others, TA’s deep experience in the fund management sector was very important to us in selecting a new partner,” said Jean-Charles Mériaux, CEO and CIO of DNCA. “With its significant experience in this sector, TA will be able to assist DNCA with our continued expansion in France and elsewhere in Europe.”

“DNCA is one of only a handful of independent fund managers in the French market that has established a strong brand both amongst distribution partners and with investors,” said Christopher Parkin, Director, TA Associates Ltd., who will join DNCA Finance’s Board of Directors. “The company has a broad fund management team running a diverse range of funds which provide it with significant room to grow.” Ajit Nedungadi, a Managing Director in TA’s London office will also join the board.

“TA has built an impressive reputation in the asset management industry as a sophisticated long-term investor,” said Joseph Chatel, Executive Chairman, DNCA. “We very much look forward to working together to grow the business.”

“This transaction is consistent with our mission to be a leading, independent group, focused on its clients across continental Europe,” said Gerardo Braggiotti, CEO of Gruppo Banca Leonardo. “DNCA continues to be an important partner of our group and we are happy to have advised them to find the best strategic opportunity for their growth.”

TA Associates has more than four decades of investing experience, focusing on profitable growth companies. The firm is one of the most experienced investors in investment management companies, having invested in 15 firms over the last 22 years. TA’s investments in the asset management industry include Affiliated Managers Group, AIM Management Group (Invesco Ltd.), Evanston Capital Management, First Eagle Investment Management, Jupiter Fund Management, K2 Advisors, Numeric Investors, Stadion Money Management and Thomson Advisory Group (PIMCO).

Tags: TA associates, TA Associates DNCA Finance, TA Associates DNCA Finance SA, TA Associates DNCA Finance deal, TA Associates DNCA Finance investment, TA Associates DNCA Finance merger, TA Associates DNCA Finance buyout, TA Associates DNCA Finance assets

Vintage Year Private Equity

2011-07-27T09:43:00.002-07:00

Vintage Year Private Equity

What is the Vintage Year? | Private Equity | Definition

I was looking through some of the training videos we're uploading for the Certified Private Equity Professional program and I found a topic that I had not defined on here: vintage year.

The vintage year is the year in which the private equity or venture capital fund first makes its investment. So, this is the time when the capital is first contributed from the private equity fund. This should be distinguished from vintage returns which refers to the years of the highest returns within a private equity investment.

Here is more on Vintage Year Private Equity:

Investors can use the vintage year of an investment to further explain its returns. Having a vintage year occur at the peak or bottom of a business cycle can affect the later returns on the initial investment. During peaks in the market, new companies are more likely to be overvalued based on the current economic outlook. This increases the expectations on an investments' return because more money is initially contributed. Inversely, companies are typically undervalued during low points in the market; because less capital is initially contributed, these companies or projects have less pressure to generate big returns. Source

Tags: vintage year, private equity vintage, private equity vintage year, private equity vintage returns, venture capital vintage returns, venture capital vintage year

Eric Cantor Private Equity

2011-07-25T21:22:00.001-07:00

Eric Cantor Private Equity

Cantor: Ally to Hedge Funds and Private Equity in Debt Talks

It would be difficult to avoid writing in some way about the debt talks that are taking place in Washington. There is an interesting profile of Republican House Majority Leader Eric Cantor and his work fighting against attempts to raise taxes on hedge funds and private equity. Representative Cantor walked out of meetings with Vice President Biden, largely because Cantor refused to change the tax treatment of private equity and hedge fund managers. Since then, the debt ceiling negotiations have largely involved broader changes to the tax code and bigger cuts.

As the ratings agencies threaten to downgrade the United States' credit rating, Wall Street is bracing for the fallout if a deal is not reached, but at least for the moment it looks like hedge funds and private equity firms will be spared--largely thanks to Eric Cantor.

Among the White House’s top demands for new revenue are changes in the tax code affecting hedge funds, private equity firms and real estate partnerships, which would raise an estimated $20 billion over 10 years.

For the past four years, Cantor has taken the lead in the House on fighting the same changes. He also has been one of the top recipients of contributions from those industries — last year, his two fundraising committees received nearly $2 million from securities and investment firms and real estate companies, more than double the figure for Boehner (R-Ohio).

The hedge fund and private equity proposals were at the center of Cantor’s break with Biden’s team. Since then, the prospect for any immediate tax increases has declined, with the focus turning instead to a package based on spending cuts, with broader tax reform postponed.
Source

Tags: private equity investments, private equity firm, private equity Eric Cantor, Representative Eric Cantor, contact, website, LP, group, news