Millennium technology value partners of new york hires former Coller Capital executive. Calpers is pitching more than $800 million of private equity fund stakes on the secondary market. Jfk is restructuring its placement-agent unit and starting a separate division.
Millennium technology value partners of new york hires former Coller Capital executive. Calpers is pitching more than $800 million of private equity fund stakes on the secondary market. Jfk is restructuring its placement-agent unit and starting a separate division.
Millennium technology value partners of new york hires former Coller Capital executive. Calpers is pitching more than $800 million of private equity fund stakes on the secondary market. Jfk is restructuring its placement-agent unit and starting a separate division.
of New York has hired Joseph Marks to line up secondary-direct investments in companies backed by venture capital funds. Te move was unexpected as Marks, a former Coller Capital executive, had just co-founded a two-man second- ary-market brokerage called Castlehaven Advisors in mid-2010. His partner there, Tom Dann, now is in talks to bring in a new stafer and may hire additional personnel. Castlehaven focuses on sales of interests in funds backed by the U.S. Small Business Administrations Small Business Investment Company program. James Hoffman has lef a post in Pritzker Groups buyout unit to set up his own frm. Like Pritzker, Hofmans startup, called Magna Capital, is based in Chicago. Magna will concentrate on buyouts and recapitalizations of U.S. businesses in a variety of sectors, including industrial THE GRAPEVINE JANUARY 26, 2011 Calpers Seeks Bids for Hefty Fund Interests Calpers is pitching more than $800 million of private equity fund stakes on the secondary market. Te $226 billion pension system began showing the ofering to prospective buy- ers in the last week or so via UBS, working under the codename Project Alpha. A sale is expected to take place quickly, perhaps in a matter of weeks. Project Alpha is likely to rank among the biggest secondary-market sales of early 2011. For a portfolio of its size, however, it contains a small number of positions an estimated fve or six buyout-fund interests of up to $250 million each. Te pledges are weighted heavily toward large vehicles from well-known manag- ers, with sources pointing to Blackstone Group, Carlyle Group, Kohlberg Kravis Rob- erts and TPG as ftting the profle for shops whose funds might be in the mix. Tat said, the specifc identities of the underlying managers remain unclear. So what is Calpers motivation? Potential pricing appears attractive, with stakes See UBS on Page 5 Jefferies Reshaping Fund-Placement Division Jefferies & Co. is restructuring its placement-agent unit while starting a sepa- rate division to raise capital for clients distressed-asset and special-situations vehicles. Te new unit would pitch both private equity funds and hedge funds as part of its targeted strategy, with an initial concentration on the U.S. and Western Europe. It would function as part of Jeferies high-yield bond desk. Kelli Roiter is leading the efort. She moved to the high-yield department at year- end from Jeferies broader placement group, which has sufered from staf losses as well as accusations that it upset some large clients by employing heavy-handed marketing tactics. Now the word is that the New York investment bank is planning a new look for the operation, although details of that efort remain unclear. Transfers and defections already have depleted the groups staf, which recently See JEFFERIES on Page 6 TPG Strings Together Small-Investment Series TPG wants to replicate a fund that pursues investments deemed too small for its main buyout vehicles. Te Fort Worth, Texas, frm has yet to set an equity target for the new pool, called TPG Star 2, but is seen as likely to aim for $1.5 billion the same amount it col- lected for the inaugural fund in the series. It began meeting with investors in recent weeks, telling them it will likely start a formal marketing push during the second half of the year. TPG Star 2 would pursue investments up to $75 million each while employing venture capital, growth-equity, buyout and turnaround strategies. While it would have the ability to invest globally, the entity would more likely mimic its 2008-vin- tage predecessor by focusing on deals in North America, India and China. TPG has told backers that the frst fund is nearly out of capital. Tat vehicle took See TPG on Page 6 2 LARGEST FUND MANAGERS 3 NASBIC Extends Membership Reach 3 StepStone Ponders Secondary Offering 4 Morgan Stanley Chips Away at Target 4 CIVC Shortfall Made Offcial 4 China Specialist Shifts to Co-Investing 5 Bank Street Maps Marketing Route 5 Constitution Opts for Dual Pitches 5 LGV Pitch Enters Second Round 6 Matrix Folds Placement Efforts 7 FUND-RAISING ACTION Private Equity INSIDER Blackstone, Carlyle In Line for Biggest-Manager Throne 2 January 26, 2011 Largest US-Based Managers of Private Equity Funds Excludes frms primarily managing real estate or hedge funds Assets Under Management 12/31/10 ($Bil.) 1 Goldman Sachs $104.7 2 Blackstone Group 102.3 3 Carlyle Group 97.7 4 Bain Capital 65.0 5 Kohlberg Kravis Roberts 58.8 6 Apollo Management 55.2 7 TPG 48.0 8 Oaktree Capital Management 47.3 9 Credit Suisse 40.8 10 Warburg Pincus 32.0 11 J.P. Morgan Asset Management 29.4 12 Cerberus Capital Management 24.0 13 Fortress Investment Group 23.7 14 Angelo, Gordon & Co. 23.0 15 PineBridge Investments 23.0 16 Hellman & Friedman 22.9 17 Providence Equity Partners 22.0 18 HarbourVest Partners 21.4 Assets Under Management 12/31/10 ($Bil.) 19 First Reserve $20.3 20 Adams Street Partners 20.0 20 Welsh Carson Anderson & Stowe 20.0 22 Ares Management 19.3 23 Lexington Partners 18.0 24 General Atlantic 17.0 24 Riverstone Holdings 17.0 26 Thomas H. Lee Partners 16.2 27 NB Alternatives 16.0 27 TA Associates 16.0 29 Madison Dearborn Partners 14.6 30 J.C. Flowers & Co. 14.4 31 Advent International 14.1 32 Silver Lake Partners 14.0 33 Commonfund Capital 11.8 34 TCW Group 11.5 35 New Enterprise Associates 11.0 36 BlackRock 10.2 Goldman Sachs is still the largest operator of private equity funds in the U.S., but could soon be unseated as new regula- tions force banks to step back from the business. Goldmans private equity vehicles had $104.7 billion under management as of Dec. 31, according to Private Equity Insiders Private Equity Directory. Tat marks a $10.3 billion decline from a year earlier, when the bank also was the market leader and it has indicated that it will keep chipping away at the total. Tere are even indications that Goldman might spin of its private equity operations altogether. Te reason: Te Dodd- Frank Acts so-called Volcker Rule, which once implemented will restrict banks from sponsoring alternative-investment pools while limiting their investments in such vehicles to an amount equal to 3% of Tier 1 capital. Goldman, which repre- sents an important source of backing for its own funds, had $68.5 billion of Tier 1 capital as of June 30. Tat means it could only hold $2 billion of interests in alternative-investment ve- hicles. Who could step up to take Goldmans place? Number-two Blackstone Group is only a hair behind, at $102.3 billion, and has been adding assets. Te frms total represents a $15.4 bil- lion increase from a year ago, when it was in third place. Blackstones count stands to grow as well, as the shop con- tinues raising capital on top of the roughly $15 billion it already has collected for its newest buyout fund, Blackstone Capital Partners 6. Te second-place fnisher from 2009, Carlyle Group, is now in third. Its $97.7 billion tally marks an increase of $9.8 billion from a year ago, however, and it could breeze into frst place by completing a planned takeover of the 40 billion ($55 billion) AlpInvest Partners. As non-bank players, Blackstone and Carlyle will be insu- lated from the Volcker Rule. At the same time, the institutions are under pressure to add assets Blackstone to keep holders of its publicly traded shares happy by increasing fee revenues, and Carlyle to bulk up ahead of an initial public ofering of its own. Apollo Management also is among those planning to go pub- lic. It moved up to sixth place from eighth thanks to an increase in assets. TPG, another IPO candidate, slipped one spot to sev- enth despite a slight rise in its total. Tose who might eventually be in the same boat as Gold- man include J.P. Morgan. Te bank, whose alternative-invest- ment exposure lies largely in hedge funds, ranks 11th with $29.4 billion in its private equity vehicles. Tats up $4.4 billion from 2009. Most top players saw their totals increase less than $10 billion in 2010. Private Equity Insiders Private Equity Directory can be See THRONE on Page 6 Private Equity INSIDER 3 NASBIC Extends Membership Reach Te National Association of Small Business Investment Com- panies is broadening its mandate. Te trade group, which until now has represented only pri- vate equity frms backed by the U.S. Small Business Administra- tions Small Business Investment Company program, wants to add non-SBIC players to its constituency. As part of the move, its planning to work with larger shops than those running most SBIC vehicles. Te organization also plans to change its name to the Small Business Investor Alliance. NASBICs expanded scope takes aim at mid-size private eq- uity frms namely, those running funds of up to about $600 million. Tey would include buyout and mezzanine-fnance shops, along with operators of funds of funds and secondary- market vehicles. Te move comes in part as a response to feelings among cer- tain mid-size players that they have been neglected by the pri- vate equity industrys main trade groups, the National Venture Capital Association and the Private Equity Growth Capital Coun- cil. Te thought is that the NVCA puts venture capital frms frst, while the Private Equity Growth Capital Council is will- ing to protect big buyout shops at the expense of their smaller peers. Te dissatisfaction was reinforced in the organizations re- sponses to a Dodd-Frank Act provision that requires most in- vestment frms with more than $150 million to register with the SEC. Te NVCA, for example, helped negotiate an exemp- tion for venture capital managers while telling lawmakers that buyout shops ofen eliminate jobs. Te Private Equity Growth Capital Council supported the signups, in part refecting the fact that most large buyout specialists already are enlisted with the SEC. For its part, the Private Equity Growth Capital Council has been trying to appeal to smaller frms and counts a few of those shops among its members. However, mid-size buyout man- agers still were lef to absorb higher compliance costs under Dodd-Frank. Teres a need for middle-market funds to be represented in Washington, NASBIC president Brett Palmer said. NASBICs increased focus on mid-size shops also ties in with heightened interest among those outfts in taking part in the SBIC program, which ofers low-interest government loans to fund managers that back small businesses. For example, Per- seus, Riverside Co. and Veronis Suhler Stevenson set out in the past year to assemble their frst SBIC funds. NASBICs recent lobbying eforts have included persuading lawmakers to exempt SBIC funds from the so-called Volcker Rule, a yet-to-be-fnalized Dodd-Frank provision that limits bank investments in outside managers alternative-investment vehicles. In fact, it appears SBIC pools will be the only type of private equity fund to gain such an exception. NASBIC also helped push for a measure that will allow some investors to pay no capital-gains taxes on profts from sales of small businesses. Palmer played a key role in both eforts. He joined the group in 2008 from the National Association of Insurance Commission- ers, and earlier held staf positions in the U.S. House and the U.S. Department of Commerce. StepStone Ponders Secondary Offering In a bid to simplify its secondary-market investments, Step- Stone Group is mulling the creation of a fund targeting those deals. Details of the efort remain unclear, but expectations are that the La Jolla, Calif., advisory frm will try to raise less than $500 million the amount of client capital it currently has de- ployed among secondary-market deals via at least a half-dozen separate accounts. Te idea behind establishing a commingled fund would be to reduce the complexity of managing similar activities going forward, at a time when interest in such plays has been grow- ing. Because secondary-market sellers typically like to deal with single buyers, StepStone generally sets up special-purpose vehicles to play that role when more than one of its clients want in on a purchase then distributes interests in those entities among its separate accounts. But doing that on a deal-by-by deal basis can be an expensive and bureaucratic process. Still, there are some clients that prefer the tailored nature of separate accounts. For that reason, StepStone is thinking about setting up its fund to invest alongside their portfolios. StepStone set out once before to assemble a secondary-mar- ket fund, only to drop the efort in favor of the separate-account format when all of the vehicles would-be backers wanted to commit $50 million or more. Should the new fund also attract only big-ticket pledges, the frm would likely stick with sepa- rate accounts again. StepStone generated some expectations that it would try again to start a secondary-market fund with its September pur- chase of Silverbrook Private Equity, a new frm whose personnel included former Hamilton Lane executive Michael McCabe and Pomona Capital alumni Thomas Bradley and Mark Maruszews- ki. Tey now work at StepStone, which prior to the acquisition had only one partner working solely on secondary deals: James Gamett. StepStones secondary-market clients include Ohio Public Employees, which opened a $200 million account late last year, and Arizona Public Safety Personnel. January 26, 2011 Free Snapshots of Fund Operators In a rush to find out the basics about a buyout or venture capital firm? Or maybe youd like to sort through the industrys 4,000-plus fund operators in a particular category, asset size or region of the world. No problem. Check out the FREE Private Equity Directory in The Marketplace section of PEInsider.com. Private Equity INSIDER 4 Morgan Stanley Chips Away at Target Morgan Stanleys latest fund of funds has begun attracting institutional backers. Te pledges came by way of the funds second close, which took place last week with $287 million. Tat followed a frst close in July with $150 million from friends and families of bank executives. Te entity, Morgan Stanley Private Markets Fund 5, has an overall equity target of $1.25 billion. However, investors said Morgan Stanley would be satisfed with anything more than $800 million, given weak market con- ditions. Te fund-of-funds business has not delivered good value across the board and investors are right to pull back a little, one manager said. On the other hand, Morgan Stanleys 2004-vintage Fund 3 and the 2008-vintage Fund 4 are posting top-quartile returns. Tose gains in part refect an ability to put capital to work more widely than most funds of funds, including capacity for co-in- vestments and secondary-market purchases both of which tend to produce larger returns than direct fund stakes. Fund 5 can use up to 25% of its capital for co-investments and 15% for secondary-market deals. Tat marks a change from Fund 4, which could direct a combined 60% of its equity to such transactions. Te reason for the step back: Morgan Stanley is routing secondary purchases to a fund it set up to focus solely on those deals. Tat vehicle, Morgan Stanley Global Secondary Opportuni- ties Fund, held its fnal close in May with $585 million. Morgan Stanley plans to pocket 5% of Fund 5s profts, which is typical for a fund of funds but is only half the typi- cal carry for a co-investment or secondary-market pool. Te vehicle invests in small or specialized funds, including those following buyout, venture capital, mezzanine and distressed- investment strategies. It is run by a unit within the $19 billion Morgan Stanley Alternative Investment in West Conshohock- en, Pa. Backers of the previous Private Markets funds include Amica and University of New Hampshire Foundation, along with U.K. pension systems Northumberland County Council and South Yorkshire Pensions. CIVC Shortfall Made Offcial CIVC Partners newest buyout fund has come up short of its equity target. Te Chicago frm quietly held the fnal close for its CIVC Partners Fund 4 in the past month or so with $375 million. It had initially talked about collecting as much as $700 million for the vehicle, but later lowered its goal to $575 million. Market players viewed that fgure as more reasonable. It still proved too ambitious though, as weak fnancial-market condi- tions stymied capital-raising eforts across the private equity industry. Potential backers also were turned of by the results of CIVCs largest purchase to date: a 2003 investment in bond insurer FGIC alongside Blackstone Group, Cypress Group, PMI Group and others. Tat deal proved disastrous as the now- bankrupt FGIC found itself unable to honor its policies with CIVC realizing less than 10% of its position. Indeed, there has been talk for a while that CIVC would miss Fund 4s capital-raising target. In mid-2010, for example, market players said the campaign was about to wrap up with as little as $450 million. Tat followed a February SEC fling that indicated the shop had collected just $250 million. Among the later commitments was a $25 million pledge from Montana State Board in September. CIVC invests mainly in business-service, fnancial-service, and marketing-and-information companies. Te shop and placement agent UBS began marketing Fund 4 in mid-2008 alongside a stapled secondary-market sale involving $400 mil- lion of stakes that Bank of America held in its previous vehicles. BofA, which had been one of CIVCs largest backers, pulled back from private equity funds around the same time. China Specialist Shifts to Co-Investing Fund-of-funds manager Private Equity Analytics has started a new capital-raising campaign, just a few months afer selling a large chunk of its holdings on the secondary market. Te New York shop hasnt set an ofcial equity target for the vehicle, dubbed ChinaBridge Crossborder Fund, but ap- parently has an eye on collecting $500 million over the next few years. Te plan is for the fund to follow in the footsteps of some prior Private Equity Analytics oferings by investing in main- land China. Instead of adhering to a traditional fund-of-funds strategy, however, it would gradually take on co-investments in batches of up to $100 million each. Te entity could have a pledge-fund structure that would allow limited partners to opt in or out of specifc deals. Te shif doesnt come as a total surprise, given Private Eq- uity Analytics recent history. Te shop, led by Citigroup Ven- ture Capital alumnus Tom Darling, merged with wealth manager MJX Capital in 2009. Darling already counted MJX founder Robert Sillerman among his clients at the time of the arrange- ment, which saw him take on the MJX name. But MJX wound up selling a large portion of its holdings the next year amid word that Darling would re-emerge under the Private Equity Analytics banner with a slightly diferent strat- egy. His shop, whose current connection to MJX remains un- clear, now is talking mostly to large limited partners interested in getting a toehold in Chinas private equity market. Chinas private investment community has a reputation for shutting out players without local ties something Private Eq- uity Analytics presents itself as having in the form of relation- ships with managers including China Renaissance Partners, Orchid Asia and WI Harper. Te shop has said it would co-invest mainly with frms it has worked with before. Private Equity Analytics has recently cited a 23.5% rate of return on investments in 11 funds run by six managers, most of which are not set to mature until 2014. January 26, 2011 Private Equity INSIDER 5 Bank Street Maps Marketing Route Fund-raising plans are taking shape within the growth- capital division that former Key Venture Partners executive Ted Mocarski is setting up at Bank Street Group. Mocarskis unit, Bank Street Capital, is expected to begin marketing its frst formal fund in the coming year with an equity target of $150 million to $200 million. Right now, the operation is investing with a smaller pool of capital from its executives and their acquaintances. Te timing of the funds launch will likely depend on how quickly Bank Street Capitals initial backing is put to work. Te frm has one deal in its portfolio so far, and probably wants to add one or two more so it can have some results to cite when it approaches new limited partners. Bank Street Group, an investment-banking frm in Stam- ford, Conn., ofcially opened Bank Street Capital for business last week. Te new shop focuses on investments in media, tele- communications and related technology businesses some- times drawing on input from two dozen employees of its parent who specialize in those sectors. However, Bank Street Capital wont get involved as a backer of Bank Street Group clients. Bank Street Capital is positioning itself to fll a void that emerged in recent years as venture capital shops that took part in growth-capital deals became less active and buyout frms looked toward larger transactions. At Key, a Boston operation that concentrates on growth-capital plays with backing from Cleveland-based KeyCorp, Mocarski was in charge of venture capital investments. Mocarski separated from Key about fve months ago. Sepa- rately, a team that ran funds of funds and secondary-market vehicles within KeyCorps Key Capital division spun of around yearend to form Cuyahoga Capital. Tat group, headed by Chris- topher Hanrahan and Bart Shirley, now is attempting to raise $125 million for a secondary-market entity called Cuyahoga Capital Partners 4. Constitution Opts for Dual Pitches Constitution Capital is simultaneously assembling a fund of funds and a co-investment vehicle. Te Boston shop began marketing the entities to investors in the U.S. and abroad in recent weeks, each with an equity tar- get of $250 million. It already has collected $14 million for the fund of funds, Ironsides Partnership Fund 2, while gathering $6 million for the Ironsides Co-Investment Fund 2. Te tandem oferings mark a change in strategy for Con- stitution, which last time around combined the fund-of-funds and co-investment approaches into a single vehicle called Iron- sides 1. Tat entity held its fnal close in June 2008 with $600 million, beating its $500 million equity target. Like Ironsides 1, the new funds invest in the U.S. while avoid- ing the smallest and largest underlying vehicles putting their money to work with pools of $300 million to $5 billion. Constitution formed in October 2007, when a Standard Life Investments team led by Daniel Cahill walked out following a dispute over the economics of a planned spinof. Its frst funds backers included the U.K. governments Universities Superan- nuation Scheme, which bought a 10% stake in the management company. Te shop also manages separate accounts, including a mandate it won last month from private equity newcomer Westfeld Contributory Retirement. LGV Pitch Enters Second Round LGV Capital has held a frst close for its latest buyout fund. Te London frm completed the initial round of marketing for its LGV 7 Private Equity Fund at yearend with 171 million ($275 million). It is aiming for 250 million overall. LGT invests in U.K. companies with enterprise values above 25 million, with a wide scope that includes consumer, leisure, service and healthcare businesses. Te strategy has worked well lately, positioning some of the shops funds as top performers. LGV 5, which held its fnal close in 2005 with 200 million, was posting a 76.9% rate of return as of Dec. 31. Tat crushed the average gain of 11.4% by European buyout funds from the same year, according to Preqin. Likewise, the 2004-vintage LGV 4 was returning 65.7% heading into this year compared to a 22.7% average. Its too early to judge how LGV 6 is performing. Tat fund held its fnal close in 2009 with 98 million. LGV, a unit of insurer Legal & General, is one of the oldest private equity frms in the U.K. It counts a number of European players among its backers, along with several U.S. institutions. Tey include Carnegie Mellon Universitys endowment, DuPont Capital, MetLife and University of Utah Endowment. UBS ... From Page 1 in funds like those in the Project Alpha portfolio recently trad- ing near net asset value. As for likely buyers, Calpers sees an opportunity to exploit demand from a number of large secondary-market fund opera- tors that are sitting on capital they would like to deploy soon, preferably in large chunks. UBS also is giving small and mid- size players a shot by allowing them to take specifc fund inter- ests or even portions of those positions say, $100 million of a $200 million commitment. A single suitor remains a possibility though, as was evi- denced by a number of sales last year. Two of them involved AXA Private Equity, which bought $1.9 billion of fund stakes from Bank of America and paid 534 million ($730 million) for two private equity units of Natixis. Canada Pension Plan also bought more than $1 billion of fund interests from PSP Invest- ments. Calpers sold $2 billion of private equity fund interests in 2008 via UBS. Tat sale, dubbed Project Monarch, saw Conver- sus Capital, HarbourVest Partners, Lexington Partners and Pan- theon Ventures emerge as the winning bidders. January 26, 2011 Private Equity INSIDER 6 Matrix Folds Placement Efforts Matrix Group is shuttering its placement-agent unit. Te London operation is scheduled to wrap up its activities as soon as March. It already has trimmed its staf this month from fve executives to two: partners Edward Holdsworth and Charles Lemon. Gone are principal Charlie Jolly, partner Enzo Narciso and associate James Shipperlee. Jolly now works as a vice president at Pathway Capital. Its unclear if Narciso and Shipperlee have found new jobs. Matrixs withdrawal from the fund-placement business is due to poor capital-raising conditions. Te shutdown came as a surprise, however, as is evidenced by the fact that Narciso had only arrived in September. He last led the private equity busi- ness at Union Bancaire Privee of Geneva. Matrixs placement division functioned as part of the com- panys investment-banking area, which has been expanding. Te placement team launched in 2004 with a focus on small funds, and went on to raise more than 1 billion ($1.4 billion) for clients including Langholm Capital, Life Sciences Partners and Litorina Kapital. Te group never raised capital for Matrixs own vehicles, which include private equity funds and hedge funds. Tose entities are pitched by other stafers who remain on board. Jefferies ... From Page 1 numbered about 20. In addition to Roiters move, the team is losing group head Stephen Gray to VantagePoint Venture Part- ners. And Luke Belcastro shifed to Jeferies equity capital markets area in September. He was among several recruits who arrived in 2009 as part of an expansion of the banks placement operation coming on board with former Mallory Capital col- leagues Peggy Marshall and Donal Orr. As for the criticisms of Jeferies marketing techniques, they center around the banks handling of commitments from cli- ents prior backers. Te talk is that fund managers are only given a short time to round up returning limited partners on their own, with the institution then stepping in to line up those commitments for a fee. And the charges ramp up quickly from there. Tey were telling investors, You have 75 days to get your re-ups, afer which we might charge you double our normal rate, then afer six months it goes up to 3 times, an outside fund-marketing specialist said. He attributed Jeferies ability to employ such tactics to an overfow of demand for placement services. Jeferies recent clients have included Stockholm buyout frm Valedo Partners, which is set to hold the fnal close for its second fund in the coming weeks above the vehicles equity tar- get of 1.6 billion Swedish krona ($250 million). Roiter joined Jeferies in 2008 from Citigroup, where she marketed private equity funds to wealthy individuals. Before that, she marketed investments at Credit Suisse and predeces- sor Donaldson, Lufkin & Jenrette. TPG ... From Page 1 just eight months to assemble, and exceeded its equity target by $500 million. But given todays tougher marketing environ- ment, investors expect the frm to remain in the market with Fund 2 until yearend, and perhaps into early 2012. Te ofering also faces competition for investors with a num- ber of mid-size buyout specialists who last raised capital in 2006 or 2007. It should help that the frst TPG Star fund has fared well, with a net rate of return of 8.1% as of Sept. 30. One limited partner deemed that fgure impressive in light of the fact that the average age of the entitys holdings is a mere 1.5 years. Te TPG Star name is an acronym for smaller transactions with allied resources. Tat is, the original vehicle has access to the parent shops extensive research and operational resources something TPG views as a selling point. Te series was created to capture potentially lucrative deals that TPG had to turn away because they didnt ft the profle of the frms big-buyout funds. Te most recent of those vehicles, TPG Partners 6, held its fnal close in early 2009 with $19.8 billion and the capacity to put billions of dollars into each of its deals. William McGlashan leads a 20-person investment team that runs the TPG Star portfolio. Limited partners include AP Fon- den 2, Calpers, Los Angeles City Employees, New Jersey State Investment, New York Common Fund, Oregon State Treasury and Washington State Board. Throne ... From Page 2 accessed in Te Marketplace section of the newsletters website, peinsider.com. Te ranking encompasses managers of buyout, venture capital, mezzanine-fnance and distressed- asset funds in the U.S., along with secondary-market vehicles and funds of funds. It also includes real estate funds and hedge funds run by those frms. However, it leaves out sepa- rate accounts and excludes shops that primarily manage real estate funds and hedge funds. January 26, 2011 Do you know someone who would like to receive three issues of Private Equity Insider, without obligation? Just fax this form to the number below: Name: Company: Address: City/ST/Zip: Fax: 201-659-4141 Free Sample Copies Private Equity INSIDER 7 FUND-RAISING ACTION
Manager
Fund, Key Executive
Type: Focus
Placement Agent Target Amount (Mil.)
Action Alcuin Capital Partners, London Alcuin Fund 3, Mark Storey Buyout: Europe 100 Held first close with 81 million. Black Diamond Capital Management, Greenwich, Conn. BDCM Opportunity Fund 2, Stephen Deckoff Distressed debt C.P. Eaton $750 Held final close with $982 million. Brookfield Asset Management, Toronto Brookfield Special Situations 3, Cyrus Madon Distressed asset (None) $1,000 Held second close with $370 million. Constitution Capital Partners, Andover, Mass. See Page 5 Ironsides Partnership Fund 2, Daniel Cahill and John Guinee Fund of funds $250 Held first close with $14 million. Constitution Capital Partners, Andover, Mass. See Page 5 Ironsides Co-Investment Fund 2, Daniel Cahill and John Guinee Co-investment $250 Held first close with $6 million. LGV Capital, London See Page 5 LGV 7 Private Equity Fund, Ivan Heywood Buyout: U.K. 250 Held first close with 171 million. True North Management Partners, Tempe, Ariz. True North Venture Partners, Michael Ahern Venture capital (None) $300 Held first close with $192 million. To view all past Fund-Raising Action entries, visit The Marketplace section of PEinsider.com January 26, 2011 F ORUM HOS T Nancy M. Szigethy Founder NMS Management, Inc. F ORUM CHA I RME N Conley Brooks, Jr. President Sawmill Private Management, Inc. Vernica Maldonado Executive Director GEM Family Office Dorothy Collins Weaver Chairman & Chief Executive Officer Collins Capital F ORUM A DVI S ORY B OA RD Peter E. Tony Guernsey, Jr. Chief Client Officer, Emeritus Wilmington Trust Company Gailen Krug European Private Equity Albourne Partners Limited KE Y NOTE S P E A KE R Robert J. Shiller Distinguished Professor of Economics Yale University F E A TURE D S P E A KE RS Jonathan Anderson Senior Global Emerging Market Economist UBS Investments Mark A. Angelo Founder & President Yorkville Advisors, LLC Diana Barrett President The Fledgling Fund Sheila H. Berube Executive Vice President & Chief Investment Officer WLD Enterprises, Inc. Vicente Carrillo-Batalla Managing Director C.A. Ugave Jeff Cook President & CEO Policy and Taxation Group Howard R. Cooper Chief Executive Officer Cooper Family Office Mark H. Daniell Chairman Raffles Family Wealth Trust Pte Ltd Michael J. Flynn Vice President & CIO Kinship Trust Company, LLC Joshua S. Friedman Co-Chief Chairman & Co-Chief Executive Officer Canyon Partners, LLC Christopher B. Galvin Chairman, CEO & Co-Founder Harrison Street Capital LLC Tony Gannon Chief Executive Officer Abbey Capital Limited Nancy S. Gillespie Manager Sayles Group LLC David Lansky President The Family Business Consulting Group, Inc. Stuart Lucas Chairman Wealth Strategist Partners LLC Arthur Margon Partner Rosen Consulting Group William J. Reik III Managing Member, CIO Bristol Investment Partners David Rosenberg Chief Economist & Strategist Gluskin Sheff + Associates Inc. Donna E. Shalala President University of Miami Inder Sodhi Chief Investment Officer Doshi Capital Partners Clara Villoslada Hevimar Michael D. Whitty Attorney at Law Vedder Price P.C. Peter Zeihan Vice President of Analysis Stratfor TO RE GI S TE R: Please call 516 933 3700, fax 516 933 3705, or register online at www.nmsmanagement.com Forum Faculty The NMS Family Office Forum The Ritz-Carlton Palm Beach, Florida March 6-9, 2011 PECI5TEP TCDAYI 888 777707 BenelL lrom Lhe qlobal experLise ol renowned aviaLion experLs represenLinq Lhe FAA, Lhe lnLernaLional ReqisLry, Lhe AviaLion Workinq Croup, aircralL operaLors, airlines, lessors, LrusLees, insurance, lnance and leqal sLakeholders. WiLh insiqhLlul recommendaLions lrom a diverse Leam ol aviaLion specialisLs, Lhis exciLinq and inlormaLive conlerence covers criLical new requlaLory obliqaLions and procedures, chanqes Lo accounLinq rules, deal lnancinq, and inLernaLional issues. Keynote Cpening Address: AircraIt Peregistration and Expiring Certicates: Why This Pule and How Does It Work? Walter L. Binkley M+r+er, 4|rcr+/| 8e|s|r+||cr 5r+rc|, C|r|| 4r|+||cr 8e|s|rj |eder+| 4r|+||cr 4d|r|s|r+||cr, J.S. 0e+r|er| c/ r+rscr|+||cr Pr|r+|e fc||j |rs|der sc|scr||ers s+re l5% a||| rcc ccde ll583Pf|| |c|| ccr/ererce de|+||s +r+||+||e +| aaa.|rs||||r/c.cc/+|rcr+/|re|s|rj (/k_8eelXc 8@I:I8=KKI8EJ8:K@FEJ=FILD |e|ruor] c8 |orc| l, c0ll | !|e ||oer|c|or | Scotts1o|e, Ar|oro Private Equity INSIDER 8 TO SUBSCRIBE Signature: PRIVATE EQUITY INSIDER www.PEinsider.com Telephone: 201-659-1700 Fax: 201-659-4141 E-mail: [email protected] Mairin Burns Managing Editor 201-234-3985 [email protected] Chad Weihrauch Senior Writer 201-234-3988 [email protected] James Prado Roberts Senior Writer 201-234-3982 [email protected] Andrew Albert Publisher 201-234-3960 [email protected] Daniel Cowles General Manager 201-234-3963 [email protected] Thomas J. 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Account #: Exp. date: Name: Company: Address: City/ST/Zip: Phone: E-mail: MAIL TO: Private Equity Insider www.PEinsider.com 5 Marine View Plaza #400 FAX: 201-659-4141 Hoboken NJ 07030-5795 CALL: 201-659-1700 January 26, 2011 THE GRAPEVINE ... From Page 1 products and services, as well as healthcare products. Magna appears to be receiving backing from Pritzker Group, which counts the Hyatt hotel chain among its holdings. Hofman, who lef Pritzker late last month, remains an advisor to the frm. Tarrus Richardson is setting up a buyout frm whose goal is to acquire contract- ing companies that can beneft from the minority-owned designation he can provide. Richardson, who is black, would own a controlling stake in each portfolio company, which would gain a marketing advantage by becoming eli- gible to compete for work with organi- zations that operate diversity programs. He is about three months away from the ofcial start of his New York frm, IMB Development. IMB would target proft- able companies that already perform contract work for government agencies or corporations. Richardson intends to hold companies for 10-20 years, consid- erably longer than typical buyout frms. In October, he lef ICV Partners, a New York buyout frm he co-founded. Texas Employees is seeking a private eq- uity specialist to join its investment divi- sion. Te recruit would help monitor the $21 billion pension systems $1.3 billion private equity fund portfolio. Reporting to investment chief Patrick OHara, he or she also would manage personnel within the retirement systems private equity staf. In September, the pension fund laid out plans to invest $550 million in around 10 vehicles during fscal year 2010, which started Sept. 1. It has an 8% target allocation for private equity funds, which it expects to reach by 2015. Altius Associates advises Texas Employ- ees on its private equity investments. Private bank Union Bancaire Privee plans to increase its exposure to private equity investments in the coming year. Te Geneva operation has less than 1% of its 72 billion Swiss francs ($76 billion) of assets invested with North American and Asian buyout funds. It wants to broaden its portfolio by back- ing mezzanine-fnance and secondary- market funds, and by co-investing alongside its private clients. Te bank invests through a private equity division that deploys client money. UBP, which also invests its own capital, runs private equity operations in London, Geneva and New York. New York buyout shop American Indus- trial Partners has hired former Liberty Partners managing director Ben DeRosa to head marketing and deal origina- tions as a partner. DeRosa started last week. American Industrial is investing through its fourth fund, a 2007-vintage vehicle with $406 million. American Capital, which invests in mid-size companies, is seeking a junior stafer to help with portfolio monitor- ing and deal execution. Focusing on mezzanine-debt investments, the re- cruit would work on portfolio-company refnancings and exits. He or she would also be expected to perform due-dili- gence reviews of potential investments, working in the New York ofce of the Bethesda, Md., company.
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