Distressed debt transactions: soup to nuts
27/08/2008. A central feature of the ongoing credit crisis has been the decline in prices across all types of debt as the market has undertaken a radical repricing of risk. In response, a significant amount of capital is being raised by funds with a view to investing in debt. At the end of the first quarter of 2008, and in the midst of gloomy forecasts about how long the current market malaise will last, funds formed to purchase and manage distressed debt had raised over $24.6 billion.1 Only a fraction of the funds raised have been invested to date, suggesting an imminent boom in distressed debt transactions.

Investment in financial institutions
20/08/2008. Financial institutions of virtually all stripes have been hit hard by the subprime crisis and its related fallout. To some this will seem like a potential investment opportunity, but the regulatory framework applicable to various types of financial institutions can seem daunting. This is particularly true for investments in financial groups that include a bank, which are heavily regulated through complex federal and state statutes and regulatory authority.

Managing conflicting interests: a guide for private equity directors on portfolio company boards
06/08/2008. Private equity funds typically invest in young companies (each a portfolio company) with the hope that these companies will increase in value with the assistance of the private equity funds’ management and resources. During the investment period, managers of the private equity fund usually sit on the board of directors of the portfolio company. These 'private equity directors' may, however, find themselves in a position of conflict because, as directors, they owe fiduciary duties to the portfolio company and all of its shareholders, but as fund managers they remain loyal to the private equity fund (in certain US states, the law regarding fiduciary duties focuses solely on the best interest of the company, and the interest of the shareholders is just one of many factors to consider in determining the best interest of the company, which may alleviate some of the conflicts faced by directors in these jurisdictions).

2008 Venture Capital Report
09/07/2008. The gradual but steady increase in venture investing activity that has characterised the venture capital market over the past several years continued in 2007. Of greater significance was the more pronounced improvement in the IPO and M&A markets for venture-backed companies over the past year, according to this venture capital report from law firm WilmerHale.

American jobs and the impact of private equity transactions
21/05/2008. Strong job creation has been a hallmark of the American economy for a half century. Many factors contribute to America’s strong job-creating performance, most notably robust economic growth. The most important element contributing to that growth is the way America’s markets work, especially the relative ease and speed with which they move labor as well as capital and expertise from enterprises using those resources ineffectively to others that put them to better use. Private equity funds can facilitate those shifts by taking over underperforming firms and reforming their operations, and acquiring healthy businesses and then injecting capital and management expertise to enable them to expand further, write Dr Robert J Shapiro of Sonecon and Dr Nam D Pham of NDP Group in this research paper from the Private Equity Council.

Venture capitalists: US recession and unstable markets will slow investing and fundraising activities, M&As and IPOs
14/05/2008. Venture capitalists expect the US recession and unstable markets to slow investment and fundraising opportunities, however China, India, greentech, internet services and biotech will continue to gain momentum and investment in the coming year, according to a recent survey by KPMG.

Driving growth: how private equity investments strengthen American companies
14/05/2008. The private equity industry is as diverse as the hundreds of firms that manage private equity investment funds. But each of these investment firms has a common goal: seek out companies with the potential for growth and put in place the capital, talent and strategy needed to permanently strengthen the company and raise its value. How private equity firms accomplish that objective is the subject of this paper from the Private Equity Council.

Capital gains: taxing times
30/04/2008. In the US, obtaining long-term (over one year) capital gains treatment is a key objective for investors from a tax perspective. The maximum rate applicable to such gains is 15 per cent, compared to 35 per cent for ordinary income, plus any applicable state income taxes, writes Jim Smulkowski, a partner at law firm Katten Muchin Rosenman.

M&A Executive Insights 2008
23/04/2008. 2007 proved to be a year of two distinct halves for the US M&A market, especially in terms of overall deal value, according to this survey from Nixon Peabody and mergermarket. In the first six months of the year, transactions worth $846.8bn were undertaken in the US while the onset of the credit crunch in August weighed heavily against H2 figures – only $479.2bn of deals were completed during the period, just 57 per cent of total H1 value.

District Court dismisses antitrust suit against private equity bidders
09/04/2008. In late February, the U.S. District Court for the Western District of Washington at Seattle dismissed an antitrust lawsuit against two private equity firms that jointly acquired a publicly traded corporation. In rejecting the claim that the agreement to jointly acquire the target was an unlawful restraint of trade in violation of US federal antitrust laws, the decision provides some clarification for private equity firms who desire to form bidding consortia to pursue acquisitions, writes law firm Weil, Gotshal & Manges.

Mid-Atlantic VCs Close Out 2007 on a High Note
20/02/2008. Investments were up and timeframes to close deals shortened in the fourth quarter, according to The Mid-Atlantic Venture Association (MAVA).

US venture capital investment climbs to $29.9bn in 2007
13/02/2008. Last year saw record investments in biopharmaceutical, medical device and energy companies, according to the Quarterly Venture Capital Report released by Dow Jones VentureSource. Web-related investments were also up.

2008 CFO Outlook
13/02/2008. In this year's CFO Outlook survey from Bank of America Business Capital, manufacturing CFOs see a strong economy today, but are cautious as they look ahead to 2008. Less than half of the CFOs surveyed predict the US economy will expand next year and less than a quarter believe it will outperform the world economy. However, a majority of CFOs believe the actions taken by the Federal Reserve Board over the past year have helped the economy and that there will be further rate cuts in 2008.

American Jobs and the Impact of Private Equity Transactions
13/02/2008. Strong job creation has been a hallmark of the American economy for a half century. From 1960 to 2006, American businesses expanded the U.S. private-sector workforce from some 46 million positions to more than 115 million, adding 12.7 million net new jobs in the 1960s, 15.9 million more jobs in the 1970s, another 15 million in 1980s, and an additional 20.6 million in the 1990s.

Recent securities law amendments may increase sponsor liquidity
16/01/2008. The SEC recently approved amendments to Rules 144 and 145 of the Securities Act of 1933. These amendments are expected to increase the liquidity of privately-placed securities for investors and therefore reduce the cost of this capital, write Amir Iliescu and Michael Szlamkowicz of Weil, Gotshal & Manges.

Why specialised fund of funds focusing on US venture capital complement a private equity portfolio well
19/12/2007. Fund of funds have become one of the most important LP groups in private equity funds. According to The 2007 Fund of Funds Review approximately 38 per cent of worldwide private equity assets are controlled by fund of funds. Smaller institutions having assets under management below $10bn are the most important customers of these fund of funds, writes Holger Seidel of BPE Fund Investors.

Q3 2007 MAVA Venture Capital survey results
07/11/2007. The Mid-Atlantic Venture Association has released its Q3 2007 MAVA Venture Capital survey results, indicating that regional investors were not as active during the third quarter as previously forecasted, as the timeframe for closing a new deal increases, valuations and term sheet competition shows strengthening in the market.

Corporate venture capital investment at highest levels since 2001
24/10/2007. Corporate venture capitalists invested $1.3 billion into 390 deals in the first half of 2007, representing the highest percentage of corporate venture deals and dollars since 2001 according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association (NVCA) based on Thomson Financial data.

US M&A to accelerate through 2007
03/10/2007. Mergers and acquisition activity will continue to accelerate through 2007 as deal values soar, according to the Transaction Services group of PricewaterhouseCoopers. Deals involving US targets totaled $845bn during the first five months of 2007, 53 per cent of the total for 2006, and 10 per cent more than deal value in the entire first half of 2006.

Venture-backed IPOs continue to make gains while acquisition activity declines in Q2 2007
26/09/2007. Twenty-six venture backed companies raised $4.27bn through initial public offerings on US exchanges in the second quarter of 2007, according to the Exit Poll report by Thomson Financial and the National Venture Capital Association. This dollar volume represents 112 per cent increase from the second quarter of 2006 when nineteen venture-backed companies went public raising $2bn.

Global IPO Trends
12/09/2007. Thriving US companies conducted the world's highest number of IPOs in 2006 with a streak that looks set to continue in 2007. Global data shows US-based companies generated the largest number of IPOs (187) in 2006, raising $34.1bn, according to Ernst & Young's Global IPO Trends Report.

US venture-backed IPOs record strongest month since 2004
22/08/2007. Eleven venture-backed companies raised $1.6bn through initial public offerings on US exchanges in May 2007, according to data from the National Venture Capital Association and Thomson Financial. This activity represents the first time monthly offerings from venture-backed companies have reached the double digits since October 2004. May 2007 was also the highest month for dollars raised since August 2004 when the IPO offer amount, bolstered by the debut of Google, reached nearly $1.9bn.

US IPOs surging
15/08/2007. IPOs on US exchanges enjoy their best first quarter since 2000, with financial services and technology leading the way, finds PricewaterhouseCoopers. Building on a record fourth quarter, US IPO activity during the traditionally quiet first quarter hit a seven year high in terms of both volume and proceeds, with $12.1bn raised through 64 IPOs, up from $11.6bn from 54 IPOs in Q1 2006, but down from $19.7bn from 89 IPOs during Q4 2006.

MAVA VC survey: Q1 2007
25/07/2007. Mid-atlantic venture capitalists are reporting stability in term sheet competition and more realistic valuations, finds MAVA. Their forecast predicts a modest number of exits, but growth in new deals.

US venture-backed IPOs make gains while acquisition activity declines in Q1 2007
04/07/2007. Seventeen venture-backed companies raised $2.09bn through initial public offerings on US exchanges in the first quarter of 2007, according to Thomson Financial and the National Venture Capital Association. This volume represents a 70 per cent increase from the first quarter of 2006 when ten venture-backed companies went public.

Venture capital investment in the New England health industries
16/05/2007. Last year was a near-record year for venture capital investment in New England biotechnology, healthcare services & technology and medical devices & equipment companies, says PricewaterhouseCoopers, with $1.26bn invested in 119 deals, a robust 44 per cent increase in dollar value and a 21 per cent increase in deal volume over 2005.

Midwest health care startups raise $792m
25/04/2007. Midwest health care startups reported $792m in total investments in 2006, according to the Midwest Health Care Venture Investment Report released by BioEnterprise. The total represents a 25 percent increase over 2005, a significant jump that outpaces national industry growth.

MAVA VC survey results
28/03/2007. US Mid-Atlantic VCs are reporting a continuation of an increased investing trend as deal flow hits high levels, says the Mid-Atlantic Venture Association. Valuations are up, term sheet competition is down.

Moderating costs balance potential for slower growth in US packaging
07/03/2007. The abundant capital and easy credit of the past several years has spurred financial sponsor activity in the packaging sector and creditor protection built into high yield indentures and senior lending agreements has been easing with the upturn in the credit cycle since 2001, says Fitch. Private equity has been active in the industry, attracted by the relatively stable cash flows many packaging companies generate, as well as the opportunity in some cases to gain ownership in distressed situations.

US entrepreneurs have created the majority of the 6.8 million new jobs since 2003
28/02/2007. US venture capital shifts from software to biotech and telecom; developing countries boast higher levels of entrepreneurship, innovation, and use of new technologies, finds GEM Research.

Midwest healthcare venture capital
21/02/2007. Deal flow and VC interest in US Midwest healthcare ventures is increasing, says BioEnterprise. Medical devices are a key focus of interest; Minneapolis, Cleveland and Pittsburgh rated as top regions.

Private equity performance remains steady in Q3 2006
14/02/2007. Private equity performance was extremely steady in both the short and long term horizons for the period ending September 30, 2006 according to Thomson Financial and the US National Venture Capital Association.

Capital raised by US IPOs reaches highest level since 2000
31/01/2007. United States issuers lead record global IPO activity in 2006 according to Ernst & Young. The figures represent the most amount of capital raised by US domiciled companies since 2000, when $59bn was raised in 338 IPOs during an 11-month period.

US manufacturing survey 2007
31/01/2007. While CFOs are optimistic about the prospects for their own companies, they are concerned about economic expansion and growth opportunities for the manufacturing sector in 2007. That’s according to the ninth annual survey of mid-size and large US manufacturing company CFOs commissioned by Bank of America Business Capital. 600 CFOs were asked their opinions of the economy, financing, M&A activity, and their involvement in foreign markets.

Solid trends for US gaming/lodging/leisure sector in 2007
17/01/2007. Despite some concern about the health of the consumer in the slowing US economy, Fitch believes the gaming, lodging, and cruise line industries are poised to continue solid, albeit moderating operating trends in 2007. Fitch does expect consumer spending to slow over the next 6-9 months following the housing market correction, but does not expect a sharp consumer retrenchment and corporate sector trends remain robust, which bodes well for lodging companies.

US IPO Market showing some signs of improvement
10/01/2007. Mergers and acquisitions continued to dominate the exit scene for the full year 2006, says the NVCA and Thomson Financial. The data reflects another year of heavy reliance on the M&A market for venture capital investment exits.

Mid-Atlantic VCs report growth on horizon
22/11/2006. US investors maintain positive outlook on the market and expect increases in new investments, exits and size of funds.

New York to limited liability entities: publish or perish
19/07/2006. After June 1, 2006 suspension of operations will be the penalty for any limited liability entity that fails to publish information about itself in two newspapers after formation. Importantly, the law applies to limited liability entities that are either formed under New York law or qualified to do business in New York. Failure to comply with the new publication requirement may leave owners of such entities open to potential liability.

MoneyTree Survey
19/07/2006. Venture capital investing held steady at $21.7bn in 2005, holding on to 2004's gain, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the US National Venture Capital Association. Later stage dollars and first-time deals hit four-year highs, while wireless and new internet-specific fundings ramped up.

Expanding environmental due diligence in the M&A context
21/06/2006. In the past few years, notes Nixon Peabody, changes in the environmental regulatory framework have changed the way M&A professionals should look at environmental due diligence in connection with acquisitions and divestitures.

SEC proposes amendments to tender offer best-price rule
21/06/2006. The proposed amendment has been prompted by the existing split among federal courts on how the rule should be applied to compensatory arrangements entered into with employee and director shareholders of target companies, says Dechert’s mergers and acquisitions group.

Update on State Bills limiting disclosure of fund details
14/06/2006. In a previous Private Equity Alert, Nixon Peabody discussed a trend in which four states, Massachusetts, Colorado, Michigan and Virginia, carved out a legislative exemption shielding public pension and university endowment funds from disclosure requests pursuant to freedom of information laws. Despite some resistance, these legislative efforts took effect during 2004 and 2005. Without the protections such exemptions provide, upon a request for information pursuant to FOIA, pension funds and public institutions are required to disclose information about the content and performance of their holdings in private equity funds.

Prices paid for venture-backed US M&A deals reach $27.33bn in 2005, highest aggregate total since 2000
30/05/2006. US venture-backed companies claimed higher prices in mergers and acquisitions in 2005, with an aggregate $27.33bn paid in 356 transactions, the highest total amount paid in a single year since 2000 when 458 M&As were acquired for $98.10bn according to VentureOne's Quarterly Liquidity Report.

California and other states limit disclosure of fund details
02/05/2006. This article from Nixon Peabody provides an update on changes in US state laws shielding public pension and university endowment funds from disclosure requests pursuant to the freedom of information laws.

Venture capital short term performance improves in Q2 2005
02/05/2006. US long term private equity returns continue to outperform public markets, finds the NVCA and Thomson Venture Economics, with the ten and 20 year horizons remaining the strongest benchmark for the venture industry.

Trends in legal terms in venture financings in the San Francisco Bay area
25/04/2006. In this survey, Fenwick & West analyses the terms of venture financings for 100 technology companies headquartered in the San Francisco Bay Area that reported raising money in the third quarter of 2005.

US venture-backed IPO market languishes while acquisitions market is bullish place for Q1 2006
18/04/2006. Only ten venture-backed companies raised $540.8m through initial public offerings in the first quarter of 2006, according to an exit poll report by the US National Venture Capital Association and Thomson Venture Economics. This study reports on the low IPO market and the stronger venture-backed M&A market.

Interim guidance on private company valuation methods for stock rights grants
18/04/2006. Since the enactment of Section 409A of the Internal Revenue Code, non-public companies in the USA have struggled with how they should establish that the exercise price of a stock option or a stock appreciation right was determined reasonably to be fair market value, says Thomas J McCord of Nixon Peabody. He offers guidance on private company valuation methods for stock rights grants.

Private Equity Alert: September 2005
04/04/2006. The IRS and Treasury recently issued proposed regulations and a notice of a proposed revenue procedure (Notice 2005-43) relating to the federal income tax treatment of the receipt of partnership interests in connection with the performance of services. Although not effective until they are published in final form, these rules could have significant implications for the carry arrangements common in private equity funds, hedge funds, and real estate funds, as well as any other compensatory arrangement involving partnership profits interests, says Mark M Foster of Nixon Peabody.

Fourth annual MAC survey
29/03/2006. Nixon Peabody's Fourth Annual Material Adverse Change Survey provides an expanded analysis of publicly disclosed US M&A transactions and points to increasingly favourable terms for buyers, in a reversal of last year's seller-friendly trend.

Mid-Atlantic VCs forecast increase in regional investments and exits
21/03/2006. Data released by the US Mid-Atlantic Venture Association indicates growth in investment activity in 2006 with more in-region financings and liquidity events predicted.

2006 predicted to be critical transition year in venture capital lifecycle
08/03/2006. The evolution of venture capital from a cottage industry to a mature asset class will manifest itself in several critical ways in 2006, says the US National Venture Capital Association. According to NVCA President Mark Heesen, venture capital will witness a fundamental shift in risk taking, investment complexity and participants.

Mid-Atlantic VCs report increase in forecasted financings, exits and investment diversification
08/03/2006. Data released by the Mid-Atlantic Venture Association illustrates that term sheet competition is declining, and that VCs are experiencing new competition. Although venture capitalists invested at a moderate pace in Q3 2005, they expect their funding activity to increase, as well as the number of potential 'exits' or liquidity events from their current portfolio companies.

US IPOs post modest gains in third quarter 2005
24/02/2006. Sixty-seven IPOs raised $9.8bn on US exchanges during the third quarter of last year, a modest but significant gain over the second quarter when 54 IPOs netted $9.3bn, according to PricewaterhouseCoopers' US IPO Watch, a survey of IPO activity on the US exchanges.

US private equity fundraising activity surpassed 2004 in first three quarters of 2005
24/02/2006. The private equity fundraising climate remained robust in the third quarter of 2005 with forty-five venture funds raising $5.4bn and forty-five buyout and mezzanine funds fetching $16.8bn, according to Thomson Venture Economics and the US National Venture Capital Association.

US M&A activity continues to drive exit market
14/02/2006. Q3 of last year saw a doubling of venture-backed IPO activity, says an NVCA and Thomson exit poll, but this was not enough to recover from a dismal first half for 2005.

The Liquidity Report
14/02/2006. Prices for US venture-backed M&A took a leap upwards in Q3 of last year. The quarterly liquidity report from VentureOne also showed more IPOs in the third quarter of 2006 than all of the first half combined.

Mid-Atlantic VCs pick up investment activity as market appears to favour entrepreneurs
31/01/2006. Data released by the Mid-Atlantic Venture Association illustrates that US VCs became more active investors in Q2 2005. The increased investment activity in the region appears to come at a time when market conditions are favouring the entrepreneur, not necessarily the venture investor.

Six major catalysts of today’s M&A market
25/01/2006. For anyone looking to sell a company, today's M&A market is ripe with opportunity. Credit standards have loosened, and cash rich strategic and financial buyers are competing aggressively for acquisitions — giving sellers the ability to negotiate very attractive terms, says Bank of America Business Capital.

Later-stage investments push overall US venture-capital investment to highest level in four quarters
01/01/2006. The US venture-capital industry showed some improvement from earlier this year, posting 524 deals in the second quarter of 2005 - raising a total of $5.39bn - according to the Quarterly Venture Capital Report released by Ernst & Young LLP and VentureOne.

A shot in the arm for venture capital: state governments to the rescue
14/12/2005. US venture capital activity tends to be concentrated on the coasts. Over the year, technology centers of gravity have formed in California and Boston where approximately 50 per cent of all venture capital is invested in any given year. Several states in the Midwest/Great Lakes region of the United States have realised the importance of venture capital as an economic driver and introduced legislation to boost the capital under management by over $500m. What do venture funds need to get a slice of this pie? Mahendra Ramsinghani analyses the trends.

2006 CFO Outlook
07/12/2005. In this 8th annual survey, commissioned by Bank of America Business Capital, US manufacturing CFOs gave the overall economy solid marks while their forecast for 2006 appears to be one of cautious optimism.

The Bayh-Dole Act: eight points that every technology company should know
21/11/2005. Prior to 1981, the US Government owned but rarely patented the inventions it funded because there existed a prevailing belief that publically funded research belonged to the public, says Baker & McKenzie. Today, the Bayh-Dole Act allows for private ownership of government funded inventions. However, venture capitalists undertaking technology transfer from universities, federal labs or other entities that receive government funding should be aware of a few of the legal requirements imposed by the Bayh-Dole Act before committing significant resources to these endeavours.

The US private equity market
05/10/2005. A historic perspective on US private equity together with views on the importance of manager selection and on portfolio construction are what Chris P. Welch discusses in his presentation.

Executing a privately-held business succession plan with a leveraged recapitalisation
27/09/2005. With the rise in valuations for many middle-market companies in recent years, owners of privately-held businesses are once again confronting the decision of whether or not to sell. Owners who are not ready to retire completely, but want to unlock the value of the equity they have built in their business have alternatives, says Bank of America Business Capital.

US venture-backed valuations climb to $15.6 million in second quarter
27/09/2005. Fueled by continuing investor interest in late-stage technology companies, valuations of U.S. venture-backed companies hit their highest point in four years in the second quarter. Overall, the median premoney valuation rose to $15.6 million in the quarter, an increase of $2.1 million over the same period a year ago, according to VentureOne.

Private Equity Alert
07/09/2005. This Nixon Peabody Alert discusses recent amendments to the US laws affecting Delaware alternative entities, including those formed under the Revised Uniform Limited Partnership Act, the Limited Liability Company Act and the Revised Uniform Partnership Act.

Leveraging the US Earnings Repatriation Tax Incentive
31/08/2005. There are a number of issues that need to be addressed by private equity houses and their portfolio firms before determining whether repatriation of foreign earnings at a deeply discounted tax rate is an optimal business strategy, says Bank of America Business Capital.

M&A Roundup: U.S. & Europe, First Quarter, 2005
23/08/2005. US dealmakers were left scratching their heads after a first quarter that failed to live up to market expectations, says FactSet Mergerstat. Despite early predictions of a big start to 2005 acquisition activity, dealflow fell back to the sluggish levels of recession-era 2002 and 2003. New announcements reached just 1,986 for the quarter, versus 2,366 in the fourth quarter of last year and 2,574 in the first quarter of last year.

Accessing US private equity by European institutional investors
05/08/2005. European interest in private equity is increasing and the United States remains a significant target for investment from Europe. In particular the more entrepreneurial segments of the US market appeal to European investors, while in the European markets investors prefer larger buy-out transactions, Cécile Krikke-Fritz's research shows.

Value of US IPO activity weakens in second quarter of 2005
20/07/2005. The number of IPOs on US exchanges rose to 54 in the second quarter from 43 in the first, according to the PricewaterhouseCoopers US IPO Watch, a survey of IPO activity in the US. However, proceeds fell to $9.3bn from $10.8bn in the first quarter, as average deal size declined. Second quarter results also reflect a decline from last year, when 63 IPOs raised a total of $12.4bn.

2005 CFO Outlook survey
04/07/2005. Despite a less sanguine outlook for the US manufacturing sector, CFOs appear to see growth opportunities for their individual companies. Twenty-three percent of manufacturing company CFOs expect to participate in a merger or acquisition in 2005, up sharply from 14% in the 2004 CFO Outlook, says Bank of America Business Capital.

MoneyTree Survey: Q1 2005
27/04/2005. US venture capitalists invested US$4.6 billion in 674 companies in the first quarter of 2005, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association. Funding was below Q4 2004 of US$5.4 billion, but matched Q3 2004 of US$4.6 billion. Over the past two years, quarterly investing has floated between US$4.4 billion and US$5.9 billion.

DealMaker's Survey
19/04/2005. Following an active 2004 for mergers and acquisitions, a survey of 1803 dealmakers by Thomson Financial and the Association for Corporate Growth (ACG) finds them even more bullish about the current climate and prospects for M&A in 2005.

US Venture-Backed M&A Valuations Nearly Doubled In 2004
12/04/2005. The venture-backed mergers and acquisitions market in the USA experienced a rebound in activity in 2004 after three years of steady decline, according to Thomson Venture Economics and the National Venture Capital Association.

Section 754 survey
29/03/2005. NYPPE has conducted a survey among private equity partnerships, legal and tax advisors as to their best practices for implementing the recently enacted US tax legislation referred to as Section 754.

US 2004 venture-backed IPO activity exceeded prior three years combined
09/03/2005. Twenty-seven venture-backed companies raised $2.99 billion through Initial Public Offerings in the fourth quarter of 2004 marking the third consecutive quarter of more than twenty IPOs and the fourth consecutive quarter with at least $2.0 billion in total offerings, according to Thomson Venture Economics and the National Venture Capital Association.

US venture capital activity focused on rebuilding in 2004
15/02/2005. Venture capital activity in 2004 is expected to complete the year on a positive note, based on investments recorded through the end of the third quarter by the Venture Capital Report compiled by Ernst & Young LLP and VentureOne.

NVCA Predictions for 2005
01/01/2005. The beginning of a new business cycle and a high demand for participation in the venture capital asset class will foster a strong competitive environment among VCs and limited partners alike in 2005, the US National Venture Capital Association predicted. According to Mark Heesen, NVCA President, the year will be characterized by a return to early stage investing as new funds are raised and those dollars begin to be deployed.

Trends in Legal Terms in Venture Financings In the San Francisco Bay Area (Third Quarter 2004)
14/12/2004. In their latest survey Fenwick and West have analysed the terms of venture financings for 113 technology companies headquartered in the San Francisco Bay Area that reported raising money in the third quarter of 2004.

Hart Monitor: Will Proposed Hart-Scott-Rodino Revisions Affect Private Equity Transactions?
15/11/2004. The US Federal Trade Commission has proposed changes to the Hart-Scott-Rodino rules that would require regulatory filings for a number of partnership and limited liability company (LLC) transactions that historically have been exempt from the HSR "report and wait" regime, says Testa, Hurwitz & Thibeault. The proposed new rules may go into effect later this year or early in 2005. The good news for the private equity industry is that the proposed rules exempt from the HSR regime many private equity transactions that might otherwise have been covered by the new, general approach to partnership and LLC transactions.

Comply now, IPO later: Factoring Sarbanes-Oxley Into Your Capital Markets Equation
08/11/2004. These days it’s nearly impossible to pick up a business publication without reading something about the US's Sarbanes-Oxley Act. But while much has been said about how SOA affects public companies, less discussion has focused on how it impacts privately held companies that want to become, or be acquired by, a public company. In short, SOA has far-reaching implications for private enterprises bound for public status, says Ernst and Young's Dan Montgomery and Gil Forer. To faciitate a smoother, higher value IPO or trade sale, a company’s management must understand what SOA means for them now, and what changes they will have to make to meet its requirements down the road.

Private equity alert: September 2004
06/10/2004. A US appeals court recently ruled that the chief executive and majority shareholder of a start-up internet company gained a personal profit by securing funds from venture capital investors for the company, not himself, thereby triggering a personal profit exclusion in the company's directors and officers insurance policy, according to Weil, Gotshal & Manges.

Comparing European and US venture capital
06/10/2004. European venture capital returns have historically failed to match US returns. Industry commentators often explain the performance gap exclusively in terms of cultural or structural differences. But European underperformance primarily arises from underlying differences in practice, according to European venture fund of funds Mowbray Capital.

Are private equity funds liable as employers under federal employment laws?
16/09/2004. Two recent US court decisions have opened the door for private equity funds to be held liable as employers for violations of federal employment laws, according to Nixon Peabody.

Lessons from Google's IPO
31/08/2004. On the surface, Google's IPO appears to have been at least a partial success. But it remains far too early to issue a verdict. Knowledge Wharton examines the details of the flotation and assesses the company's chances for the future.

The aftermath of Connecticut v. Forstmann Little: Lessons from Connecticut state court
26/08/2004. A Connecticut jury recently delivered a mixed verdict in the state pension fund's suit against Forstmann Little by finding that the private equity firm breached its contract with the State of Connecticut, but rejecting the State's request for monetary damages. Rebecca Silberstein of Debevoise & Plimpton explores the impact of this ruling.

Creeping regulation of private equity fund managers
27/07/2004. A spate of recent regulatory initiatives in the US, have served to focus increasing attention on operations that were once considered to be private. Michael Collins of Testa, Hurwitz, Thibeault examines the implications of this legislation for the nation's private equity industry.

US Global entrepreneurship Monitor: 2003 executive report
21/07/2004. After two years of decline, entrepreneurial activity in the US showed a marked improvement in 2003, according to the latest Global Entrepreneurship Monitor.

Clinical transformation and the value of a cross-industry perspective
13/07/2004. Unlike most other aspects of society, the healthcare industry has been relatively unaffected by the recent revolution in information technology. But the ability to take advantage of advances in information technology will be crucial in determining the winners and losers in the life sciences arena going forward, according to Deloitte Research.

Background checks: Proceed with caution
14/06/2004. High profile events of the last few years, including the corporate accounting scandals and September 11, have forever changed the US business landscape. One important change is that employers are seeking to learn more about the backgrounds of applicants and employees. This is equally true of private equity investors, which are increasingly insisting on background checks for management teams as part of their due diligence, according to Adam Forman and Robert Kilroy of Testa, Hurwitz & Thibeault.

Moneytree survey: Q1 04
04/06/2004. US venture capital investments in the first quarter of 2004 totalled $4.6bn, below the $5.2bn invested in the fourth quarter of the previous year, but significantly above the $4.2bn invested in the corresponding period last year, according to the latest PricewaterhouseCoopers' Moneytree Survey.

Trends in legal terms in venture financings in the San Francisco Bay area
27/05/2004. There was a significant improvement in venture valuations in the first quarter of 2004, with up rounds outpacing down rounds for the first time in two years, according to Fenwick & West.

Outside directors in the government's spotlight
23/04/2004. Private equity investors who sit on public company boards have long viewed the risk of being sued in shareholder litigation as a cost of doing business, according to Brian Pastuszenski, Jordan Hershman and John Falvey of Testa, Hurwitz & Thibeault. But in the wake of the Enron fiasco and the Sarbanes-Oxley Act, these risks have been considerably heightened and the importance of observing best practices has become all the more clear.

Getting in position to be in position
13/04/2004. Achieving liquidity through the US public equity markets has become more time consuming and more expensive in the wake of the Sarbanes-Oxley Act of 2002 and other related regulations. Portfolio companies that understand the increased effort required to complete an initial public offering and prepare in advance to be a public company will significantly reduce the number of obstacles to liquidity confronting them and their private equity investors, according to Mark Bettencourt of Testa, Hurwitz & Thibeault.

Total US venture capital report
06/04/2004. Over $5.5bn of venture capital was invested in 502 private US based companies in the fourth quarter of 2003. This represents the first quarter-to-quarter increase in funding in two years and the largest increase since early 2000, according to Growthink Research.

Alternative market perspective
06/04/2004. US private equity firms raised $43.9bn in 2003, down 26 per cent from $59.4bn in 2002, and more than 75 per cent less than the $178.5bn raised at the height of the private equity bubble in 2000, according to the Hewitt Investment Group.

The case for Arizona: Early-stage technology
22/03/2004. Arizona is experiencing the beginnings of critical mass in life sciences and other early-stage technologies suggesting it may have the potential to emerge as a new partner on the global stage. But the market is currently suffering from a severe lack of venture capital activity and is among the most underserved markets in the world, according to Intium Capital.

Moneytree survey: Full-year results 2003
15/03/2004. A total of $18.2bn of venture capital was invested in 2,715 companies in 2003. This represents a 15 per cent decline from 2002's $21.4bn, according to PricewaterhouseCoopers' MoneyTree Survey.

M&A rebounds as financial and strategic buyers return
15/03/2004. Like the last recovery a decade ago, the current rebound of merger and acquisition activity in the US is being driven largely by corporate divestitures. But this time around the recovery is also being driven by the increasing number of private equity firms looking to exit their investments, according to Ira Kreft of Fleet Capital.

Silicon Valley's resurgence: Is it for real?
10/02/2004. Silicon Valley, the entrepreneurial hub of the US, is stirring into action once again. But although venture capital firms are demonstrating a renewed confidence in the sector it remains to be seen whether this time the resurgence is for real, according to Knowledge Wharton.

US MoneyTree Survey Q3 2003
03/02/2004. A total of $4.2bn was invested in 667 US early-stage companies in the third quarter of 2003. The results represent a slight decline of eight per cent by value and five per cent by volume when compared to the previous quarter, according to the latest PricewaterhouseCoopers’ MoneyTree Survey.

How independent is independent enough?
07/01/2004. It has become common practice for private equity firms investing in US public companies to negotiate special governance arrangements, including the nomination of a number of independent directors. Meredith Brown and William Regner of Debevoise & Plimpton ask just how independent these directors really are.

M&A activity: Back with a whimper
17/12/2003. A recent spate of high profile corporate transactions in the US has signalled a comeback for the nation’s mergers and acquistions market. But a 1990s-style M&A frenzy is unlikely to be repeated. Instead more realistic valuations will form the basis of this round of activity, according to Knowledge Wharton.

Trends in legal terms in venture financings in the San Francisco Bay area
25/11/2003. The overall terms of venture financings in the third quarter of 2003 improved slightly from the previous quarter, according to Fenwick & West. The direction of price changes was similar to the second quarter of the year, but the use of some of the tougher terms such as multiple preference, ratchet anti-dilution and pay-to-play decreased.

The new tax act: New provisions for private equity investors
25/11/2003. Recent tax changes in the US have created advantages for private equity firms and their limited partners, according to William Corcoran of Testa, Hurwitz & Thibeault. The benefits are derived from in long-term capital gains tax rates and a reduction in dividend tax rates. But the provisions only guarantee these tax breaks for a period of five years.

US MoneyTree Survey Q2 2003
17/09/2003. US venture capital investment rose slightly in the second quarter of 2003 for the first time in two years, according to the PricewaterhouseCooper's MoneyTree Survey.

The status of anti-money laundering regulation and private equity
17/09/2003. The USA Patriot Act that was passed in October 2001 has undergone several amendments over the last couple of years. The Financial Crimes Enforcement Network of the Department of the Treasury intends to introduce new provisions in the coming months. Gregory T Pusch discusses what this could mean for the US private equity industry.

Private equity update
19/08/2003. The US Federal Trade Commission has recently implemented rules for private investment funds and investment advisers that are not registered with the Securities and Exchange Commission. These rules are designed to protect customers' non-public personal information. Dechert discusses what this means for the private equity industry.

Disclosure and its impact on the private equity industry
07/08/2003. US public institutional investors are coming under increasing pressure to disclose their private equity fund performance data. But as Darcy Pertcheck of Nixon Peabody explains, this could just be the start of a long and slippery slope.

Raising money in a difficult environment
06/08/2003. Venture capital financing in the US life sciences market has plummeted year-on-year since the industry's peak in 2000. With increasingly fierce competition for venture funding Lawrence Wittenberg of Testa Hurwitz & Thibeault provides a step-by-step analysis of what a venture capital firm should be looking for in a biotech start-up.

Goodbye yellow brick road: new compensation issues facing private equity managers
23/07/2003. Profit distributions may have plummeted since the US private equity market dived in 2001, but professional remuneration has so far continued to rise, says Howard Rosenblum of Testa, Hurwitz & Thibeault. Here he explores what he believes to be the future for management fees, performance accountability and clawbacks.

Alternative Market Perspective
09/07/2003. Buy-outs dominated the US private equity industry's deal flow in 2002, according to HIG's Alternative Market Perspective. But venture capital suffered significant cutbacks as it re-adjusted to the excesses of previous years.

Top-Tier VCs: The more things change the more they stay the same
02/07/2003. The negative downturn in the US venture capital industry, combined with increased pressure for disclosure, is set to consolidate the industry and alter the relationship between limited and general partners, according to Thomas Beaudoin of Testa, Hurwitz & Thibeault. Here he discusses whether the very best VCs will be able to escape this wholesale realignment and write their own rules.

The dividend window: liquidity options for private equity investors
25/06/2003. On 28 May 2003, President George Bush signed the Jobs and Growth Tax Relief Reconciliation Act. The act will mean that dividends and long-term capital gains are generally taxed at the same reduced rate of 15 per cent. Robert Seber and Richard P Wild of Dechert discuss the implications of the act for family-owned businesses and the portfolio companies of private equity funds.

US private equity funds: selected regulatory and tax issues
10/06/2003. The global private equity industry is set for continued growth over the next ten years, regardless of the current slump in the markets. Filippo Cinotti of Zini & Associates discusses several tax and regulatory issues that will affect the private equity market in the US in the coming years.

Disclosure of private equity fund data
28/05/2003. The confidentiality of US private equity fund data is increasingly under threat as publicly listed limited partners are being forced to reveal details of their investments. Malcolm Nicholls of Testa, Hurwitz & Thibeault discusses the implications for US private equity firms and the strategies that some firms are employing to avoid disclosure of sensitive information.

The USA Patriot Act and its implications for US private equity firms
14/05/2003. In recognition of the illiquidity and subsequent lack of suitability of private equity funds for money laundering activity, legislation proposed by the US government in 2002 has exempted private equity funds in America from some, but not all, of the USA Patriot Act's requirements. US law firm Brobeck explains the level of compliance required by private equity firms and the means by which the regulations may be enforced.

Hard days and sleepless nights for private equity firms
07/05/2003.  There is little doubt that the US private equity market is experiencing tough times. But this could mean big rewards for those with the skill and resources to navigate the storm. Two leading private equity players discuss the potential pitfalls and pay-offs at Wharton Knowledge's annual private equity conference.

US Fund Tracker: April 2003
07/05/2003. April saw six new funds hit the fundraising trail, the largest, the WL Ross Japan Fund targeting $1bn for Japanese turnarounds.

Liabilities of general partners of venture capital funds: old legal theories create new business realities, part 2
30/04/2003. What legal pressure can limited partners bring to bear on general partners should they fail to live up to their responsibilities? In the second part of their overview of GP liabilities, James E Topinka and Carol Kerr of Coudert Brothers discuss the general partner as ‘alter ego' of its portfolio company.

Are we almost there?
30/04/2003. Venture capitalists throughout Silicon Valley are taking a greater interest in opportunities on the other side of the Pacific Ocean. Many have come to realise that Beijing now offers enormous potential, as well as other areas such as Shanghai and Bangalore. Rebecca Fannin of the AVCJ discusses these opportunities and the change in sentiment of US venture capitalists.

The deal drought: IPOs and M&As are down but not out
09/04/2003. Although transactions may be few and far between at the moment, there are still deals to be done in a down market, experts at a recent Knowledge Wharton conference believe. The ‘drought' is severe but not terminal.

US Fund Tracker: March 2003
02/04/2003. March saw two new venture funds enter the market and four final closes raising a total of $780m.

Total US venture capital report 2003
31/03/2003. The US venture capital market experienced a significant decline last year when compared to 2001. The weakening economy, however, did allow many investors to take advantage of opportunities in companies at favourable valuations, according to Growthink's annual report.

PwC US Moneytree Survey Q4 2002
26/02/2003. Venture investment levels almost halved from $41.3bn in 2001 to $21.2bn in 2002. Investment levels are now below the total for 1998, when $21.6bn was invested in new companies, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree Survey.

Public nuisance
26/02/2003. With public markets in something approaching meltdown, private companies are valued higher than many equivalent public companies, says Michael V Copeland at Red Herring.

USA Patriot Act
19/02/2003. On 18 September 2002, the US Department of the Treasury released new regulations concerning the USA Patriot Act. Alan B Horn, Carl A Fornaris and Ileana Gomez of Greenberg Traurig give an outline of the issues that affect venture capital funds, taking into account recent moves to exempt some firms.

Exposed!
28/01/2003. The increasing demand in the US for pension funds to publish information about private equity fund performance has caused a furore within the industry. Some have even predicted that it will cause the asset class to become commoditised – and thus less lucrative – industry. But, says Tom Stein of Red Herring, this isn't very likely.

The joy of SOX
15/01/2003. The recent Sarbanes-Oxley Act will have a significant impact on the US mergers and acquisitions market, both positive and negative. Charles Nathan of Latham & Watkins discusses the impact that the reforms will have on private equity involvement in M&A and the future IPO outlook.

Going Private: Corporate Adviser
14/01/2003. As corporate scandals and falling public markets erode the confidence with which people view public companies, Michael J Levitin, Steven S Snider and Kimble C Cannon of Hale & Dorr discuss the benefits and pitfalls of a decision to go private. There are various financial savings that may influence a company's decision to go private, including the elimination of accounting and legal costs associated with the now mandatory requirement for public companies to file quarterly reports with the SEC.

ERISA Plan Assets Regulation: 15 years on
07/01/2003. For the past 15 years the US private equity industry has been able to structure its funds according to the Plan Assets Regulation, registering as ‘venture capital operating companies' so that they are not subject to ERISA's compliance rules. Patricia Cashman of Testa, Hurwitz and Thibeault discusses the impact of the regulation as well as suggesting improvements.

Sponsored spin offs: the private equity fund as anchor investor
17/12/2002. One way for large corporates to find private equity buyers for non-core operations may be to spin them off. Paul S Bird and Peter F G Schuur of Debevoise discuss the legal and tax issues involved in structuring such an investment opportunity.

PwC US Moneytree Survey Q3 2002
10/12/2002. The third quarter brought no good news for the US venture community. Investment activity fell 26 per cent on the previous quarter to its lowest level for four years, according to the latest MoneyTree Survey from PricewaterhouseCoopers/Venture Economics/National Venture Capital Association.

Venture capital firms: getting the right rights
04/12/2002. A recent Department of Labor advisory opinion has at last clarified the ways in which venture capital firms can avoid ERISA's strict fiduciary mandates. Legal firm Palmer & Dodge explains.

Recent amendments to the Hart-Scott-Rodino Act
26/11/2002. Anyone involved in mergers and acquisitions should take note of recent developments and amendments to the Hart-Scott-Rodino Act. The Act, originally passed in 1976, has undergone recent amendments that relax pre-merger filing requirements. Heller Ehrman White & McAuliffe summarise the changes.

Anti money-laundering provisions
26/11/2002. Following months of uncertainty, the US Treasury department issued a proposed final rule on the USA Patriot Act in September that excludes certain private equity funds from the obligation to comply with the anti money-laundering requirements. Nixon Peabody explains the new proposal and what it means for private equity firms.

Camps face off on ‘transparency'
28/10/2002. Following the disclosure of UTIMCO's private equity fund performance, the San José Mercury announced that it has filed a law suit in an attempt to force Calpers to do the same. Beth Healy of The Boston Globe wonders what the upshot will be.

Rethinking the aviation industry
01/10/2002. Can today's major carriers fly their way clear of the airline industry's problems? Only if they make concerted long-term efforts to improve their profitability by changing their fleet structures, their labor agreements, and their basic operating assumptions.

Potentially attractive and timely private equity opportunity: US high- yield CBO equity
10/09/2002. At a time of unpredictable public markets, investors are looking at alternative asset classes. R Todd Ruppert of T Rowe Price suggests that a high yield CBO equity investment may be one way to diversify a private equity portfolio and keep returns on track.

The state of the venture industry - where do we go from here?
27/08/2002. The state of the venture industry is currently not looking too good and, unless there is a dramatic turnaround, we could even see a negative figure for the net capital raised by venture funds in 2002. Robin A Painter of Testa, Hurwitz and Thibeault assesses the market and outlines what must be done in the industry to recover its lost ground.

Venture financing and the Hart-Scott-Rodino Act
22/07/2002. Venture capital investors should be aware that they may be required to comply with the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in venture financing transactions. Whether a particular transaction is subject to the Act will depend on the facts of the transaction. Richard Kimball of Hale & Dorr looks at the implications of the Act.

2001 IPO market review
15/07/2002. The IPO market was sluggish throughout 2001 in the face of unreceptive capital markets, cautious investors and economic recession. The 91 IPOs in 2001 formed the lowest annual total since the 62 IPOs in 1979. With no IPOs between August and early October, September 2001 was the first month since 1975 without a single new offering. But what is the outlook for the rest of 2002, ask Hale & Dorr.

Tax considerations in structuring US-based private equity funds
02/07/2002. When forming a US-based private equity fund, fund managers must address tax and other structuring issues. Patrick Fenn and David Goldstein of Akin, Gump, Strauss, Hauer & Feld examine the investor-level tax issues that managers face when deciding which type of structure to use and in which jurisdiction the fund should be domiciled.

To be or not to be . . . an SBIC
25/06/2002. Originally set up to expand the amount of capital available to US business, the SBIC structure has recently become popular among venture capitalists. The scheme may help VCs raise sufficient capital, but it does contain some pitfalls for fund managers and investors alike say Heather M Stone and Joseph A Hugg of Testa, Hurwitz & Thibeault.

The numbers underscore just how bleak the IPO market is
25/06/2002. Two years ago the Nasdaq imploded and venture capitalists have found little room for optimism since. Beth Healy of The Boston Globe examines the decline of the stock markets and assesses the impact that this is having on exits.

US: Focus on fundamentals
25/06/2002. Nowhere has the global rise of the biotechnology sector been more apparent than in the US. Indeed, investors are now positively embracing the sector. Scott Morrison of Ernst & Young addresses the rise of life sciences and discusses what the future may hold.

‘PFIC' means potential taxes on foreign investments
18/06/2002. US private equity funds and foreign private equity funds with US investors frequently invest in portfolio companies organised outside the United States. Among the many challenges faced by funds investing in foreign corporations, the US passive foreign investment company (PFIC) tax rules can have a significant impact on investment returns. William J Corcoran, Michael J Sutton of Testa, Hurwitz & Thibeault offer some guidance.

Q1 2002 Money Tree Survey
18/06/2002. US venture capital investments continued their pattern of decline falling 24 per cent, to $6.2bn in the first quarter, according to figures released by PwC/Venture Economics and National Venture Capital Association MoneyTree Survey.

Bigger isn't necessarily better, so firms look to cut fund size
17/06/2002. With a reduction in investment opportunities for private equity funds, limited partners are becoming more wary of committing capital to the larger, billion-dollar funds. Beth Healy of The Boston Globe examines how fund managers are addressing this problem.

New anti-laundering legislation and regulations to create new compliance requirements for private equity funds
04/06/2002. As the last steel girder is removed from Ground Zero, the effects of 11 September are still felt across all industries. Here, PricewaterhouseCoopers discusses the impact of the USA Patriot Act on the private equity industry.

The impact of downturns on private equity vintages
23/05/2002. The events of 11th September all but halted private equity activity. This gave LPs and GPs alike the opportunity to prepare for a recession that seemed to be looming both in the US and in Europe. Lim Hock Tay of GIC Special Investments looks at the lessons learned from previous downturns and how private equity investments both suffered and managed to rebound.

Valuations: a symptom in need of a cure
20/05/2002. There has been a significant decline in the values of venture fund portfolios. Consequently, the spotlight has been focused on the valuation methodologies used by general partners and, more importantly, the transparency of information provided by general partners to their limited partners. Thomas A Beaudoin of Testa Hurwitz & Thibeault reports further.

Liquidity options remain limited
15/05/2002. Venture capitalists are finding that opportunities for exiting their investments are still declining. The IPO window will continue to be shut for the foreseeable future and M&A activity in the first quarter of 2002 has also been affected, according to recent figures from the NVCA and Venture Economics.

Commonfund Benchmarks Study 2002
14/05/2002. In an effort to diversify their portfolio and pick up increased returns, US higher education endowments and foundations have shifted more of their funds into alternative investments, with 43 per cent having some allocation to private equity. The Commonfund Institute conducts an annual survey on this activity and asked 53 respondents from the 2001 survey what their predictions and intentions were for 2002.

US venture capital fundraising plummets in Q1
08/05/2002. US private equity fund-raising suffered another dismal quarter in the first three months of the year, falling 56 per cent on the fourth quarter to just $2.2bn, according to figures from Venture Economics and the National Venture Capital Association. 44 funds managed to close in the first quarter, compared with 65 in the fourth.

Guidance for compliance with the USA PATRIOT Act
30/04/2002. On 26 October, 2001, President Bush passed the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (PATRIOT). The act contains amendments to existing federal anti-money laundering (AML) law and now extends to venture capital funds and the firms that manage them. This guidance document issued by the NVCA discusses the new laws and reveals that those providing private equity firms with capital will find themselves under greater scrutiny in the future.

LPs consider ‘cash-in and cash-out' policy
23/04/2002. The GP and LP relationship has become rather heated of late, with many investors seeking new and raised terms from their fund managers. One key area is performance management. Carolina Braunschweig of Private Equity Week looks at the new proposals from the ILPA, which seek to abolish IRRs and offer instead a more transparent method of measuring performance.

Total US private equity funding report
23/04/2002. The private equity market has finally begun to rebound, according to Growthink's annual report. For the first time in two years, there has been an increase in the number of companies receiving funding. But, the amount raised by these companies did decline, falling from $8.3bn in 2000 to $8.1bn last year.

Private equity funds of funds: a checklist of legal and regulatory issues
15/04/2002. Funds of funds play an important role in providing investors with diversification in private equity commitments. But, these funds face a barrage of regulatory and tax issues in the US and this should be a matter of concern to everyone in the industry, say Joseph A Hugg and David W Tegeler of Testa Hurwitz & Thibeault.

Uncharted territory
10/04/2002. Have investors in the venture capital industry become more cautious since the burst of the dot-com bubble and the events of 11 September? Many industry players believe that the downturn is an inevitable part of the cycle of a maturing industry; others see it as the beginning-of-the-end of an industry that has already enjoyed its most successful years. John F Ince of UPSIDE examines the state of the venture capital business in the US and discusses what the future holds for this industry.

The state of the market
10/04/2002. Private equity evolved throughout the 1990s into a means for institutional investors to improve the long-term risk/return profile of their portfolios. The downturn in the industry over recent years, however, is forcing investors to reassess the benefits of the asset class. Ivan Vercoutere and Giacomo Biondi Morra of LGT Capital Partners argue that the private equity industry is merely returning to a state of normality after a period of euphoria and that now is a good time to invest.

Aftermath of the bubble, the defaulting investor
09/04/2002. The face of the limited partner has changed. Gone are the days of guaranteed commitment from well-financed institutions at the initial close. Daniel Finkleman of Testa, Hurwitz & Thibeault offers advice for the GP who has found that one of his LPs cannot meet commitments as a result of plummeting personal fortunes.

Biomedicine: The next wave for California's economy
03/04/2002. Biotechnology stocks are down and several promising biotech drugs have recently been hitting regulatory walls. However, the future looks bright for California's biomedical cluster, according to this report from PwC and the California Healthcare Industry.

The Silicon Valley venture capital confidence survey, Q1 2002
26/03/2002. Following one of the most dismal years for the venture capital community in nearly a decade, venture capitalists responding to the Silicon Valley venture capital confidence survey, conducted by Deloitte & Touche, have a positive outlook for the economy in 2002. For the first time since the survey's inception, the majority of respondents expect the overall economic climate to improve during the next six months, but see no return to the heady investment levels of 1999 and 2000.

Jilted by broadband
20/03/2002. In its most basic form broadband is an ‘always on' connection with data transfer speed that is faster than those of dial-up modems. Despite initial interest, without a surge of high-speed internet access, the technology industry, and the economy at large will remain stalled, argues Michael Copeland and Om Malik from Red Herring. New technologies from start-ups may provide a solution to promote and develop this.

US private equity in 2001
11/03/2002. Despite steep falls from 2000's levels, 2001 was the third best year in the history of US private equity in both total dollars raised and total dollars invested in companies. John Taylor, the vice president of the NVCA, looks at the year 2001, analysing developments and trends, asking what lies in store for 2002.

What's a VC to do with all that cash?
05/03/2002. There are currently unprecedented levels of uninvested capital in the hands of US VC firms. Many raised vast amounts during the internet boom, and, now that comapny valuations have dropped, they are finding it difficult to invest it. John Cooke from the Seattle Post Inteligencer Reporter looks at the challenges posed by these piles of untapped capital.

2002 fearless forecast
19/02/2002. Investment managers in the US will shift away from alternative assets in 2002, particularly private equity and venture capital, according to this survey by William M Mercer.

Economic impact and public policy implications
18/02/2002. This report by Michie Slaughter at the Kauffman Center identifies major trends and developments that have made entrepreneurship a significant social and economic force in the United States. It provides an overview of why entrepreneurship is different from small business, and it presents a rationale for understanding why this area of study and research has been steadily gaining momentum over the last 20 years.

Distributing private equity funds to US investors
18/02/2002. With their home market in the doldrums, many US institutions are increasingly looking to invest elsewhere. And yet, overseas private equity firms have traditionally considered fund-raising in the US as particularly difficult and burdensome. In reality, however, many of the regulatory tax and legal barriers can be overcome says Geoffrey Kenyon and Martin Charmichael of Goodwin Procter LLP.

US sees record amounts of uninvested capital in Q4, venture investing down
13/02/2002. The amount of venture capital raised in the US fell by 39 per cent from $104.6bn in 2000 to $40.6bn in 2001, according to figures by Venture Economics and the National Venture Capital Association (NVCA). The Q4 total for 2001 was 80 per cent down on the previous year. These figures seem to back up anecdotal evidence suggesting that many investors were adopting a ‘wait and see' attitude at the end of last year in the uncertainty following the 11 September terrorist attacks.

Building biotech in Ohio - you can if you think you can
12/02/2002. This edited extract of a speech by Dan Eramian, Vice President Communications at the Biotechnology Industry Organisation, discusses the development of venture capital funding in the US biotechnology sector. It also looks at the emergence of biotech clusters and why they have formed.

Venture capital investment increases in Q4
05/02/2002. The economic and psychological climate for venture investing is beginning to improve after 18 months of steady decline, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree Q4 Survey. The survey also shows that despite an extremely difficult economic environment, $36.5bn was invested in the twelve months of 2001, ranking the year as the venture capital industry's third best in terms of total dollars invested.

Venture-backed IPOs begin to rebound in Q4
21/01/2002. Venture-backed IPOs staged a modest recovery in the fourth quarter of 2001 to make it the busiest period of an admittedly miserable year, according to figures from NVCA and Venture Economics. There were 14 VC-backed IPOs, compared with five in the third quarter and nine in both the first and second.

A new sheriff at the SEC
14/01/2002. There is a new sheriff at the Securities and Exchange Commission. On 3 August 2001, after seven years of SEC leadership under Arthur Levitt, President Bush appointed securities lawyer Harvey L Pitt as the twenty-sixth Chairman of the SEC. THT asks to what extent this will have an impact on the private equity industry.

Building entrepreneurial networks
09/01/2002. Networking is an essential and effective tool for entrepreneurs, according to this report from the US National Commission on Entrepreneurship. Entrepreneurial networks can promote regional economic growth by allowing new entrepreneurs to learn from their peers and create successful fast-growing businesses as a result. This type of business can provide good deal flow for private equity firms.

PwC MoneyTree Survey Q3 2001
27/11/2001. It is hardly news any more that investment levels have plummeted. US venture capital investment slowed again in the third quarter to reinforce the mounting gloom across the sector. The amount invested fell to $6.5bn, down 23 per cent on the previous quarter and nearly 70 per cent on the same period, according to this latest survey from PricewaterhouseCoopers MoneyTree Survey in partnership with VentureOne.

An overview of US venture capital funds
20/11/2001. What are the characteristics of US funds? How are they structured? What should investors expect in terms of liquidity and capital calls? What are 'US funds' limitations? Jennifer Post from US law firm Edwards & Angells offers investors an introduction to general legal, business and tax issues in relation to US formed venture funds.

Venture-backed M&A remains steady in Q3
20/11/2001. US venture-backed buy-out activity held steady in the third quarter despite the deteriorating conditions in financial markets and mounting macroeconomic uncertainty, according to the latest research from Venture Economics and the US National Venture Capital Association. The dramatic fall in average deal size reflects the steep drop in valuations since public markets collapsed and the IPO exit route was slammed shut.

Private equity firms compensation survey
20/11/2001. Huge pay gains seen in the private equity industry in 2000 are unlikely to be seen again this year or next, according to William M Mercer's 2001 Private Equity Firms Compensation Survey. Big gains in base pay and carried interest boosted pay in the private equity industry last year but the outlook for the future is not as rosy.

VC creates eight million jobs in the US
31/10/2001. VC has created eight million jobs and $1.300bn in revenue, says this study from DRI-WEFA and NVCA. The report highlights the impact of venture capital investment on US economic performance as a whole.

Building the paper trail
31/10/2001. Tom Edens of Marion Financial Corp and John M McDonald of Shaw Pittman outline the most important considerations in each phase of an acquisition transaction. A good insight for investors of the legal issues faced by fund managers in US M&A deals.

US venture capital returns remain negative but outperform public markets
23/10/2001. Annual venture capital returns in the US have dropped for the second straight quarter, according to this report released by the NVCA and Venture Economics. The report attributes these returns to the shutdown of the mergers and acquisitions and the initial public offering markets, limited liquidity options and the collapse of many internet companies. Venture capital returns did not, however, fall as in the public markets.

Despite tough market, five venture-backed companies squeak out successful IPOs in Q3
10/10/2001. Venture-backed offerings were few and far between in the US domestic IPO market, according to these latest figures from NVCA and Venture Economics. Just five venture-backed US based companies managed to execute public offerings over the past three months, raising a total of $279.9m.

Silicon Valley venture capital confidence survey, Q3 2001
26/09/2001. The news for investors is relatively positive – only 40 per cent of venture capitalists questioned for this Deloitte & Touche survey expected exit valuations to decline further in the coming six months. That's down from 79 per cent in quarter two.

East Coast venture capital confidence survey Q3 2001
25/09/2001. Venture capitalists' confidence has been temporarily shaken, according to this Deloitte & Touche survey. Most respondents said they expected between 10 and 33 per cent of venture-backed companies to fold by the end of 2001.

The PricewaterhouseCoopers Money Tree Q2 Survey
07/09/2001. Equity investment in US venture-backed companies has fallen for the fifth consecutive quarter according to PricewaterhouseCoopers and VentureOne. In Q2 of this year, equity investments fell to $8.2bn compared to $10.4bn in Q1. This represents a 21 per cent decrease.

Private equity statistics Q2 2001
16/08/2001. US fund raising activity dropped sharply in Q2 2001, according to the latest statistics released by the NVCA and Venture Economics. $9.7bn was raised in Q2, down from $16.7bn in Q1. The latest figure represents a 68 per cent decrease compared to Q2 last year when a record $30.3bn was raised.

Venture Capital Investing Survey 2000
28/06/2001. The US investment market is expected to grow steadily during 2001, despite some hiccups in recent months. This report by Pricewaterhouse Coopers suggests that venture investing is heading towards a new plateau.

Economics of the private equity market
29/05/2001. The private equity market in the US has seen dramatic growth over the last 20 years. This study from Ice Miller Donadio & Ryan, published in 1996, explores the economic foundations of this development, drawing attention to the factors that prompted this expansion.

Private equity statistics Q1 2001
29/05/2001. In line with the rest of the economy, venture capital investments slowed in the first quarter of 2001 to $11.7bn, according to Venture Economics and the National Venture Capital Association (NVCA).