Learning Curve Archive > 2001 Examining the latest developments and potential of the securitisation of private equity portfolios 19/12/2001. There has been increasing interest in creating innovative ways of attracting investors unable to commit to private equity limited partnerships. Securitisation is one option. Urs Wietlisbach of Partners Group offers some information on this emerging market. Bridging the gap - making venture capital work 18/12/2001. Why do private equity deals fail? Janine Canham of Cameron Mckenna and Tony Mitchell of Andersen ask why venture capital deals go wrong, both pre- and post-investment. The paper addresses specific market, legal and investor/investee conditions that might influence whether a deal succeeds, and in particular discusses current conditions in the Asian venture capital market Successfully riding the private equity cycle: an institutional investor's perspective. 18/12/2001. Institutional investors should look beyond yearly returns when considering alternative investments – especially private equity. Maximilian Brönner of LGT Capital Partners offers an insight into how institutional investors can build a well-structured private equity portfolio, based on longer term prospects. The 'branding' of private equity - can private capital be saved from becoming a commodity? 17/12/2001. There has been a great deal of discussion concerning the emergence of 'brands' within the private equity industry. What trends in the industry have caused this concern about branding private equity groups, and what are the long-term implications of this trend, asks Robin Painter of THT. In the absence of reliable data, how are investors supposed to evaluate performance? 17/12/2001. From John McCrory, chief executive, Westport Private Equity: Private equity has made great strides over the last five years in terms of performance data. Figures compiled by venture capital associations and other organisations have increased the industry's transparency, but there is still a long way to go. My pension fund has been investing via a fund of funds for a few years. We're now looking to make our own fund investments, but the due diligence seems endless. What should we really be looking at? 11/12/2001. From Jeremy Golding, Golding Capital Partners: You should be able to get some advice from the fund of funds you have been investing with. However, you can follow a structured approach that takes into consideration the past, present and future of the funds that you are looking at. Legal pitfalls in the fundraising process 11/12/2001. What do venture capitalists look at when they invest in portfolio companies? Written from an entrepreneur's perspective, this article by Janine Canham and Wen Leung of CMS Cameron Mckenna helps investors to understand the considerations VCs must take into account. We have been advised to start investing in private equity with just a one per cent allocation. Isn't that a lot of extra work for a minimal difference in overall returns? 05/12/2001. From Peter Murray, chief executive, Railways Pension Trustee Company: No, because it makes sense to start with a small allocation and increase that gradually as you become more familiar with private equity. How to build a successful private equity programme 03/12/2001. To achieve long-term success in private equity investments, institutions need to take a structured approach. LGT Capital Partners provides an overview of the phases that investors should go through when programme-building at a time when the market is proving challenging. My pension fund has decided to invest in private equity, but with such a lack of information available, it's hard to know where to start. Can you suggest a structured approach? 21/11/2001. From LGT Capital Partners: Investments made in the first years of the portfolio will have an important impact on overall portfolio performance and will be prominently visible in the first years. An introduction to understanding venture capital funds 20/11/2001. Creating and managing a venture fund is not any easy task. Selecting one can be even more complex. There are numerous accounting, tax and business issues that need to be addressed. Joel Press and Bonnie Kennedy from Ernst & Young offer some initial insights.(Extract) Exit strategies 14/11/2001. In the current difficult climate, investors should be questioning their private equity firms about their exit strategies. Here, Neil Brown of Apax Partners offers an overview of the exit routes available. Why should I pay my private equity manager so much more than my other fund managers? 14/11/2001. From Wol Kolade, managing director, Friends Ivory & Sime Private Equity. Comparing a private equity fund manager to, say, a quoted equity fund manager is rather like comparing apples with oranges. It's an unfair comparison because they do entirely different jobs. Taxing issues for private equity funds 13/11/2001. Investors in private equity and venture capital funds come in all shapes and sizes. Some are wealthy individuals investing $1m or less. Others are major public sector pension funds that may invest $100m or more in a single fund. Their tax status also varies widely – Paul Megson from KPMG discusses the issues. IPO ahead - try these tips on avoiding roadblocks 07/11/2001. The IPO process can be a painful transition and fund managers should be wary of the pitfalls. Andy Tucker of Shaw Pittman offers tips on how to avoid the worst of these pitfalls when taking a company public. Deal terms and valuations: the revenge of the contract 31/10/2001. The current difficult environment for private equity firms means that the ‘small print' becomes more important than usual when negotiating a deal. In this presentation, Kristian Wiggert of Morrison & Foerster MNP outlines the aims of protective deal terms and the main protective terms that are relevant in VC transactions. First-time funds look like risky investment prospects. Why does anyone invest in them? 31/10/2001. From Almeida Capital: A large segment of our institutional client base is interested in first-time funds but a pre-requisite is that management teams must have quality experience. The key attractions are great returns and investment terms, which can be better than many of their more established competitors. The regional venture capital funds 30/10/2001. Considerable opportunities still exist to invest in the smaller end of the venture capital market with an integrated and specialised approach dedicated to smaller companies. Regional venture capital funds aim to prove that good commercial returns are available in an area of the venture capital market that has been neglected in recent years. Geoffrey Doyle from WM Enterprise explains. What is private equity? 30/10/2001. Investors are now paying increasing attention to the private equity market. This description of the asset class by Danske Private Equity explains why this market is attractive to investors and offers explanations of the various types of private equity investment. Due Diligence - just what is it? 24/10/2001. Due diligence is an essential process for investors when considering which private equity funds to commit money to and for the funds themselves to assess whether or not to invest in an underlying company. Here, Tom Edens of Marion Financial Corp provides an overview of the different stages involved in due diligence. Private equity - the investors perspective 23/10/2001. Private equity has come of age, according to Graham Sturrock of Bank of Scotland. Here, Sturrock presents the evidence that shows the acceptance of private equity as an asset class. Legal considerations arising from transactions in the private equity market 15/10/2001. Liquidation preferences, warranty and indemnity insurance and special directors' liabilities on insolvency are some of the factors that currently affect private equity transactions. Here, Simon Beddow of Ashurst Morris Crisp offers an explanation of these issues and their significance in private equity deals. How do I choose a fund of funds? 11/10/2001. From Charles Soulignac of Fondinvest: Choosing the right fund of funds management team is crucial. Investors should be looking for a specialist, recognised and experienced team able to offer good opportunities in several markets, providing performance, quality reporting and professionalism. Structuring a successful deal/ negotiation skills 10/10/2001. An overview of the deal structures that are most frequently used by the venture capital community from Simmons & Simmons, together with an insight into the way deals should be negotiated. A good introduction for investors to how VCs should structure and negotiate their deals. Collateralised debt obligations 08/10/2001. Private equity firms in Europe are following the lead of their US counterparts by pricing collateralised debt obligations. An expert in the field, Jason Nelson, explains the world of CDOs and the risks attached to these transactions. If people are selling their private equity investments on the secondary market, why would anyone want to buy them? 05/10/2001. From Arnaud Isnard, ARCIS: Your question goes to the heart of any market. In real estate, in stocks, in currency... Why would anyone buy something that someone else is selling? Diversification 03/10/2001. Much debate surrounds the issue of diversification within a private equity portfolio. Here, Bruno Raschle of Adveq Management outlines recent issues surrounding diversification and suggests ways in which investors may have to change their strategies in the coming years. A trustee guide to private equity 21/09/2001. Paul Myners has urged pension fund trustees to consider investing in non-traditional asset classes, including private equity. But where do they start? And what is private equity, anyway? Independent trustee Terry Johnston offers a quick explanation. Lessons learned from past mistakes - the cost of failure and under-performance. 21/08/2001. Failure and under-performance are often considered to be unavoidable hazards of the venture capital industry. This extract from an EVCA and Price Waterhouse report questions whether this should really be the case and looks at how venture capitalists can spot problems before any damage is done. (Published in 1998) The paper barrier to private equity investment 17/08/2001. Partnership agreements are unnecessarily complex and lengthy – and they tend to be in favour of the private equity firm rather than the investor. Isn't it high time that agreements were standardised, asks the Railways Pension Trustee Company's Susan Adeane. I've been advised that using a gatekeeper is a good way of investing in private equity. How do I choose one? 06/08/2001. From Mark Drugan of Westport Private Equity: With the advent of the Myners report, the private equity industry is set for a period of strong growth. Institutions that even a year or two ago were dismissing private equity as a high-risk distraction are now beginning to look at the asset class seriously. Venture capital - more than money 13/07/2001. A guide on how to approach venture capital funds and which ones to approach. This provides a basic insight into what venture capitalists look for in growing businesses. Why go the fund of funds route? 09/07/2001. Funds of funds are gaining increasing recognition as a viable way to invest in the private equity industry. Here Fondinvest Capital looks at the rise of these funds and details why they represent an excellent investment opportunity. Priorities for private equity 25/06/2001. For the private equity and venture capital industry to fulfil its potential of strengthening the economy and encouraging entrepreneurship, there are certain things that need to be changed. Here, the EVCA identifies five priorities that governments and pan-European authorities should tackle so that the region can fully reap the rewards of venture capital. Pan-European private equity funds - structure and marketing 04/06/2001. Establishing a pan-European private equity fund involves complex forward planning to ensure that investors in the fund maximise returns. Investors need to be aware of a fund structure's features that have a direct impact on their investment. Baker & Mckenzie presents the main issues that are considered in the process and details the most commonly used structures and their suitability for different investor groups. Terms and conditions of European private equity funds 29/05/2001. Investments in European private equity partnerships are subject to certain terms and conditions. Here SJ Berwin outlines the main ones that investors need to pay careful attention to. What is venture capital and private equity? 29/05/2001. Need the basics on venture capital and private equity? Here's a good, basic overview written by the US's National Venture Capital Association. It includes an explanation of the asset class and focuses on some of the key characteristics of private equity funds. Investing in venture capital funds - legal issues for investors 29/05/2001. As an investor in private equity, it is advisable to make sure your interests are fully served in the legal agreement. Here Deacons suggests some of the main issues you need to consider. The role of debt in private equity deals 29/05/2001. Banks play an important role in private equity transactions, particularly in buy-outs. Here, Bank of Scotland explains its lending criteria and some of the types of debt available. Implementing a private equity programme 29/05/2001. What does it take to be a successful private equity investor? A good understanding of risk and return, for a start. Wilshire Associates explains its approach and runs through some of the attributes of leading private equity investors. Accessing venture capital and private equity through fund of funds 29/05/2001. Investing via a fund of funds can give you access to the best funds and ensure that you have a diversified private equity portfolio. Wilshire Associates outlines the benefits of fund of funds. Why is the proposal of removing the 20-partner limit on limited partnerships important for private equity? 24/05/2001. From SJ Berwin: In our view, it is an unnecessary inconvenience to restrict the number of partners to 20 for any type of business.