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North America: September 2001

Calpers removes performance stats from website, Canadian Pension Plan commits C$325m to private equity and Capital Z founding partner quits…

Calpers removes performance statistics from web site
US pension fund Calpers removed performance statistics of its private equity investments from its website this month, after coming under pressure from the firms listed on the site. The figures detailed the performance of Calpers' private equity investments from 1990 up until December last year and revealed some poor performances from high-profile private equity players.
AltAssets 7.9.01

Canadian Pension Plan to commit an additional C$325m to Private Equity
The investment board of the Canadian Pension Plan (CPP) announced that it would invest C$325m in two private equity firms - Borealis Capital and Paul Capital Partners. The C$190m that the board will commit to Borealis will make it an equal partner with the Ontario Municipal Employees Retirement System. Paul Capital partners will receive a C$135m commitment from CPP. The investment board aims to commit up to ten per cent of CPP's assets to private equity investments.
PrivateEquityCentral 21.9.01

Major pension funds confident despite terrorist attacks
Major US pension funds including Calpers, the Washington State Investment Board and the State of Wisconsin Investment Board have expressed confidence in the US financial markets in the face of the terrorist attacks this month. The funds do not expect to change their investment strategy or their long-term view of private equity as a result of the attacks.
PrivateEquityCentral 19.9.01

Patricof & Co to rebrand as Apax Partners
Patricof & Co announced its intention this month to begin operating under the name Apax Partners. Its sister firms in Europe and Asia already use the Apax name. Chairman Alan Patricof hopes to capitalise on 30 years of operating internationally by using a single, global brand name. Patricof has recently reinforced his belief in old-fashioned investment principles following the mania of the last few years. One of the most valuable lessons he said could be learned is ‘you don't have to build a $100m company in a year. Some companies aren't meant to be built that fast. They get ahead of themselves.' Where the VC business is concerned, he has been quoted as saying, ‘It's not a science, it's an art - and everybody makes mistakes.'
AltAssets 12.9.01 / Red Herring 1.9.01

Founding partner departs Capital Z
Adam Mizel has left US firm Capital Z Partners. His departure is seen as confirming rumours that the firm has suffered recently because of its focus on technology. The firm has now announced that it will not make any additional investments in technology start-ups and will focus solely on financial services investments.
VentureWire 7.9.01

Offroad Capital to close
San Francisco based Offroad Capital has been forced to shut down after unsuccessful attempts to secure further financing. The firm helped to raise funding for start-ups and venture funds using an online network of high-net-worth individuals.
VentureWire 17.9.01

Sun Microsystems asked to lead more investment rounds
Sun Microsystems' venture capital investment unit has been leading and being asked to lead more investment rounds, according to vice president Brian Sutphin - more evidence that the environment for corporate investors continues to change.
VentureWire 17.9.01

Greylock to expand into Europe and Israel
US early-stage venture firm Greylock has moved into partnered investing in Europe and Israel. The decision was based on the regions' ‘high quality entrepreneurial opportunities'.
AltAssets 18.9.01

Private Equity losses for Goldman
Goldman Sachs' third quarter results have been dragged down by private equity investments and the bank has warned not to expect a speedy recovery. Net earnings dropped 43 per cent to $468m in the three months to the end of August compared with $824m in the same period last year. A large part of the damage was done by extensive holdings in Deutsche Telecom. However, despite short-term difficulties, chairman and chief executive Henry J. Paulson Jr said that he was confident about the long-term outlook for the business.
AltAssets 27.9.01