Nordwind Capital

Nordwind Capital | Private Equity Tracker Profile

The following piece is Nordwind Capital is a private equity firm that invests primarily in German-speaking European companies. The following piece on Nordwind Capital is being published as part of our Private Equity Tracker Tool, our daily effort to track private equity firms in the industry.

According to the firm's website, "Nordwind Capital acquires stakes in companies with significant earnings improvement potentials which are headquartered in German-speaking Europe (D, CH, A). We are convinced that operational experience and a deep understanding of the operational issues facing our portfolio companies are an essential prerequisite for the success of our transactions. All of Nordwind Capital's partners therefore have significant operational experience, gained from leading positions in several large German companies in a broad range of industries."

Story #1: Nordwind Capital-- A Cautionary Tale of Private Equity

As a Harvard Law School graduate, Hans Albrecht must have found it particularly painful when the university’s endowment was among investors that blocked a deal by Nordwind Capital, the German private equity firm he founded. When a private equity group raises a fund, investors make legally binding commitments to provide the money when the group finds investment opportunities. There are heavy penalties for any investors that fail to meet these commitments.

However, in the case of Nordwind, investors – including Harvard and Yale – objected to a deal they were being asked to finance. Nordwind’s heavy investment in the US went against the fund’s strategy of investing in German-speaking countries. This suited the Harvard and Yale endowments, which provided a significant part of its first fund. But they have since suffered big losses across their portfolios, much of which was ploughed into illiquid assets such as private equity.

As the flow of returns from private equity investments slowed to a trickle last year, investors have found it harder to honour their commitments. Many of them have become much tougher with the private equity groups they back, and have privately requested that they not be called on for capital for new deals and in extreme cases have defaulted on commitments. (read more)

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Tags: private equity nordwind capital, Nordwind Capital Carlyle Group, Hans Albrecht, Hans Albrecht Nordwind Capital, Hans Albrecht private equity, Hans Nordwind Capital, Harvard Nordwind, Yale

Link to This Resource: Nordwind Capital

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