President Obama Hedge Funds

Obama Looks to End Carried Interest Tax Break

President Obama has again called for Congress to close the tax loophole that allows carried interest to be taxed at a lower rate than ordinary income. This is a sensitive issue for hedge funds and private equity managers who are compensated largely by carried interest and have benefited from the preferential tax treatment.

In yesterday's press conference, the President referred specifically ending tax breaks for fund managers as one of the ways to raise revenue as part of the government's efforts to reduce the federal deficit and avoid a government shutdown by August 2, the date that Treasury Secretary Timothy Geithner has said that the government will default on its debt. 

During a press conference lasting more than an hour, the president blasted congressional Republicans for refusing to compromise on revenue-generating measures to offset deep spending cuts. "Everybody else has been willing to move off their maximalist position," the president said. "They need to do the same."

Democrats, who agreed to as much as $2 trillion in spending cuts during negotiations that were broken off last week by Republicans, are calling for an end to several tax breaks and loopholes. One, the so-called carried-interest loophole, allows hedge and private equity fund managers to pay the much lower capital gains rate on the performance fees they earn.

Obama and congressional Democrats have tabled an end to that loophole, which could more than double the amount of taxes hedge fund managers pay, as well as an end to or reduction in tax breaks on oil and gas companies and corporate jets.

The president added that CEOs and hedge fund managers are paying the lowest tax rates in almost 60 years.  Source

Private equity carried interest in 2011

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Tags: president obama, president obama tax, President Obama tax loophole, President Obama tax break, private equity carried interest

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Private Equity Deals June 30 2011

Private Equity Deals

Private Equity Deals & Rumors for June 29, 2011

This is a new feature to PrivateEquityBlogger.com: a daily summary of the private equity deals and rumors for the day.  I hope that this will help private equity professionals stay current on the top news without searching the web and different news sources for hours.  Let me know if you find this feature helpful or not.
 

Renewed Shareholder Interest in Listed Private Equity Firms
 

Investors have shown growing interest in listed private equity, a welcome sign for an area of the industry that has struggled to deliver for many shareholders. 

Listed private equity companies are looking forward to renewed shareholder interest as the discount between their share price and the net asset value of their underlying portfolio companies to narrow. 

Some 80% of investors identified narrowing discounts as a reason to but shares in listed private equity companies in a recent study carried out by LPEQ, the industry's European trade body.

Listed private-equity companies have historically traded at a discount to NAV, but the discounts became increasingly large, often as much as 40%, following the financial crisis and economic downturn. However with improved performance, a reduction in costs and closely monitored cash-flow discounts are already narrowing--and should narrow even further, according to industry experts.  WSJ

Private Equity Firms Look to Break Up HP   

If private equity firms had their way, Hewlett-Packard Co would look less like a monolithic tanker and more like a small fleet of streamlined schooners.

Private equity firms including Blackstone Group, Kohlberg Kravis Roberts and TPG Capital would like HP to break up and sell them some of its unit, arguing that the world's No.1 PC maker and tech powerhouse is stretched too thin, according to people familiar with the matter. 

Read more from Reuters  

Barclays Sells $740m Private Equity Portfolio to AXA

Barclays is selling off huge chunks of its alternative assets holdings in a hurry, with the biggest sale going to AXA Private Equity but other firms are in the mix like KKR and Carlyle Group.

Barclays has sold a $740m portfolio of private equity fund investments to Axa Private Equity, adding to a wave of disposals of alternative assets by banks in the light of tighter regulation.

The UK-based bank announced on Thursday a deal to sell around 50 investments into US and European private equity funds, including some of the industry’s best-known names such as Carlyle, Cinven and KKR.  Source

Have a tip for tomorrow's Private Equity Deals segment?  Send me an e-mail to Theo at PEblogger.com

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Tags: private equity deals, rumors, private equity deals 2011, private equity deal, buyout deals, buyout deal, private equity buyouts, venture capital deals

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Starting a Private Equity Fund

Four Tips for Starting a Private Equity Fund

I am regularly asked for tips and strategies for successfully starting a private equity fund.  We are working on a Private Equity Startup Kit but in the meantime here is a list of four tips for starting a private equity fund. 

4 Tips for Starting a Private Equity Fund

1. It takes experience to launch a private equity fund. Seldom do you see a private equity firm launched by someone who is inexperienced in managing a fund or in the industry that the fund is specializing in.  Many private equity managers have worked for several years in private equity, rising from an analyst or associate to the top rungs of a private equity or venture capital firm.  Few investors will seriously consider a fund that is managed by an individual with irrelevant or limited experience. 

There can be exceptions like if the GP has years of experience and expertise in an industry or region that the fund will be investing primarily in.  For example, a professional who has worked in the technology for years and has proven he or she has the ability to lead a private equity or venture capital firm, then investors may overlook the lack of experience specifically in the buyout industry.  Or, someone may specialize in emerging markets and have a good grasp of the growth potential in areas like Brazil or China.  However, these are not often the case and I would say that the majority of private equity managers come from private equity or a closely related industry like corporate M&A. 


2. Starting a private equity fund is not a get-rich-quick scheme, it may take several years before your private equity firm becomes profitable and stable as a business.  This is especially true if you do not put in place a consistent and effective marketing process that will keep your asset level at a sustainable level.  No one should launch a private equity firm if they are looking to make a quick buck (or, rather, a few hundred thousand bucks).  Private equity investors look for managers that have a long-term strategy for providing consistent positive returns. 

3. Complete thorough due diligence on your service providers. I heard of a fund last month that was quoted at over $80,000 for their legal formation costs, which is at least $35k above what most other firms charge for this same service.  If you don’t shop around you could end up paying twice as much to service providers as you need to.  No, you should not select service providers based on price but you should always sit down or have conference calls at least with three prime brokerage firms, three auditors, and three administration firms before deciding who to work with.  This will help you avoid overpaying and make sure that the service providers you work with are high-quality and will perform well. 

4. Always be growing relationships. This is different than "always be selling." Selling can be spotted from 5 suits away and a networking event, and felt by how someone asks what company you work. It is always best to take the high road, the long-term approach yet always be looking out for those individuals who you should invest a significant portion of your time getting to know. The benefits of doing so could be valuable advice, leads or an allocation. If you are always looking to close than no professionals along the way will want to give you feedback on your marketing materials or suggest an alternative path to raising assets.

If you are interested in connecting with thousands of potential private equity investors, please see our database of Private Equity Investors.

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Tags: private equity relationships, private equity marketing, private equity fund marketing, private equity funds, starting a private equity fund, start a private equity fund, how to start a private equity fund, starting a private equity firm, launching a private equity fund, private equity fund launch, private equity firm launch, private equity startup

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Private Equity Deals June 29 2011

Private Equity Deals

Private Equity Deals & Rumors for June 29, 2011

This is a new feature to PrivateEquityBlogger.com: a daily summary of the private equity deals and rumors for the day.  I hope that this will help private equity professionals stay current on the top news without searching the web and different news sources for hours.  Let me know if you find this feature helpful or not.  The first story should be very important to private equity investors especially.

New Trading Platforms to Help Private Equity Investors

--Several platforms aim to make trading in private-equity fund stakes more efficient
--Platforms could revolutionize asset class, removing opacity, complexity of secondary private-equity trading

--Coller Capital: Over one-third of North American investors plan to sell private-equity assets in the next two years  Read more from WSJ

3 Korean Firms Sign LOI to Bid on Woori Finance Holdings Co. (053000.SE)

Three Korean private equity funds have submitted letters of intent to bid for the South Korean government's $6 billion controlling stake in Woori Finance Holdings Co. (053000.SE), brightening prospects for a sale of the firm that owns the country's second-largest bank by assets. Read more from WSJ.

Private Equity Firms Buying BJ's Wholesale

BJ's Wholesale Club is being acquired by two private equity investors for roughly $2.8 billion.The nation's third-largest wholesale club said Wednesday that Leonard Green & Partners and CVC Capital Partners will pay $51.25 per share in cash for BJ's common stock. That's a 6.6 percent premium over Tuesday's closing price of $48.08. Read more here.

Have a tip for tomorrow's Private Equity Deals segment?  Send me an e-mail to Theo at PEblogger.com

1. Private Equity Tracker Tool
2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: private equity deals, rumors, private equity deals 2011, private equity deal, buyout deals, buyout deal, private equity buyouts, venture capital deals

Link to This Resource: Private Equity Deals June 29 2011

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Private Equity MySpace

Private Equity Firms in Talks to Acquire MySpace

MySpace has drifted from many people's minds, and even more so from their regularly visited websites.  Yet, private equity firms have apparently kept an eye on the struggling social network.  There are rumors that a couple buyout shops--Golden Gate Capital and/or Specific Media--are among the likely buyers in a deal that would take the company off the hands of its News Corp. (NWSA) owners.

The deal will likely be a lot smaller than the price that News Corp. paid to acquire MySpace from venture capital firms in 2005.  The private equity buyers are reportedly in talks to pick up MySpace for $20 to $30 million--significantly less than the $580 million that News Corp. shelled out to buy the company.

Golden Gate is no stranger to technology companies, with a portfolio that includes chipmaker Aeroflex and enterprise software company Infor. But it has never backed a consumer Internet company, and Swisher's reported price-tag seems a bit on the low side for Golden Gate. The firm currently is investing out of a $5.5 billion fund, and usually seeks to invest between $25 million and $100 million of equity in each portfolio company. Maybe it somehow views MySpace as a platform upon which it could build.

Specific Media, on the other hand, would view MySpace as an add-on acquisition. The Irvine, Calif.-based online advertising network has been around since 1999, and in 2007 raised $100 million from private equity firm Francisco Partners (an occasional rival of Golden Gate). It previously raised VC funding from Enterprise Partners Venture Capital, Kennet Partners and Shepherd Ventures. I assume that Specific would have enough cash on hand to complete the deal without an additional equity infusion, but Francisco could certainly afford the cut another check (it closed on a $2 billion fund in 2009).

Specific also has a bit of history with Jon Miller, News Corp.'s chief digital officer. In October 2010, Specific bought acquired Broadband Enterprises, a video ad network that had raised venture capital from a firm – Velocity Interactive Group – where Miller had briefly been a partner.  Source

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Tags: private equity myspace, private equity myspace deal, private equity firms myspace, private equity firms buying myspace, myspace acquisition, news corp sells myspace, acquisition, merger, myspace buyout, myspace buyout firms, myspace venture capital, deal, investments, private equity firm

Link to This Resource: Private Equity MySpace

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Private Equity Deals June 28 2011

Private Equity Deals

Private Equity Deals & Rumors for June 28, 2011

I am adding a new feature to PrivateEquityBlogger.com: a daily summary of the private equity deals and rumors for the day.  I hope that this will help private equity professionals stay current on the top news without searching the web and different news sources for hours.  Let me know if you find this feature helpful or not. 

Private Equity Masergy Communications

Abry Partners is closing a deal to buy Plano's Masergy Communication but the terms of the deals have yet to be disclosed.  The Boston-based private equity firm focuses on media buyouts and appears to see a lot of potential for the upward trending communication firm which posted a million dollar increase in profit for the 6 months ending in December 31, compared to the same period last year.  Read more here.

Private Equity Investors Exit

Private equity investors are struggling to find an exit route from listed firms during rough stock market conditions this year.  I know that this is a point of frustration among private equity investors who feel they are locked into investments for too long without a clear way to exit.  Read more here.

AXA Private Equity Stake in Outremer Telecom

AXA Private Equity has purchased a 52% controlling interest in Outremer Telecom for an estimated $189 million.  The private equity firm bought up the remaining shares listed on the Euronext Paris stock exchange.  Read more here.

Bridgepoint Management Buyout SPP Process Technology Systems (SPTS)

European private equity firm Bridgepoint has reportedly decided to back a management buyout of SPP Process Technology Systems.  Read more here.

Blackstone Group Executive Compensation

Blackstone Group (BX), the world's biggest private equity firm, is under scrutiny from the Securities and Exchange commission over how its executives are compensated.  Ah, the joy of being listed.  Read more here.

Have a tip for tomorrow's Private Equity Deals segment?  Send me an e-mail to Theo at PEblogger.com

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2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: private equity deals, rumors, private equity deals 2011, private equity deal, buyout deals, buyout deal, private equity buyouts, venture capital deals

Link to This Resource: Private Equity Deals June 28 2011

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Italy Private Equity

Private Equity Firms in Italy

List of Private Equity Firms Operating in Italy

Today I received an e-mail from a PrivateEquityBlogger.com reader asking about Private Equity Firms in Italy.  I had not compiled a list of private equity firms yet but I came up with the following list of private equity firms in Italy.   If you are looking for contact details on Private Equity Firms in Italy please see PrivateEquityDirectory.com  

COMPANY
21 Investimenti

COMPANY
3i SGR


COMPANY
Accord Management

COMPANY
Advanced Capital SGR

COMPANY
Advent International

COMPANY
AF MEZZANINE SGR

COMPANY
Aksia Group SGR

COMPANY
Alcedo SGR S.p.A.

COMPANY
Aliante Partners

COMPANY
Alpha Associati

COMPANY
Alto Partners SGR

COMPANY
Amber Capital Italia SGR

COMPANY
Ambienta SGR

COMPANY
AME Ventures

COMPANY
Annapurna Ventures

COMPANY
Antares Private Equity S.p.A.

COMPANY
Apax Partners


COMPANY
Arca Impresa Gestioni SGR

COMPANY
Argan Capital Advisors


COMPANY
Argos Soditic Italia


COMPANY
Argy Venture Capital

COMPANY
Assietta Private Equity SGR Spa

COMPANY
Atlantis Capital Special Situations

COMPANY
AVM Private Equity 1 S.p.A.

COMPANY
AXA Private Equity Italy


COMPANY
BC Partners

COMPANY
BCC Private Equity SGRpa


COMPANY
Berrier Capital

COMPANY
Bridgepoint SpA


COMPANY
CA Agro-Alimentare Spa


COMPANY
Centrobanca


COMPANY
Centrobanca Sviluppo Impresa SGR


COMPANY
CFI - Cooperazione Finanza Impresa Scpa


COMPANY
Cinven


COMPANY
Clessidra SGR


COMPANY
Como Venture srl


COMPANY
Consilium SGR

COMPANY
Cooperare SpA


COMPANY
Crédit Agricole Private Equity Italia SGR

COMPANY
CVC Capital Partners


COMPANY
DeA Capital S.p.A.


COMPANY
DGPA SGR


COMPANY
Doughty Hanson & Co srl


COMPANY
DVR & C. Private Equity


COMPANY
Earchimede Spa


COMPANY
Edmond de Rothschild Investment Partners


COMPANY
Effusia Investimenti


COMPANY
Efibanca

COMPANY
EQUITER

COMPANY
Ersel Investment Club


COMPANY
F2I


COMPANY
Fi.La.S. S.p.A.

COMPANY
Finint & Partners S.r.l.

COMPANY
Finlombarda Gestioni SGR


COMPANY
Finlombarda S.p.A.

COMPANY
Finpiemonte Spa


COMPANY
Focus Gestioni SGR


COMPANY
Fondamenta SGR

COMPANY
Fondo Italiano d'Investimento SGR SpA


COMPANY
Friulia S.G.R. S.p.A.

COMPANY
Friulia S.p.A.


COMPANY
Futurimpresa SGR SpA

COMPANY
GE Capital Interbanca


COMPANY
Gepafin

COMPANY
Gradiente SGR S.p.A.


COMPANY
Hat - Holding All Together Spa


COMPANY
IDEA Capital Funds SGR


COMPANY
IDIA-SODICA Italia Srl

COMPANY
iDooo


COMPANY
IGI SGR


COMPANY
IMI Fondi Chiusi SGR SpA


COMPANY
IMI Investimenti


COMPANY
Industria & Finanza SGR S.p.A.


COMPANY
Innogest SGR


COMPANY
INTESA SANPAOLO


COMPANY
Investitori Associati SGR


COMPANY
IP Investimenti e Partecipazioni


COMPANY
L Capital Advisory


COMPANY
Life Sciences Capital Spa


COMPANY
Mandarin Advisory S.r.l.

COMPANY
Meridie SpA

COMPANY
Mittel

COMPANY
MPS Venture SGR


COMPANY
NEM SGR SPA


COMPANY
New Venture Development


COMPANY
NPV Capital Partners


COMPANY


COMPANY
ORIZZONTE SGR


COMPANY
Orlando Italy Management S.A.


COMPANY
Overseas Industries S.p.A.


COMPANY
PAI Partners


COMPANY
Palladio Finanziaria


COMPANY
Pentar Spa


COMPANY
Perennius Capital Partners

COMPANY
Permira Associati S.p.A.


COMPANY
Pino Partecipazioni S.p.A.


COMPANY
Private Equity Partners SGR S.p.A.


COMPANY
Progressio SGR


COMPANY
Quadrivio SGR SpA


COMPANY
Quantica SGR


COMPANY
R72 Partners


COMPANY
Riello Investimenti


COMPANY
SFIRS

COMPANY
Sigefi Italia Private Equity S.p.A.


COMPANY
Sofipa SGR S.p.A.


COMPANY
Star Capital SGR SpA


COMPANY
Strategia Italia SGR


COMPANY
Sviluppo Imprese Centro Italia SGR


COMPANY
Synergo SGR


COMPANY
SYNTEGRA CAPITAL ADVISORS


COMPANY
The Carlyle Group


COMPANY
TT Venture


COMPANY
UGF Merchant Spa

COMPANY
UGF Private Equity Sgr

COMPANY
Vegagest SGR


COMPANY
Vela Capital S.R.L.

COMPANY
Venice European Investments - VEI


COMPANY
Venice Shipping and Logistics (VSL)

COMPANY
Vertis SGR


COMPANY
Wise SGR S.p.A.


COMPANY
Xenon Private Equity Ltd.


COMPANY
Yarpa Investimenti SGR


COMPANY
ZernikeMeta Ventures S.p.a.



Looking for contact details to these firms and hundreds of other private equity firms?  Please see the latest version of our Private Equity Firm Directory.

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2. Private Equity Career Guide
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Tags: private equity Italy, Italy private equity, Private equity firms in Italy, list of private equity firms in Italy, Italian private equity, Italian private equity investments, Italy private equity firm, Italian private equity, Private equity groups in Italy, Private equity in Italy, list, contact, website, LP, group, news

Link to This Resource: Italy Private Equity

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Capital Raising Private Equity Investors

Private Equity Investors

Capital Raising with a Private Equity Investor Avatar

Continuing with our private equity capital raising focus this week, I thought today would be a good day to talk about using an investor avatar.  An investor avatar can significantly help your capital raising efforts by giving you a better idea of who you are looking to attract and what strategies will be most effective with that individual or institution. 

Investor Avatar Definition:  An investor avatar is a well-defined picture of the exact type of investor that your fund is targeting to raise capital from.

Investors do not want to be spoken to as a mass, they want to receive a message that is directed specifically to the individual.  It is critical that your capital raising efforts and marketing materials are crafted to speak directly and powerfully to a single type of investor.  If your investment fund is ideal for wealth management firms to invest in then it is important that your PowerPoint presentation, newsletters, conference calls, and educational marketing materials must be customized for that marketplace.

Investors want you to have a well-defined avatar in mind while raising capital because you waste less of their time when you do.  By being exclusively focused on one or two types of investors you will ensure that you have considered their needs, challenges, and other choices in the marketplace.

 Take a few minutes right now and think about which 1-2 types of investors you are focusing on primarily. Now think about these five questions:

What is absolutely unique about that investor,

What is their history in investing in your type of investment fund?

What risks are they considering while looking to invest in your fund?

Why would they not invest?

How educated are they about your type of fund and asset class?

Thinking about these questions with your team can help upgrade your marketing materials and approach to capital raising.  For another 100% free article on private equity fund capital raising, see this page.

If you are interested in connecting with thousands of potential private equity investors, please see our database of Private Equity Investors.

1. Private Equity Tracker Tool
2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: private equity investors, finding private equity investors, capital raising private equity investors, capital raising private equity investor, private equity investor inc, private equity investor plc, private equity investors list, private equity investors find

Link to This Resource: Capital Raising Private Equity Investors

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Private Equity Capital Introduction

Definition of a Private Equity Capital Introduction

As part of our ever-expanding collection of articles on private equity fund marketing and private equity capital raising, I thought it would be a good idea to explain what is a private equity capital introduction. 

Capital introduction is typically the phrase that refers to the introductions that prime brokerage houses will make on behalf of their money managers to help raise their assets under management. Some prime brokerage houses will have several capital introduction professionals in house or a whole team dedicated to the work. The prime broker gets compensated through trades or deals made by the manager so the more assets they have under management the more they will get paid each quarter on those larger trades.

Most capital introduction professionals are paid on salary and bonus on overall investment and trading activity and not by earning a percentage of fees from assets raised like a third party marketer.  Capital introduction services have come under some scrutiny in recent years and there are talks of it going away completely due to a possible conflict of interest--this has been heavily scrutinized in the hedge fund industry when capital introduction services work as an intermediary between hedge funds and institutional investors, but it is also questioned in the private equity industry.

I hope that this brief explanation of a private equity capital introduction was helpful.  If you are interested in connecting with potential private equity investors, please see our database of Private Equity Investors.  Or if you are looking to contact private equity firms, see our Private Equity Firm Directory.

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2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: private equity capital introduction, private equity capital introductions, private equity capital introduction services, private equity capital raising, private equity capital raiser, private equity fund marketing, private equity marketing, private equity fund marketing services, private equity third party marketer, what is a capital introduction?

Link to This Resource: Private Equity Capital Introduction

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Private Equity Marketing Materials

"What is a Private Equity Marketing Pitch Book?"

I am sometimes asked "What is a private equity marketing pitch book?"  A pitch book is an essential component of your private equity fund marketing materials serves as an introduction to your private equity fund.  You will use it frequently when marketing your fund to potential investors and partners, so it should be well-designed and informative.  I recommend sinking a significant amount of time into putting together your pitch book to make it really powerful.

With that in mind, here is a list of my top 10 tips to those professionals who are looking to create a pitch book for their private equity fund (of course, check with your legal or compliance expert before taking any steps recommended in this article).

1. Private Equity Tracker Tool
2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: private equity marketing, private equity marketing strategies, private equity marketing advice, private equity marketing ideas, private equity marketing techniques, private equity fund marketing, marketing a private equity fund, private equity pitchbook, private equity pitch book, private equity pitch book example, private equity pitchbook example, investments, private equity firm, private equity, management, contact, website, LP, group, news

Link to This Resource: Private Equity Marketing Materials

http://privateequityblogger.com/2011/06/private-equity-marketing-materials.html

IPOs

Capital Markets Execs Predict Growth in Number, Size of IPOs

A recent study by BDO USA, LLP found that capital market executives at investment banks are predicting a big uptick in the size and number of initial public offerings on U.S. exchanges for the rest of this year.  18% believed that the increase will be substantial; only 13% of those surveyed predicted a decline.  Perhaps not surprisingly, when asked what would drive the expected increase in IPOs, 67% said it would be either venture capital or private equity (more so the latter).  This is a welcome sign for private equity and the economy as a whole.  

Chicago, IL – According to a new study by BDO USA, LLP, one of the nation’s leading accounting and consulting organizations, capital markets executives at leading investment banks predict continued growth in the number and size of initial public offerings (IPOs) on U.S. exchanges during the remainder of 2011. A majority (59%) believe U.S. IPO activity will increase in the second half of the year, with almost a fifth (18%) describing the increase as substantial.  Only 13 percent of the survey participants expect a decline in IPOs in the second half of 2011, while more than a quarter (28%) forecast activity will be unchanged from the first half of the year.  Overall, bankers predict a 9.5 percent increase in the number of U.S. IPOs in the latter half of 2011.  They anticipate these offerings will average $368 million, which projects to more than $57 billion in total IPO proceeds on U.S. exchanges in 2011 (an increase of almost 50%).

"Given recent history, it isn't surprising that investment bankers are forecasting continued growth in U.S. IPO activity for the second half of the year.  Offerings on U.S. exchanges have increased in the latter half of the calendar in seven of the last eight years.  The lone exception was 2008 when the financial crisis essentially shut down IPO activity altogether," said Wendy Hambleton, a Partner in the Capital Markets Practice of BDO USA.  "However, with the performance of recent offerings all over the map and a good deal of uncertainty remaining about the health of the economic recovery, this confidence from the capital markets community is a welcome and positive sign for the health of the economy."

In 2011, IPO activity on U.S. exchanges has increased significantly year-over-year.  When asked to identify the key driver of this growth, investment bankers cite the general market stability encouraging previously postponed offerings to move forward (47%), low interest rates increasing investor demand for higher yielding assets (29%) and private equity (PE) and venture capital (VC) firms needing to reduce debt and deliver returns to clients (21%).

The size of the average IPO in 2011 is running considerably larger than 2010 and capital markets executives identified several contributing factors for this trend.  The most frequently cited factor in driving these larger deals are more offerings from PE backed business (43%).  The other main reasons cited for the larger deal size are that the IPOs are from more mature companies (33%) and the offering companies have more stable financials (24%).

As predicted in the 2011 BDO IPO Outlook at the start of this year, U.S. exchanges have reversed the trend of their declining role in the global IPO marketplace.  When asked to identify the main reason for the sharp increase in the U.S. share of global IPO proceeds, the bankers cited three contributing factors - foreign businesses listing on U.S. exchanges (36%), pricings of large private equity backed offerings on U.S. exchanges (36%) and a decrease in international IPO activity (27%). More than a third (37%) of the investment banking community see U.S. exchanges continuing to increase their percentage of global IPO proceeds during the remainder of the year, but almost half (47%) believe it will remain steady.  Just 15 percent see the U.S. share declining in the second half of 2011.

Thus far in 2011, the technology sector has led all industries in U.S. IPOs and almost three-quarters (74%) of investment bankers predict even more tech offerings during the second half of the year.  More than two-thirds (69%) see the numbers of IPOs from the energy vertical increasing as well.  By comparison, there is more modest support for the likelihood of growth in IPOs for the healthcare and biotech industries.

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2. Private Equity Career Guide
3. Private Equity Training
4. Private Equity Directory - List of Private Equity Firms

Tags: private equity, private equity IPO, private equity initial public offering, private equity IPOs, buyout IPO, venture capital IPO, investments, private equity firm, private equity, management, contact, website, LP, group, news

Link to This Resource: IPOs

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Private Equity Single Family Offices

70% of Single Family Offices to Boost Private Equity Allocation

Single family offices represent a rapidly growing group of private equity investors and it appears that these investors are looking to further increase their stake in private equity.  A report by Rothstein Kass estimates that 70% of single family offices plan to increase allocation to private equity, an impressive number and a needed vote of confidence in private equity. 

For the 151 surveyed single family offices, the most popular private equity strategies were Investment preferences are likely to include established companies (59%), mezzanine financing (39%) and second-round financing (32%).  Although single family offices currently prefer hedge funds (85% reporting investments in hedge funds) roughly half reported currently being invested in private equity.  The mean investable assets of single-family offices stands of roughly $416 million in 2011, and private equity firms would surely like to get a chunk of that capital.  If you're interested in a free report on family offices or other resources on family offices, visit FamilyOffices.com

"Raising Capital from Single-Family Offices – Considerations for Financial Firms," which was co-authored by Forbes Insights and private wealth expert Russ Alan Prince, also states that almost 70 percent of survey participants plan to increase allocations to the private equity sector in 2011. Investment preferences are likely to include established companies (59 per cent), mezzanine financing (39 per cent) and second-round financing (32 per cent).

Approximately 85 percent of single-family offices surveyed currently invest in hedge funds, with roughly half reporting active private equity sector investments.
Mean investable assets of single-family offices stands at roughly USD416 million in 2011, up from approximately USD236 million reported in 2010.

Nearly all single-family offices rely on external investment management professionals, with roughly 22 perc ent also indicating internal investment management capacity.

"One of the greatest challenges in understanding the single-family office sector arises in defining its scope. Surging interest in the space has compelled a variety of wealth management firms to market themselves as family office providers, contributing to widely disparate notions of what these structures encompass," says Flynn. Source

If you're interested in a free report on family offices or other resources on family offices, visit FamilyOffices.com

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Tags: private equity family offices, family offices group private equity, family offices private equity investments, private equity investors, family office, single family offices, single family offices private equity

Link to This Resource: Private Equity Single Family Offices

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Family Offices Private Equity

Family Offices Alternative Investments

Family Offices Heavily Invested in Private Equity, Hedge Funds

Rothstein Kass Family Office Group surveyed 151 executive directors of single-family offices and found that they are warming up to alternative investment groups.  The family offices showed a preference for hedge funds over private equity with 85% of those surveyed responding that they were currently invested in hedge funds and about 50% invested in private equity.  If you're interested in a free report on family offices or other resources on family offices, visit FamilyOffices.com

The company polled 151 executive directors of single-family office operations and found 85% are currently invested in hedge funds while roughly half report active private equity sector investments.

According to Rothstein Kass, the mean investable assets of single-family offices stand at roughly $416 million in 2011, up from about $236 million in 2010.

Almost all the single-family offices polled in early Q1 2011 relied on external money managers, while roughly 22% also had in-house capacity.

A full 90% of the directors polled were considering additional investments in hedge funds this year. The most popular strategies, according to Rothstein Kass, were long/short equity (53%), distressed (49%), arbitrage (33%), managed futures (25%), and global macro (25%).

On the private equity side, the survey showed 70% of respondents planned increased allocations in 2011. In terms of investment preferences, 59% are likely to target established companies, 39% mezzanine financing, and 32% second-round financing.  Source

If you're interested in a free report on family offices or other resources on family offices, visit FamilyOffices.com

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Link to This Resource: Family Offices Private Equity

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Private Equity Firms in India

Private Equity India Investments

Private Equity Firms Ramp Up Investments in India's Roads

Private equity firms looking to invest in India are beginning with a pretty basic infrastructure investment: roads.  The private equity industry has had a great deal of interest in the booming growth in India and the potential for making high returns in the emerging market.  Buyout firms invested more than $400 million in Indian road projects during just the first five months of 2011--a huge jump from previous years.

The largest deals in road projects were done through joint ventures. For instance, Infrastructure Development Finance Co. and Khazanah Nasional Berhad, the investment holding arm of the government of Malaysia, agreed to enter into a venture to set up a dedicated infrastructure development company with a focus on India's roads.

Khazanah will hold 80.1% interest in the joint company; the rest will be held by Infrastructure Development Finance.

Before that, in May, Morgan Stanley Infrastructure Partners, a $4 billion global infrastructure fund, announced a $400 million joint venture with Spain's Grupo Isolux Corsan SA to invest in India's roads. Tata Realty and Infrastructure and Actis, the private equity firm, entered into a $2 billion joint venture to invest in the sector last year.
"Road is the only active sector in India with a clear programmatic approach and predictability," said Rajesh Samson, partner, transaction advisory services at consulting firm Ernst and Young India.  Source

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Tags: private equity, private equity in India, India private equity, Private Equity Firms in India, Indian private equity firms, private equity investments in India, India infrastructure, India Buyouts

Link to This Resource: Private Equity Firms in India

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Institutional Investment Consultant

What is an Institutional Investment Consultant?

If you are starting a private equity firm, working in the private equity industry, or trying to raise capital it is critical that you know exactly what an institutional investment consultant is and what their role is in the industry.  Here is a short video definition of institutional investment consultants that capital raising expert Richard Wilson recorded last week in Singapore. 

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3. Private Equity Training
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Tags: Institutional Investment Consultant, Institutional Investment Consultant definition, Institutional Investment Consultant video definition, What is a Institutional Investment Consultant, Institutional Investment Consultants, marketing Institutional Investment Consultant, private equity Institutional Investment Consultant

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