October 2003 Issue

Big is beautiful, and mezzanine is clearly in vogue. Until recently, the largest dedicated mezzanine fund ever raised was DLJ Investment Partners II, a $1.6bn vehicle organised in 1999. Then came Goldman Sachs, closing GS Mezzanine Partners III on $2.7bn. We spoke to Robin Doumar, a managing director of GS Mezzanine Partners in London, about the group's plans for the fund and their take on current mezzanine investment trends on either side of the Atlantic.

PEMI 2003-10-01 Staff Writer FirmDoughty HansonAmount Raised$800mFund TypeBuyout

Material adverse change clauses offer prospective buyers of businesses a way out after the purchase agreement has been signed in the event that circumstances change. So how do MAC clauses work, and how effective are they really? Franci J. Blassberg, Colin Bogie and William D. Regner of Debevoise & Plimpton look at recent relevant case law to chart current trends.

The US small buyout market has deals galore, and some of them might even be described as ‘proprietary.’ Still, small buyout professionals say their end of the deal market is pretty competitive. With opportunities this great, they say, why wouldn't it be? Alex J. Stockham reports.

When investment returns go down, LP-friendly administration and reporting technologies move up the industry's agenda. Art Janik surveys current efforts to take traditional private equity reporting online and beyond.

The bankers get busy: as private equity continues to evidence its leading role in European mergers and acquisition activity, the M&A advisors are keen to make sure they're in on the act. Ricky Morton reports.

The history of Italy's private equity would be comparatively brief and until recently would not warrant much discussion amongst GPs, LPs or Italian corporate officers more accustomed to financing change through traditional means. That has all changed, as Ted Wilson finds

Although still comparatively young, private equity in Spain is gaining the kind of traction that is the mark of a more mature market. There's good reason for cautious optimism given the work the sponsors are putting in to keep this momentum going, reports Ted Wilson.

David Rubenstein of The Carlyle Group and Blackstone's Stephen Schwarzman are pioneers of the multi-strategy private equity investment model. When the two met in New York to compare notes on how to run a global alternative investment business, David Snow looked over their shoulders.

It takes considerable skill and expertise to establish a successful fund investment operation dedicated t to private equity, i although being in the right place at the right time helps as well. Jens Bisgaard-Frantzen leads the team of private equity investment professionals at ATP Private Equity Partners: they have the experience and the money to make an impact. Philip Borel finds out how this recent arrival in the LP big league came about, and how it is advancing.

Family owned companies are staple items on many private equity firms' most wanted assets lists. But getting close to them is difficult and going through the acquisition process can be a nightmare. Why? Because, by definition, you're having to deal with those complex groups of individuals that own them: families whose members don't always see eye to eye. As Marc Bataillon knows from first hand experience, they can be difficult to do business with.

When bidding for an asset, more financial investors are turning to insurance not only for protection from potential losses, but also in order to secure a competitive advantage in the auction process. Deal Mechanic examines why and how.

Demand for mezzanine remains strong, both among corporate financiers looking to fund transactions as well as institutional investors hunting for yield. Even investors that are new to alternative investment should find the product's attributes appealing, argue two German fund managers who have just launched Europe's first dedicated mezzanine fund of funds.

Thinking about structure 2003-10-01 Staff Writer Philip Green, the celebrated UK billionaire entrepreneur, is said not to keep a computer in his office because, he has been quoted as saying, business is best done face to face.It's a view shared by Stephen Schwarzman, co-founder of Bla