April 2004 Issue

Even after ‘downsizing,’ New Enterprise Associates remains one of the dominant names in the early stage venture industry. The firm, with offices in Baltimore, Maryland, Menlo Park, California and Reston, Virginia, in February closed its 11th fund with capital commitments of $1.1 billion (‡900 million). This is down from the $2.3 billion raised in 2000 for Fund X. But according to Peter Barris, a managing general partner in NEA's Reston office, his firm is incented only to choose the best investment strategies, not to raise the biggest funds. NEA, founded in 1978, is one of the only firms in the private equity industry to charge budgeted fees, as opposed to management fees based on committed capital. We spoke with Barris recently about what's new, and what remains the same, at NEA.

New Enterprise Associates enjoys success with SMIC IPO

MANAGER PROFILE 2004-04-01 Staff Writer SNAPSHOT The Cerberus Group, formerly known as Cerberus Capital Management, is a US-based investment firm that manages private equity and hedge fund capital with over $12 billion (€9.92 billion) under management. The ultradiscree

Japanese investors are committing more money to hedge funds but some are suggesting that their approach is flawed. If it is, will private equity benefit?

A recent ILPA meeting focused on the secondary market and the allure of liquidity

In March, Private Equity International journeyed to Boston, hotbed of life sciences and healthcare investing, to learn about the discipline from six private equity Brahmins. The investment stages represented at our roundtable ranged from startups through late-stage and buyout funding, and the sectors spanned from basic tools to hopeful drugs. Those present explained that big pharmaceutical companies' insatiable demand for new drugs, a buoyant IPO market, aging demographics and lifestyle demands, and a confluence of other important trends, promise to keep this sector alive and well. Art Janik reports

‘Mature technology’ buyout firm Silver Lake prepares to close its second fund on $3.5 billion

The European venture market is travelling a long slow road to recovery, but there are some signs that the French market will get there sooner than most of its neighbours. Andy Thomson reports on recent key developments

Chicago buyout firm Willis Stein buys Jays Foods, a family-owned potato chip maker

The three-hankie buyout firm sees a blockbuster exit in the $1 billion sale of theater chain Cinemark

The ‘flight to quality’ has created intense demand for the handful of top-quality GPs, and has placed a premium on a slippery asset called ‘access’

News last month that Brian Larcombe will resign as chief executive of UK venture capital and buyout firm 3i in July has prompted a lively debate about his legacy.

Placement agents, especially those embedded in cashflow-conscious investment banks, can find the long droughts between fund closings pretty taxing. This, says Philip Borel, is one reason why the placement services industry is one of constant flux, with institutions switching in and out of the market while individuals move on up, down, out or sideways

Fundraising Industri Kapital scores two big wins in less than six weeks

Many predicted that 2004 was going to see a marked uptick in private equity fundraising, and they were right. Both seasoned and new general partner groups are looking for capital and are already battling it out on the fundraising trail. Placement agents are GPs' closest allies and are becoming ever more trusted advisors. Philip Borel reports

Continental Europe is today's destination of choice for big buyout

is it now – or never?

Joanna James of Advent International has been investing in Central and Eastern European growth companies since 1995. On the eve of EU enlargement, she talks to Philip Borel about what has been, and what she thinks will continue to be, one of the most rapidly evolving private equity markets in the world.

Manager selection matters – successful private equity fund investment has a lot to do with finding diamonds in the rough. To get this right, investors doing due diligence must dig deep, says Stefan Hepp of SCM Strategic Capital Management

FIRST ROUND 2004-04-01 Staff Writer With Google about to go public, yielding mind-blowing profits for its venture backers, you'd think the search engine would be kinder to the VC industry. And yet, a recent random Google search on the phrase ‘venture capital’ turned up an ad for

Editor's letter 2004-04-01 Staff Writer This month's focus is on fundraising: the lifeblood of private equity and a part of the industry that has had change forced upon it. As the various articles that make up our coverage were researched, we were reminded that many general partner groups have become acutely