April 2007 Issue

Nicholas Lockley, editor of PrivateEquityOnline.com, looks behind the headlines of the last four weeks on the web.

London-based Kennet Partners, which also has an office in Silicon Valley, recently made an 11x money multiple when it sold Cramer Systems, a telecoms systems company, to Amdocs in July 2006. To build the business, Kennet had invested £1 million (€1.48 million, $1.92 million) of seed finance in 1999, followed by a further $3 million (€2.27 million) in 2000. Founded in 1997 and operating originally as a venture capital firm, Kennet changed strategy and became a growth capital investor in 2003. In early March, PEI caught up with managing director Michael Elias to discuss Kennet's investment approach and the characteristics of the growth capital market.

Investors in private equity funds must get comfortable about the economics of the partnership. In today's market place, are managers being overcompensated, ask Oliver Gottschalg, Bernd Kreuter and Ludovic Phalippou.

Wendel Investissement is one of France's oldest and most venerable corporate entities. After spending the last five years re-inventing itself as a private equity house, Wendel seems better equipped than most of its younger rivals to overcome recent criticisms of the European buyout industry.

Buyout investors operating in France seem to have avoided the political storm currently assailing their counterparts elsewhere in Europe. James Taylor finds out why.

Leon Shahinian, the head of the $30 billion alternative investment programme at the California Public Employees'Retirement System and one of the most influential limited partners around, spoke recently with PEI about his take on the growth of the very largest private equity funds.

Even for very large LPs, committing to small funds adds diversity and helps build relationships that could prove invaluable in the future. Sushil Cheema takes a look at how and why large investors hook up with small GPs on both sides of the Atlantic.

The fundraising carousel remains in full swing, and limited partners are struggling to cope with the pace. With strong distributions driving new commitments, few practitioners are preparing for a slowdown. Philip Borel reports.

Through a series of shrewd acquisitions, partnerships and change in ownership, Darby Overseas has become what might be called the biggest little private equity firm in the world. The firm, led by CEO Richard Frank, survived the near-evaporation of LP interest in the emerging markets and is now poised to capture billions in fresh capital commitments for multiple strategies in Latin America, Asia and emerging Europe. David Snow paid a visit to Frank's Washington offices to learn more about Darby's expanding franchise.

Venture capital trusts have been getting a bad press in the UK recently, but the tax-friendly investment schemes have a new defender hoping to change the public's perception. Dave Keating reports.

UK private equity appears to have friends in high political places.

Venture capital investment in Chinese cleantech companies is prolific. What attracts venture capitalists to the sector, and how accessible is the market? Jo Nash investigates.

Brigit Van Dijk-van de Reijt has joined Aureos Capital as its new head of global operations. Sushil Cheema reports.

The UK road services company that triggered the current fury surrounding private equity is doing well, according to fund investment specialist SVG Capital.

Private equity investors are increasingly attracted to investment opportunities in Mexico - both on an opportunistic and more long-term basis.

EVCA's annual investor meeting in Geneva confirmed once again: investors need to pick the best funds to make private equity worth their while

Japan's humble level of support for private equity is creeping up, but this encouraging trend could still end in disappointment.

The current debate about private equity in Europe is important, but to be productive it needs to be properly reasoned.

The promise of Asian private equity is widely hailed these days but, as recent events in Thailand have shown, dangers still lurk.

QUOTABLE 2007-04-01 Staff Writer “The level of understanding of private equity in policy circles is extremely low. There is both a lack of understanding and a lack of knowledge, and either of them is problematic from a public policy standpoint.”

A combined industry group within Warburg Pincus is enjoying two electrifying exits.

Caricaturists are having fun with the private equity controversy.

With its recent acquisition of a steel products manufacturer, Sentinel Capital Partners has entered the lucrative US market for prison-related industries.

FIRST ROUND 2007-04-01 Staff Writer Private equity analysts are not often found in rehearsal studios, but that is where Pieter Theron, an analyst at Close Brothers Private Equity (CBPE), has been every weekend since 2003. Theron is lead vocalist and keyboard player for a London-based band called ReCoup, whic

MPM says its latest fund is purposefully smaller than its last.

Rejected, disgruntled entrepreneurs now have a forum for airing their opinions.

An upcoming congressional hearing will set the tone for private equity's new relationship with lawmakers.

Editor's letter Staff 2007-04-01 Writer The circling of Boots and Sainsbury's by some of the UK buyout jungle's big beasts tells us at least a couple of things. First, that prising companies off the London Stock Exchange is not getting any easier: both targets appear to be putting up solid defe