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Private Equity, Venture Capital & Institutional Investor Summit

17-20 November 2009, Westin Hotel, Paris http://www.icbi-events.com/superinvestor-preqsp

Dear Spotlight reader

15% Reader Off er Quote VIP: KN2217PREQSP

We are very pleased to be able to off er a 15% discount for Spotlight readers for places at the SuperInvestor conference in Paris this November. In addition, all registrations made by September 25, will be eligible for an additional £500 saving.

SuperInvestor brings together 180 of the most infl uential thinkers in a one-stop learning and networking shop, packed with interaction and high value face-to-face opportunities and a programme dense with the most critical issues facing the LP and GP community. Last year 700+ attended this blue chip private equity & institutional investment event, of which more than 30% were LPs.

I’ll be giving a State Of The Union address in the morning during the Secondaries Summit, and hope to see you there.

Kindest regards

Mark O’Hare

Private Equity, Venture Capital & Institutional Investor Summit 17-20 November 2009, Westin Hotel, Paris http://www.icbi-events.com/superinvestor-preqsp Dear

Mark O’Hare

Managing Director

Preqin

For all bookings & enquiries, please contact the SuperInvestor 2009 Team & Quote the VIP: KN2217PREQSP for your 15% discount:

Tel: +44 (0) 20 7017 7200 Fax: +44 (0) 20 7017 7807 Email: info@icbi.co.uk Web: http://www.icbi-events.com/superinvestor-preqsp

Private Equity Spotlight www.preqin.com September 2009 / Volume 5 - Issue 9 Welcome to the latest
Private Equity Spotlight
www.preqin.com
September 2009 / Volume 5 - Issue 9
Welcome to the latest edition of Private Equity Spotlight, the monthly newsletter from Preqin, providing insights into private
equity performance, investors and fundraising. Private Equity Spotlight combines information from our online products
Performance Analyst, Investor Intelligence, Fund Manager Profi les & Funds in Market.
Private Equity Employment Special
Feature Article
Investor Spotlight
page 3
page 19
Employment in Private Equity
Insurance Companies
This month we examine how the the number of professionals
being employed by the industry has increased signifi cantly.
This month’s Investor Spotlight features results from a recent
survey of insurance companies, and looks at how they are dealing
with the crunch.
Performance Spotlight
Secondaries Spotlight
page
9
page 22
Benchmarking Private Equity Performance
This month’s Secondaries Spotlight takes a look at SMM and the
latest secondaries news.
This month we look at the diffi culties faced by investors and fund
managers alike, when trying to benchmark private equity fund
performance.
Conferences Spotlight
page
23
We look at the upcoming events in the private equity world.
Fund Manager Spotlight
page 12
Buyout Dry Powder
Investor News
page 25
This month’s Fund Manager Spotlight looks at the amount of dry
powder available to buyout fund managers.
All the latest news on private equity investors:
Including ...
Fundraising Spotlight
Banque Transatlantique
page 15
AG2R
This month’s Fundraising Spotlight takes an in-depth look at buyout,
venture and life science private equity fundraising.
Be the fi rst to know about all our exclusive research
reports and projects, follow us on
www.twitter.com/preqin
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please email spotlight@preqin.com.
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you would like further details please email sales@preqin.com
OUT NOW
The 2009 Preqin
Fund Terms Advisor
Publisher: Preqin Ltd.
Scotia House, 33 Finsbury Square, London. EC2A 1BB
More information available at:
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Tel: +44 (0)20 7065 5100 w: www.preqin.com
PERFORMANCE • INVESTORS • FUNDRAISING • FUND MANAGERS
© 2009 Preqin Ltd. / www.preqin.com

3

Feature Article

September 2009

Feature Article:

Employment in Private Equity

The private equity industry has undergone tremendous growth in recent years, with fundraising levels increasing to record levels and fund sizes growing ever bigger. As the asset class has become a more integral part in the investment portfolios of institutional investors the world over, the number of professionals being employed by the industry has increased signicantly. In this month’s feature article we have used data taken from our online Fund Manager Proles database in order to document both the current levels of employment within the industry, and also examine how employment has been increasing over time.

Number of Active Private Equity Fund Managers

The private equity industry has undergone enormous growth and the number of rms active within private equity has grown consistently each year since the industry began. This growth is demonstrated in Fig. 1, which shows the total number of existing active fund managers each year alongside the number of new managers,

Fig. 1:

Total Number of Active Private Equity Fund Managers per Year (by Vintage of First Fund Raised)
Total Number of Active Private Equity Fund Managers per Year (by Vintage of First Fund
Raised)
4500
412
4000
337
3500
390
354
3000
307
287
2500
230
New
284
2000
Existing
3858
264
3607
3267
1500
341
2962
2680
246
2418
2207
1000
192
1937
176
1691
138
1358
110
1127
500
58 90
956
50
789
29
60
665
561
477
373
422
346
287
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

a gure based on the vintage of the rms’ rst funds. It should be noted that there are additional private equity rms not included in these gures because they do not manage and invest out of distinct private equity funds. 1998 saw

the total number of fund managers pass 1,000 for the rst time and since then the number has increased nearly four-fold. As of September 2009, there are 4,270 rms currently active managing private equity funds, 412 of which are new to

Fig. 2: Fig. 3: Total Number of Active Buyout Fund Managers per Year (by Vintage of
Fig. 2:
Fig. 3:
Total Number of Active Buyout Fund Managers per Year (by Vintage of
First Fund Raised)
Total Number of Active Venture Fund Managers per Year (by Vintage of
First Fund Raised)
900
2000
65
800
58
1800
135
106
75
700
1600
135
57
124
600
59
1400
105
55
117
40
1200
100
500
143
64
New
1000
New
150
400
44
Existing
780
Existing
738
60
1697
1647
800
673
204
1543
628
1446
300
54
576
1354
141
1250
37
524
600
1160
490
36
95
1028
426
200
35
385
100
890
400
26
329
65
690
278
30
53
34
557
241
14
31
479
100
207
17
200
21
10
8
175
20
149
24
281 329 386
119
106
81
89
177 196 204 224 253
57
0
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
No. of Active Buyout Fund Managers
No. of Active Venture Fund Managers

* / Raising

4

Feature Article

September 2009

there is a consistent growth taking place annually in the number of private equity fund managers based in North

...

America, Europe and Asia and Rest of World ...

the industry this year. From these annual totals we have subtracted rms that have not raised a fund in the past 10 years and are not currently raising one. The number of rms considered to have become inactive so far in 2009 stands at 86.

Number of Active Buyout Fund Managers

The number of active managers that principally raise buyout funds has grown consistently year on year, and the gure now stands at 845 managers, as shown in Fig. 2. In 2009, there have been 65 new buyout fund managers joining the sector, while there have been 16 managers reaching the 10 year point without raising a new fund or being in the process of raising one. Over the past 10 years, on average, 58 new buyout fund managers have come into existence annually.

Number of Active Venture Fund Managers

The number of active managers that principally raise venture funds has increased each year, although the rate of growth has uctuated. Growth in

Fig. 4:

Total Number of North America-based Fund Managers per Year (by Vintage of First Fund Raised) 2500
Total Number of North America-based Fund Managers per Year (by Vintage of First Fund
Raised)
2500
200
154
2000
176
150
146
1500
166
126
155
New
136
Existing
2067
1000
177
1957
1815
1700
137
1573
102
1427
1315
113
1171
90
500
1044
80
874
60
749
662
32 39
16
557
39
480
406
350
313
267
282
229
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Number of North America-based Fund Managers

the number of venture fund managers accelerated rapidly at the end of the 1990s into this decade, with a record 204 rms with a rst fund of vintage 2000. Following this, the rate of growth has decreased somewhat. The total number of venture fund managers now stands at 1,832, with 135 new rms having joined the industry

this year, as shown in Fig. 3.

Number of Active Private Equity Fund Managers by Region

Figs. 4, 5 and 6 show the number of active private equity fund managers each year in North America, Europe and Asia and Rest

Fig. 5: Fig. 6: Total Number of Europe-based Fund Managers per Year (by Vintage of First
Fig. 5:
Fig. 6:
Total Number of Europe-based Fund Managers per Year (by Vintage of
First Fund Raised)
Total Number of Asia and Rest of World-based Fund Managers per
Year (by Vintage of First Fund Raised)
900
1400
800
113
1200
99
700
91
92
1000
87
600
127
103
101
800
500
80
New
81
New
62
Existing
400
Existing
66
600
59
723
80
1068
38
648
1002
300
89
573
49
879
400
787
39
475
110
709
652
200
54
398
588
77
339
509
32
304
59
257
425
200
31
222
100
39
24
315
16
169
14
32
11
241
137
8
16
8
107
19
187
6
4
11
84
10
148
68
9
117
54
15
101
36 43
63
73
84
24
28
55
18
40
0
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Number of Europe-based Fund Managers
Number of Asia and Rest of World-based Fund
Managers

5

Feature Article

September 2009

of World respectively. All three graphs show the consistent growth taking place annually in the number of private equity fund managers based in North America, Europe and Asia and Rest of World.

North America-based fund managers represent the largest percentage (53%) of rms overall, with 2,267 of the 4,270 rms currently active based in this region. In second place are European-based rms, with a total of 1,167 fund managers, accounting for 27% of the global total. Asia and Rest of World-based fund managers make up the remaining 20% of the worldwide total, with 836 rms currently active.

Total Number of Employees in the Private Equity Industry

The growth in the number of active private equity rms has naturally meant that the overall number of employees within the industry has grown. Including rms that do not raise, manage and invest out of distinct private equity funds, there are currently almost 6,000 rms active in the private equity industry worldwide, and these rms directly employ an estimated 69,000 people. The industry remains fragmented in terms of the share of funds raised by the smallest and largest rms:

the largest 10 rms account for 15.9% of the total assets under management in the industry, while the top 100 account for 45.8%. It is important to note that our estimate here constitutes the “core” of the industry, taking into consideration rms managing funds that institutional and other large investors invest in. Beneath this lies a further tranche of smaller rms that invest lesser sums of capital, raising capital from private sources such as friends and family.

Number of Employees in Private Equity by Country

When analysing employment in the private equity industry by country, the US is the clear leader in terms of the number of employees, with approximately 38,500, as displayed in Fig. 7, or 56% of the global total. The UK is second with 7,700 – 11% of the global total. France comes in

Fig. 7:

Estimated Private Equity Employment by Country* 45,000 40,000 35,000 30,000 25,000 20,000 38,500 15,000 10,000 5,000
Estimated Private Equity Employment by Country*
45,000
40,000
35,000
30,000
25,000
20,000
38,500
15,000
10,000
5,000
8800
7,700
2,300
1,500
1,400
1,400
1,100
1,000
900
900
800
800
800
600
600
0
US
UK
France
Germany
Australia
Canada
Japan
India
Hong Kong Switzerland China (exc.
Hong Kong)
Italy
Sweden
Israel
Netherlands
Other
Estimated Total Employment

third with 2,300, while Germany, Australia, Canada, Japan and India all have more than 1,000 employees within the industry.

Number of Employees in Private Equity by City

Fig. 8 shows that New York is the leading city in terms of the number of people employed in the private equity industry,

Fig. 8:

with an estimated 11,000 employees. London comes in second, with 7,000 private equity employees, while San Francisco is third, with 3,900. Boston and Paris make up the top ve. Cities in the US occupy seven of the places in the top 15, while there are three European and three Asian cities on the list. Toronto and Sydney complete the list.

Estimated Private Equity Employment by City* 12,000 10,000 8,000 6,000 11,000 4,000 7,000 2,000 3,900 2,700
Estimated Private Equity Employment by City*
12,000
10,000
8,000
6,000
11,000
4,000
7,000
2,000
3,900
2,700
2,200
1,700
1,300
1,200
1,000
1,000
900
800 750
700
600
0
New York
London
San
Boston
Paris
Chicago
Washington Los Angeles
Sydney
Tokyo
Hong Kong
Dallas
Stockholm
Toronto
Singapore
Francisco**
Estimated Total Employment

*Based upon location of head ofce for each rm ** Includes Menlo Park, Palo Alto and San Mateo

Number of Employees in Private Equity by Firm Type

Fig. 9:

6

Feature Article

September 2009

Fig. 9 shows the estimated employment by rm type. This refers to the type of fund that the private equity rm is most synonymous with raising and managing. In spite of their generally small sizes relative to other types of rm, venture rms employ the highest number of people in the industry worldwide – 21,100 – due to the fact that such rms are so numerous. Buyout rms are close behind, with a total of 20,600 employees – despite the fact that buyout rms manage well over twice the amount of assets that venture rms manage. Real estate rms are the third- largest employer in the industry, with an estimated 11,100 employees in total.

Number of Employees in Private Equity by Firm Size

The number of staff employed by a private equity rm varies signicantly with the size of the rm, as shown in Fig. 10. A rm with less than $250 million in assets under management employs 10 staff on average, while a rm with $10 billion or more in total assets employs an average of 245 people. Naturally, there are signicant economies of scale to be enjoyed by the larger private equity rms, and such rms typically have fewer staff per $1 billion in assets under management than their smaller counterparts. Fig. 10 shows that rms with less than $250 million in assets under management employ, on average, the equivalent of 130 members of staff per $1 billion in assets, or $7.7 million managed per employee. For rms with $10 billion or more in total assets the gure drops to just 10, or one employee for every $100 million managed.

Since the management fees that private equity rms collect are almost universally calculated as a percentage of total investor commitments to a rm’s funds, one would expect that the percentage rates charged by rms managing the largest funds would be lower than those charged by rms managing less. As is detailed in the 2009 Preqin Fund Terms Advisor, this is indeed the case: buyout

Estimated Private Equity Employment by Firm Type* 25,000 20,000 15,000 21,100 20,600 10,000 11,100 5,000 6,000
Estimated Private Equity Employment by Firm Type*
25,000
20,000
15,000
21,100
20,600
10,000
11,100
5,000
6,000
2,900
2,400
2,000
1,300
900
800
0
Venture
Buyout
Real Estate
Fund of
Distressed
Infrastructure
Mezzanine
Balanced
Natural
Other
Funds
Private Equity
Resources
Estimated Total Employed

funds of $5 billion or more in size have average management fees of around 1.5%, for example, while the gure for buyout funds under $500 million is over 2%, rising to 2.1% for the smallest buyout funds (those below $100 million). However, the slightly lower fees charged by the largest funds only partially reect the economies of scale that the larger

*Based upon fund type most associated with rm

rms benet from. As a result, the operating economics of the largest funds are very favourable and the management fees earned by these vehicles have become the primary source of income for their managers.

Consequently, and particularly in light of the current economic climate and its

Fig. 10:

Average Number of Staff per Firm by Value of Funds Managed by Firm 300 244.8 250
Average Number of Staff per Firm by Value of Funds Managed by Firm
300
244.8
250
200
Average No. of
Staff
150
130.4
113.3
100
Average No. of
Staff per $1 bn
AUM
59.8
50
40.8
30.9
29.5
25.6
18.3 22.2
19.8
18.7
14.5
14.3
10.3
10
0
Less than
$0.25-0.49
$0.5-0.74
$0.75-0.99
$1-2.4 bn
$2.5-4.9 bn
$5-9.9 bn
$0.25 bn
bn
bn
bn
$10 bn and
above
Assets Under Management

effects on the GP/LP relationship, there is pressure from LPs on GPs of the larger funds to reduce the management fee rates for new vehicles looking to raise capital. Investors are seeking to bring management fee levels more in line with the actual costs associated with running funds of different size and

type.

Sam Meakin

7

Feature Article

September 2009

Preqin: Employment and Research Solutions

Preqin currently employs over 50 staff directly involved with collecting comprehensive data, compiling accurate contact information, producing reports and developing the functionality of our online products. In addition we also have a signicant number of Client Services Consultants located in our London and New York ofces in order to ensure that our clients are always able to receive a high level of support.

As a result Preqin is the trusted source of data and intelligence with 80% of the largest rms worldwide using our online services, in addition a large number of smaller rms of all different types are included amongst our clients. In total, over 2,000 users worldwide use Preqin’s online services in order to leverage their resources and increase efciency. Additionally over 30,000 people have access to our research by subscribing to our monthly Spotlight newsletters.

If you are not already using Preqin’s services, please visit our website in order to learn more and register for trial access:

www.preqin.com

effects on the GP/LP relationship, there is pressure from LPs on GPs of the larger funds
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Problem: “ the lack of reliable tools often ... makes it dif fi cult to meaure

private equity performance ...

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is now offering free access to its powerful benchmarks

...

which provide solid performance data ...

• Median, pool, weighted and average benchmarks by fund type and region focus. • View Benchmarks ratios for called-up, distribution, value and top, median and bottom quartile IRRs and multiples. • View benchmarks calculated using the most up-to-date data available in the industry and at specic quarter-ends. • Assess the performance of your own funds or your portfolio of funds and see in what quartile they ranked. • View what funds are included in the benchmarks (Performance Analyst users are able to see the individual fund performance of each fund). • Download the benchmarks to spreadsheet for further analysis.

The Preqin Performance Benchmarks module offers comprehensive benchmarking tools for the private equity industry. The benchmarks are calculated using performance returns for over 4,500 funds from our Performance Analyst database, the world's most extensive and transparent database of private equity and venture capital fund performance. In terms of aggregate value, this represents around 70% of all capital ever raised.

Preqin’s high level of coverage enables us to produce the most meaningful benchmarking and comparative tools available in the industry. Key features of the Preqin Performance Benchmarks module include:

To nd out more about this industry-leading new service, or to start using Preqin’s Private Equity Benchmarks, please visit:

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Private Equity Benchmarks

Performance Spotlight:

9

Performance Spotlight September 2009

Benchmarking Private Equity

Comparing investment performance is essential for private equity investors and fund managers alike, but the lack of reliable tools often make it difcult to establish consistent and comprehensive benchmarks. Many nancial data providers are competing to offer in-depth comparison tools for other investment classes but data is very limited for private equity. Moreover the few institutions which are monitoring the performance of the private equity industry are providing very different tools that vary in both coverage and quality. Therefore, to full the needs of private equity professionals and institutional investors, Preqin is now offering free access to its powerful benchmarks which provide solid performance data.

Preqin calculates complete and transparent performance benchmarks using data from its online product Performance Analyst. We currently hold net-to-LP data for a total of 4,808 funds of all types on a global scale, with performance data for around 44% of all funds of vintages 1990 to 2006. However, even this gure understates the true coverage of our performance data:

generally we have performance data for a

greater proportion of the larger funds so, in terms of value, the database accounts for 70% of all private equity funds ever raised.

Preqin sources its data using a variety of means, including Freedom of Information Act requests, previously published information and voluntary data sharing. Limited partners are our primary source of performance data and to-date we have gathered data from almost 300 public pension funds and endowments. GPs have also become an increasingly important source of data and the number of contributors of this type now totals 800. With thousands of prospective investors viewing the performance data on a fund level, GPs now recognise the importance of providing the most accurate and up- to-date data. As our research program grows more extensive, it allows us to cross-check the data for individual funds with information from different sources, thereby increasing its reliability. As a result the benchmarks we produce are accurate and representative, and have become relied upon by thousands of private equity professionals on a daily basis.

Preqin calculates benchmarks for buyout,

Performance Spotlight: 9 ◄ Performance Spotlight September 2009 Benchmarking Private Equity Comparing investment performance is essential

fund of funds, mezzanine, real estate private equity, early stage and venture funds across North America, Europe and Asia and Rest of World. Performance ratios for called-up, distribution, unrealised value, multiples and IRRs are calculated for median, average, money-weighted and pooled benchmarks.

Preqin’s median benchmark simply ranks the fund performance from the best to the worst and is particularly helpful to compare specic funds against a typical median return. This type of benchmark is also used to identify the top, median and bottom quartile IRRs and multiples, and therefore can be used to identify which funds are ranked top quartile or bottom quartile.

Money-weighted and pooled benchmarks are both aimed at assessing the performance of a portfolio of funds. The performance ratios are weighted according to the size of each fund therefore reecting the total returns that LPs can expect to earn on their private equity investments as a whole.

Pooled benchmark IRRs are the most accurate measurement as it also takes into account the timing of each contribution and distribution. Pooled cash ow IRRs are calculated by aggregating cash ows for a portfolio of funds; and calculating the resulting IRR. Money- weighted is a benchmark that takes the performance ratios of each individual fund and calculates a weighted average using the size of each fund. Figures calculated using the money-weighted methodology are very close to pooled cash ow IRRs but the universe of funds is much larger and the results are therefore more robust.

Preqin’s benchmarks are fully transparent and users are able to view the names of the constituent funds. Subscribers to our Performance Analyst product are even able to see the individual fund return

10

Performance Spotlight September 2009

for each partnership included in the benchmark. By downloading fund level data, these users are able to conduct further analysis and to construct their own tailor-made benchmarks.

With net returns data for more than 4,800 private equity funds worldwide, Preqin’s fund performance returns and benchmarking tools are not comparable to any other service. Aiming to bring increased transparency and understanding to the private equity industry, we are now offering everyone in the industry the opportunity to gain free access to our powerful benchmarks.

Etienne Paresys

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2009 Preqin Infrastructure Review:

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Fund terms and conditions listings for 27 vehicles, plus transparent performance data for 62 infrastructure funds (all performance data is net to investors).

Proles for over 250 infrastructure rms and 400 funds, including detailed investment strategies and key information.

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Proles for over 230 investors in the sector, including investment plans and key contact details.

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12

Fund Manager Spotlight September 2009

Fund Manager Spotlight:

Dry Powder in Buyout

In December 2008 Preqin estimated that there was just over $1 trillion in private equity dry powder, and buyout fund managers were sitting on half of this total, ($500.9 billion). This research report takes an in-depth look at the types and locations of the rms sitting on this un-called capital.

Fig. 1 shows the dry powder available to buyout funds from December 2003 to September 2009. The data reveals that the amount of buyout dry powder available has increased year on year since December 2004. The only decrease was a marginal 5% decline between 2003 and 2004. Between December 2004 and December 2008, the amount of dry powder available to buyout funds increased from $178 billion to $501 billion, although the rate of this increase has tapered each year since 2006. The gure from September 2009 indicates that the December 2009 total will also be in line with this trend.

Fund Size

Fig. 2 illustrates the amount of buyout dry powder available to buyout funds of

Fig. 1:

Dry Powder Available to Buyout Funds - December 2003 - September 2009 600 508.54 500.93 500
Dry Powder Available to Buyout Funds - December 2003 - September 2009
600
508.54
500.93
500
461.61
400
378.84
300
258.78
186.43
200
177.99
100
0
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Sep 2009
$bn

various fund sizes. The graph reveals that mega buyout funds (those with capital commitments of more than $3.5 billion) have seen the levels of dry powder increase drastically between December 2004 and December 2008, swelling from

$39 billion to $267 billion. Smaller buyout funds have not seen the same increase in dry powder over this time period. Between December 2004, the date at which the level of dry powder was roughly equal for all fund sizes, and December 2008, large

Fig. 2: Fig. 3: Dry Powder Available to Buyout Funds by Fund Size Dry Powder Available
Fig. 2:
Fig. 3:
Dry Powder Available to Buyout Funds by Fund Size
Dry Powder Available to Buyout Funds by
Region Focus
300
300
250
250
200
200
150
150
100
100
50
50
0
0
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Sep 2009
Dec 2003
Dec 2004
Dec 2005
Dec 2006
Dec 2007
Dec 2008
Sep 2009
Mega Buyout (> $3.5bn)
Large Buyout ($1.0bn - $3.5bn)
Mid Market ($300mn-$1.0bn)
Small Buyout (< $300mn)
US
Europe
Asia and Rest of World
$bn
$bn

13

Fund Manager Spotlight September 2009

Fig. 4:

Top 10 Buyout Firms by Estimated Buyout Dry Powder

 

Firm

Location

Estimated Buyout Dry Powder ($ Bn)

Advent International

US

22.2

TPG

US

21.7

Carlyle Group

US

17.1

CVC Capital Partners

UK

16.8

Kohlberg Kravis Roberts

US

13.6

Blackstone Group

US

13.0

Bain Capital

US

12.2

Goldman Sachs Private Equity Group

US

12.1

Apollo Management

US

11.1

Apax Partners

UK

9.2

buyout funds have seen an increase in dry powder of 110%. Mid-market buyout funds experienced an increase of 68%, while small buyout funds saw an increase of 17%. These gures conrm that over the past half-decade the larger the buyout fund, the more dry powder that has become available to invest.

Fund Focus

Fig. 3 depicts the amount of dry powder available to buyout funds by regional focus. The graph reveals that, since December 2003, buyout funds investing in the US have persistently had the most dry powder available, followed by funds investing in Europe, and lastly funds investing in Asia and Rest of World. All

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regions have seen a continuous increase in the amount of dry powder available since December 2003, the only exception being a small decrease between December 2003 and December 2004 for US focused funds. In absolute terms,

buyout funds focused on the US have seen the largest increase in dry powder

from December 2003 to December 2008,

followed by those focused on Europe, then

those focused on Asia and Rest of World. However, in terms of percentage increase from over the same period, the ranking

is reversed with Asia and Rest of World

experiencing a 517% increase in dry

powder, Europe a 248% increase, and US focused buyout funds a 114% increase.

Fund Manager Location

Fig. 4 shows the top 10 buyout rms by estimated dry powder. Looking at the location of these rms it is clear that the majority of the rms (90%) are based in the US. The only other location which features in this top 10 is the UK, which is home to the fourth largest buyout rm by dry powder available - CVC Capital Partners.

Benjamin Formela-Osborne

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Powder. View historical dry powder across the private equity industry for all private equity fund types and

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2009 Preqin Sovereign Wealth Fund Review

The 2009 Preqin Sovereign Wealth Fund Review
The 2009 Preqin
Sovereign Wealth Fund Review

Despite the global turmoil that has seen the assets of other institutional investors drop over the course of 2008/2009, the formation of a number of signicant new sovereign wealth funds has seen the aggregate capital controlled by these giant investment vehicles grow by 6% from 2008 gures.

Sovereign wealth funds currently control an aggregate $3.22 trillion in assets under management, up from $3.05 trillion in 2008. They remain a vitally important source of capital, and have been making important investments across all the different asset classes over the past year. In response to a call for more information, we have expanded this year’s edition of the Preqin Sovereign Wealth Fund Review to include comprehensive information on all aspects and areas of sovereign wealth fund investments. This year’s review contains information on equities, xed income, private equity, hedge funds, real estate and infrastructure.

Key features of this years publication include:

Full proles for all sovereign wealth funds, including:

Separate analysis sections identifying all key trends and patterns for sovereign wealth fund activity in:

Fund background Contact details

Equities

Key nancial information

Fixed income

Overall investment plan

Private equity

Asset class specic investment plans and

Real estate

preferences

Hedge funds

Fund investments and public/private holdings Advisors and consultants used

Infrastructure

 

League table showing the top sovereign wealth funds, by assets under management.

Key contact information for each of these sovereign wealth funds, including direct email addresses and phone numbers.

Overview of the sovereign wealth fund market, its history and our predictions for the future of the market.

To see sample pages, an executive summary, and further information on ordering your copy online, please visit: www.preqin.com/swf

Details and information on planned and recently established sovereign wealth funds.

2009 Sovereign Wealth Fund Review - Chapters 1 .................................................................................................. EXECUTIVE SUMMARY 7 ........................................ SOVEREIGN WEALTH FUNDS
2009 Sovereign Wealth Fund Review - Chapters
1
..................................................................................................
EXECUTIVE SUMMARY
7
........................................
SOVEREIGN WEALTH FUNDS INVESTING IN REAL ESTATE
2
...................................................................
SOVEREIGN WEALTH FUNDS OVERVIEW
8
..............................
SOVEREIGN WEALTH FUNDS INVESTING IN INFRASTRUCTURE
3
....................
PLANNED & RECENTLY ESTABLISHED SOVEREIGN WEALTH FUNDS
9
.....................................
SOVEREIGN WEALTH FUNDS INVESTING IN HEDGE FUNDS
4
............................................
SOVEREIGN WEALTH FUNDS INVESTING IN EQUITIES
10
...............................................................................................................
LEAGUE TABLE
5
...................................
SOVEREIGN WEALTH FUNDS INVESTING IN FIXED INCOME
11
.......................................................................
SOVEREIGN WEALTH FUND PROFILES
6
................................
SOVEREIGN WEALTH FUNDS INVESTING IN PRIVATE EQUITY
12
...............................................................................................................................
INDEX

Fundraising Spotlight:

Buyout

Buyout Funds on the Road

Final Close Barometer

15

Fundraising Spotlight September 2009
Fundraising Spotlight
September 2009
160 Funds on the Road 144 US Europe ROW Total 140 131 120 No. of Funds
160
Funds on the
Road
144
US
Europe
ROW
Total
140
131
120
No. of Funds
Aggregate Target
Size ($bn)
Average Size
($mn)
129
65
63
259
100
80
68
124
36
37
197
60
53
40
959
549 587
760
20
0
Jan-Sept 2008
Jan- Sept 2009
No. of Funds
Aggregate Capital ($bn)
Buyout Funds on the Road

Fund

Manager

Target Size (mn)

GP Location

Blackstone Capital Partners VI

Blackstone Group

15,000 USD

US

KKR Fund 2009

Kohlberg Kravis Roberts

8,000 USD

US

Candover 2008

Candover Partners

5,000 EUR

UK

Madison Dearborn Capital Partners VI

Madison Dearborn Partners

7,500 USD

US

Hellman & Friedman VII

Hellman & Friedman

7,000 USD

US

Morgan Stanley Capital Partners V

Morgan Stanley Private Equity

6,000 USD

US

Clayton Dubilier & Rice VIII

Clayton Dubilier & Rice

5,000 USD

US

Abraaj Buyout Fund IV

Abraaj Capital

4,000 USD

United Arab Emirates

Onex Partners III

Onex Corporation

4,000 USD

Canada

JC Flowers III

JC Flowers & Co

3,500 USD

US

Recently Closed Buyout Funds

KKR E2 Investors - Annex Fund

Manager: Kohlberg Kravis Roberts Target Size (mn): 400 USD Closings (mn): Final Close: 400 USD Geographic Focus: Europe Industry Focus: Any Sample Investors: Etera Mutual Pension Insurance Company, Finnish Industry Investment, Ilmarinen Mutual Pension Insurance Company, KKR Private Equity Investors, Oregon State Treasury, Washington State Investment Board

Unison Capital Partners III

Manager: Unison Capital Target Size (mn): 150000 JPY Closings (mn): First Close: 90200 JPY (Aug-2008), Second Close:

116345 JPY (Oct-2008), Final Close: 140000 JPY (Aug-2009) Geographic Focus: Japan Industry Focus: Pharmaceuticals, Consumer Products, Industrial, Manufacturing, Media, Information Services, Food, Restaurants, Publishing, IT Infrastructure, Telecom Media

Sample Investors: Princess Private Equity Holding

Sentica Buyout III

Manager: Sentica Partners Target Size (mn): 100 EUR Closings (mn): First Close: 50 EUR (Nov-2008), Second Close: 74 EUR (Jan-2009), Final Close: 113 EUR (Aug-2009) Geographic Focus: Finland Industry Focus: Healthcare, Industrial, Engineering, Information Services, Business Services, Outsourcing Sample Investors: Etera Mutual Pension Insurance Company, Finnish Industry Investment, Ilmarinen Mutual Pension Insurance Company

Anna Strumillo

16

Fundraising Spotlight

September 2009

Fundraising Spotlight:

Venture

Venture Funds on the Road

Funds on the Road

US

Europe

ROW

Total

No. of Funds

221

104

147

472

Aggregate Target

43

21

27

91

Size ($bn)

Average Size ($mn)

196

198

181

192

Venture Funds on the Road

Final Close Barometer

350 289 300 250 200 150 95 100 56.8 50 17.4 0 Jan-Sept 2008 Jan- Sept
350
289
300
250
200
150
95
100
56.8
50
17.4
0
Jan-Sept 2008
Jan- Sept 2009
No. of Funds
Aggregate Capital ($bn)

Fund

Manager

Target Size (mn)

GP Location

Cyrte Investments TMT Fund

Cyrte Investments

3,000 EUR

Netherlands

New Enterprise Associates XIII

New Enterprise Associates

2,500 USD

US

Invention Investment Fund II

Intellectual Ventures

2,500 USD

US

China-Singapore Hi-tech Industrial Investment Fund

China-Singapore Suzhou Industrial Park

1,330 USD

China

Riverwood Capital I

Riverwood Capital

1,250 USD

US

Shanghai Financial Development Investment Fund

Jinpu Industrial Investment Fund Management

8,000 CNY

China

ECP Africa Fund III

Emerging Capital Partners

1,000 USD

US

Hudson Clean Energy Partners

Hudson Clean Energy Partners

1,000 USD

US

Millennium Private Equity Media & Telecommunication

Millennium Private Equity

1,000 USD

United Arab Emirates

Recently Closed Venture Funds

Keytone Ventures China Fund

Manager: Keytone Ventures Target Size (mn): 200 USD Closings (mn): First Close: 104 USD (Oct-2008); Final Close: 200 USD (Jul-2009) Geographic Focus: China Industry Focus: Technology, Consumer Products, Media, Clean Technology Lawyer: Gunderson Dettmer Sample Investors: Jade Invest

Aureos Latin America Fund

Manager: Aureos Capital Target Size (mn): 300 USD Closings (mn): First Close: 140 USD (Sept-2009); Final Close: 184 USD (Jul-2009) Geographic Focus: Colombia, Mexico, Peru Industry Focus: Transportation, Manufacturing, Financial Services,

Agriculture, Any, Education / Training, Logistics Lawyer: SJ Berwin Sample Investors: CDC Group, International Finance Corporation (IFC), Swiss Investment Fund for Emerging Markets (SIFEM)

Domain Partners VIII

Manager: Domain Associates Target Size (mn): 700 USD Closings (mn): Final Close: 500 USD (Aug-2009) Geographic Focus: US Industry Focus: Life Sciences Sample Investors: San Francisco City & County Employees’ Retirement System

Lola Aboderin

17

Fundraising Spotlight

September 2009

Fundraising Spotlight:

Life Science

Life Science Funds on the Road

Funds on the Road

US

Europe

ROW

Total

No. of Funds

18

10

3

31

Aggregate Target

3.134

1.613

0.284

5.031

Size ($bn)

Average Size ($mn)

174.1

161.3

94.7

162.3

Life Science Funds on the Road

Final Close Barometer 18 16 16 14 12 10 9 8 6 3.77 4 2.61 2
Final Close Barometer
18
16
16
14
12
10
9
8
6
3.77
4
2.61
2
0
Jan-Sept 2008
Jan-Sept 2009
No. of Funds
Aggregate Capital ($bn)

Fund

Manager

Type

Target Size (mn)

Location

SV Life Sciences Fund V

SV Life Sciences

Venture

  • 400.0 US

USD

 

Symphony Capital Partners II

Symphony Capital

Venture

  • 400.0 US

USD

 

New River Management VI

Third Security

Expansion

  • 400.0 US

USD

 

Linden Capital Partners II

Linden

Buyout

  • 300.0 US

USD

 

Forbion Venture Fund II

Forbion Capital Partners

Venture

  • 200.0 Netherlands

EUR

 

Lumira Capital II

Lumira Capital Corp.

Venture

  • 250.0 Canada

USD

 

Spur Ventures III

Spur Capital Partners

Fund of Funds

  • 250.0 US

USD

 

Life Sciences Partners IV

Life Sciences Partners

Venture

EUR

  • 150.0 Netherlands

NeoMed V

NeoMed

Venture

  • 150.0 Norway

EUR

 

Global Life Science Venture Fund III

Global Life Science Ventures

Venture

  • 150.0 Germany

EUR

 

Recently Closed Life Science Funds

Essex Woodlands Health Ventures VIII

Manager: Essex Woodlands Health Ventures Fund Type: Venture Target Size (mn): 1000 USD Closings (mn): First Close: 800 USD (Mar-2008), Final Close: 900 USD

(Mar-2009)

Geographic Focus: Asia, Europe, North America Lawyer: Choate, Hall & Stewart Placement Agent: Denning & Company Sample Investors: Adams Street Partners, Aetna, California Public Employees’ Retirement System (CalPERS), Conversus Asset Management, Kentucky Retirement Systems, State Teachers’ Retirement System of Ohio, Texas Children’s Hospital, Wellcome Trust

GBS BioVentures IV

Manager: GBS Venture Partners Limited Fund Type: Early Stage Target Size (mn): 200 AUD Closings (mn): Second Close: 100 AUD (Nov-2008), Final Close: 122.5

AUD (Mar-2009) Geographic Focus: Australia Sample Investors: Australian Reward Investment Alliance, Industry Funds Management, Macquarie Group, Meat Industry Employees’ Superannuation Fund, Quay Partners, Victorian Funds Management Corporation

SHS Fonds III

Manager: SHS Gesellschaft für Beteiligungsmanagement Fund Type: Late Stage Target Size (mn): 70 EUR Closings (mn): First Close: 40 EUR (Feb-2008), Final Close: 51 EUR

(Mar-2009)

Geographic Focus: Austria, Germany, Switzerland Lawyer: P+P Pollath + Partners Sample Investors: Baden-Württembergische Versorgungsanstalt für Ärzte, Zahnärzte und Tierärzte, CFH - Sachsen LB Corporate Finance Holding, Contrium Capital, European Investment Fund, KfW – Bankengruppe

Benjamin Formela-Osborne

Calling all LPs

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Investor Spotlight:

19

Investor Spotlight

September 2009

Insurance Companies’ Activity Following the Financial Crisis

This month’s Investor Spotlight examines some of the results of a recent survey of insurance companies. We look at how the nancial crisis has affected their private equity plans, how they expect their allocation to change in the future, and what returns they expect from their investments in the asset class.

Within the private equity universe, insurance companies, with an average target allocation of 3.7%, invest a relatively small proportion of their assets in private equity compared to other types of institutional investor, such as pension funds, endowment plans, asset managers, foundations and family ofces. This is often due to the practical and regulatory need for insurance companies to maintain a low level of risk.

Fig. 1:

What Changes Have Been Made to Your Private Equity Plans In The Wake of the Financial
What Changes Have Been Made to Your Private Equity Plans In The Wake of the Financial
Crisis?
35%
30%
25%
20%
32%
15%
26%
24%
10%
16%
16%
13%
5%
0%
More stringent
due diligence
Reduced rate of
commitments
No investments
More focus on
particular area
Other
Plans remain the
same
Proportion of Insurance Companies

Although private equity typically makes up only a small percentage of an insurance company’s investment portfolio, the large size of their assets under management means that this small percentage accounts for a considerable proportion of the aggregate capital committed to private equity. Preqin’s 2009 Global Private Equity Review shows that, without taking account of fund of funds and asset managers, the capital invested by insurance companies represents 13% of the aggregate capital invested in the asset class, a gure which is only exceeded by pension funds.

Effects of the Financial Crisis

Following on from our recent research report concerning private equity investors’ views of the asset class in the current climate, Preqin’s analysts have been talking to insurance companies to see how the nancial crisis and economic downturn of the past 12 months have affected their plans for, and expectations of, the private equity asset class.

Fig. 1 shows the changes which insurance companies are making to their private equity plans in the wake of the economic downturn. While nearly a quarter of the insurance companies that we spoke to said that their plans for private equity had been unaffected by the nancial crisis, a similar percentage told us that it had caused them to conduct a more stringent due diligence process, with some specifying that they sought a higher degree of transparency and information from fund managers regarding prospective deal ow and existing underlying investments.

Approximately 40% of these respondents informed us that, as well as employing a stricter due diligence process, they were also making fewer investments than in previous years. Such a process is not only time consuming, but it also reduces the number of investment opportunities available for consideration by a company. This is not necessarily a bad thing, given

the current nancial climate and the fact that insurance companies must maintain a reasonable level of liquidity.

13% of insurance companies stated that, as a result of the nancial crisis in the past year, they had decided not to make any new commitments to private equity for at least 12 months. In contrast to this, approximately 16% of the rms we spoke to said that they were focusing more on a particular area of the market as a direct result of the crisis, with popular strategies including small-mid market buyout, distressed debt and turnaround, as well as both secondaries funds and purchases of fund stakes on the secondary market. A number of respondents explained that their private equity plans had changed in other ways including: putting a temporary hold (of less than 12 months) on commitments, increasing a private equity target allocation, and re-entering the asset class due to attractive opportunities becoming available following the crisis.

20

Investor Spotlight September 2009
Investor Spotlight
September 2009

insurance companies is likely to move towards those of other institutional investor types, which typically exceed 5%. This suggests that, with signicant assets under management, insurance companies would play a more prominent role as investors in private equity in the future.

Fig. 2:

Insurance Companies’ Intentions For Their Private Equity Allocations 100% 7% 8% 90% 80% 70% 50% Decrease
Insurance Companies’ Intentions For Their Private Equity Allocations
100%
7%
8%
90%
80%
70%
50%
Decrease
60%
66%
50%
Maintain
40%
30%
Increase
20%
42%
27%
10%
0%
Private equity allocation in the
coming year
Long-term private equity target
allocation over the next 3-5 years
Proportion

Outlook

To get an idea of insurance companies’ outlook in terms of their private equity investments, we asked the participants in our survey if they intended to change their allocation to the asset class over the coming 12 months, as well as if they anticipated their long-term private equity target allocation to alter over the next 3-5 years.

spoke to expecting a drop in their long- term target allocation, it seems clear that insurance companies remain dedicated to investing in private equity.

Moreover, a considerable proportion of insurance companies (42%) believe that they will increase their target allocation in the long-term. Should such expectations be fullled, the average target allocation of

Performance Expectations

A barrier to insurance companies increasing their involvement in the

private equity asset class could come in the form of tighter regulations, with authorities around the world reacting

to the turmoil in nancial markets of the last year. The investments of insurance companies in particular have been affected, with further restrictions on the exposure to risk planned in various jurisdictions. One Japanese life insurance company told us that new regulations introduced by nancial authorities in the wake of the nancial crisis mean that it will have to increase its capital or decrease its exposure to risk assets, including alternative assets - with the latter being more likely due to the difculty of increasing capital.

Fig. 3 illustrates the returns which the participants in our survey expect from their private equity portfolio.

As Fig. 2 shows, the majority of respondents expected to maintain their allocation to the asset class during the next year, with just over a quarter intending to increase their exposure. While this can be seen as encouraging for fund managers raising new vehicles, some insurance companies said that they expected capital calls and a lack of distributions, rather than new commitments, to be the main reason for their allocation staying the same or increasing over the next 12 months.

Insurance companies’ expectations for their long-term target allocation, therefore, is perhaps a better indication of their attitudes towards the asset class and the level at which they anticipate being active within it in the future. With just 8% of those that we

Fig. 3:

What Returns Do You Expect From Your Private Equity Portfolio?
What Returns Do You Expect From Your Private Equity Portfolio?

With the level of risk held by insurance companies being a key issue for this investor type, it is understandable that these rms expect signicant returns from their private equity investments. 85% of the insurance companies we spoke to said that they expected their private equity portfolio to outperform the public market by more than 2%, with more than half of respondents stating that they look for returns in excess of 4% over the public market.

Although insurance companies may be considered to be conservative investors, our survey indicates an appetite for increased exposure to private equity. It also suggests that the nancial crisis and economic downturn has caused this type of institutional investor to raise its expectations of the asset class, with many implementing more stringent due diligence processes and most expecting signicant levels of performance from their private equity investments.

A few insurance companies stated that they do not seek a specic level of performance from their private equity portfolio however, with some investing for purely strategic reasons. These included maintaining relationships with particular rms or contributing to the development of certain sectors, such as healthcare and technology.

Joe Childs

21

Investor Spotlight

September 2009

Brand New – Access to all delegates ahead of the event 9TH ANNUAL HEAD TO HEAD
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Secondaries Spotlight

22

Secondaries Spotlight September 2009

Preqin’s Secondary Market Monitor (SMM) has attracted a great deal of interest since its launch in May. Attracted by the opportunity to obtain free, indicative portfolio pricing indications from both Preqin and third-party buyers, 118 LPs and potential sellers of fund interests are currently using the LP service. The SMM LP service user base is comprised of a variety of institutional types and includes a number of signicant investors in the private equity asset class.

User Base Geography

The SMM LP service user base is diversifi ed geographically, with the majority of users (54%)
The SMM LP service user base is diversifi ed geographically, with
the majority of users (54%) based in North America. The service
is also being used by a number of LPs based throughout ROW,
forming 16% of the current user base.

User Base Firm Type

A variety of institutions are currently using the SMM LP service. Pension funds (26%), family offi
A variety of institutions are currently using the SMM LP service.
Pension funds (26%), family offi ces and foundations (13%) and
asset managers (14%) feature prominently, while endowment plans
comprise 12% of the user base, and banks form 9%.

According to Preqin's unique pricing model, a $10,000,000 commitment to the median 2007 buyout fund - which would have called $3,110,000 - would today fetch $1,142,840 on the secondary market, or 46.1% of its net asset value.

Secondaries News

Teachers’ Retirement System of the State of Illinois plans to purchase fund interests on the secondary market.

The USD 29 billion retirement system plans to develop a programme for the purchase of private equity fund interests on the secondary market in 2010. Buying fund stakes on the secondary market will contribute to it reaching its long-term private equity target of 10% of assets under management, which was increased from its former level of 8% in May 2009. The decision to establish a secondaries programme coincides with the recent approval of the pension fund’s plan to invest USD 1.2 billion in private equity next year.

JP Morgan Private Equity (JPEL) has raised over USD 75 million to exceed its fundraising target by over 50%.

The London-listed secondaries fund, managed by Bear Stearns Asset Management (JPMorgan Asset Management), raised the capital at a premium to the stock price through a series of closings in July and August. JPEL will now be looking for cheap secondary market deals of USD 5 million and below. The fund feels that this strategy will enable it to avoid competing against bigger players on the secondary market, who will be looking

for larger acquisitions. JPEL feels there are good opportunities available on the secondary market, and it will be targeting sellers who are eager for liquidity.

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23

Conferences Spotlight September 2009

Conferences Spotlight:

Forthcoming

Events

Featured Conferences:

iGlobal Forum Global Distressed Debt Investing Date: September 22-23, 2009 Location: New York Organiser: iGlobal Forum
iGlobal Forum Global
Distressed Debt Investing
Date: September 22-23, 2009
Location: New York
Organiser: iGlobal Forum
Global economic crisis hasn’t spared anyone. Available funding
is drying up and companies in virtually all sectors are struggling
to remain afl oat. List of businesses in distress is growing
longer by the minute. Even the most successful companies fi nd
themselves facing distressed situations, opening another window of
opportunities for investing in distressed debt across the globe.
The event will unite Distressed Fund Managers, Private Equity Fund
Managers, Hedge Fund Managers, M&A and Turnaround Advisors,
Investment Bankers, Bankruptcy Advisors, Loan Originators, Debt
Providers, and Rating Agencies.
Information: http:// www.iglobalforum.com
EHYA 4th Annual European Leveraged Finance Conference Date: 21 October, 2009 Location: The RoyalLancaster Hotel, London
EHYA 4th Annual European
Leveraged Finance Conference
Date: 21 October, 2009
Location: The RoyalLancaster Hotel, London
Organiser: SIFMA
Keep abreast of developments in the leveraged fi nance market
as the industry continues to de-leverage! This continues to be
THE event, attracting hundreds of high yield and leveraged loan
investors, bankers and legal, accounting and rating agency
professionals and private equity sponsors from across the industry
each year.
Information: www.sifma.org/leveragedfi nance2009
Private Equity World Africa 2009 Date: 26-29 October, 2009 Location: Sandton Convention Centre, Johannesburg Organiser: Terrapinn
Private Equity World Africa 2009
Date: 26-29 October, 2009
Location: Sandton Convention Centre, Johannesburg
Organiser: Terrapinn
The time has never been better for industry leaders across
the continent to get together and discuss the changes
and challenges facing this asset class. Private Equity
World Africa 2009 brings you this insight at the Sandton
Convention Centre, Johannesburg from 26 - 29 October
2009. Don’t miss the greatest opportunity to learn and
implement industry best practice.
Information: http://w ww.terrapinn.com/2009/peza
IBF Media India Private Equity Conference 2009 Date: 28 October, 2009 Location: Taj Mahal Palace and
IBF Media India Private Equity
Conference 2009
Date: 28 October, 2009
Location: Taj Mahal Palace and Tower Hotel, Mumbai, India
Organiser: IBF Media
The IBF Media India Private Equity Conference is the largest private
equity conference in India, delivering unrivaled insight and analysis
about the most-timely issues affecting the industry. This year’s
conference will address the dramatic challenges - and opportunities
- created by the new market environment, and where are the new
opportunities.
Information: http:// www.ibfmedia.com

24

Conferences Spotlight September 2009

Conferences Spotlight:

Forthcoming

Events SuperInvestor 2009 Date: 17-20 November, 2009 Location: Paris Organiser: ICBI Hear from 180 of the
Events
SuperInvestor 2009
Date: 17-20 November, 2009
Location: Paris
Organiser: ICBI
Hear from 180 of the most infl uential thinkers in a one-stop learning
and networking shop, packed with interaction and high value face-
to-face opportunities and a programme dense with the most critical
issues facing the LP and GP community. Last year 700+ attended
this private equity & institutional investment event, of which more
than 30% were LPs!
Information: http://www.icbi-events.com/superinvestor-
preqwb

Other Conferences:

CEE Private Equity Forum Date: 5-6 November, 2009 Location: Renaissance Chancery Court, London Organiser: C5 The
CEE Private Equity Forum
Date: 5-6 November, 2009
Location: Renaissance Chancery Court, London
Organiser: C5
The time has come again for leading private equity professionals to
get together for C5’s CEE Private Equity Forum which continues to
attract hundreds of participants since its inception in 1996. This key
industry event covers an area of strong interest to institutional and
private investors targeting positive returns in adverse conditions.
Information: http://www.ceeprivateequityforum.com/
MR09

CONFERENCE/EVENT

DATES

LOCATION

ORGANISER

2009 Investment Forum for Endowments, Foundations and Pension Funds

September 2009 (tbc)

New York

Argyle Executive Forum

Capital Creation 2009

15

- 17 September

Monte Carlo

Worldwide Business

2009

Research

FundForum Latin America

15

- 17 September

Sao Paulo

ICBI

2009

Annual Institutional Investor Summit

15

September 2009

New York

iGlobal

Succeeding at Fundraising

16

September 2009

New York

Capital Roundtable

SuperReturn Asia

21

- 24 September

Hong Kong

ICBI

2009

9th MedTech Investing Europe Conference

28

- 29 September

London

Campden Conferences

2009

SuperReturn Middle East

11

- 14 October 2009

Dubai

ICBI

EVCA Venture Capital Forum

14

- 16 October 2009

Berlin

EVCA

Emerging Managers Summit South

15

- 16 October 2009

San Antonio

Opal Financial Group

European Alternative & Institutional Investing Summit

19

- 21 October 2009

Monte Carlo

Opal Financial Group

FundForum Middle East

19

- 22 October 2009

Bahrain

ICBI

European Leveraged Finance Conference

21

October 2009

London

SIFMA

Private Equity World Africa 2009

26

- 29 October 2009

Johannesburg

Terrapinn

The Emerging Markets Private Equity Forum 2009

3

- 4 November 2009

London

PEI Media

14th CEE Private Equity Forum

5

- 6 November 2009

London

C5

9th Annual Super Investor

17

- 20 November

Paris

ICBI

2009

Investor News

25

Investor News

September 2009

Wichita State University Endowment is seeking its rst investments in Europe and ROW.

The endowment, which is a relatively new investor in the private equity market, has invested solely in US focused funds since making its maiden investment to the asset class in 2008. After nding its feet in the US private equity market Wichita State University Endowment feels that the time is right for it to seek investment opportunities further aeld. It is holding an opportunistic view as to the specic location of any European or Asia and Rest of World focussed investments over the next 12 months.

Teachers’ Retirement System of the State of Illinois plans on investing between USD 700 million and USD 1.2 billion in private equity over the course of the scal year.

In May 2009 Teachers’ Retirement System of the State of Illinois (TRS) increased its allocation to private equity from 8% to 10% of its total assets under management. As of June 2009, the public pension fund had just 7.8% of its assets under management invested in private equity and is now planning on making new investments in the asset class in a bid to reach its new target. Following this increased allocation to the asset class TRS hired an alternative investments ofcer, Zachary Doehla, who will focus on overseeing the public pension plan’s investments in private equity. Following a new state ethics law, TRS also reappointed RV Kuhns & Associates as its general investment consultant.

Clemens Haindl Verwaltungs is seeking its maiden investment in emerging markets.

The German family ofce has typically invested in private equity opportunistically, a strategy which has led to investments in a variety of fund types and geographies, but has, until now, not included investments in emerging markets. Clemens Haindl Verwaltungs is now seeking its maiden investment in an emerging market focused fund and expects to make its rst commitment in Q4 2009 or 2010.

AG2R plans to make four new commitments to private equity funds over the next 12 months.

The insurance company, which currently allocates 2.5% of assets to private equity, is seeking to commit approximately EUR 15 million to the asset class during the next year. While legal restraints mean AG2R’s investments primarily focus on France, the company is

exible in terms of the fund types it invests in and views turnaround and distressed debt opportunities as particularly appealing in the current market.

Tennessee Consolidated Retirement System (TCRS) has made its maiden investments in private equity.

Since July 2009, when Tennessee state law changed allowing public funds to invest in private equity, Tennessee Consolidated Retirement System has committed a total of USD 150 million to three private equity vehicles. TCRS committed USD 75 million to Hellman & Friedman VII, USD 25million to Khosla Ventures Expansion Fund and USD 50 million to TA XI. In Q1 2009, the public pension fund appointed Lamar Villere as its director of private equity. TCRS may invest two or three more private equity funds in 2009, with the aim of increasing its private equity commitments to to USD 300 million by the end of the year.

Banque Transatlantique is reviewing its private equity investments with a view to implementing a new strategy.

The Paris-based bank is currently monitoring the private equity market and expects that it will make commitments to funds of funds in the future. While it is yet to establish a specic strategy, Banque Transatlantique anticipates that it could commit EUR 20 million to four or ve vehicles, annually. The bank includes private equity within the wealth management and advisory services offered to clients but its general investment activity has traditionally focused on listed equity.

Finnish Industry Investment has promoted Anne Riekki to investment director.

Ms. Riekki, who joined the company in 2007, was previously an investment manager. The government-owned investment company, which focuses on stimulating the growth and internationalisation of Finnish businesses, is known to have made a commitment of EUR 9.7 million to the Verdane Capital VII fund in June 2009. This was the rst commitment made by the investment company to a direct secondaries fund. Finnish Industry Investment tends to make investments within venture and mezzanine funds but is also known to have invested in buyout funds as well as directly in companies.

Hanna Ohlsson

Each month Spotlight provides a selection of the recent news on institutional investors in private equity. More news and updates are available online for Investor Intelligence and Secondary Market Monitor subscribers. Contact us for more information - info@preqin.com