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interaction and high value face-to-face opportunities and a programme dense with the most critical issues facing the LP and
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Kindest regards

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Mark O’Hare
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Preqin

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 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 Profiles & Funds in Market.

Private Equity Employment Special

Feature Article page 3
Investor Spotlight
page 19
Employment in Private Equity Insurance Companies

This month we examine how the the number of professionals This month’s Investor Spotlight features results from a recent
being employed by the industry has increased significantly. survey of insurance companies, and looks at how they are dealing
with the crunch.

Performance Spotlight page 9 Secondaries Spotlight

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 difficulties 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 page 15

• Banque Transatlantique

This month’s Fundraising Spotlight takes an in-depth look at buyout, • AG2R

venture and life science private equity fundraising.

Be the first to know about all our exclusive research

reports and projects, follow us on
www.twitter.com/preqin
If you would like to receive Private Equity Spotlight each month
please email spotlight@preqin.com.

Subscribers to Performance Analyst and Investor Intelligence OUT NOW

receive additional information not available in the free version. If
you would like further details please email sales@preqin.com The 2009 Preqin
Fund Terms Advisor
Publisher: Preqin Ltd.
Scotia House, 33 Finsbury Square, London. EC2A 1BB More information available at:
www.preqin.com/fta
TTel: +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 Fig. 1:
fundraising levels increasing to record
levels and fund sizes growing ever bigger.
As the asset class has become a more Total Number of Active Private Equity Fund Managers per Year (by Vintage of First Fund
integral part in the investment portfolios of Raised)
4500
institutional investors the world over, the
number of professionals being employed 4000 412

337
by the industry has increased significantly. 3500 390
In this month’s feature article we have
354
used data taken from our online Fund 3000
307
Manager Profiles database in order 287
2500
to document both the current levels of 230
New
employment within the industry, and also 2000 284
3858 Existing
264
examine how employment has been 3267
3607

1500 341
increasing over time. 246
2680
2962
2418
192 2207
1000 1937
176 1691
Number of Active Private Equity Fund 110
138 1358
90 1127
Managers 500
60 29 50 58
561 665 789
956

346 373 422 477

287
0
The private equity industry has undergone 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
enormous growth and the number of firms
active within private equity has grown a figure based on the vintage of the the total number of fund managers pass
consistently each year since the industry firms’ first funds. It should be noted that 1,000 for the first time and since then the
began. This growth is demonstrated in there are additional private equity firms number has increased nearly four-fold.
Fig. 1, which shows the total number of not included in these figures because As of September 2009, there are 4,270
existing active fund managers each year they do not manage and invest out of firms currently active managing private
alongside the number of new managers, distinct private equity funds. 1998 saw equity funds, 412 of which are new to

Fig. 2: Fig. 3:

Total Number of Active Buyout Fund Managers per Year (by Vintage of Total Number of Active Venture Fund Managers per Year (by Vintage of
900
First Fund Raised) First Fund Raised)
2000
65
800
No. of Active Venture Fund Managers
No. of Active Buyout Fund Managers

58 1800
135
75 106
700
1600 135
57
124
600 59
1400 105
55 117
40 1200 100
500
64 143
New
1000 New
400 44 Existing 150
780 Existing
738
60
800 1647 1697
673 204 1543
628 1446
300 54
576 1354
37 524 600 141 1250
490 1160
36 95 1028
426
200 35 385 100 890
26 329
400
65 690
30 278 53 557
14 241 34
100 17 207 21 31 479
8 175 200 20 10 386
24 149 281 329
106 119 196 204 224 253
81 89 177
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*

* / Raising

© 2009 Preqin Ltd. / www.preqin.com

 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 firms that have Fig. 4:
not raised a fund in the past 10 years and
are not currently raising one. The number
of firms considered to have become Total Number of North America-based Fund Managers per Year (by Vintage of First Fund
inactive so far in 2009 stands at 86. Raised)
2500
Number of North America-based Fund Managers

Number of Active Buyout Fund

Managers 200

2000 154
176
The number of active managers that 150

principally raise buyout funds has grown 146

1500 166
consistently year on year, and the figure 126

now stands at 845 managers, as shown in 155 New

136
Existing
Fig. 2. In 2009, there have been 65 new 1000 177 1957
2067
1815
buyout fund managers joining the sector, 137 1573
1700
102 1427
while there have been 16 managers 113 1171
1315
500 90 1044
reaching the 10 year point without raising 39
60
80
662
749
874
32
a new fund or being in the process of 39 16
267 282 313 350 406 480 557
229
raising one. Over the past 10 years, on 0
average, 58 new buyout fund managers 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

have come into existence annually.

the number of venture fund managers this year, as shown in Fig. 3.
Number of Active Venture Fund accelerated rapidly at the end of the 1990s
Managers into this decade, with a record 204 firms Number of Active Private Equity Fund
with a first fund of vintage 2000. Following Managers by Region
The number of active managers that this, the rate of growth has decreased
principally raise venture funds has somewhat. The total number of venture Figs. 4, 5 and 6 show the number of active
increased each year, although the rate fund managers now stands at 1,832, with private equity fund managers each year in
of growth has fluctuated. Growth in 135 new firms having joined the industry North America, Europe and Asia and Rest

Fig. 5: Fig. 6:

Total Number of Europe-based Fund Managers per Year (by Vintage of Total Number of Asia and Rest of World-based Fund Managers per
First Fund Raised) Year (by Vintage of First Fund Raised)
1400 900
Number of Asia and Rest of World-based Fund
Number of Europe-based Fund Managers

800
113
1200
99 700 91
92
1000 87
127 600

103 101
Managers

800 500
80
62 New 81 New
66 Existing 400 Existing
600 59 723
80 1068 38 648
1002 300
89 49 573
879
400 787 39 475
110 709
652 200 54 398
77 588 339
509 32 304
59 425 31 257
200 222
39 315 100 16 24 169
32 11 14 137
16 241 8 8 107
11 19 187 6 4 84
9 10 117 148 54 68
15 73 84 101 24 28 36 43
40 55 63 0 18
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

© 2009 Preqin Ltd. / www.preqin.com

 5◄
Feature Article
September 2009

of World respectively. All three graphs

show the consistent growth taking place Fig. 7:
annually in the number of private equity
fund managers based in North America,
Europe and Asia and Rest of World. 45,000
Estimated Private Equity Employment by Country*

North America-based fund managers 40,000

represent the largest percentage (53%)

of firms overall, with 2,267 of the 4,270 35,000
Estimated Total Employment

firms currently active based in this region. 30,000

In second place are European-based
firms, with a total of 1,167 fund managers, 25,000

accounting for 27% of the global total.

Asia and Rest of World-based fund 20,000
38,500

managers make up the remaining 20%

15,000
of the worldwide total, with 836 firms
currently active. 10,000

Total Number of Employees in the 5,000

7,700
8800

Private Equity Industry 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. Italy Sweden Israel Netherlands Other
Hong Kong)

The growth in the number of active private

equity firms has naturally meant that the
overall number of employees within the
industry has grown. Including firms that
do not raise, manage and invest out of
distinct private equity funds, there are
currently almost 6,000 firms active in the
private equity industry worldwide, and
these firms directly employ an estimated
69,000 people. The industry remains
fragmented in terms of the share of funds
raised by the smallest and largest firms:
the largest 10 firms 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
third with 2,300, while Germany, Australia, with an estimated 11,000 employees.
Canada, Japan and India all have more London comes in second, with 7,000
than 1,000 employees within the industry. private equity employees, while San
Francisco is third, with 3,900. Boston and
Number of Employees in Private Equity Paris make up the top five. Cities in the
by City US occupy seven of the places in the top
15, while there are three European and
Fig. 8 shows that New York is the leading three Asian cities on the list. Toronto and
city in terms of the number of people Sydney complete the list.
employed in the private equity industry,
Fig. 8:
Estimated Private Equity Employment by City*
12,000

industry, taking into consideration firms

managing funds that institutional and
other large investors invest in. Beneath 10,000

this lies a further tranche of smaller firms

Estimated Total Employment

that invest lesser sums of capital, raising 8,000

capital from private sources such as

friends and family.
6,000
11,000

Number of Employees in Private Equity

by Country 4,000
7,000

When analysing employment in the

private equity industry by country, the US 2,000 3,900

is the clear leader in terms of the number 2,700

2,200
1,700

of employees, with approximately 38,500,

1,300 1,200 1,000 1,000 900 800 750 700 600
0
as displayed in Fig. 7, or 56% of the New York London San
Francisco**
Boston Paris Chicago Washington Los Angeles Sydney Tokyo Hong Kong Dallas Stockholm Toronto Singapore

global total. The UK is second with 7,700

– 11% of the global total. France comes in *Based upon location of head office for each firm
** Includes Menlo Park, Palo Alto and San Mateo

© 2009 Preqin Ltd. / www.preqin.com

 6◄
Feature Article
September 2009

Number of Employees in Private Equity

by Firm Type Fig. 9:
Fig. 9 shows the estimated employment
by firm type. This refers to the type of Estimated Private Equity Employment by Firm Type*
fund that the private equity firm is most 25,000

synonymous with raising and managing. In

spite of their generally small sizes relative
20,000
to other types of firm, venture firms
Estimated Total Employed

employ the highest number of people in

the industry worldwide – 21,100 – due to 15,000
the fact that such firms are so numerous.
Buyout firms are close behind, with a total
of 20,600 employees – despite the fact 10,000
21,100 20,600

that buyout firms manage well over twice

the amount of assets that venture firms
manage. Real estate firms are the third- 5,000
11,100

largest employer in the industry, with an 6,000

estimated 11,100 employees in total. 2,900 2,400 2,000

1,300 900 800
0
Venture Buyout Real Estate Fund of Distressed Infrastructure Mezzanine Balanced Natural Other
Number of Employees in Private Equity Funds Private Equity Resources
by Firm Size
*Based upon fund type most associated with firm
The number of staff employed by a private
equity firm varies significantly with the funds of $5 billion or more in size have firms benefit from. As a result, the
size of the firm, as shown in Fig. 10. A firm average management fees of around operating economics of the largest funds
with less than $250 million in assets under 1.5%, for example, while the figure are very favourable and the management
management employs 10 staff on average, for buyout funds under $500 million is fees earned by these vehicles have
while a firm with $10 billion or more in over 2%, rising to 2.1% for the smallest become the primary source of income for
total assets employs an average of 245 buyout funds (those below $100 million). their managers.
people. Naturally, there are significant However, the slightly lower fees charged
economies of scale to be enjoyed by the by the largest funds only partially reflect Consequently, and particularly in light
larger private equity firms, and such firms the economies of scale that the larger of the current economic climate and its
typically have fewer staff per $1 billion
in assets under management than their
smaller counterparts. Fig. 10 shows that Fig. 10:
firms with less than $250 million in assets
under management employ, on average,
the equivalent of 130 members of staff Average Number of Staff per Firm by Value of Funds Managed by Firm
per $1 billion in assets, or $7.7 million
300
managed per employee. For firms with
$10 billion or more in total assets the 244.8
250
figure drops to just 10, or one employee
for every $100 million managed.
200 Average No. of
Staff
Since the management fees that private
equity firms collect are almost universally 150
130.4
calculated as a percentage of total 113.3
Average No. of
investor commitments to a firm’s funds, 100 Staff per $1 bn
AUM
one would expect that the percentage 59.8
rates charged by firms managing the 50 40.8
30.9 29.5
largest funds would be lower than those 10.3 14.5 18.3 22.225.6 19.8 18.7 14.3 10
charged by firms managing less. As is 0
detailed in the 2009 Preqin Fund Terms 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 $10 bn and
$0.25 bn bn bn bn above
Advisor, this is indeed the case: buyout Assets Under Management

© 2009 Preqin Ltd. / www.preqin.com

 7◄
Feature Article
September 2009

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

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 significant
number of Client Services Consultants located in our London and New York offices 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 firms worldwide using our online
services, in addition a large number of smaller firms 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 efficiency. 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:
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 Problem:

“ ...the lack of reliable tools often

makes it difficult to meaure
private equity performance...
“

Solution:

“ ...Preqin is now offering free access to its powerful benchmarks

which provide solid performance data...
“
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:

• 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 specific 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.

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

www.preqin.com/benchmarks

Private Equity Benchmarks


Performance Spotlight:
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 difficult to
establish consistent and comprehensive
benchmarks. Many financial 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 fulfil
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
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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 figure understates the
true coverage of our performance data:
generally we have performance data for a
© 2009 Preqin Ltd. / www.preqin.com
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,
9◄
Performance Spotlight
September 2009
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 specific 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 reflecting 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
flow IRRs are calculated by aggregating
cash flows 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 flow 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 India Private Equity: New Opportunities

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Business Information In A Global Context “ The C5 CEE Private Equity Forum is the “must aƩend”
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 2009 Preqin Infrastructure Review:
Order Form

The 2009 Preqin Infrastructure Review is the most comprehensive examination of the
unlisted infrastructure fund market ever produced. With exclusive information on over 250
firms, 400 funds and over 230 investors in the sector, plus detailed analysis reviewing
every aspect of the industry, the Preqin Infrastructure Review is a vital purchase for fund
managers, fundraising professionals, advisors, consultants, legal firms and investors in this
rapidly growing market. Features of this year’s publication include:

• Detailed analysis examining the history and development of the infrastructure market;
recent funds closed; current fundraising market; fund terms and conditions; investors;
performance; the listed fund market; plus separate sections showing key facts and figures
for the most important regions.
• Fund terms and conditions listings for 27 vehicles, plus transparent performance data for
62 infrastructure funds (all performance data is net to investors).
• Profiles for over 250 infrastructure firms and 400 funds, including detailed investment For more information please visit:
strategies and key information. www.preqin.com/infrastructure
• Profiles for over 230 investors in the sector, including investment plans and key contact
details.


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© 2009 Preqin Ltd. / www.preqin.com

 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 Fig. 1:
private equity dry powder, and buyout
fund managers were sitting on half of
this total, ($500.9 billion). This research Dry Powder Available to Buyout Funds - December 2003 - September 2009
report takes an in-depth look at the
types and locations of the firms sitting 600
on this un-called capital.
500.93 508.54
500
Fig. 1 shows the dry powder available 461.61
to buyout funds from December 2003
to September 2009. The data reveals 400 378.84
that the amount of buyout dry powder
$bn

available has increased year on year 300

since December 2004. The only 258.78

decrease was a marginal 5% decline 186.43

200 177.99
between 2003 and 2004. Between
December 2004 and December 2008,
the amount of dry powder available 100
to buyout funds increased from $178
billion to $501 billion, although the rate 0
of this increase has tapered each year
Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Sep 2009
since 2006. The figure from September
2009 indicates that the December 2009
total will also be in line with this trend. various fund sizes. The graph reveals $39 billion to $267 billion. Smaller buyout
that mega buyout funds (those with funds have not seen the same increase in
Fund Size capital commitments of more than $3.5 dry powder over this time period. Between
billion) have seen the levels of dry powder December 2004, the date at which the
Fig. 2 illustrates the amount of buyout increase drastically between December level of dry powder was roughly equal for
dry powder available to buyout funds of 2004 and December 2008, swelling from all fund sizes, and December 2008, large

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
$bn

150 150
$bn

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

© 2009 Preqin Ltd. / www.preqin.com

 13 ◄
Fund Manager Spotlight
September 2009

regions have seen a continuous increase

Fig. 4: in the amount of dry powder available
since December 2003, the only exception
Top 10 Buyout Firms by Estimated Buyout Dry Powder being a small decrease between
Estimated Buyout Dry December 2003 and December 2004
Firm Location for US focused funds. In absolute terms,
Powder ($ Bn)
buyout funds focused on the US have
Advent International US 22.2
seen the largest increase in dry powder
TPG US 21.7 from December 2003 to December 2008,
Carlyle Group US 17.1 followed by those focused on Europe, then
CVC Capital Partners UK 16.8 those focused on Asia and Rest of World.
However, in terms of percentage increase
Kohlberg Kravis Roberts US 13.6
from over the same period, the ranking
Blackstone Group US 13.0 is reversed with Asia and Rest of World
Bain Capital US 12.2 experiencing a 517% increase in dry
Goldman Sachs Private Equity Group US 12.1
powder, Europe a 248% increase, and US
focused buyout funds a 114% increase.
Apollo Management US 11.1
Apax Partners UK 9.2 Fund Manager Location

Fig. 4 shows the top 10 buyout firms by

buyout funds have seen an increase in Fund Focus estimated dry powder. Looking at the
dry powder of 110%. Mid-market buyout location of these firms it is clear that the
funds experienced an increase of 68%, Fig. 3 depicts the amount of dry powder majority of the firms (90%) are based in
while small buyout funds saw an increase available to buyout funds by regional the US. The only other location which
of 17%. These figures confirm that over focus. The graph reveals that, since features in this top 10 is the UK, which
the past half-decade the larger the buyout December 2003, buyout funds investing is home to the fourth largest buyout firm
fund, the more dry powder that has in the US have persistently had the most by dry powder available - CVC Capital
become available to invest. dry powder available, followed by funds Partners.
investing in Europe, and lastly funds
investing in Asia and Rest of World. All
Benjamin Formela-Osborne
En
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2009 Preqin Sovereign Wealth Fund The 2009 Preqin
Sovereign Wealth Fund Review

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 significant new sovereign wealth funds has seen the aggregate capital controlled by these
giant investment vehicles grow by 6% from 2008 figures.
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, fixed income, private equity,
hedge funds, real estate and infrastructure.

Key features of this years publication include:

• Full profiles 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 financial information Fixed income
Overall investment plan Private equity
Asset class specific investment plans and Real estate
preferences Hedge funds
Fund investments and public/private holdings Infrastructure
Advisors and consultants used
• 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 To see sample pages, an executive summary, and
and our predictions for the future of the market.
further information on ordering your copy online,
• Details and information on planned and recently please visit: www.preqin.com/swf
established 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

 15 ◄
Fundraising Spotlight
September 2009

Fundraising Spotlight:
Buyout
Buyout Funds on the Road Final Close Barometer

160 144
Funds on the US Europe ROW Total 140 131
Road
120
No. of Funds 129 65 63 259 100
Aggregate Target 80 68
124 36 37 197 60 53
Size ($bn)
40
Average Size
959 549 587 760 20
($mn)
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 Sample Investors: Princess Private Equity Holding

Manager: Kohlberg Kravis Roberts Sentica Buyout III

Target Size (mn): 400 USD
Closings (mn): Final Close: 400 USD Manager: Sentica Partners
Geographic Focus: Europe Target Size (mn): 100 EUR
Industry Focus: Any Closings (mn): First Close: 50 EUR (Nov-2008), Second Close: 74
Sample Investors: Etera Mutual Pension Insurance Company, EUR (Jan-2009), Final Close: 113 EUR (Aug-2009)
Finnish Industry Investment, Ilmarinen Mutual Pension Insurance Geographic Focus: Finland
Company, KKR Private Equity Investors, Oregon State Treasury, Industry Focus: Healthcare, Industrial, Engineering, Information
Washington State Investment Board Services, Business Services, Outsourcing
Sample Investors: Etera Mutual Pension Insurance Company,
Unison Capital Partners III Finnish Industry Investment, Ilmarinen Mutual Pension Insurance
Company
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, Anna Strumillo
Publishing, IT Infrastructure, Telecom Media

© 2009 Preqin Ltd. / www.preqin.com

 16 ◄
Fundraising Spotlight
September 2009

Fundraising Spotlight:
Venture
Venture Funds on the Road Final Close Barometer

Funds on the Road US Europe ROW Total 350

289
300
No. of Funds 221 104 147 472 250
Aggregate Target 200
43 21 27 91 150
Size ($bn)
95
100
Average Size ($mn) 196 198 181 192 56.8
50 17.4
0
Jan-Sept 2008 Jan- Sept 2009
No. of Funds Aggregate Capital ($bn)
Venture Funds on the Road

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 China-Singapore Suzhou Industrial Park 1,330 USD China
Investment Fund
Riverwood Capital I Riverwood Capital 1,250 USD US
Shanghai Financial Development Jinpu Industrial Investment Fund Management 8,000 CNY China
Investment Fund
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 & Millennium Private Equity 1,000 USD United Arab Emirates
Telecommunication

Recently Closed Venture Funds

Keytone Ventures China Fund Agriculture, Any, Education / Training, Logistics

Lawyer: SJ Berwin
Manager: Keytone Ventures Sample Investors: CDC Group, International Finance Corporation
Target Size (mn): 200 USD (IFC), Swiss Investment Fund for Emerging Markets (SIFEM)
Closings (mn): First Close: 104 USD (Oct-2008); Final Close: 200
USD (Jul-2009)
Geographic Focus: China Domain Partners VIII
Industry Focus: Technology, Consumer Products, Media, Clean
Technology Manager: Domain Associates
Lawyer: Gunderson Dettmer Target Size (mn): 700 USD
Sample Investors: Jade Invest Closings (mn): Final Close: 500 USD (Aug-2009)
Geographic Focus: US
Aureos Latin America Fund Industry Focus: Life Sciences
Sample Investors: San Francisco City & County Employees’
Manager: Aureos Capital Retirement System
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, Lola Aboderin

© 2009 Preqin Ltd. / www.preqin.com

 17 ◄
Fundraising Spotlight
September 2009

Fundraising Spotlight:
Life Science
Life Science Funds on the Road Final Close Barometer

Funds on the Road US Europe ROW Total 18

16
16
No. of Funds 18 10 3 31 14

Aggregate Target 12
3.134 1.613 0.284 5.031 10 9
Size ($bn)
8
Average Size ($mn) 174.1 161.3 94.7 162.3 6
3.77
4 2.61
2
0
Jan-Sept 2008 Jan-Sept 2009
No. of Funds Aggregate Capital ($bn)

Life Science Funds on the Road

Fund Manager Type Target Size (mn) Location

SV Life Sciences Fund V SV Life Sciences Venture 400.0 USD US
Symphony Capital Partners II Symphony Capital Venture 400.0 USD US
New River Management VI Third Security Expansion 400.0 USD US
Linden Capital Partners II Linden Buyout 300.0 USD US
Forbion Venture Fund II Forbion Capital Partners Venture 200.0 EUR Netherlands
Lumira Capital II Lumira Capital Corp. Venture 250.0 USD Canada
Spur Ventures III Spur Capital Partners Fund of Funds 250.0 USD US
Life Sciences Partners IV Life Sciences Partners Venture 150.0 EUR Netherlands
NeoMed V NeoMed Venture 150.0 EUR Norway
Global Life Science Venture Fund III Global Life Science Ventures Venture 150.0 EUR Germany

Recently Closed Life Science Funds

Essex Woodlands Health Ventures VIII AUD (Mar-2009)
Geographic Focus: Australia
Manager: Essex Woodlands Health Ventures Sample Investors: Australian Reward Investment Alliance, Industry
Fund Type: Venture Funds Management, Macquarie Group, Meat Industry Employees’
Target Size (mn): 1000 USD Superannuation Fund, Quay Partners, Victorian Funds Management
Closings (mn): First Close: 800 USD (Mar-2008), Final Close: 900 USD Corporation
(Mar-2009)
Geographic Focus: Asia, Europe, North America SHS Fonds III
Lawyer: Choate, Hall & Stewart
Placement Agent: Denning & Company Manager: SHS Gesellschaft für Beteiligungsmanagement
Sample Investors: Adams Street Partners, Aetna, California Fund Type: Late Stage
Public Employees’ Retirement System (CalPERS), Conversus Target Size (mn): 70 EUR
Asset Management, Kentucky Retirement Systems, State Teachers’ Closings (mn): First Close: 40 EUR (Feb-2008), Final Close: 51 EUR
Retirement System of Ohio, Texas Children’s Hospital, Wellcome Trust (Mar-2009)
Geographic Focus: Austria, Germany, Switzerland
GBS BioVentures IV Lawyer: P+P Pollath + Partners
Sample Investors: Baden-Württembergische Versorgungsanstalt
Manager: GBS Venture Partners Limited für Ärzte, Zahnärzte und Tierärzte, CFH - Sachsen LB Corporate
Fund Type: Early Stage Finance Holding, Contrium Capital, European Investment Fund, KfW –
Target Size (mn): 200 AUD Bankengruppe
Closings (mn): Second Close: 100 AUD (Nov-2008), Final Close: 122.5
Benjamin Formela-Osborne

© 2009 Preqin Ltd. / www.preqin.com

Calling all LPs
Keen to discover the true value of your private equity portfolio?

Preqin’s
Secondary Market
Monitor

For a free and confidential indicative valuation

of all or part of your private equity holdings visit:

www.preqin.com/secondarymonitor

London: +44 (0)20 7065 5100

New York: +1 212 808 3008
Email: info@preqin.com
Web: www.preqin.com
 19 ◄
Investor Spotlight
September 2009

Investor Spotlight:
Insurance Companies’ Activity
Following the Financial Crisis
This month’s Investor Spotlight
examines some of the results of a Fig. 1:
recent survey of insurance companies.
We look at how the financial crisis has
affected their private equity plans, how What Changes Have Been Made to Your Private Equity Plans In The Wake of the Financial
they expect their allocation to change Crisis?
in the future, and what returns they 35%

expect from their investments in the

asset class. 30%
Proportion of Insurance Companies

Within the private equity universe, 25%

insurance companies, with an average

target allocation of 3.7%, invest a 20%

relatively small proportion of their

32%
assets in private equity compared to 15%
other types of institutional investor, 26%
24%

such as pension funds, endowment 10%

plans, asset managers, foundations 13%
16% 16%

and family offices. This is often due to 5%

the practical and regulatory need for
insurance companies to maintain a low 0%
level of risk. More stringent
due diligence
Reduced rate of
commitments
No investments More focus on
particular area
Other Plans remain the
same

Although private equity typically

the current financial climate and the fact
makes up only a small percentage of
Fig. 1 shows the changes which insurance that insurance companies must maintain a
an insurance company’s investment
companies are making to their private reasonable level of liquidity.
portfolio, the large size of their assets
equity plans in the wake of the economic
under management means that this small
downturn. While nearly a quarter of the 13% of insurance companies stated that,
percentage accounts for a considerable
insurance companies that we spoke to as a result of the financial crisis in the
proportion of the aggregate capital
said that their plans for private equity past year, they had decided not to make
committed to private equity. Preqin’s 2009
had been unaffected by the financial any new commitments to private equity
Global Private Equity Review shows that,
crisis, a similar percentage told us that for at least 12 months. In contrast to this,
without taking account of fund of funds
it had caused them to conduct a more approximately 16% of the firms we spoke
and asset managers, the capital invested
stringent due diligence process, with to said that they were focusing more on
by insurance companies represents
some specifying that they sought a higher a particular area of the market as a direct
13% of the aggregate capital invested
degree of transparency and information result of the crisis, with popular strategies
in the asset class, a figure which is only
from fund managers regarding prospective including small-mid market buyout,
exceeded by pension funds.
deal flow and existing underlying distressed debt and turnaround, as well
investments. as both secondaries funds and purchases
Effects of the Financial Crisis
of fund stakes on the secondary market.
Approximately 40% of these respondents A number of respondents explained that
Following on from our recent research
informed us that, as well as employing a their private equity plans had changed in
report concerning private equity investors’
stricter due diligence process, they were other ways including: putting a temporary
views of the asset class in the current
also making fewer investments than in hold (of less than 12 months) on
climate, Preqin’s analysts have been
previous years. Such a process is not commitments, increasing a private equity
talking to insurance companies to see how
only time consuming, but it also reduces target allocation, and re-entering the
the financial crisis and economic downturn
the number of investment opportunities asset class due to attractive opportunities
of the past 12 months have affected their
available for consideration by a company. becoming available following the crisis.
plans for, and expectations of, the private
This is not necessarily a bad thing, given
equity asset class.

© 2009 Preqin Ltd. / www.preqin.com

 20 ◄
Investor Spotlight
September 2009

insurance companies is likely to move

Fig. 2: towards those of other institutional
investor types, which typically exceed
5%. This suggests that, with significant
Insurance Companies’ Intentions For Their Private Equity Allocations assets under management, insurance
companies would play a more
100% prominent role as investors in private
7%
equity in the future.
8%

90%
80% Performance Expectations
70% 50% Decrease
60% 66% A barrier to insurance companies
Proportion

increasing their involvement in the

50%
Maintain private equity asset class could come
40% in the form of tighter regulations, with
30% authorities around the world reacting
20% 42% Increase to the turmoil in financial markets
27% of the last year. The investments of
10%
insurance companies in particular have
0% been affected, with further restrictions
Private equity allocation in the Long-term private equity target on the exposure to risk planned in
coming year allocation over the next 3-5 years various jurisdictions. One Japanese
life insurance company told us that
new regulations introduced by financial
Outlook spoke to expecting a drop in their long-
authorities in the wake of the financial
term target allocation, it seems clear that
crisis mean that it will have to increase its
To get an idea of insurance companies’ insurance companies remain dedicated to
capital or decrease its exposure to risk
outlook in terms of their private equity investing in private equity.
assets, including alternative assets - with
investments, we asked the participants
the latter being more likely due to the
in our survey if they intended to change Moreover, a considerable proportion of
difficulty of increasing capital.
their allocation to the asset class over insurance companies (42%) believe that
the coming 12 months, as well as if they they will increase their target allocation in
Fig. 3 illustrates the returns which the
anticipated their long-term private equity the long-term. Should such expectations
participants in our survey expect from their
target allocation to alter over the next 3-5 be fulfilled, the average target allocation of
private equity portfolio.
years.

As Fig. 2 shows, the majority of Fig. 3:

respondents expected to maintain their
allocation to the asset class during
the next year, with just over a quarter
What Returns Do You Expect From Your Private Equity Portfolio?
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

© 2009 Preqin Ltd. / www.preqin.com

 21 ◄
Investor Spotlight
September 2009

Although insurance companies may be

With the level of risk held by insurance
companies being a key issue for this
investor type, it is understandable that
these firms expect significant 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.
considered to be conservative investors,
our survey indicates an appetite for
increased exposure to private equity.
It also suggests that the financial 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 significant
levels of performance from their private
equity investments.

A few insurance companies stated that

they do not seek a specific level of
performance from their private equity Joe Childs
portfolio however, with some investing for
purely strategic reasons. These included
maintaining relationships with particular
firms or contributing to the development
of certain sectors, such as healthcare and
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© 2009 Preqin Ltd. / www.preqin.com

 22 ◄
Secondaries Spotlight
September 2009

Secondaries Spotlight

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 significant investors in the private equity asset class.

User Base Geography User Base Firm Type

The SMM LP service user base is diversified geographically, with A variety of institutions are currently using the SMM LP service.
the majority of users (54%) based in North America. The service Pension funds (26%), family offices and foundations (13%) and
is also being used by a number of LPs based throughout ROW, asset managers (14%) feature prominently, while endowment plans
forming 16% of the current user base. 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 for larger acquisitions. JPEL feels there are good opportunities
purchase fund interests on the secondary market. available on the secondary market, and it will be targeting
The USD 29 billion retirement system plans to develop a sellers who are eager for liquidity.
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, Secondary Market Monitor (SMM)
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. Secondary Market Monitor (SMM) Premium – Do you
want to know which LPs are potential sellers of their fund
JP Morgan Private Equity (JPEL) has raised over USD 75 interests? Get details of sellers and the funds they would
million to exceed its fundraising target by over 50%. like to sell.
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 For more information, please visit
closings in July and August. JPEL will now be looking for cheap
secondary market deals of USD 5 million and below. The fund www.preqin.com/smm
feels that this strategy will enable it to avoid competing against
bigger players on the secondary market, who will be looking

© 2009 Preqin Ltd. / www.preqin.com


Conferences Spotlight:
Forthcoming
Events
Featured Conferences:
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 afloat. List of businesses in distress is growing
longer by the minute. Even the most successful companies find
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
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
© 2009 Preqin Ltd. / www.preqin.com
23 ◄
Conferences Spotlight
September 2009
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 finance 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/leveragedfinance2009
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 CEE Private Equity Forum

Date: 17-20 November, 2009 Date: 5-6 November, 2009

Location: Paris Location: Renaissance Chancery Court, London
Organiser: ICBI Organiser: C5

Hear from 180 of the most influential 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!
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.icbi-events.com/superinvestor- Information: http://www.ceeprivateequityforum.com/

preqwb MR09

Other Conferences:

CONFERENCE/EVENT DATES LOCATION ORGANISER

2009 Investment Forum for Endowments, Foundations and Pension September 2009 (tbc) New York Argyle Executive Forum
Funds
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

© 2009 Preqin Ltd. / www.preqin.com


Investor News
Wichita State University Endowment is seeking its first
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 finding
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 afield. It is holding an opportunistic view as
to the specific 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 fiscal 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 officer, 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 office 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 first 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
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
© 2009 Preqin Ltd. / www.preqin.com
25 ◄
Investor News
September 2009
flexible 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 specific strategy, Banque
Transatlantique anticipates that it could commit EUR 20 million to
four or five 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 first 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