A Guide to Private Equity Fund Placement SpecialistsSecond Edition 3 Contents Preface Today’s markets: a two-sided tale John Barber, Managing Director, Helix Associates It was the best of times… It was the worst of times… It was the age of wisdom… It was the age of foolishness… It was the epoch of belief… It was the epoch of incredulity… It was the season of Light… It was the season of Darkness… We had everything before us, we had nothing before us. 5 7 Selecting and working with a placement agent Alan Cooper, MVision Private Equity Advisers GP objectives: what are the reasons for using a placement agent? How to select the right placement agent The cost The role of the placement agent before, during and after the fundraising Different types of placement agent So, who selects whom? 25 7 8 8 8 9 9 9 10 10 25 25 26 27 28 28 What placement agents look for in a fund Colin Brown, Transparent Capital Choosing each other Fund selection criteria More than just fees Final thoughts 29 Ten things to expect from a placement agent Christoffer Davidsson, Vice President, Campbell Lutyens & Co. Ltd Overview Deliverables Summary 13 29 30 31 32 13 13 18 What LPs think of placement agents Private Equity International Facilitators Placement agent plus points Praise where praise is due Homework 19 More than just arranging meetings: the role of the modern placement agent Nicole Belmont, Far Hills Group, LLC Decision to come to market Pre-marketing Fundraise Post-fundraise 35 19 20 22 22 36 36 38 39 SCM Strategic Capital Management AG 61 Notes from the frontline 67 The Surveys The LP Survey: Investors on placement agents The GP Survey: General partners on placement agents 75 77 87 The Directory Presenting the proposition: planning and executing the fundraising Robert E. CEO. Managing Director. JPMorgan Cazenove Private Funds Group Eternally on the road – the fundraising dilemma A history of the placement agent market: Merrill – DLJ – boutiques – today Pick the best model and stick with it – until it needs changing The devil is in the detail – thorough due diligence The great unknown Any clearer? 55 210 213 55 55 56 57 58 58 .4 A Guide to Private Equity Fund Placement Specialists Notes to a placement agreement Kate Simpson. Monument Group Planning and preparation pay off Executing on the plan – practicalities of the fundraising process Approaching the closing After the closing Final thoughts 49 Appendices Appendix One: Private Equity International on fundraising and placement agents Appendix Two: PrivateEquityOnline. SJ Berwin LLP Introduction Parties Preamble Services Term Responsibilities Compensation Confidentiality Conflicts of interest Appointment of agents Indemnity Representations and warranties Miscellaneous Conclusion 41 41 41 41 42 42 42 43 45 46 46 46 46 46 47 A gatekeeper’s view of placement agents: a changing environment for the industry’s pathfinders Stefan Hepp.com on fundraising and placement agents Appendix Three: About Private Equity International Appendix Four: About Private Equity International Research Publications Appendix Five: Index to directory entries 97 183 49 52 53 54 54 185 199 209 Boutiques vs. Mast. or big is best? James Burr. banks: David and Goliath. . the scale of recent returns surprises even the oldest of hands. meeting with overwhelming investor demand and beating standard fundraising timetables by months. “A Tale of Two Cities” (1859) Never have private equity markets been as large. significant and active as they are today. notable. and must also demonstrate that their impact on a portfolio company will go well beyond re-designing its balance sheet. Partnership agreements are more tightly constructed.7 Today’s markets: a two-sided tale John Barber Managing Director. Private equity deal-making and fundraising volumes are breaking records.. profitability and power set to continue. it was the epoch of incredulity. New institutional investors entering the asset class announced target allocations in the billions. exceeding even the Internet boom-inflated totals for 2001. This duality in conditions will be assessed with inspiration from Dickens. it was the season of Darkness.we had everything before us. Google in the US and Skype in Europe proved that venture capital dreams of 200:1. General partners must have genuine angles on deals to win them. not just introduce it. it was the epoch of belief. funds are acquiring ever bigger and better known assets. with many underlying investments effectively de- . One global firm raised $14 billion for its new buyout fund. major newspapers and broadcasters devote daily coverage to the industry. we had nothing before us. and the velocity of investments and realisations seems constantly to accelerate. than in times past. it was the age of wisdom. it was the season of Light. it was the age of foolishness. which will make their individual programs larger than the entire industry a generation ago. Yet such a broad-brush conclusion would mask more subtle findings – parts of the market overlooked by its general prosperity. The industry as a whole is set to raise more than $250 billion worldwide in new capital during the year. an amount equal to the total that all European buyout funds raised collectively only as recently as 1998. the flip side of record-breaking volumes. relying more now on dispassionate analysis than personal chemistry in forming judgments. Charles Dickens. it was the worst of times. Superficially. the prior record holder. and reporting standards more appropriate to a multi-billion asset class than a cottage industry. Helix Associates It was the best of times. valuation guidelines more explicit. and to ensure that increasingly complex offering processes are managed with military timing and microscopic attention to detail. Limited partners do far more homework. it would therefore seem that the private equity business is in rude health. Many brand name funds seemed to close in 2005 almost before they launched. gains can come true. Limited partners experienced a cascade of cash returns. or even 600:1. It was the best of times… For many general and limited partners. Recent years have also found professional standards rising across the private equity industry. relying on his insight that no judgment – in one or other direction – can be absolute. more thoroughly. with its extraordinary trajectory of growth in prominence. profitable. the seeds of a potentially bitter harvest now sown in over-priced purchases or rushed due diligence exercises. 2005 may prove a banner year like no other. Placement agents are asked to justify an investment case. 1. investors are applying far more formal and rigorous methods when assessing a proposal from a GP In this context. Raising private equity capital is a specialist. With the increased sophistication of the private equity investor community in general. Ltd Overview In today’s turbulent private equity world. but also plays a prominent role in the interaction with institutional investors and the private equity community at large.as well as to the subsequent dialogue between the fund and its limited partner investors (LPs). A general partner (GP) who intends to use a placement agent should have high expectations of the services to be provided and should expect at the very least a number of clear deliverables. demonstrate a professionalism in execution and maintain the utmost integrity in the continuing relationship between the general partner and its investors. sophisticated and complicated activity undertaken within a constantly changing marketplace. The agent not only caters to the general partner. who seeks advice and capital in raising a new fund. the expectations of a placement agent and the services they are expected to provide range over a broad area and have become more complex in nature. Following is a list that general partners contemplating raising a fund with the help of a placement agent or adviser could use when assessing prospective placement candidates. the placement agent’s activities have to be much more diverse and multi-faceted.whether through the commitment of internal resources within the general partnership itself or via the use of an external agent or adviser. the role played by different placement agents in the fundraising process is as varied in scope as it is in quality. be intimately involved in the preparation of marketing materials. For many private equity fund managers the contribution of a placement agent has become integral to this process . fundraising requires true professionalism . Campbell Lutyens & Co. be proactive in conducting thorough due diligence.13 Ten things to expect from a placement agent Christoffer Davidsson Vice President. the services offered by a placement agent and the professionalism with which these are provided have become subject to far more rigorous and formal assessment by clients (GPs) and investors alike. To be efficient and effective. Consequently. and the wider participation of specialist gatekeepers and fund of funds managers in particular. Pre-fundraising advice Fund placement activity is at its heart an advisory activity. Prior to the launch of a fundraising effort it is imperative that the proposition is clearly thought through and the implications of current market conditions be understood. The placement agent . . Today. As a result. it is critical that placement agents are able to demonstrate both an intimate knowledge of the private equity market and a deep understanding of the needs of the investor community. Deliverables There are a number of specific deliverables that a general partner should therefore expect to receive from their placement agent in order to introduce greater certainty that the funds will be raised and that the process be as successful and painless as possible. euro or pound they feel they may not have raised on their own. However. there were other ways in which institutions are seen to shape private equity – and in doing so make widely known names for themselves. not least to the placement advisors themselves. we have been reminded that ‘influence’ could result from attributes other than just big chequebooks. and . The fact that agents are singled out by the market as amongst the groups helping to shape the asset class is a telling reminder of just how deeply embedded in the private equity business placement professionals have become. how it is being sold and who is likely to buy it. is obviously helpful when it comes to developing a reputation in this industry.19 What LPs think of placement agents Private Equity International When Private Equity International (PEI) magazine has undertaken polls of private equity fund managers.the terms and conditions of limited partnership agreements. or more specifically the ability to make large and regular capital contributions and distributions. how? These questions are relevant. limited partners are by no means alone in driving this process. confirming that this group is instrumental in determining what kind of product is coming to market. both best in class due diligence and effective negotiation with fund managers are having a significant impact on how private equity as an asset class functions. Helping general partners to raise the next fund can be lucrative business. It is not surprising therefore that general partners who meet or even exceed their fundraising targets are today much quicker to give credit to their placement consultants for every dollar. because although they get paid by. For example. When these bellwether investors decide to make a fund investment. especially in a market environment where GPs are increasingly reluctant to go out on the fundraising trail without first enlisting a placement advisor of their liking. many of their peers will likely be inclined to follow suit. Other investors are held in high esteem for their ability to negotiate – and change to their advantage . At a time when the industry is undergoing dramatic change. But what do investors think of these professionals? Do they rate their contribution to the capital-raising process? Do they feel that agents add value. when it came to determining who was helping shape private equity as an asset class (in other words. and if so. While money. limited partners and intermediaries to find out which individuals and institutions investing in European private equity funds were regarded as ‘most influential’ in the asset class. Many more private equity fund managers are mindful that the time required to raise their new fund is going to be far longer than in the past: whether you have raised funds before or not. most of these will ask more questions and most too will take far longer (and hence require more follow up). Facilitators Placement agents serve as facilitators of capital flows from LPs to GPs. “What about the placement agents?” many practitioners have asked us. More prospective investors will have to be seen. some limited partners are applauded for the high-end research they undertake prior to committing to investment propositions. those who are instrumental in helping private equity evolve as a destination for investment capital). involving a placement agent as far ahead as possible of a fund launch can benefit the GP enormously. if a GP engages a placement agent merely to ‘top up’ a fund which has already had one or more closings. during and after the fundraising Depending on why and how the placement agent was selected so its role will change according to whatever has been agreed with the GP – no two working arrangements are likely to be the same. because putting that experience and knowledge to work is vital for effective planning – and effective planning is essential. the production and delivery of numerous iterations of sophisticated documents and presentations. the number one priority of a GP and the placement . During the fundraising Of course. Many GPs underestimate the stress involved and the magnitude of the logistical exercise. regardless of the quality of the GP or the placement agent. After the fundraising Ideally it’s not over even when it’s over. All this before the often complex and intense closing process. and will underpin an effective pre-marketing effort. the organisation of large numbers of due diligence visits and calls. and the handling of multiple simultaneous transactions. Full service placement agents will relieve the GP of much of the administrative and logistical burden and help manage the entire process. the agent will probably not have been involved in any of the planning or the preparation of materials and clearly has a limited role to play. Therefore. At the same time this knowledge will be invaluable in helping the GP determine the structure of the fund and its terms. coordination of professional services from lawyers. This is always a mammoth and time-consuming undertaking. Meanwhile the GP must carry on running its business: continue its investing program. agent. A solid continuing relationship with a successful GP is something that all placement agents would like to preserve in the long term. covering multiple fundraisings. Prior to fund launch A critical factor is the broad market experience and knowledge of placement agents gained from multiple fund placements set against the necessarily limited exposure of most GPs. possibly even restricted to country-specific activities or approaching only specified classes of investor. the process is not always easy. is to secure investors. At the other end of the spectrum a full service placement agent involved from the initial stages of a fundraising. arranging extensive travel for the GP principals. and during the official marketing of the fund the placement agent will unroll its campaign to place the fund with selected investors. accountants and other consultants. detailed roadshows. may be expected to play a central role in planning every aspect of the campaign and supporting the GP’s professional team in the development of their business. First of all the twists and turns . Ideally the fund will reach its preferred fund profile – the desired fund size with the right LP mix – but. and maintain dealflow. or even of the fund development itself. often lasting several months with little or no let up. At this stage the placement agent will also help in the development of comprehensive due diligence and presentation materials designed to differentiate the fund in the market and recognise the expectations and demands of the prospective investors. This is where the placement agent supplying the full array of services really proves their worth – raising the money and managing this process to the fullest extent. generate and manage exits. Even medium-sized fundraisings can involve organising several hundred meetings. This work will identify the right investor base for the fund. perhaps according to a carefully targeted plan or perhaps through a mass distribution. As every good campaigner knows “time spent in reconnaissance is never wasted”. For example. and one of the key contributions of a placement agent is continuous analysis of investors and deploying its knowledge of the market landscape.Selecting and working with a placement agent 27 The role of the placement agent before. Some GPs would argue that placement agents are no more than an upmarket – and expensive – dating agency. Firstly. I would not entirely disagree with this statement but. however. For those readers who don’t know – or would prefer others to believe that they do not know – there are essentially three types. The large investment banks should be concerned.29 What placement agents look for in a fund Colin Brown Transparent Capital Times are changing for the traditional placement agents. however. Just as a GP group goes through its own selection process both with regard to the type of agent and the selection of the particular agent within that group. Although the oftentouted expression that placement agents are only ‘as good as the last fund’ is simplistic. be a need for agents for certain funds not in the ‘golden circle’ of those GPs able to successfully raise capital on their own. there are the dating agencies which merely supply a list of names as potential suitors and little more. Their big teams represent a huge cost base and many of the established large funds are turning their backs on the traditional placement agents due to the huge fees charged in the past. it is worth considering how the two quite different parts of the private equity industry – GPs and placement agents – view each other. The world is now clearly divided between the ‘haves and the have nots’. Choosing each other Whilst every GP group is different. There will always. so does the agent scrutinise candidate funds closely. These are the investment banking placement agents. One can think of these as novice placement agents who have a database of contacts – such as The Global Limited Partners Directory published by Private Equity International. Think of these as the boutiques. Many of the successful funds now are refusing admission to new LPs and the biggest problem for some GPs is how to scale back applications. There are then those dating agencies who offer what they themselves will call a global service and have 20 or so different people on the case to help the client. to explore the analogy. what is common is for a GP group to try and get its chosen agent for as little as possible. it is nonetheless true that agents do get a reputation for either being associated with quality funds or not. one needs to look at the types of dating agencies that exist today. Firstly. This is probably more important for the small boutiques . prove to be a grave mistake for reasons I detail below. In the middle there are those dating agencies who offer to help a limited number of clients but who also claim extensive knowledge of potential suitors for its kind of client. Of course. There is not one correct way for any GP group to go when selecting an agent. the same can also be said of placement agents. I believe the trend will be for these groups to retain some form of placement agent on a semi permanent basis… of which more later. This can. Any serious placement agent in today’s tough fundraising environment will be more concerned with its reputation than short-term monetary gain and a good agent will probably turn down 50 opportunities for every one even seriously considered. As such. representations and warranties and compliance with securities laws. The target size of the fund and the currency. During the selection process the general terms of the placing. e. as they become the contracting party and have responsibility for the matters contained in the letter. including compensation. including: • • The name of the placement agent. particularly the compensation.. it is market standard that the fund will not bear the placement agent’s fees or any liabilities arising out of the placing arrangements. This chapter is designed to set out guidelines as to the areas to cover and points to address within a placement agreement. there may be little scope for walking away from the arrangement and therefore the negotiation of terms relies heavily on the parties reaching a commercial agreement and the strength of the relationships involved. the fund manager and the fund. compensation.g. placement agreements often take the form of a letter.41 Notes to a placement agreement Kate Simpson SJ Berwin LLP Introduction Selecting a placement agent is the hard part – documenting the deal is usually relatively easy. It is also equally inappropriate for the contracting party to be the fund itself – this is because generally at the time of execution of the letter the fund will not have been formed. normally the fund manager. Given the variety of terms one sees in such agreements. are likely to have been discussed and agreed in principle. in addition. This document is negotiable. The placement agreement will generally take the form of a letter and will cover various key commercial areas. Often this process will be continuing at the same time as the placement agent is working with the General Partner or manager (the “fund manager”) to draft the offering document and beginning to market the fund. Preamble The initial paragraph of the letter will include certain general information. It is generally inappropriate for the letter to be addressed to an individual. This should be addressed to the entity that will operate and manage the fund. Parties As mentioned previously. Initial drafts of a placement agreement are usually provided by the agent itself in its “standard form”. Large investment banks may be less inclined (or able) to amend standard terms than smaller boutiques. the parties will then seek to set out the agreed terms in writing. Once the placement agent is selected. this is not an exhaustive list and there is scope for the principals to agree bespoke arrangements which may be more appropriate in the circumstances. duties of the placement agent and the future relationship between the fund manager and the agent after this fund is closed. although the degree of movement on certain terms is often heavily affected by the identity of the agent. . It will also cover various legal matters such as indemnity provisions. A placement agent may be necessary after all. Fundraising is not always a priority. Some GPs prefer to do this dirty business alone with in-house teams. You’ve just closed another great deal which is going to make you and your investors a great deal of money.55 Boutiques vs. left to form a similar placement business at DLJ. Dale Meyer and Phil Pool. despite its long-term . take notice of them. Chad Schultz and Ray Cosman. Your current fund is going well. But who? Away from the deal market. which is doing deals. All served to keep the gossip mill running. Amongst those still in the game. approach. A placement agent is not necessarily top of the agenda. or assign the task to a senior individual best suited to it. At this time. and the whispers will go round the market that you have no cash. There have been some winners and losers and some comings and goings. the team was led by Jerome Green and assisted by the likes of Ray Cosman. A history of the placement agent market: Merrill – DLJ – boutiques – today The origins of the current placement agent landscape can be traced back to 1988 when Merrill Lynch brought together a group who were dedicated to raising capital for private equity and other funds. It’s time to go and plead for money once more. both between the two and away from both. After Green left to join Benedetto Gartland.” “Keep your Partners close and your Limited Partners closer. with various personnel movement. there have been some fairly significant changes in the placement agent arena. as people left to form new ventures. The thinking runs along the lines of “why pay that guy to do it when we can perfectly well manage the situation ourselves?” But the time spent away from the fundraising market is crucial. Kevin Albert joined the team and was appointed its head in 1993.” “Don’t come and see us last…” General Partners (GPs) hear these phrases. So started nearly a decade of the two businesses vying for supremacy. or big is best? James Burr JPMorgan Cazenove Private Funds Group Signed and sealed. But hang on… One more deal and an add-on for another could take you over 70 per cent invested. In the time it takes to raise more capital your current vehicle could be full. Phil Pool and a number of colleagues. There has also been a fundamental change in the way in which placement agents have approached their business. terms. Turnover happens to them too. Eternally on the road – the fundraising dilemma “The best time to be selling is when you have nothing to sell. and is now well over 50 per cent invested. A disaster for dealflow and your reputation. including Bob Rivett. Things move quickly in this business. It’s been two years since you raised it. LPs themselves change. and the pain of many days and months spent on the road are a long and distant memory. Limited Partners’ (LPs) attitudes towards strategies. teams and people change. however. banks: David and Goliath. and promptly get involved in the business they are paid to do. 01. such as how to improve the mix and balance of the investor base. in particular. While an ongoing outsourcing to a placement agent might increase the cost versus a temporary fundraising assignment and thus push more firms towards an in-house solution. such a narrowing of the scope of placement agents’ involvement has also been accompanied by pressure on fees charged. SCM expects the trend towards an ongoing investor relations effort to continue among private equity firms. how to communicate succession issues and organisational changes. 2005 The growth of in-house fund placement teams has increased price competition for the available assignments. large buy-out firms to use in-house teams for fundraising. but in reality this is still an approach more talked about than implemented. .05 and includes 235 private equity partnerships and other investment vehicles. or to build-up their internal resources. Less obviously. As a result. GPs have been able to customise the assignments of placement agents by restricting their geographical focus. This would imply that GPs increasingly need to think about whether to retain a placement agent or an investor relations firm on an ongoing basis. Naturally. it also creates a business opportunity for those placement agents that have the depth of resources to handle the wider range of tasks that come with such an assignment. the same challenge persists for many smaller and mid-sized firms as well. There have been instances where GPs increased the target amount of their funds shortly before a first closing. especially for the popular upper mid-market and large buy-out funds in particular. reduced the amount of subscription allocated to new investors introduced through a placement agent or changed the allocation in a way that contradicted the undertakings that the agent had given to investors they were presenting a fund to. The percentage of the funds in the sample using a placement agent declined from 58 per cent in 2004 to 51 per cent in 2005. for many established private equity firms. This may both reflect SCM’s pro-active deal sourcing that focuses on ‘invitation-only’ funds (no placement agent) as well as the tendency among. Such a lack of co-ordination undermines the credibility of a placement agent and can potentially raise the question of whether the reduced fee is worth the franchise risk the agent might assume. There have been placement agents that try to pursue a business model of more ongoing involvement with investors on behalf of the funds they represent. The data displayed in the chart reflects SCM’s dealflow for the period 01. These challenges require an ongoing effort where the temporary assignment of a placement agent is next to useless.09. it has in some instances caused placement agents to lose control of the book-building effort that leads to a closing. and type of new potential investors they want to get introduced to. the question of from where to raise the capital for a next fund has paled in significance (due to their vehicles being oversubscribed) to more strategic issues. It is thus not surprising that the percentage of funds reviewed by SCM that involve a placement agent has declined in recent years and reached a low in 2005 (see Chart One1). Chart One: Use of placement agents by funds reviewed by SCM in 2005 Fund unaccompanied by placement agent 49% Fund accompanied by placement agent 51% Source: SCM. While the growth of some private equity firms has clearly led them to build in-house fundraising and investor relations teams.A gatekeeper’s view of placement agents 63 It is something of an irony that. or prescribing the number 1.05-30. concentrating their involvement on the preparation of offering documents and the processing of due diligence information requests. how to win support for an evolving business strategy or a geographic expansion and how to differentiate a GP in the eyes of investors. GPs see four boutique firms as being clearly ahead of their rivals. as quickly and efficiently as possible) at a particular time (the fundraising period) and that the ongoing management of LP relations stands outside the agent’s orbit. Providing more than placement: would GPs buy IR and other advisory services from an agent? A growing number of placement agents are keen to cement their relationship with GP clients by participating in ongoing investor relations programs and providing related consulting and advisory services to them. the quality of service and level of professionalism provided: Chart Ten: Would GPs buy IR and other consulting services from placement agents? 10% Would you consider buying investor relations and related consulting services from a placement agent in between fundraising? 12% 30% Can differ significantly Yes Can differ somewhat No Is likely to be more or less the same 79% 70% The answer from GPs is an emphatic yes on all counts.The GP Survey 93 Chart Nine: Does placement agent quality vary from agent to agent? 9% Depending on which placement agent you are dealing with. GPs remain sceptical though: over 70 per cent indicated that they would not consider buying such IR and related services from an agent in between fund raisings (see Chart Ten). Again. Rather. a further 12 per cent stating it can vary somewhat. valueadded services. we have split the placement agent market along the more natural lines of . The inference being that most still regard the placement agent as fulfilling a particular role (raising capital. In a more competitive market agents are especially keen to build out these extra. so our survey of GPs concluded with the same invitation. Over 90 per cent of respondents stated that levels of quality within the industry does vary from agent to agent. Some though (and agents in particular) may be more interested in the fact that nearly 30 per cent of the GPs said they were prepared to consider buying these services from the agent. as with the LP survey (and unlike the first edition of this title) we have opted not to ask for rankings of placement agents in terms of European groups vs. Only 9 per cent of GPs feel placement agent quality is more or less the same regardless of which agent you are dealing with (see Chart Nine). Not only can this provide new revenue streams for the agent but also helps to distinguish this agent from “the rest of the pack”. By far the largest proportion (79 per cent) indicated that quality varies significantly. US firms. while mighty CSFB dominates the investment bank category Just as investors in private equity funds were invited to nominate their top three placement agents. particularly given that IR initiatives ensure that the agent is in regular dialogue with both active limited partners and with the general partner group. com Eric Estes (New York) Partner estes@campbell-lutyens. of personnel 25 Key contacts Andrew Sealey (London) Managing Partner sealey@campbell-lutyens. Norsk Vekst. Essex Woodlands. USA +1 212 223 1799 Year established 1988 No. It provides specialist advice to institutions.com Branch offices New York.com Email: info@campbell-lutyens. mezzanine and special situation funds. It has offices in London and New York and comprises a team of over 20 professionals.com Services Fund placement Investor relations Secondaries advisory Restructuring advisory Consultancy Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas Sector funds • • • • • • • • • • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • Sample clients Alto Partners.The Directory 111 Campbell Lutyens & Co. Mercapital. Bowmark Private Equity (formally Sagitta). Clearwater Capital Partners. Shamrock.com Andrew Bentley (London) Partner bentley@campbell-lutyens. Hamilton Lane. European Venture Partners.com John Campbell (London) Senior Partner campbell@campbell-lutyens. Primary Capital Limited. VPSA Profile Campbell Lutyens is an independent private equity advisory firm founded in 1988. Ltd 5 Clifford Street London W1S 2LG United Kingdom Tel: +44 20 7439 7191 Fax: +44 20 7437 0153 Web: www. Mezzanine Management. NMAS1 Private Equity. Penta Capital. Campbell Lutyens advises on the sale or restructuring of portfolios of private equity funds or of direct private equity holdings. It assists in all stages and aspects of the strategy. and offers strategic consultancy on the approach of public and private sector institutions to private equity. Equivest. structuring and fundraising process. It acts for managers of European.campbell-lutyens. general partners and other organisations on all aspects of the private equity sector. Crescendo Ventures. Navis Capital. Arsenal Capital Partners. buy-out. US and Asian funds raising capital from institutional investors globally. Campbell Lutyens assists fund managers to raise private equity funds including venture. . mergers and acquisitions of private equity managers.com Jean-Charles Charpentier (London) Partner charpentier@campbell-lutyens. the restructuring of individual funds and private equity groups. Since the firm's founding in 1990. With a focus on sales. OrbiMed Advisors. NY 10036 United States of America Tel: +1 212 840 7779 Fax: +1 212 840 1233 Web: www. and banks both domestically and abroad. which includes strategic and document preparation advice.. . banks. and the Middle East. insurance companies. Our placement activity focuses on institutional investors. we provide strategic advisory services that foster institutional placement and may include full-scale material development. Our fundraising process focuses on differentiating the manager's strategy and strengths through value-added prospect communication and interaction. insurance companies. family offices and their consultants. Marwit Capital. Latin America. We are a global practice headquartered in New York and have raised assets from investors in Asia. LLC. LLC.com Email: info@farhills. fund structure consulting. Vertex Venture Capital Profile Far Hills Group specialises in the placement of alternative investment offerings to institutional investors.com Branch offices Geoffrey Bradshaw-Mack Partner
[email protected]. S2 Technologies Corp. and prospect and investor communications.com Year established 1990 No.com Services Full service fund placement.com Mike Halvorson Partner mhalvorson@farhills. including major endowments.com Nicole Belmont Vice President – Director of Research nbelmont@farhills. foundations. family offices. Larch Lane Advisors. Our practice is exclusively focused on the institutional investment community and includes endowments. and investor relations Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • • • • • • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • Sample clients Brooks Houghton & Co.. corporate pension plans. marketing material development. foundations. Europe. we have placed in excess of $10 billion in over 31 different investment vehicles. LLC 1114 Avenue of the Americas 30th Floor New York. of personnel 13 Key contacts Peter Novello Managing Partner
[email protected] Seth Wohlberg Partner swohlberg@farhills. Clarion Capital Partners.The Directory 133 Far Hills Group. rigorous due diligence.helix-associates. Each year. Bridgepoint Capital. a middle market-oriented investment bank quoted on the New York Stock Exchange. In May 2005. PPM Capital. Jefferies & Company. while building on its recognised strengths. Quadrangle Capital Partners. .com Philip Kemp (New York) Managing Director pkemp@helix-associates. Corpfin Capital. Its founders aimed to create a placement agent that could exercise its own judgement in selecting which clients to represent. Exponent Private Equity. Piper Private Equity. Quadriga Capital Profile Helix was established in 1993. and effective project management. Hicks Muse Tate & Furst. Helix is further building its US capabilities and in mid-2005 established an office in New York. Innisfree.com Email:
[email protected] Branch offices New York. 4 support Key contacts Lord Charles Cecil (London) Managing Director general@helix-associates. European Acquisition Capital. Jefferies Capital Partners. acquired Helix.com Services Fund placement and related corporate finance and investor relations services Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • • • • Sample clients Altor Equity Partners. As part of this growth plan. Inc. Helix acts as the placement agent for a select number of high-quality private equity funds. Jefferies’ support and incremental relationships will allow Helix to achieve a new phase of growth. The firm's reputation is based on discriminating fund selection. This approach has generated a consistent track record of successful outcomes. USA +1 212 284 8118 Year established 1993 No. of personnel 13 executives. Madison Dearborn Partners.140 A Guide to Private Equity Fund Placement Specialists Helix Associates 5th Floor 23 King Street London SW1Y 6QY United Kingdom Tel: +44 20 7968 6960 Fax: +44 20 7968 6968 Web: www. thoughtful and balanced research. Graphite Capital.. Engelfield Capital. Dunedin Capital. LBO France. investor
[email protected]. CapMan. It combines innovative and impartial advice with a broad range of capabilities and proven execution skills. Legal & General Ventures (LGV) Profile JPMorgan Cazenove is one of the UK’s leading investment banks.com Branch offices New York. . It is committed to providing its clients with the highest quality of services based on a deep understanding of their needs which has been built up over many years. including financial advice. Herald Ventures. It provides a full range of investment banking services. M&A.The Directory 143 JPMorgan Cazenove 20 Moorgate London EC2R 6DA United Kingdom Tel: +44 20 7588 2828 Fax: +44 20 7155 9000 Web: www. USA +1 212 376 1200 Services Fund placement and financial advisory Investor relations Secondaries advisory General consultancy / strategic advice Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • • • • • • • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • Sample clients Axcel.com Year established 2004 No. of personnel 10 Key contacts Alex Bance Director +44 20 7155 5502 alex. debt and equity capital markets advice and execution and equity research and distribution. Monument Group's experience provides the up-to-date market insights necessary to raise funds in a changing environment. Altor Equity Partners. . Such unique expertise differentiates Monument Group and allows it to provide one of the best placement services available in the market. whose sole business is raising capital for superior alternative investment opportunities. Monument Group is an independent registered broker-dealer located in Boston. WaldenVC. Monument Group specialises solely in private. Inc.com Branch offices MG is currently in the process of establishing a European office. The firm's buy-side investment experience coupled with its relationships within and knowledge of the institutional investor community provide a competitive advantage over other placement agents. Lauer Managing Director janice@monumentgroup. Monument Group focuses its placement efforts on a broad range of institutional investors located primarily in North America. of personnel 16 Key contacts Alicia M. Palladium Equity Partners. Lime Rock Partners (oil & gas).com Robert E. Quadrangle Group.com Email: info@monumentgroup. fund of funds managers and wealthy families.monumentgroup. Walden International. consultants. Beacon Capital Partners (real estate). HgCapital. Dubilier. & Rice. Weston Presidio Capital Profile Established in 1994.. financial institutions.The Directory 151 Monument Group 500 Boylston Street Suite 1650 Boston MA 02116 United States of America Tel: +1 617 423 4700 Fax: +1 617 423 4701 Web: www.com Services Fund placement Strategic advice (in tandem to fund placement) Marketing (in tandem to fund placement) Investor relations (in tandem to fund placement) Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • • • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • • • • • • • Sample clients Alta Communications. public and corporate pension funds. Monitor Clipper Equity Partners. Cooney Managing Director
[email protected] John M. Madison Dearborn Partners.com Michael C. Clayton. Cerberus Institutional Partners. JP Morgan Partners Asia.com Janice M. Patron Capital Partners (real estate). Mast Managing Director bob@monumentgroup. Vestar Capital Partners. McLaren Managing Director john@monumentgroup. Capital Resource Partners. Miller Managing Director mike@monumentgroup. including endowments and foundations. which we anticipate will be operational in late 2005 Year established 1994 No. Oaktree Capital Management. alternative asset investments. Sofinnova. We research markets and opportunities carefully. of personnel 20 in London.com Branch offices New York. We are in constant direct contact with the leading investors in the ever-evolving global market.com Svea Saake Berry (London) Director sisb@mvision. 6 in New York Key contacts Moose Guen (London) CEO. and its global investor reach provides its clients with access that leads to optimal funding levels and investor balance. We develop full understanding of their programs and execution processes. and have performed thorough due diligence. MVision has exceptional relationships with the major investors in all geographies. Orlando Management. Investors know we have complete conviction. Butler Capital Partners.mvision. Friedman Fleischer & Lowe.com Hussein Khalifa (New York) Director hak@mvision. Mercapital. USA +1 212 573 0915 Year established 2001 No. . Wellington Partners Profile MVision is a leading independent private equity placement agent with over 20 professionals operating from offices in London and New York.com Services Private equity fund placement Investor relations Other associated activities Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • • • • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • • • • • • Sample clients Abingworth Management. Clients around the world are select private equity fund managers that are leaders regionally and internationally. comprehensive fundraising services on a global basis. and perform extensive reviews of GPs operating different strategies around the world.com Email: tcg@mvision. Polytechnos. developing selected relationships with great care. unrivalled experience.The Directory 153 MVision Private Equity Advisers Limited Connaught House 1-3 Mount Street London W1K 3NB United Kingdom Tel: +44 20 7491 8500 Fax: +44 20 7491 8700 Web: www. Waterland Private Equity. InvestIndustrial.com Paula Chester (New York) Director plc@mvision. CHAMP Ventures. CapVis Equity Partners. carefully targeted. Chequers. mg@mvision. MVision provides highly sophisticated. EQT. Segulah. HealthCap. deep knowledge.com Jennifer Rinehart (New York) Director jr@mvision. UK +44 20 7280 5801 Year established 2001 No. CIVC. California. which are provided by an integrated team of employee owners dedicated to leveraging the firm's vast knowledge and technical resources to provide the best results for its clients. KPS.com Dale Meyer.156 A Guide to Private Equity Fund Placement Specialists Probitas Partners 425 California Street Suite 2300 San Francisco. San Francisco Partner +1 415 704 2463
[email protected] Branch offices New York. USA +1 212 403 3662 London. KRG. San Francisco Partner +1 415 704 2465 cam@probitaspartners. with offices in New York and London. of personnel 22 Key contacts Craig Marmer.com Services Fund placement Secondary sales and liquidity management Portfolio management and focused separate accounts Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • • • • • • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • Sample clients ArcLight. London Director +44 20 7280 5815
[email protected]. Granite Ventures.com Joseph Porterfield.com Robert Hofeditz. W Capital Profile Probitas Partners is an independent provider of integrated. Calvert Street.com Email: info@probitaspartners. Shasta Ventures. .com Kelly DePonte. The firm is headquartered in San Francisco. CA 94104 United States of America Tel: +1 415 402 0700 Fax: +1 415 402 0052 Web: www. New York Partner +1 212 403 3669 djm@probitaspartners. It offers an array of customised services that include placement of private equity funds and investment and liquidity management. San Francisco Partner +1 415 704 2466 rmh@probitaspartners. alternative investment solutions. Legg Mason Merchant Banking.com Brian Cummings Manager brian.odell@transparentcapital. investor communication and reporting and advises on carried interest and other incentive programs.cummings@transparentcapital. New Media Spark. .com Della O’Dell Executive Assistant della. Parallel Ventures.166 A Guide to Private Equity Fund Placement Specialists Transparent Capital 5 Relton Mews Knightsbridge London SW7 1ET United Kingdom Tel: +44 20 7052 0099 Fax: +44 20 7052 0066 Year established 2002 No. Centurion Capital. Lexington Partners.com Branch offices Services Fund placement for alternative investment funds and hedge funds Investor communication and reporting Secondaries advisory Advice on carried interest and other incentive programs Fund types placed Generalist Large buy-out Mid-market buy-out Early-stage venture Later-stage venture Subordinated debt / Mezzanine Turnaround / Distressed Secondaries Fund of funds Real estate Energy / Oil & gas • • • Geographic coverage Global North America Western Europe Central & Eastern Europe Asia Pacific Latin America Middle East Africa • • • • Sample clients Belmont Advisers. The firm offers global placement services to alternative investment funds and hedge funds. of personnel 4 Key contacts Colin Brown Founder Partner colin.com Nancy Garber Manager nancy. The firm also offers advisory services on secondaries. Hutton Collins.garber@transparentcapital. Prior to founding Transparent Capital. Wermuth Asset Management Profile Transparent Capital is an independently owned global placement services firm founded by Colin Brown with the aim of assisting General Partners in fundraising and their interaction with their limited partners. Colin Brown worked for Deutsche Bank and has assisted in the private placement of US$5 billion of limited partnership interests in global private equity funds.brown@transparentcapital. have been busy developing a range of publications and other media that are all centred on private equity and venture capital. the deals and the firms shaping the industry. These titles address the current absence in the market of in-depth products that cover the issues and trends shaping the asset class on a global basis. Private Equity Manager: the first monthly journal written for those involved in running the modern private equity firm: CFOs. COOs. and included the website PrivateEquityOnline. developed in response to the increasing importance of private equity-style investment within the real estate industry globally.as well as the managing partners. consultants and developers involved with opportunity investing in real estate globally. Heads of IR. edited and compiled by members of the team to provide in-depth information and analysis for various industry participants. PEI delivers fresh news and insight on how the asset class is developing worldwide. for example. Our Private Equity COO & CFO meetings in both London and New York. Private Equity International Research Publications: a growing series of market reports. research guides and directories are being written. This business was centred on private equity and venture capital. that same group of managers plus a growing team of seasoned journalists and other publishing professionals. Today. Launched in June 2004. call our London (+44 20 7566 5444) or New York (+1 212 645 1919) offices. That magazine was launched in December 2001 and is called Private Equity International. its daily news coverage from around the world is now read by 40. we offer the following publications and products: Private Equity International: the global magazine for private equity. Since then. Journalists in both London and New York are posting stories on PEO throughout the day on the people.as well as plans for a major new magazine dedicated to the asset class. Euromoney Institutional Investor PLC.000 registered users. PEM delivers substantive commentary and guidance on all aspects of operational best practice for the private equity and venture firm. Private Equity Real Estate: a new magazine dedicated to the world’s private equity real estate markets. fund managers. PEI is now hosting a series of conferences in Europe. For more details on any of these products. North America and elsewhere.com . The company now has offices in both London and New York and is able to track all aspects of the industry across all time zones.com: probably the best known website dedicated to private equity and venture capital. have already established a significant following. Human Resources . It is essential reading for all investors. Launched in April 2000. Written by one of the most highly regarded editorial teams with over thirty years combined experience of the industry. We are genuinely global in our approach. One of the most widely read and recognised monthly magazines on private equity and venture capital. Private Equity International Conferences: in order to provide private equity professionals with a small number of focused events that make full use of the company’s knowledge of the private equity industry. lawyers. .already one of the most heavily used private equity news sites around . PrivateEquityOnline.209 Appendix Three: About Private Equity International In November 2001 a management team bought out their business from major financial publishing group. financiers. • A Guide to Private Equity Fund of Funds Managers The definitive guide to the global private equity fund of funds market. extensive and user friendly guide to current and active investors in the asset class available. • The Global Directory of Investors in Private Real Estate Funds The only guide to investors in private real estate funds. This directory provides detailed. in-depth profiles of the private real estate investment programs of over 500 institutional investors and advisors from around the globe. Built from the ground-up by a team of multi-lingual researchers. placement agents and advisors. extensive and user friendly guide to current and active investors in the asset class available. service providers and private equity firms. investment remits and previous funds backed. This report is an essential purchase for anyone interested in understanding and raising capital from this increasingly important area of the private equity market. An indispensable fundraising tool for those raising and marketing private equity and venture capital funds. this directory is the most comprehensive. this directory is the most comprehensive. An indispensable fundraising tool for those raising and marketing private real estate funds of all types. investors. research guides and directories cover the issues and trends shaping the asset class on a global basis. Also contains the most comprehensive directory of fund of funds managers available. This 990-page directory provides detailed. comprehensive and detailed publications profile investors in the private equity and real estate asset classes. providing readers with a valuable primer on these issues. placement agents and LPs. They offer private equity and other alternative asset professionals. advisors and others involved in private equity and real estate the quality research. in-depth profiles of the private equity These highly specialised and targeted reports are aimed at covering technical issues or particular areas of the private equity industry in an incisive manner. along with the results of a survey into the dynamics and future of the fund of funds market undertaken with fund of funds managers. profiling more than 150 managers from around the globe. This 276-page Market Report consists of indepth editorial from leading fund of funds managers.210 A Guide to Private Equity Fund Placement Specialists Appendix Four: About Private Equity International Research Publications Our expanding range of in-depth market reports. investment programs of over 870 institutional investors and advisors from around the globe. Directories Market Reports These practically orientated. Built from the ground-up by a team of multi-lingual researchers. as well as advisors. including contact details. The Global Limited Partners Directory The most comprehensive international guide to investors in private equity funds. • . in-depth analysis and insightful comment they need. documentation. Topics covered include: the development of the UK buy-out market. Written and researched by leading international law firm Ashurst. public to privates. • A Guide to Private Equity Fund Placement Specialists (Second Edition) The definitive guide to private equity placement agents. this guide addresses all aspects of private equity-backed buy-outs. This 222-page Market Report covers the importance and risks of technology. Topics covered include: the development of the German buy-out market. SCM Strategic Capital . London Business School. Written and researched by leading international law firm Ashurst. taxation aspects of LBOs. Standard Life Investments (Private Equity) Ltd. taking equity. along with a unique directory of private equity technology providers and their products/services. insolvency. taxation aspects of LBOs. taking equity. taking equity. structuring equity incentives for management. documentation. this Market Report combines in-depth editorial with a global directory of agents and the results from surveying both LPs and GPs about their views on the role and contribution of agents in the fundraising process. Management. The book is filled with information and comment relevant to anyone involved with private equity funds and fundraising. taxation aspects of LBOs. along with the . debt and security. Topics covered include: the development of the French buy-out market. the impact of EC and UK merger control and anti-trust rules. the impact of EC and French merger control and anti-trust • rules. This guide is essential reading for anyone involved in developing a private equity firm’s technology infrastructure. how technology specifically applies to the modern private equity firm and includes a detailed analysis of the technology solutions currently available to private equity firms. structuring equity incentives for management. and more. debt and security. The guide is supported by a survey of investors’ use of and attitudes towards technology. Probitas Partners. and more. this is the first in a series of country-specific guides that address all aspects of private equity-backed buy-outs. documentation. • • • Research Guides Cover the broader issues. The German LBO Manual A practical guide to structuring private equity-backed buyouts in Germany. This 180-page report is an essential resource for all those involved in French private equity buy-outs. public to privates. Consisting of in-depth analysis and comment. the structure of leveraged buy-outs. The France LBO Manual A practical guide to structuring private equity-backed buyouts in France. insolvency. and more. the structure of leveraged buy-outs. This 156-page report is an essential resource for all those involved in UK private equity buy-outs. insolvency.Appendix 211 Contributors include Adams Street Partners. Private Equity Technology: Assessing the Alternatives An assessment of technology solutions and how they apply to private equity firms. this guide addresses all aspects of private equity-backed buy-outs. debt and security. The UK LBO Manual A practical guide to structuring private equity-backed buyouts in the United Kingdom. themes and trends that are helping to shape the development of the private equity asset class. the impact of EC and German merger control and anti-trust rules. the structure of leveraged buy-outs. structuring equity incentives for management. Written and researched by leading international law firm Ashurst. This 170-page report is an essential resource for all those involved in German private equity buy-outs. public to privates. LLP Partners Group. Mowbray Capital LLP O’Melveny & Myers . Watson Wyatt & Company. Odlander. This 212-page Research Guide includes contributions from leading institutional investors in private equity funds. Macfarlanes. . This Research Guide includes contributions from leading general partners. Indigo Capital Limited. Goldman Sachs. Probitas Partners. Helix Associates. Pomona Capital. Capital Dynamics. . Montagu Private Equity Limited. Proskauer Rose LLP SJ Berwin. SJ Berwin. multi-contributor studies provide readers with some of the most authoritative and substantive comment available on private equity. MVision Private Equity Advisers Limited. Contributors include AlpInvest Partners N. Partners Group. Coller Capital. Lexington Partners. Clifford Chance LLP. SJ Berwin. VCM Venture Capital Management GmbH. Fredrikson & Co AB. Mezzanine Management UK Limited. Campbell Lutyens.. • The Guide to Private Equity Fundraising A complete and in-depth examination of all the issues surrounding private equity fundraising. ATP Private Equity Partners. New York Private Placement Network. It combines in-depth editorial with a global directory of consultants providing specialised private equity advice to institutions. Debevoise & Plimpton. It combines expert editorial from leading market practitioners with the results of two surveys of limited partners on the topics of fund terms and conditions and investor relations. these research-rich. Deutsche Bank. Contributors include Camelot Group. Pantheon Ventures. fund managers and investment consultants and advisors. Pantheon Ventures. alongside a number of unique case studies of actual recent fundraisings. Key Capital Corporation. sellers and GPs. Landmark Partners. LGT Capital Partners. Pension Consulting Alliance Inc. Mark Weisdorf Associates Ltd. Probitas Partners. Limited. This 224-page Research Guide includes contributions from leading players in the liquidity field. Campbell Lutyens & Co. Cogent Partners. combining in-depth editorial with a global directory of secondary buyers and advisors. Cooley Godward LLP. private equity placement agents. Standard & Poor’s and Vision Capital. Schroder Ventures International Investment Trust (now SVG Capital plc). Dow Employees’ Pension Plan. Pacific Corporate Group LLC. • Routes to Liquidity A detailed study of how liquidity is being brought to the asset class.212 A Guide to Private Equity Fund Placement Specialists results of surveys into the attitudes and opinions of private equity professionals and investors. Greenpark Capital. • The Guide to Private Equity Fund Investment Due Diligence A detailed study into performing due diligence on private equity and venture capital funds and managers designed to assist institutional investors in making investment selections in this inefficient asset class. Contributors include Arsenal Capital Partners.V. If you have any queries about Private Equity International’s current and forthcoming research publications please contact us on +44 (0)20 7566 5444. along with the results of an in-depth survey into limited partner attitudes towards fund investment due diligence. London Business School... placement agents. along with the results of a unique survey into the attitudes towards the secondary market of buyers. Paul Capital Partners. legal advisors and limited partners. Monument Group.