Private Equity INSIDER 2

NOVEMBER 11, 2009 Saudi Endowment Makes Splash in LP Pool A just-formed university in Saudi Arabia has hired a team of former World Bank 2 Nyppex Slashes Value Estimate staffers to run its $10 billion endowment, with a large allocation for alternative 2 New York Life Drafts Mezz Offering investments. King Abdullah University of Science and Technology of Jeddah recruited 3 Morgan Creek Compiling Asia Book Gumersindo Oliveros when it opened in September, assigning him to oversee the 3 Feeder-Fund Sales At Pricing Impasse deployment of its endowment capital. Oliveros had been the head of investments for the World Bank’s pension fund, which encompasses more than $16 billion of assets. 3 New York Firm Pitches Iraq Play Joining him are Garrett McDonald, who focused on private equity funds and real estate vehicles at the World Bank, and real estate specialist David Collette. Together, 5 Cincinnati Backs Local Player they represented the World Bank pension’s alternative-investment team. 6 Rho Moves On With Secondary Push At King Abdullah University, the trio is expected to place an emphasis on alternative-investment vehicles in the U.S. — potentially setting a private equity allocation as 6 Arizona Taps Enlarged Allocation See SAUDI on Page 5 6 ComVest Looks to 2010 Campaign In-Demand Marlin Retreats on Fee Increase 7 FUND-RAISING ACTION Marlin Equity is backing away from a plan to nudge up certain fees for its latest buyout fund, on the eve of the vehicle’s only close. The investor-friendly move applies to the so-called deal fees that Marlin would charge to limited partners in its Marlin Equity 3. And it comes despite the fact that THE GRAPEVINE strong demand has positioned the vehicle to collect $575 million in its first and final round of fund raising — easily surpassing its $450 million equity target. Jeff Bramel, previously a principal at Oak When it first sent out marketing documents for the new fund a mere month- Hill Investment, arrived last week at and-a-half ago, with Probitas Partners serving as placement agent, Marlin pro- Sequoia Capital. His assignment: to serve posed that it split deal fees evenly with investors. That marked a change from the as a managing director on the Menlo firm’s previous vehicle, which absorbed 80% of those costs and passed on only 20% Park, Calif., venture capital firm’s new to limited partners. Sequoia Capital Heritage Fund, an Now, as Marlin hammers out final terms with Fund 3’s backers, it has agreed to endowment-style fund that would offer See MARLIN on Page 5 large institutions and family offices a single pool covering multiple strategies and asset classes. Bramel also holds the Redpoint Tapping Confident Investor Base title of founding member for the vehicle, Redpoint Ventures is reaching out to investors in preparation for its next fund- which saw Eric Upin and Michael raising drive. Beckwith leave amid some capital-raising Sources who have heard from the Menlo Park, Calif., firm expect it to collect snags earlier this year. $400 million to $500 million for its Redpoint Ventures 4. They say formal marketing efforts will likely start in the next month or two. The plans of former Chatham Capital part- Indications are that the campaign could wrap up quickly, with returning limited ner Jack Guy have come into focus. Guy, partners coming up with most or all of the capital Redpoint is seeking — negating who left his job as one of the Atlanta mez- the need for a more widespread capital-raising push. That, in turn, reflects the fact zanine-finance shop’s top executives in that the technology-focused firm is among just a few venture capital shops with rep- the past few weeks, is now setting up his utations solid enough to round up a fresh capital pool amid current conditions. own investment operation — and is seek- Most players in the field are still struggling with a persistent lack of investor ing to assemble a fund that might receive demand, as capital constraints and economic worries keep limited partners at bay. support from a U.S. Small Business Redpoint has generated its goodwill despite some so-so performance figures See GRAPEVINE on Back Page See REDPOINT on Page 6

To start your subscription, return to the e-mail we sent with this issue and click on the "subscribe now” link. Or call 201-659-1700. You can also complete the Order Form on the last page of this newsletter and fax it to 201-659-4141. November 11, 2009 Private Equity INSIDER 2

Nyppex Slashes Value Estimate ently came at some point after that. Nyppex is controlled by Laurence Allen, who separately is Secondary-market broker Nyppex has cut the estimated raising capital for three secondary-market funds via his ACP value of its business by 75%. Investment, formerly known as Allen Capital. The vehicles The move is tied to the latest in a series of efforts by the have a combined equity target of $525 million, according to Greenwich, Conn., firm to raise capital through sales of pri- Preqin. vate shares. The outfit is now pitching its stock at 50 cents Reaching that goal would be something of an achieve- per share, down from $2 when it conducted a similar offer- ment, as ACP’s most recent fund, ACP 10, sought $250 mil- ing in the first half of last year. lion in 2004 but as of this August had only $25 million of That would peg Nyppex’s overall value at $45 million or assets. ACP 9 had $740,000 of assets. O so, compared to about $180 million a year-and-a-half ago. The formulas used by Nyppex to arrive at those figures New York Life Drafts Mezz Offering are murky, but they clearly reflect sluggish business volume. The shop, founded in 1998, didn’t have a profitable year until New York Life Capital is about to hit the market with its lat- 2007 — when it earned $1 million on $7 million of revenue, est mezzanine-finance fund. up from a 2006 loss of $930,000 on revenue of $2.3 million. The New York Life Insurance unit is currently putting the The latest drop in its value suggests a subsequent reversal of finishing touches on the offering documents for its New York that gain. Life Mezzanine Partners 3, with an equity target of $1 billion. Nyppex attributed its 2007 revenue growth to the launch With the fund-raising market in turmoil, however, indications of an online trading platform that it says creates “semi-auto- are that it may be happy to come away with $800 million. mated” access to secondary-market offerings of illiquid The fund would supply junior debt financing to private investments, including shares in private equity vehicles and businesses, in many cases focusing on portfolio companies of hedge funds. But outsiders view the product as little more third-party funds in which New York Life is a limited partner. than a marketing tool for the shop, and say that it results in The operation already supports many of those businesses little deal flow. They say most of Nyppex’s 2007 income came through direct co-investments. from a single brokerage assignment, and that the bulk of its Indications are that the mezzanine-finance fund would work is still handled outside the scope of the trading plat- charge borrowers an interest rate perhaps one percentage form. point higher than they would pay through other channels, but That would appear to support a belief among many sec- that the companies and their owners would be willing to ondary-market professionals that there isn’t much interest in accept those terms because New York Life has a stake in their online exchanges, as their trades tend to be driven by rela- success — and thus might act in their interest. “If you are a pri- tionships among individuals and require extensive due-dili- vate equity firm and you are looking for mezzanine financing, gence reviews. Nyppex’s exchange also faces competition you want to do it with your LPs,” one source said. from similar platforms run by SecondMarket and On the downside, the strategy has the potential to create SharesPost. conflicting interests between New York Life and backers of its On the brokerage side, meanwhile, Nyppex lays claim to new mezzanine-finance fund. But any such concerns might be being the first player in its field. But other firms, including eased by the fact that New York Life also puts some of its own Cogent Partners and Probitas Partners, now command far money into its mezzanine vehicles. larger market shares. Nyppex also lost five members of its The second fund in the series held its final close in 2007 institutional brokerage team about 13 months ago, including with $800 million. It followed a $475 million vehicle from Jeff Medina, James O’Hora, Joy Rendahl and Trip Stocker. 2002. As of March 31, those vehicles had generated an annual Nyppex’s 2008 private-stock offering was aimed at raising gross return of 17.7%. $5 million. Up to 49% of the proceeds were used to let exist- In addition to its mezzanine-finance funds, New York Life ing shareholders cash out. At the same time, the firm offered has raised outside capital through four co-investment vehicles. separate stakes of 5% and 10% to NYSE Euronext, seeking $9 It is also in the market with its first fund of funds — a buyout million and $18 million for the interests. Nyppex also pro- focused vehicle that has closed on about $100 million so far. posed placing a few of its traders on the Euronext floor as The operation was set up as the private equity arm of New York part of the arrangement. But NYSE Euronext chief executive Life, which has been investing its own capital in the sector for Duncan Niederauer rejected the proposal. 18 years. How much stock Nyppex sold overall is unclear, nor is New York Life Capital is led by chief executive Thomas there any word on the ultimate fate of a $4 million offering Haubenstricker, who moved into his post in the past few it was conducting earlier this year. In April, it had collected months. He also retained his duties as head of mezzanine- $992,000 of that amount. It also cut the minimum allowed finance investments. Former chief executive John Schumacher, stock purchase to $12,500 from $50,000. meanwhile, became chairman, while president Adam Clemens The reduction in the company’s estimated value appar- left. O

Morgan Creek Compiling Asia Book fund operators. Feeder funds, typically run by investment banks, combine capital from individuals and small institu- Morgan Creek Capital has completed the first phase of mar- tions to create pools capable of making large single commit- keting for a fund of funds that would invest in Asia. ments to marquee private equity funds — vehicles whose The Chapel Hill, N.C., firm held the vehicle’s initial close a minimum investment requirements would be too high for few weeks ago with $100 million or so, apparently including a any of those parties alone. In exchange, the backers pay the contribution from a large anchor investor. It’s seeking $250 feeder-fund sponsors a typical management charge equal to million overall. 1% of their commitments, along with a 1% administration The fund, Morgan Creek’s first to focus on Asia, comes fee and another 1-2% in sales commissions. And that’s on top amid an increase in capital-raising efforts by private equity of the management fees and carry associated with the under- firms across the region. Investor demand has also recovered a lying funds. bit after dropping off amid the global financial crisis, but So why all the buzz now? When cash-short investors can’t remains far weaker than it was a few years ago. fulfill capital calls from sponsors of feeder funds, who them- Nirav Kachalia, a managing director based in Hong Kong, is selves have received capital calls from underlying vehicles, the overseeing the vehicle. He joined Morgan Creek in 2004 from sponsors are forced to front the money. With those defaults Wyper Capital. Also working on the new fund is ex-Stanford piling up lately, feeder-fund operators have found themselves Management staffer Jason Zhang, who came on board last year. advancing more money than they are comfortable with — Mark Yusko, who previously led the investment team at leading to a cluster of secondary-market offerings in recent University of North Carolina’s endowment, started Morgan weeks. “As these defaults start to accumulate, it’s more impor- Creek in 2004 with Mike Hennessy and Dennis Miner — draw- tant for the sponsors to get rid of them,” one secondary-fund ing on backing from hedge fund legend Julian Robertson. The manager said. shop initially focused on hedge fund investing, and later Rough secondary-market conditions in general make it branched into other areas. In addition to its Asia vehicle, it is unlikely that buyers and sellers will see eye-to-eye. Some tra- currently seeking to raise $100 million for a U.S.-focused fund ditional deals have been done lately. But even for those trades, of funds called Morgan Creek Partners 4. O the “bid-ask spread” only recently narrowed to workable lev- els. Feeder-Fund Sales At Pricing Impasse Still, that activity is giving feeder-fund sponsors some hope. Those that are trying to find buyers are doing so mostly via Secondary-market players are trying to solve a new puzzle: online exchanges, focusing on small stakes that cover any- pinpointing appropriate prices for a slew of stakes in so-called where from a single underlying manager to a portfolio of com- feeder funds that have suddenly gone up for sale. mitments. O Right now, there’s no common ground, with sellers expecting discounts of up to 30% and buyers offering far less. “There New York Firm Pitches Iraq Play has been a lot of bidding, and sellers are just about getting more realistic about price, but there’s no market just yet,” said A New York firm is preparing to raise money for its debut Jeff Bollerman, a director at illiquid-asset exchange private equity fund, which would invest growth and expansion SecondMarket. capital in Iraq companies. The offerings are coming from feeder-fund sponsors, Northern Gulf Partners has set a $200 million target for the including Citigroup and Bain Capital affiliate Sankaty Advisors. vehicle, which is believed to be the first sizeable private equity The goal is essentially to replace certain limited partners such fund geared toward deals in Iraq. It has been getting the word as endowments, family offices and wealthy individuals that out to prospective backers in the U.S. and elsewhere, and is have run short on cash. Potential buyers include other wealthy expected to commence formal marketing efforts early next individuals, as well as small or mid-size secondary-market year. Guggenheim Partners is likely to serve as placement funds interested in buying several stakes at time. agent. One obstacle, however, is that secondary-market buyers Northern Gulf, headed by managing partner Christopher aren’t eager to absorb the fees that investors pay to feeder- Ruth, plans to look at prospective investments in a variety of sectors, but will probably focus on financial services, healthcare, natural resources and consumer products. It would deploy around $10 million to $30 million per deal. Unless your company holds a multi-user license, it is a violation of U.S. copyright law to photocopy or reproduce The firm, founded in 2003, hopes to take advantage of the any part of this publication, or forward it electronically, fact that Iraq’s infrastructure is in need of extensive rebuilding without first obtaining permission from Private Equity after years of war. With a new government in place, it sees a Insider. For details about licenses, contact JoAnn Tassie at unique opportunity to work with local startups that are look- 201-659-1700 or [email protected]. ing for foreign capital. The outfit touts itself as having a number of strong relationships in place in Iraq. O

Every week, Private Equity Insider FEBRU ARY 14, 2 Credit Suisse Leads 2007 2 Boldt Offer Travelers Bear Negotiating Placement-Agent Pur ing CIO Outsour Auction 3 Carlyle’ Bear Negotiatings Me Placement-AgentBear Stearns’Purchase reports on developments you’re not FEBRUARY 14, 2007 xico Push Comescing up Short 3 Amer Those in the kno Bear Stearns’ asset-ma icanasset-management Industr arm is in talks to buy a placementsition agent. nag 2 Credit Suisse Leads Travelers Auction targ w emen Those3 inPr theism know Ramps are Uppointing Digital-Mediaial Gains to MomentumCrane Capitalas theen bank’stir mostet, likely al acqui- are p t ar e Londo thoug ointin m is in t 2 Boldt Offering CIO Outsourcing sition target, although it’s unclear wh ether the transactionvan den would Thillart, involven-base theh it’ g to Cr alks t 4 San Fr d s uncle ane Capital o b chase entire London-basedancisco operation Pension or Picks just Managersa stake in its business.vat eCrane, eFEBRU led by opLeoera ar wh uy a p 3 Carlyle’s Mexico Push Comes up Short Te quity empl tion o ether the traas the ba lacemen van den4 Gr Thillart, employs roughly a dozen professionalsam whostaff .raise money vehicles, for pri- roys ro r jus nk t ag een 2 AR ughl t a st n ’s mos ent. supposed to know about. vate equity vehicles,Wavers real on estateSteadfast funds Equity and Caphedge funds, alongThose withCr indisome otherY 14,eal es y a dozen p ake in i sactio t lik 3 American Industrial Gains Momentum 4 edit Suisse Leads tate f ts b n wo ely acq staff. 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Start my 3-issue FREE a trial ar ’s Pine T subscriptions ff to n ena in which T i d chief ex ay 2006nagin t e on r w in pl riv ee Equity g dir an es ves it t ec o set u ec tmen pu ut r to t ive iv ar p r Robertt K p Earl P est is o e no their o ro w sepa fes- squabbles. o n w oehn e o PRIVATE EQUITY INSIDER. we n f Therell, aref no strings the o rat irm who co-f ely p s. ldes ur- o t p See TRIVESTunde on P lay d - Tr ives attached -- I won’t receive an invoice unlessage 6 t I choose L Confidential to subscribe.

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Cincinnati Backs Local Player also keeping performance fees and so-called clawback provi- sions in check. Cincinnati Retirement is committing capital to a fund-of- In September, for example, the Institutional Limited Partners funds manager in its home city. Association released a document titled “Private Equity The $1.7 billion pension system’s board approved the pledge Principles” in which the trade group laid out practices it would Oct. 11, earmarking $10 million for Fort Washington Capital’s like fund operators to implement. They include an opinion Fort Washington Private Equity Investors 7. that “All transaction and monitoring fees charged by the gen- Cincinnati Retirement has invested with Fort Washington eral partner should accrue to the benefit of the fund, including before, committing capital to the fifth and sixth funds in the offsetting management fees and partnership expenses during series. the life of the fund.” Fort Washington, a unit of asset manager Fort Washington With that in mind, Marlin may have decided its higher deal Investment, is seeking $250 million for the new fund. It held a fees wouldn’t be worth a dispute. Indeed, as it has become first close in May with about $170 million. It raised $135 mil- harder to raise capital, private equity firms have grown lion for the vehicle’s predecessor in 2006. increasingly conscious of maintaining a sense of goodwill The firm invests up to $10 million at a time in small private among investors while waiting for market conditions to equity funds. This time around, many of its deployments are improve. Marlin may also have eased its fees in exchange for expected to have a turnaround or secondary-market focus. permission to accept more capital than investors would have Cincinnati Retirement has a 5% target allocation for private preferred. equity funds but currently has less than 1% of its capital in the Marlin is held in high regard by its limited partners. asset class. In 2006, the organization shifted the focus of that Founder David McGovern, who broke off from Gores Group to portfolio from venture capital vehicles to funds of funds, and assemble the shop’s debut fund in 2005, has delivered what committed money to Fort Washington and Piper Jaffray as industry players characterize as stunning profits by investing part of the process. The pension system takes advice on those in smaller troubled businesses. O investments from general consultant Marquette Associates. O Saudi ... From Page 1 Marlin ... From Page 1 high as 10%. They maintained a 25% allocation for alternative revert to the old arrangement. investments in their former roles, where they earned a reputation Deal fees typically are one-time charges that buyout shops for delivering strong returns. assess during portfolio-company acquisitions to help pay for The three hires will remain in Washington, where the deal costs, including due-diligence reviews, planning and World Bank is based. They are now in the process of recruiting debt-related expenses. They can total in the millions of dollars. more senior and junior professionals, possibly including some In recent years, some in-demand firms have heaped 100% of former colleagues. the fees on their limited partners. Meanwhile, there is some quiet speculation that the King Marlin’s decision to go back to its old fee structure might Abdullah University endowment will grow quickly. The word seem a little odd, given its fund-raising success. The buzz is is that King Abdullah Bin Abdulaziz Al Saud, who granted the that the shop, which is still figuring out investor allotments, initial capital, could double that backing in the near term out has enough preliminary commitments to collect $1.5 billion of a desire to place the operation on par with the endowments — more than three times its equity target. of Harvard University and Yale University in terms of size and With demand like that, it seems unlikely that either current aggressiveness in its alternative-investment dealings. or prospective limited partners would view an uptick in fees as Harvard, which is known for a reliance on alternative- a deal breaker. But they did put some pressure on Marlin, investment returns, has a touch over $25 billion in its endow- which apparently heeded their calls. ment. Yale was at $22.9 billion as of midyear 2008. Given all of the capital-raising upheaval that the private As for private equity firms and placement agents, they’re equity industry in general has seen over the past couple of salivating over the sudden appearance of a large endowment years, investors have gained more power to tip fund terms in with a hearty appetite for their offerings — given widespread their favor. Many have specifically railed against rising deal cash shortages among other backers. Indeed, King Abdullah fees, arguing that managers should shoulder those costs while University represents just about the only large cache of uncom- mitted equity ready to be deployed to private equity funds right now, and it’s sure to be courted heavily by fund managers. Planning Your Travel Schedule? “It’s fresh dry powder, and a good program,” one marketing Check out the comprehensive listing of upcoming private equity professional said. conferences in The Marketplace section of PEinsider.com. The The university has been the subject of some controversy at calendar is divided into three sections: the industry’s main events, conferences to be held in the U.S. and those to be held outside home, meanwhile, as it is the first in Saudi Arabia to admit the U.S. both men and women. It focuses on graduate-level studies within various science and engineering fields. O

Rho Moves On With Secondary Push tions strategy. It works in numerous sectors, including the healthcare, industrial, manufacturing, technology, communi- Rho Fund Investors has begun shopping a secondary-mar- cations, transportation and consumer-product businesses. ket fund that has been in development for months. The firm launched the first fund in the ComVest The firm started getting the word out about the vehicle in Investment series in 2000 with $35 million and collected $169 May, saying it would focus on buying limited-partnership million for a follow-up in 2003. It wasn’t until Comvest interests in venture capital funds. But it didn’t begin holding Investment Partners 3, however, that the shop began taking formal meetings with prospective backers until now. money from a broad group of institutional investors. That The fund has a $200 million equity target. Its initial mar- vehicle held its final close in 2007 with $335 million. keting efforts have concentrated on family offices, but shortly ComVest also operates a fund geared toward debt and are expected to spread to pensions and endowments. minority investments, called ComVest Capital. The firm, The vehicle marks the first stand-alone secondary-market founded in 1988, is headed by managing partners Michael Falk offering from the fund-of-funds unit of New York-based Rho and Robert Priddy. In September, it brought in Checkfree Corp. Capital. However, the shop has invested in secondary deals on founder Peter Kight as a managing partner with a lead role in an opportunistic basis before and affiliate Rho Ventures has portfolio-company oversight. O occasionally dabbled in the sector since the late 1980s. Rho’s move to set up a secondary-market fund also fits with Redpoint ... From Page 1 a broader trend that has seen a number of fund-of-funds shops increase their activities in the sector, where deal flow is expect- for its two earliest funds. The first of those vehicles raised $550 ed to increase. O million around 1999 and was losing 7% as of yearend 2008, according to Preqin. It was followed in 2000 or thereabouts by Arizona Taps Enlarged Allocation a $1.25 billion entity that was posting a 2.6% rate of return as of March 31, according to Calpers. Arizona State Retirement has committed $30 million to Redpoint Ventures 3 then wrapped up marketing efforts in Maranon Capital’s first mezzanine-finance fund. 2006 with $400 million. The pledge was approved by Arizona State Retirement’s So why do some sources expect Redpoint to match that fig- board last month, just as the $23 billion pension system was ure this time around? Investors view the firm’s 19-member finalizing a new asset-allocation policy that tweaked several of team as top-notch, and they believe some of its current invest- its investment targets. ments are poised to produce big gains. Among the new guidelines was an increase in the organiza- Among the shop’s best-known holdings is a stake in solar- tion’s target allocation for private equity funds, to 7% from 5%. panel developer Solyndra. Among other achievements, that It also created an opportunistic-investment category that could Fremont, Calif., company received a $535 million loan guaran- cover multiple asset types. General consultant NEPC assisted in tee from the U.S. Department of Energy in March, making it the the process. first beneficiary of a federal program designed to jumpstart Chicago-based Maranon is poised to wrap up marketing for renewable-energy projects. It is now building a second manu- its fund by yearend, near or above its $250 million equity goal. facturing facility. The word is that it had already lined up at least $200 million a However, Solyndra has been quickly burning through few months ago. Mallory Capital is serving as placement agent. investor capital. Its most recent round of financing clocked in Maranon, founded by a group of former American Capital at $286 million, making it the largest venture capital deal of the executives, also raised $350 million for a senior debt fund third quarter. Overall, the operation has raised about $1 bil- almost two years ago. O lion, but is carried on its backers’ books at a value about twice as high. ComVest Looks to 2010 Campaign In addition to its main series of funds, which invest in early- stage companies, Redpoint raised $250 million in 2007 for a ComVest Group has zeroed in on a new marketing timeline vehicle called Redpoint Omega that backs later-stage businesses. for its fourth fund, after waiting out some rocky capital-raising Redpoint was formed in 1999 by a half-dozen technology- conditions in recent months. company investors, namely Jeff Brody, Brad Jones and John The West Palm Beach, Fla., firm, which had been planning Walecka from the former Brentwood Venture Capital, and to hit the market with its ComVest Investment Partners 4 this Institutional Venture Partners alumni Tom Dyal, Tim Haley and year, now plans to commence formal capital-raising efforts in Geoff Yang. The individuals broke off from their former early 2010. It will aim to hold an initial close in the first quar- employers, in part, because of strains resulting from dual ter. The vehicle will have a $500 million equity target. focuses that those shops were maintaining on technology and ComVest typically invests $5 million to $50 million at a life-science deals. Some of their colleagues from the life-sci- time in distressed companies with enterprise values of less ence side went on to found Versant Ventures around the same than $250 million, often with a turnaround or special-situa- time. O

FUND-RAISING ACTION

Target Placement Amount Manager Fund, Key Executive Type: Focus Agent (Mil.) Action Greylock Partners, Greylock 13, Venture capital $500 Held final close San Mateo, Calif. Dan Gregory with $575 million. Portfolio Advisors, Portfolio Advisors Secondary Fund, Secondary market Fortress $1,000 Held final close Darien, Conn. Hugh Perloff Group with $1.1 billion. Tennenbaum Capital Partners, Tennenbaum DIP Opportunity Fund, Debtor-in-possession Greenhill & Held final close Santa Monica, Calif. David Hollander financing Co. with $330 million. WestView Capital Partners, WestView Capital Partners 2, Buyout and growth Probitas $300 Held final close Boston Carlo von Schroeter and Richard Williams equity Partners with $325 million. To view all past Fund-Raising Action entries, visit The Marketplace section of PEinsider.com

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ALTERNATIVE INVESTING SUMMIT

December 6-8, 2009 - Ritz Carlton - Dana Point, CA

This 12th Annual conference will attract investors from public and corporate pension funds, family offices and foundations seeking to maximize their returns using alternative investments, while maintaining proper asset allocation in their plan portfolios. The Summit will also appeal to money managers looking to expand their alternative investing positions in today's challenging markets.

Sponsorship and Exhibiting Opportunities are Available For more information on sponsoring or exhibiting at this event, call 212-532- 9898, ext. 275 or email [email protected] To register, visit us online at www.opalgroup.net or email us at [email protected] ref code: AISA0912

six years. Another partner, Luke fund for a while but left in May, leading THE GRAPEVINE Belcastro, left in July to take a position at to a series of changes that eventually saw New York placement agent Jefferies placement-agent responsibilities for most ... From Page 1 Helix, and principal Peggy Marshall fol- of Europe go to C.P. Eaton alumni Bruce Administration program that offers debt lowed soon after, also joining the Chapman and Ann Gales. Warburg financing to small private equity vehi- Jefferies & Co. unit. Alternative Investments is covering cles. The still-unnamed firm could work German-speaking areas. alongside Chatham in certain capacities. South Lake, Texas, turnaround shop Chatham is in the midst of efforts to Prophet Equity has hired John Tatum as a Capital-raising shop Triago has added raise $150 million for its fourth fund. vice president responsible for identifying two staffers to its Dubai office, and is and arranging investments. Tatum previ- looking for another. One of the recruits, Jamie Hale, who stepped down as Oak ously worked in the Boston office of Basel Alkasem, is now a senior advisor at Hill Investment’s secondary-market chief H.I.G. Capital, where he handled both the Paris-based firm. The other, Amine in August, has hired a former colleague investments and portfolio-company Habiballah, is an associate. Both pitch for his newly launched Aldenwood operations. Earlier, he worked at new funds for clients and advise on sec- Capital. The recruit, Sam Mylrea, had Charterhouse Group. Prophet is in the ondary-market sales. They are the third been slated to take over for Hale at Oak midst of assembling its debut fund, and and fourth staffers to join Triago’s Dubai Hill. His departure clears the way for vice has so far closed on $225 million of the outpost, which opened in 2007. president William Chu to step into the vehicle’s targeted $270 million. Stamford, Conn., firm’s leading second- OMERS Private Equity, a $4 billion unit of ary-market role. Hale, meanwhile, is Landmark Partners is looking for one or Ontario Municipal Employees, opened a maintaining a secondary-market invest- two private equity professionals to han- New York office last month. The outpost ment focus through Aldenwood, which dle fund-raising or investment duties in is headed by senior managing director he is heading with former Lexington Europe, where it currently maintains Michael Graham, whose staff will consist Partners executive Philip Durden. only a real estate-focused staff. The of a director and an associate. OMERS search comes as the Simsbury, Conn., Private Equity has about two-thirds of its Placement agent Mallory Capital is losing secondary-market firm attempts to final- capital in private equity funds right now, another staff member. The latest to go is ize a $2 billion marketing push for its but announced a few weeks ago that it partner Donal Orr, who is in the process Landmark Equity Partners 14. London would stop adding such deployments in of exiting the Darien, Conn., firm after staffer Lance Whitehead worked on the favor of direct investments.

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