“The Performance and Characteristics of Private Equity”
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Review Risk Management Institue
NOV 2016 · VOL 3 PRIVATE EQUITY GOSS INSTITUTE OF RESEARCH MANAGEMENT LIMITED NATIONAL UNIVERSITY OF SINGAPORE REVIEW RISK MANAGEMENT INSTITUE HAITAO JIN Qianhai Fund of Fund, LLP Exploring the Business Model of China’s Private Equity/Venture Capital (PE/VC) Fund of Funds (FOF) Investments KATAHIRA MASAKI Eastasia Investment (International) Limited New Findings on Japan’s Capital Market: A Study on Japan Post Group’s Successful Transformation through Capital Market WEI CUI, MIN DAI, AND STEVEN KOU Risk Management Institute’s New Research Initiative A Pricing and Risk Management System for Chinese Bonds PRIVATE EQUITY REVIEW PRIVATE EQUITY REVIEW CONTENTS EDITORIAL BOARD Darrell Duffie, Stanford University MESSAGE FROM THE EDITORS Quanjian Gao (Editor-in-Chief), GOSS Institute of Research COVER ARTICLE Management Ltd. 01 Exploring the Business Model of Jeff Hong (Co-Editor), China’s Private Equity/Venture Capital (PE/VC) City University of Hong Kong Fund of Funds (FOF) Investments Li Jin, Haitao Jin Oxford University Steven Kou (Co-Editor), ACADEMIC INSIGHTS National University of Singapore 10 New Findings on Japan’s Capital Market: Neng Wang, A Study on Japan Post Group’s Successful Columbia University Transformation Through Capital Market Houmin Yan, Katahira Masaki City University of Hong Kong Lin Zhou, CASE STUDY Shanghai Jiao Tong University 22 Will Private Equity (PE) Firms Continue to Invest in China’s Auto Consumption and Sales Industry? Yankun Hou ADVISORY BOARD 32 Quantitative Methods for Venture Capital Investment Weijian Shan, -
Division of Investment Management No-Action Letter: Lazard Freres
FEB 2 1996 Our Ref. No. 95-399 RESPONSE OF THE OFFICE OF CHIEF Lazard Freres Asset COUNSEL DIVISION OF INVESTMENT Management MAAGEMENT File No.80l-6568 Your letter dated July 20, 1995 requests our assurance that we would not recommend enforcement action to the Commission under the Investment Advisers Act of 1940 ("Advisers Act ") if Lazard Freres Asset Management ("LFAM"), a registered investment adviser, charges a performance fee to BPI Capital Management Corporation (BPI Capital) with respect to the performance of the BPI Global Opportunities Fund (the "Fund"). BPI Capital is an investment counsel and portfolio manager registered under the laws of the Province of Ontario and manages 16 publicly offered mutual funds. The Fund is an open- end fund organized under the laws of the Province of Ontario. The Fund has entered into a management agreement with BPI Capital under which BPI Capital is responsible for management of the Fund's ::civestment portfolio and day- to- day management of the Fund. unics of the Fund are offered to investors in the Provinces of Ontario, Manitoba, Saskatchewan, Alberta and British Columbia pursuant to prospectus exemptions under the laws and regulations of each of these Provinces. Under such prospectus exemptions, miLimum investment amounts are CAD $150,000 for investors in Oncario and Saskatchewan and CAD $97,000 for investors in Mani toba, Alberta and British Columbia. A lower minimum amount of CAD $25,000 is available to investors in British Columbia designated as "sophisticated purchasers." No units of the Fund have been offered to any investors residing in the United States and there is no intention to offer any units of the Fund to U. -
Icapital Invites Accredited Investors to Gain Broad Exposure to Private Equity Managed by Kohlberg Kravis Roberts & Co. (“
iCAPITAL KKR PRIVATE MARKETS FUND PERFORMANCE UPDATE I NOVEMBER 2020 iCapital invites accredited investors to gain broad exposure to private equity managed by Kohlberg Kravis Roberts & Co. (“KKR”) via the iCapital KKR Private Markets Fund, a continuously offered registered closed-end fund.1 Investment Objective and Unique Fund Features There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. Diversification does not assure a profit or protect against loss in a positive or declining market. • The Fund seeks long-term capital appreciation • Diversification across investment types, strategies, • Broad exposure to KKR private equity geographies and vintages • Sub-adviser, StepStone Group, provides • Lower minimum investment than traditional recommendations and sourcing advantages private equity on opportunities and portfolio construction • 1099 tax reporting and no capital calls Monthly Returns (%) iCapital KKR Private Markets Fund (08/01/15–11/30/2020) MSCI S&P 500 ACWI CLASS A Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD TR YTD YTD 2020 -0.50% -2.31% -6.81% 2.14% 0.54% 2.18% 1.08% 1.15% 7.02% -0.35% 4.11% 3.64% 2.77% -1.09% 2019 2.34% 0.81% 1.54% 0.14% -1.37% 2.60% 0.29% -0.29% 0.00% 0.29% 0.58% 1.91% 9.13% 31.49% 26.60% 2018 -0.36% -0.73% 0.44% 0.44% 0.51% 2.81% 0.07% 0.21% 2.28% -2.65% -0.07% -1.06% 1.80% -4.38% -9.42% 2017 0.00% 0.75% 0.45% 0.82% 0.52% 2.68% -0.14% -0.22% 1.38% 0.00% -0.65% 2.76% 8.62% 21.83% 23.97% 2016 -2.08% -0.82% 4.54% -1.03% 0.56% 2.85% 0.23% 0.69% 2.83% 0.15% -
Private Markets Fees Primer WHITEPAPER OCTOBER 2019
Private Markets Fees Primer WHITEPAPER OCTOBER 2019 This primer describes the most common fee and profit sharing arrangements CONTRIBUTORS associated with private market investments. It attempts to answer common Blaze Cass Andrew Gilboard questions when considering an investment across the range of private market John Haggerty, CFA asset classes, including private equity, private debt, infrastructure, real estate, and natural resources. Most private market vehicles have the following fee and profit sharing components: I. Management fees II. Carried interest: → Preferred return → Catch-up provision → Carried interest rate The above terms will be explored throughout this primer, including definitions, common structures, and their expected impact on net returns to the Limited Partner (“Investor”). Finally, this primer will examine industry trends by investment strategy, as well as how the structuring of fees and profit sharing arrangements impacts the alignment between Investors and the General Partner (“Manager”). While there are a variety of fee and profit sharing structures found across the private markets universe, for the purposes of this primer we focus on one of the most common, the so-called “2/8/20” model that prevails for closed-end vehicles (“Funds”) executing a private equity buyout strategy. Note that, in the Appendix, common variations from this structure—seen with other strategies—are outlined. What is a management fee? A management fee is a fee paid in regular intervals (typically quarterly, semi-annually, or annually) to the Manager in order to compensate them for managing the Fund. The management fee is generally used by the Manager to cover the overhead costs associated with executing the Fund’s strategy, such as, but not limited to, salaries and benefits, office rent, and day-to-day administrative costs incurred by the Manager. -
BGF Circular Economy Class E2 USD Factsheet
BLACKROCK GLOBAL FUNDS BGF Circular Economy Class E2 USD AUGUST 2021 FACTSHEET Unless otherwise stated, Performance, Portfolio Breakdowns and Net Assets information as Capital at risk. All financial investments involve at: 31-Aug-2021. All other data as at 08-Sep-2021. an element of risk. Therefore, the value of your This document is marketing material. For Investors in Switzerland. Investors should read the Key investment and the income from it will vary and Investor Information Document and Prospectus prior to investing. your initial investment amount cannot be guaranteed. FUND OVERVIEW The Fund aims to provide a return on your investment through a combination of capital growth SYNTHETIC RISK & REWARD and income on the Fund’s assets. The Fund invests globally at least 80% of its total assets in INDICATOR (SRRI) the equity securities (i.e. shares) of companies globally that benefit from, or contribute to, the Lower Risk Higher Risk advancement of the “Circular Economy”. The Circular Economy concept recognises the Potentially Lower Rewards Potentially Higher Rewards importance of a sustainable economic system and aims to minimise waste by considering the full life-cycle of materials, and redesigning products and operations to encourage greater re-use 1 2 3 4 5 6 7 and recycling. In normal market conditions the Fund will invest in a portfolio of equity securities of companies with large, medium and small market capitalisation (market capitalisation is the share price of the company multiplied by the number of shares issued) that are involved in KEY FACTS activities including the following: raw materials (e.g. metals and battery materials), across all Asset Class Equity industry sectors, that contribute to the advancement of a Circular Economy across four Morningstar Category - Fund Launch Date 02-Oct-2019 categories as described in the prospectus: (1) Adopters (2) Enablers (3) Beneficiaries (4) Share Class Launch Date 02-Oct-2019 Business model winners. -
PWC and Elwood
2020 Crypto Hedge Fund Report Contents Introduction to Crypto Hedge Fund Report 3 Key Takeaways 4 Survey Data 5 Investment Data 6 Strategy Insights 6 Market Analysis 7 Assets Under Management (AuM) 8 Fund performance 9 Fees 10 Cryptocurrencies 11 Derivatives and Leverage 12 Non-Investment Data 13 Team Expertise 13 Custody and Counterparty Risk 15 Governance 16 Valuation and Fund Administration 16 Liquidity and Lock-ups 17 Legal and Regulatory 18 Tax 19 Survey Respondents 20 About PwC & Elwood 21 Introduction to Crypto Hedge Fund report In this report we provide an overview of the global crypto hedge fund landscape and offer insights into both quantitative elements (such as liquidity terms, trading of cryptocurrencies and performance) and qualitative aspects, such as best practice with respect to custody and governance. By sharing these insights with the broader crypto industry, our goal is to encourage the adoption of sound practices by market participants as the ecosystem matures. The data contained in this report comes from research that was conducted in Q1 2020 across the largest global crypto hedge funds by assets under management (AuM). This report specifically focuses on crypto hedge funds and excludes data from crypto index/tracking/passive funds and crypto venture capital funds. 3 | 2020 Crypto Hedge Fund Report Key Takeaways: Size of the Market and AuM: Performance and Fees: • We estimate that the total AuM of crypto hedge funds • The median crypto hedge fund returned +30% in 2019 (vs - globally increased to over US$2 billion in 2019 from US$1 46% in 2018). billion the previous year. -
18032 Investcorp MD&A P7-76 Tp
INVESTCORP MANAGEMENT DISCUSSION AND ANALYSIS EXECUTIVE SUMMARY During its fiscal year ended June 30, 2009 (FY09), Investcorp has witnessed what has been, arguably,the worst period of sustained stress to world economies and financial markets in living memory.The environment has had a severe impact on Investcorp across both its client and its investment businesses, and it has been the most challenging year for Investcorp since its formation in 1982. The management team has focused on dealing with these challenges head on. It has maintained an active and open dialog with clients throughout the year and has protected the balance sheet by raising capital, reducing investment risk and mitigating re-financing risk by holding high levels of cash liquidity while de-leveraging the balance sheet at the same time. The successful completion of a preference share issue in excess of $500 million, more than double the stated minimum target, in such a difficult environment is clear evidence of confidence in Investcorp’s business model and management team. Although the length and depth of the global recession is still uncertain, management believes that the firm action taken during the fiscal year will enable Investcorp to move forward and focus on the attractive business opportunities that now present themselves. BUSINESS ENVIRONMENT The sub-prime housing crisis that started in the United States in 2007 developed in late calendar year 2008 into a major systemic financial crisis, sending economic activity in the developed world into a synchronized downward spiral.This has led the IMF to make continual downward revisions to its estimate for global growth in calendar years 2009 and 2010. -
Ares Commercial Real Estate Corporation April 2018
Ares Commercial Real Estate Corporation April 2018 Confidential – Not for Publication or Distribution Disclaimer Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, which may relate to future events or the future performance or financial condition of Ares Commercial Real Estate Management LLC (“ACREM”), a subsidiary of Ares Management, L.P. (“Ares LP”), Ares LP, certain of their subsidiaries and certain funds and accounts managed by ACREM, Ares LP and/or their subsidiaries, including, without limitation, Ares Commercial Real Estate Corporation (“ACRE”). These statements are not guarantees of future results or financial condition and involve a number of risks and uncertainties. Actual results could differ materially from those in the forward-looking statements as a result of a number of factors, including the returns on current and future investments, rates of repayments and prepayments on ACRE’s mortgage loans, availability of investment opportunities, ACRE’s ability to originate additional investments and completion of pending investments, the availability of capital, the availability of cost financing, market trends and conditions in ACRE’s industry and the general economy, the level of lending and borrowing spreads, commercial real estate loan volumes, government-sponsored enterprise activity and other risks described from time to time in ACRE’s and ARES LP’s filings within the Securities and Exchange Commission (“SEC”). Any forward- looking statement, including any contained herein, speaks only as of the time of this release and none of ACRE, ARES LP nor ACREM undertakes any duty to update any forward-looking statements made herein. -
KENTUCKY RETIREMENT SYSTEMS SPECIAL CALLED INVESTMENT COMMITTEE MEETING AGENDA Wednesday, April 15, 2020 10:00 A.M
Special Called Investment Committee Meeting - Agenda KENTUCKY RETIREMENT SYSTEMS SPECIAL CALLED INVESTMENT COMMITTEE MEETING AGENDA Wednesday, April 15, 2020 10:00 a.m. 10:00AM Call to Order 10:01AM Approval of Minutes*- February 4, 2020 10:02AM Public Comment 10:05AM New Fund Recommendation* Blue Torch – Anthony Chiu / Rich Robben 10:45AM Performance Review 10:55AM Recent Transactions and Current Allocations 11:05AM TIPS Portfolio Runoff* 11:30AM Adjourn * All times are approximations, one or more items on this agenda may be discussed in closed session. 1 Special Called Investment Committee Meeting - Approval of Minutes* - February 4, 2020 MINUTES OF MEETING KENTUCKY RETIREMENT SYSTEMS QUARTERLY INVESTMENT COMMITTEE FEBRUARY 4, 2020, 9:00 A.M., E.T. 1270 LOUISVILLE ROAD, FRANKFORT, KENTUCKY At the February 4, 2020 Quarterly Investment Committee Meeting, the following Committee members were present: David Harris (Chair), Joseph Grossman, Sherry Kramer, Kelly Downard, Keith Peercy and John Cheshire. Trustees Betty Pendergrass and Jerry Powell were also present. Staff members present were David Eager, Victoria Hale, Kathy Rupinen, Rebecca Adkins, Shaun Case, Phillip Cook, Ann Case, Kristen Coffey, Jared Crawford, Rich Robben, Andy Kiehl, Anthony Chiu, Joseph Gilbert, Alane Foley and Carol Johnson. Also in attendance were Chris Tessman, Craig Morton, and David Lindburg from Wilshire, Larry Totten, Steve Willer and Michele Hill. Mr. Harris called the meeting to order and Ms. Carol Johnson called roll. Mr. Harris introduced agenda item Swearing in of New Trustee. Mr. John Cheshire was introduced to the Committee and provided a brief personal introduction. Ms. Foley, as Notary, administered the Oath of Office to Mr. -
The Incentives of Hedge Fund Fees and High-Water Marks∗
The Incentives of Hedge Fund Fees and High-Water Marks∗ Paolo Guasoni y Jan Obłój z Boston University and University of Oxford Dublin City University [email protected] [email protected] ∗We thank for helpful comments Hualei Chang, Jaksa Cvitanic, Damir Filipovic, Vicky Henderson, Semyon Malamud, Stavros Panageas, Tarun Ramadorai, Mihai Sirbu, Xun Yu Zhou, and seminar participants at the UK Financial Services Authority, Oxford, Cornell, London School of Economics, Fields Instutute, UC Santa Barbara, TU Vienna, SUNY Stony Brook, Edinburgh, and TU Berlin. yPartially supported by the National Science Foundation under grant DMS-0807994. zPartially supported by the Oxford-Man Institute of Quantitative Finance. 1 The Incentives of Hedge Fund Fees and High-Water Marks Abstract Hedge fund managers receive performance fees proportional to their funds’ profits, plus regular fees proportional to assets. Managers with constant relative risk aversion, constant investment opportunities, maximizing utility of fees at long horizons, choose constant Merton portfolios. The effective risk aversion depends on performance fees, which shrink the true risk aversion towards one. Thus, performance fees have ambiguous risk-shifting implications, depending on managers’ own risk aversion. Further, managers behave like investors acting on their own behalf, but facing drawdown constraints. A Stackelberg equilibrium between investors and managers trades off the costs of performance fees, with their potential to align preferences. Only aggressive investors voluntarily pay high performance fees, and only if managers are even more aggressive. Keywords: Hedge Funds, High-Water Marks, Performance Fees, Portfolio Choice, Incentives, Risk- shifting. 2 1 Introduction Hedge fund managers receive as performance fees a large fraction of their funds’ profits, in addition to regular fees proportional to funds’ assets. -
Annual Report 2018 - 2019
ANNUAL REPORT 2018 - 2019 ANNUAL REPORT 2018 - 2019 LEADING OUR PORTFOLIO COMPANIES FOR THE BENEFIT OF OUR ECONOMY. CONTENTS 1. Message from Chairman and CEO 5 2. Business model and investment strategy 9 3. Value creation starting from 4 central themes 23 4. Results and activity report 35 5. Key figures 41 6. Share and shareholders 45 7. Corporate Governance Statement 49 8. Annual Accounts 77 9. Contact 141 INVESTMENT PORTFOLIO EUR 1.1 BILLION OUR 55 PORTFOLIO COMPANIES JOINTLY REALISE A TURNOVER OF MORE THAN EUR 2.75 BILLION AND EMPLOY 14 000 PROFESSIONALS FOCUS ON VALUE CREATION FROM 4 PLATFORMS CONNECTED HEALTH SMART SUSTAINABLE CONSUMER & CARE INDUSTRIES CITIES 4 OFFICES WITH MULTIDISCIPLINARY TEAMS: ANTWERP, PARIS, THE HAGUE, MUNICH 39 YEARS’ EXPERIENCE IN PRIVATE EQUITY OVER THE LAST 5 YEARS INVESTED IN 932 EUR MILLION 46 COMPANIES PROCEEDS FROM 1 520 EUR MILLION 48 EXITS MESSAGE FROM CHAIRMAN AND CEO1 6 ANNUAL REPORT 2018-2019 The world around us is changing at an incredible pace. Last year we were still talk- ing about an improving economy that had moved up several gears; today, barely a year later, we see this economic upswing under threat from various geopolitical and macroeconomic factors. Trade relations are more difficult, the power posi- IMPACT: MEETING CRUCIAL tions and therefore also the relationships between CHALLENGES TOGETHER the major world economic powers are shifting, as evidenced by the never-ending story of Brexit. Gimv goes looking for the market leaders of Last year, climate and the environment concerns tomorrow, together with which it can make a vi- topped the political and economic agenda, calling tal difference, year after year. -
Investment Companies 13 October 2011
www.numiscorp.com Marketing Communication Investment Companies 13 October 2011 Research Listed Private Equity Charles Cade +44 (0)20 7260 1327 What are the True Costs? [email protected] George Crowe Transparency has improved significantly within the listed Private Equity sector in +44 (0)20 7260 1280 recent years, and valuation methodologies have become more standardised with [email protected] the adoption of fair value accounting. This has made it much easier for investors Ewan Lovett-Turner to differentiate between listed Private Equity funds (LPEs) on the basis of their +44 (0)20 7260 1299 portfolio characteristics and balance sheet risk. However, it is still far from [email protected] straight-forward to compare the costs of LPEs in terms of fees and finance Colette Ord charges. In contrast, private equity Limited Partnerships (LPs) have relatively +44 (0)20 7260 1290 standardised fee arrangements and simple balance sheets with no debt. [email protected] In part, these complications reflect the evergreen nature of most LPEs, whereby they Sales offer exposure to a range of investment vintages. As a result, management fees are James Glass typically charged on the value of assets rather than initial commitments. Listed funds +44 (0)20 7260 1369 also face additional operating costs such as directors‟ fees and administration, and often [email protected] adopt more diverse investment strategies, including directs, co-investment and funds. Chris G00k Some have feeder fund structures, with fees charged indirectly by the manager, while +44 (0)20 7260 1378 others are self-managed and pay staff costs rather than a defined management fee.