FLOCKING TO THE PARTY

26 international april 2018 We may have mentioned it before, but there is a lot of capital flowing into private equity. In a year that saw the largest euro-denominat- ed fund (CVC Capital Partners’ Fund VII), the larg- est Asia-focused fund (KKR’s third Asia vehicle) and the largest fund, full stop (Apollo’s Fund IX) raised, fund size is rising. The average raised in 2017 was $754 million, compared with $508 mil- lion in 2014. However, banner fundraises don’t explain the growth of the market. One important driver is the sideways expansion of blue-chip franchises into new strategies, geographies and asset classes. Whatever you do, don’t call it style drift; it is es- tablished managers with the infrastructure, con- nections and know how to offer their investors comprehensive access to private markets. What does this mean for institutional inves- tors? In a nutshell, more work and tighter due diligence deadlines. In December, Hamilton Lane said it had received a record number of private placement memoranda in 2017 — around 800 — and that this, combined with faster fundraising processes, has made it difficult for some investors to make considered decisions. This chimes with what we hear from other in- vestors and GPs: the number of funds in market and the compressed fundraising timelines are making it tricky to do anything but re-up with ex- isting relationships. For example, if you were a fan of Warburg Pin- cus 10 years ago, you could be re-upping with a flagship fund every two to three years. If you are a fan of the firm today, you could be committing to a China fund, a financial services sector fund, an energy fund and a flagship fund. New managers, or even established managers looking for new relationships, are struggling to get a foot in the door. Indeed Pollen Street Capi- tal — after a full two years on the road — closed its debut fund as a fully independent firm above tar- get on £402 million ($560 million; €455 million). The firm’s track record across its financial services deals — a gross IRR of 29 percent and 2.9x money multiple — was not enough to warrant a quick fundraise because, among other things, LPs were spending so much time and capital on re-ups. Turn to p.30 for a case study of that fundraise. FUNDRAISING SPECIAL US public pensions made more commitments to private equity funds than any other alternative 28 The long haul asset class in 2017, according to research from eVestment. Are LPs expanding programmes, but 30 Ask a fundraiser not their own headcount? That was the view of one placement agent we spoke to recently. 34 Mega-funds: who’s raising? As institutions up their allocations to private equity — and research tells us this what will con- 36 Another string to their bow tinue to happen — they should think hard about how they allocate resources, as well as capital, to 37 The Rainmaker 50 generate the best returns. april 2018 private equity international 27 FUNDRAISING SPECIAL

CASE STUDY The long haul

Pollen Street Capital took LP appetite for private equity is more a sector-focused firm in the European mid- more than two years to voracious than ever. That does not mean, market with a predominantly UK-based however, that fundraising is easy or simple. track record. raise its third fund but beat Someone who understands this is Lindsey Sector-focused funds are something of a its target. Toby Mitchenall McMurray, founder and managing partner rarity in Europe, McMurray says, as special- speaks to founder of Pollen Street Capital. ism in the region tends to be drawn along Lindsey McMurray and Her team has been investing together geographical lines. In Europe around a quar- since 2005 – originally as part of British ter of all funds raised by number are sector head of fundraising and bank RBS – and had raised capital from specialists, compared with 40 percent in the IR Magnus Christensson external investors twice. But when they US, according to PEI data. In McMurray’s about the journey started talking to investors in 2015 about view, being slightly out of the ordinary made raising Fund III, their first full fund as it easier for LPs to dismiss Pollen Street. an independent manager, it was not the The choice of sector added an extra straightforward exercise they might have layer of complexity. A lot of investors have hoped for. “a sensitivity” when they think of private “People saw us as a first-time fund equity investment in financial services, says despite the fact we had a fund from before,” McMurray. “There have been some high- McMurray tells Private Equity International. profile losses across the sector and people When it was part of the bank, the group extrapolate that to what we are doing.” – known as SOF Investments – had raised They are wrong to do so, she adds, as Pollen more than £1 billion in 2007 from the Street operates in the mid-market with a “great and good of secondaries”, part of different strategy and risk profile to the which was invested in the existing portfolio, larger deals that she believes have coloured built up using bank capital, and the remain- investors’ views of the sector. der made available to pursue new invest- The Pollen Street pitch is growth invest- ments. The firm raised again a year after ment. The firm looks for growth businesses its 2013 spin-out: a £300 million top-up with a specialist financial services propo- fund backed by two managers. sition; any misgivings that investors have But Fund III was the first time the about how the financial services sector team had hit the road to meet prospective fares in a wider macroeconomic context investors as an independent, sector-focused are not particularly relevant, says McMur- £402m manager, Pollen Street Capital, and while ray, because the firm is backing companies Capital raised the firm reached a first close in relatively set to take market share from the estab- for Fund III short order by March 2016 on £120 mil- lished firms, “a lot of the time because they lion, subsequent progress was slow. don’t want that market share anymore”. In other words, the large players in the finan- COMPLICATED PICTURE cial industry are retrenching, which creates The Pollen Street proposition had a number opportunity. 2.9x of idiosyncrasies. McMurray’s team had “We have a differentiated and focused Gross cash multiple on gone from pursuing a special opportuni- strategy that we believe will continue financial services deals ties strategy at RBS – with a bigger fund to deliver strong returns in a relatively and a broader investment remit – to being uncrowded market,” says McMurray.

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McMurray: LPs are Christensson: having to be ruthless revisiting investors

“too quickly”, says Magnus Christensson, the former European fundraising head for TPG who joined Pollen Street to help with the fundraise in 2016. “A lot of LPs didn’t have the time to carry out due diligence on a small fund in financial services. When I came in it was a lot about re-visiting LPs.” In an era of apparently lightning fast- capital raising, Pollen Street took more Building a buzz: relationship-building was a key part of Pollen Street’s fundraise than two years to raise Fund III. Frenetic fundraising activity actually hinders firms Economic headwinds – like the one that LPs have to be trying to build new relationships, McMur- will be brought by Brexit, she adds – should pretty ruthless ray notes, due to lack of LP bandwidth. not detract from its proposition. “Would it “As much as there are huge amounts of be better to have [GDP] growth of 2 per- in their culling, capital, it almost makes it harder for new cent as opposed to zero? Yes, but it should their distillation of [new] funds to get going, because there is so much not cut across us, as our thesis is about opportunities time and capital spent on re-ups that the taking market share.” LPs have limited time to assess new teams,” In terms of risk-return, “if we get it Lindsey McMurray she says. right we aim to get above four [times our “If you speak to an LP and they are invested capital back]. If we get it not quite Fund III effectively needed to “start afresh”. writing 10 tickets,” she continues, “seven right we aim not to lose money and we aim But it wasn’t a quick process. are re-ups, two might be strategically for to get three overall,” says McMurray. Across “If you want to go and push down the Asia, say, which would leave one left. So its financial services deals, the firm has so door of an investor on something, they need while there is a lot of capital, there are far delivered a gross IRR of 29 percent and to take time to think about because it is new, few spots; LPs have to be pretty ruthless 2.9x money multiple. you are just going to get a ‘no’,” she says. “We in their culling, their distillation of those had to take the long yards of building the opportunities.” FAN BASE relationship, building the knowledge and Pollen Street closed the fund at the end The group left RBS with a small number trust and belief that this was a strategy, as of January on £402 million ($565 million; of loyal investors – “we had a fan club as opposed to a time and place.” €460 million), above its original £350 mil- opposed to an investor base” – and in raising Several LPs looked at the proposition lion target. n april 2018 private equity international 29 FUNDRAISING SPECIAL

TROUBLESHOOTING Ask a fundraiser

Your capital raise hits You could be forgiven for thinking it’s easy but if it’s weaker you get two negative funds a major roadblock to raise a fund in today’s environment; after back to back, which is a dealbreaker for all, private equity funds raised a combined most investors.” — what should you do? $411 billion last year, the most since 2008. Isobel Markham asks the But it’s not always straightforward, and A major LP wants to put a experts to solve some some fund managers have a much tougher provision in its side letter well-known industry ride than others. Private Equity International that you’d rather the asked some of the top experts in fundrais- broader LP base didn’t elect nightmares ing and fund formation for their advice on — do you have to offer it around? getting your fundraise off the ground – or This depends on how the Most Favoured back on track. Nations clause is constructed, according to John Rife, an associate in the office You’ve misjudged the timing of Debevoise & Plimpton. MFNs are often of your fundraise size-based, meaning LPs can only elect the “You need to turn the whole benefit of provisions granted to LPs with thing into a premarketing commitments equal to or less than their exercise, and use the opportunity to engage own. with pre-qualified potential new LPs,” says “If the fund has such a commitment- James Coleman, managing partner at Quest based MFN, and if the major LP is the larg- Fund Placement. est (or one of the largest) LPs, the sponsor “If you need to spend more time in the may be comfortable granting the side letter market than you perhaps wanted, you may provision on the basis that it will not be as well build some new relationships. You capable of being widely elected by other may often find that these new relationships investors,” Rife says. will be the fastest to commit.” If the GP really only wants to offer these Adam Turtle, founding partner of Rede provisions to one specific investor, it should Partners, suggests adjusting your propo- consider whether there’s a non-contractual sition to go back to market with a more way to meet the LP’s needs. interesting story. “In an industry that is focused on build- “Focus on trying to sell something or do ing long-term partnerships, a non-contrac- some deals. If, for example, you are out of tual commercial understanding is often as capital, try to do a deal with a co-investor. valuable as a legally-binding side-letter That gives you something to talk to inves- provision.” I don’t care how tors about.” fandangled The main lesson: really consider whether A top dealmaker leaves the strategy is, the timing is right, and don’t be swayed by halfway through fundraising high volumes of LP capital sloshing around. and investors are nervous — an inability to explain “If you raise two funds very close to one how do you reassure them? the USPs of an offering another the chance is very high they’ll be Turtle identifies two areas investors will clearly and succinctly in the same vintage cluster,” says Mounir worry about if a key dealmaker leaves: is Guen, founder and chief executive of MVi- this person the “investment engine of the is a significant flaw sion. “If that vintage cluster is strong that’s firm”, whom you will struggle to make Warren Hibbert terrific because you get two upside funds, good investments without; and does the

30 private equity international april 2018 FUNDRAISING SPECIAL

departure say something negative about under applicable money-laundering laws. your culture? Non-compliance could result in criminal THE EXPERTS To address the first, showcase the liability, and there’s the potential for issues James Coleman remaining team members’ capabilities, with future tax transparency reporting, managing partner at analyse their roles in completed deals and Rife says. Quest Fund Placement demonstrate a strong continuing pipeline “There are sometimes alternatives avail- of opportunities. able to receiving potentially sensitive infor- For the second, reassure investors the mation regarding a beneficial owner of an firm is still a positive place for the remain- investor. For example, in many jurisdictions Adam Turtle der of the team. a regulated third party can provide a cer- founding partner of Rede Partners “Obviously it’s disappointing when tificate which the sponsor may be able to someone leaves, but it can be a good thing rely on when performing their own ‘know because it frees up economics for other your client’ checks,” he says. people and can create space for others to “The sponsor should seek advice as to step up,” Turtle says, adding those remain- its own legal obligations and act in accord- Mounir Guen ing may even be more motivated after the ance with those, even if it ultimately means founder and chief executive of departure. declining the investor.” MVision Don’t ignore the situation, says Coleman. “What you have to do is work out as a You’re a first-time fund and group what that means, reinvent yourself you can’t get in front of and then market the ‘new you’,” he says. investors — how do you get John Rife associate in the “Our approach is reset, go and see your big- some attention? London office of gest LPs, then your smaller LPs, then new Hire a placement agent who can open LP Debevoise & Plimpton investors and explain to them the reset.” relationships for you, says Sinha. First-time You should do everything possible to fundraises are usually a law-of-large-num- negotiate a settlement agreement with the bers game where 100 meetings may only departing employee to keep them out of the amount to one cheque. Warren Hibbert co-founder of market for the duration of your fundraise, Warren Hibbert, co-founder of Asante Asante Capital says Sunaina Sinha, managing partner of Capital, suggests focusing at least 50 per- Cebile Capital. cent of your time initially on new deals. “The last thing you want is your “You’ve got to show you’re in the market employee running around speaking to the and have privileged access to transaction exact same LP you’re trying to speak to,” flow because it becomes a self-fulfilling Sunaina Sinha managing partner at she says. “You might have to pay extra for prophecy: you’re in the market seeing stuff, Cebile Capital it, but it’s worth it.” you’re ready to go, which justifies you having capital and mitigates the perceived fundrais- An investor wants to make a ing risk that may put LPs off doing work big commitment to your fund, initially.” Jeff Eaton but doesn’t meet transpar- This is clearly a challenge if you don’t partner at ency guidelines — do you have capital, but LPs are often happy to look Eaton Partners accept them? at co-investment opportunities. This ultimately comes down to the GP’s “[It’s] vital, however, that as part of compliance with its own legal obligations getting the deal done and providing ›› april 2018 private equity international 31 FUNDRAISING SPECIAL

›› co-invest that the GP secure commit- You’ll get into ments to the first close.” Differentiation is key; GPs must recog- more trouble nise their private placement memorandum trying to cover is one of 60 on an LP’s desk, says Jeff Eaton, a your behind than you do partner at placement agent Eaton Partners. just admitting honestly “You’ve got to be able to differentiate your story and provide a reason for some- what went wrong body to think they should meet with you, Sunaina Sinha either because your performance is much better than anybody else’s or you’re doing something a little bit different that they don’t have exposure to.” Recognise, too, that the “real work starts time and again, adjust the marketing mes- after a meeting”, Eaton says. Anticipate fol- saging and material, says Eaton. low-up questions and information requests, “We keep track of every question that’s prepare the materials ahead of time, and asked in every meeting, and if we see the respond promptly – within 48 hours. same question is showing up more and “If you come out of a great meeting and more, we might change the marketing it takes you three weeks to respond to their deck or the pitch to address those ques- questions, that LP’s moved on.” tions more head-on and directly.” Up to a certain point, it’s worth per- LPs don’t seem to understand severing to find those investors that have your innovative strategy — appetite for your fund. how do you convince them to “Conviction is so important. You should take a chance? have belief in your strategy and try to find Consider competitors with a similar strat- the right money to match that. There are egy to you and get a list of their investors, plenty of investors out there that are quite says Sinha. Funds of funds that can invest flexible in terms of bucketing,” Turtle says. opportunistically are also a good bet. “If you eventually do hit a brick wall, see Try to meet with chief investment offic- if you can tweak your strategy to fit within ers, rather than heads of private equity who the dimensions of the asset class.” can be more constrained. One golden rule: don’t overcomplicate “In a bucketing scenario you want to things. get to the senior-most decision-makers “I don’t care how fandangled the strat- who can think more creatively and sensi- egy is, an inability to explain the USPs of bly about their portfolio allocation,” Sinha an offering clearly and succinctly is a signifi- says, adding the best way to demonstrate cant flaw,” Hibbert says. “If there’s a place strategy is doing a deal. for your strategy in the market, it’s more “LPs often say to us in these scenarios, a question of how you explain it, it’s not a ‘show me a co-investment so I can under- question of going out and implying ‘well it’s stand what you do and how you do it’.” just so complex, so trust me if you don’t If the same questions are coming up understand.’”

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You’ve accidentally violated a chance demand from other investors for advertising rules — how do the same type of vehicle will arise during you reassure investors? the fundraising, Rife adds. If you make a mistake like “Where initial interest for a vehicle is this, you have to own it, says Sinha. insufficient to justify its formation, inves- “You’ll get into more trouble trying to tors can often be encouraged to invest cover your behind than you do just admit- through their own structure that addresses ting honestly what went wrong,” she says. the concern or can be put on hold pend- “Explain what went wrong, explain the ing further similar demand for the unique changes you’ve made – whether it’s person- vehicle.” nel, systems and processes, you’ve changed it – and tell them what’s going to be dif- You’re a spin-out and your ferent hereafter. Whether it’s this mistake prior firm launches legal or any other mistake, that’s what investors action — how do you reas- want to know.” sure investors? “It’s a competitive market and nobody likes A potential LP requires you a GP with noise around them, so try to to set up a different structure settle it or try to work through it as quickly — what do you need to do, as you possibly can,” says Sinha. and is it worth it? Hibbert’s first to-do is to cease all mar- You can either set up a parallel fund or a keting. feeder fund, depending on the LP’s require- “You want to limit the damage and ments. resolve it as quickly as possible, while not “A feeder fund is easier and faster to appearing disingenuous by not disclosing document than a parallel fund and less it to your LPs (which the GP may be pro- expensive to administer on an on-going hibited from doing),” he says. basis,” says Rife. “[It] is also less likely to “If investors hear of an explained legal impact on the terms of the main fund vehi- dispute it’s typically a ‘pens-down’ moment cle, and therefore less likely to be relevant until the dust has settled. If it can’t be to other investors.” resolved in the immediate term then LPs Whether it’s worth it or not comes should be told in person. It will be difficult down to cost-benefit analysis. Unless the to continue marketing until the matter is investor is willing to absorb the cost of the resolved.” vehicle’s establishment and administration, If the litigation is made public, make it’s typically not efficient for a small LP. sure you’ve spoken to all your investors. “For a significant investor, the benefits “Everyone will be legally advised and to the fundraising usually justify the burden restricted as to what they can and can’t of running an additional vehicle (and often say, but make sure you’re saying something,” investors in the main fund will be willing to says Hibbert, “[For example] ‘I can’t speak, pool costs of the main fund and the addi- but you can insinuate that the situation is tional vehicle),” Rife says. X, and we’ll be in touch as we near a reso- Keep in mind that if the demand for a lution.’ Getting out ahead of it and being specific vehicle type is tax-driven, there’s transparent wins goodwill.” n april 2018 private equity international 33 FUNDRAISING SPECIAL

Flagship mega-funds: who’s raising? Carlyle, and Neuberger Berman are either back in market or on the brink of returning. So who’s next, asks Alex Lynn

Three private equity behemoths have given call; and Neuberger Berman is seeking $6 busy investing); amber means the last flag- the green light for fundraising in 2018, and billion for Dyal Capital Partners III. So who ship fund was more than 18 months ago they almost certainly won’t be alone. could be set to join them? (so managers could be mulling its next New York-based Warburg Pincus is talk- Private Equity International’s traffic light fund). A green light indicates the firm is ing to limited partners and will launch in system indicates when a firm held a final understood to be in market or coming to May; Carlyle is still in market with its sev- close on its latest flagship. A red light market this year. enth flagship after holding a first close in shows a flagship fund closed in the last None of the firms listed commented on Q4 2017, according to a February earnings 18 months (hence the firm is likely to be fundraising for this article.

Blackstone KKR Blackstone Capital Partners VII, KKR Americas Fund XII, $13.9bn, Carlyle Partners VII, $15bn, 2017 $22.3bn, 2014 2017 Carlyle is still in market with It has been some time since The firm was busy in 2017, its seventh flagship after a first Blackstone raised its last flagship; it raising $13.9 billion for its buyout close in Q4 2017, according to a amassed $18 billion for the vehicle PEI 300 flagship and $8.5 billion for its February earnings call. It raised with a final close in December rank Core Investment strategy. It is $18.8 billion in total for Fund VII 2015. The firm is now understood understood to be in market with its and its fifth Asia buyout vehicle, to be targeting $2 billion for its first debut impact fund this year. though it is unclear how this was dedicated Asia fund and $6.5 billion divided between the two funds. for GSO Capital Solutions Fund III. 1 2 3

TPG Warburg Pincus Advent International TPG Partners VII, $10.5bn, 2015 Warburg Pincus Private Equity XIII, Advent International GPE VIII, Although Fund VII closed in May $13.5bn, 2018 $13bn, 2015 2016, the private equity behemoth The New York-based firm is Advent closed its eighth flagship was busy raising $2 billion for its talking to limited partners and will on its $13 billion hard-cap in March debut impact vehicle, The Rise launch fundraising in May with 2016. The firm does not appear to Fund, last year. It also hit the $300 an anticipated final close at the have been active in the fundraising million target for its TPG Energy end of the year, PEI reported in market since, according Solutions Equity vehicle in January, January. Warburg will target about to PEI data. according to a source familiar with $13.5 billion, not including the GP the matter. commitment, and has not yet set a hard-cap, according to a source 4 with knowledge of the fund. 5 6

Apollo Global Management EnCap Investments Neuberger Berman Group Apollo Investment Fund IX, EnCap Energy Capital Fund XI, Dyal Capital Partners IV, $6bn, $24.7bn, 2017 $7bn, 2016 2017 Apollo broke records last year with EnCap is fresh out of fundraising The Neuberger Berman unit closed a final close on $24.7 billion for mode. It held a final close on $7 its Dyal Capital Partners III fund its latest flagship. The alternative billion for its 11th energy growth in December 2016 on about $5.3 asset manager still had $1.5 billion fund, which had a $6.5 billion billion and was already understood to commit from Fund VIII as of target, in December. to have secured $1 billion of November. commitments for its fourth flagship as of October. The vehicle is understood to have a $6 billion target and was expected to hold a 7 8 first close in December last year. 9 34 private equity international april 2018 FUNDRAISING SPECIAL

CVC Capital Partners Thoma Bravo CVC Capital Partners VII, $18bn, Bain Capital Fund XII, $9.4bn, 2017 Thoma Bravo Fund XII, $7.6bn, 2016 2017 Bain is likely to be busy in 2018, but Chicago-based Thoma Bravo held The firm closed its seventh flagship not with a new flagship. a final close for its 12th flagship on $18 billion in June. It is now The firm is understood to be vehicle on its $7.6 billion hard-cap understood to be back in market targeting around €3.5 billion for in September 2016. The firm is with the second of its long-life Europe Fund V, which is likely understood to be targeting strategic opportunities funds, for to close in a one-and-done in $2.3 billion for its second which it is targeting €4 billion. Q2. Bain is also aiming to hold TMT-focused Discover fund a first close for Bain Capital and $750 million for a debut Special Situations Europe in credit fund this year. 10 April, PEI understands. 11 12

Vista Equity Partners Apax Partners Clayton, Dubilier & Rice Vista Equity Partners VI, $10.6bn, Apax IX, $9bn, 2016 Clayton, Dubilier & Rice X, $9.4bn, 2016 Apax Partners held a final close 2017 The firm enjoyed a strong year of on its ninth fund on its $9 billion Clayton, Dubilier & Rice is reported fundraising in 2017. It exceeded the hard-cap in December 2016. It was to have closed its 10th flagship hard-cap for its sixth buyout fund on also busy last year, having secured fund on its $9.4 billion hard-cap in $10.5 billion in March, in addition to $1 billion for its debut technology April last year. closing its third technology-focused fund. small-cap buyout fund on $2.75 billion the same month. The firm is understood to be planning two new fund families with the launch of a ‘long-life’ fund and a small buyout vehicle. 13 14 15

Cinven Leonard Green & Partners The Sixth Cinven Fund, €7bn, 2016 Green Equity Investors VII, $9.6bn, Ares Corporate Opportunities Pan-European firm Cinven closed its 2015 Fund V, $7.9bn, 2016 sixth fund on €7 billion in June 2016 Leonard Green reached its $9.6 The firm’s last flagship closed in after just four months in market. billion hard-cap on Fund VII in April 2016. It has shown little sign June 2016. Private equity giant of slowing since, raising a number Blackstone agreed to acquire of funds for different strategies, a stake in the firm in July the including Ares Private Credit following year. Solutions, Ares CLO Funding I and Ares High Income Credit 16 17 Opportunities Fund. 18

BC Partners Permira Advisers BC European Capital X, €7bn, 2016 Permira VI, €7.5bn, 2016 BC Partners is hot off the fundraising Permira’s latest flagship was closed circuit; the firm closed its 10th in December 2016. The firm is now flagship in January on €7 billion. understood to be in market with its debut growth fund and fifth Sigma debt fund. 19 20 april 2018 private equity international 35 FUNDRAISING SPECIAL

DIRECTS Another string to their bow STANDING Placement agents are treating LPs’ increased interest assets that are more easily underwritten in direct investing as an opportunity to diversify their and evaluated because they’re more tangi- ble, there’s maybe a higher component of OUT FROM revenue streams. Isobel Markham reports cashflow, and less need to evaluate what the value of goodwill might be.” A major trend in the private equity indus- “We came to the conclusion that we From a standing start two years ago, THE CROWD try over the last couple of years has been could not generate as good quality dealflow around 15 percent of the dollars Eaton limited partners shifting towards direct as we needed to on our own,” Eaton says. Partners raised in 2017 was for direct investing. The placement agent educates Stifel on investments. In April last year the firm Rather than sitting back and losing busi- what kind of assets might interest its inves- launched a five-person team focused on ness, some placement agents have turned tor base. The larger firm is then alerted to raising capital for direct deals, which this to their advantage. which opportunities to pass on to Eaton includes raising additional co-investment “We had two decisions: we could either Partners to show to their investors. The capital for GPs. ignore it and say ‘well we’re just going to firm can also leverage Stifel’s underwrit- It’s not the only firm taking advantage of keep raising just funds and we’re going to ing capabilities to bolster its own diligence this new opportunity. The fund placement lose an increasing segment of our investor when analysing Eaton-sourced direct deals. team at Moelis & Company can also offer universe’, or we could continue to raise our individual transactions to limited partners, funds but we could also try to bring invest- DECISION-MAKERS while Mercury Capital Advisors has rebuilt ments and product ideas to investors that Recent examples include deals in this capability after its spin-out from Mer- are no longer doing funds,” says Jeff Eaton, and structured products in the speciality rill Lynch in 2009. The firm’s direct invest- partner at Eaton Partners. “We clearly finance area, and hard assets, such as energy, ment and secondaries activities represent chose the latter.” oil and gas, infrastructure, and real estate. more than a quarter of its revenue. Eaton Partners was acquired by wealth “LPs are not able to lean on someone LPs committing to Mercury’s direct management and firm else to tell them whether or not it’s a good dealflow are typically sovereign wealth Stifel Financial in 2016. Part of the attrac- investment, they have to be able to make funds, insurance companies, family offices, tion for the placement agent was the access those decisions on their own,” Eaton says. and occasionally pension funds, although to dealflow Stifel could provide. “Where we’ve had the most success are that is more often the case with real estate joint ventures, says managing partner Alan Pardee. Around half of Mercury’s direct invest- ment activity is raising capital for co-invest- ments or fundless sponsors. The remainder is opportunistic dealflow that comes the firm’s way through its relationships. “There is a synergy from our perspec- tive. Raising capital for a direct deal for somebody who wants to raise a first-time fund, some of those LPs will naturally become fund investors in the first closing,” Pardee says. “But there are certainly people that we talk to, hedge funds being an obvious example, that aren’t going to do the fund Archery: direct hits are helping placement agents but will do the direct deal.” n

36 private equity international april 2018 Some insiders we consulted doubted the relevance of the term in today’s fundraising market. The industry has become so institutionalised – so pro- THE RAINMAKER 50 fessionalised – that there is little room for the individual. It has become much more about process than personnel. Others were more circumspect; yes, the market today is different to that of the ’90s and early ’00s, they argued, STANDING but the value of a talented individual still makes the difference. The skillset required, however, has evolved. OUT FROM One fundraising veteran, who ap- pears on our list, noted that whereas the rainmaker of old might have sat in a placement firm’s distribution team THE CROWD – persuading investors that this was a proposition not to be missed – the modern-day rainmaker might more likely be the project manager, decid- What does it mean to be a ing which GPs are worth working with rainmaker in today’s private and helping shape that proposition. These two examples assume the equity fundraising market? rainmaker is a placement agent, rather than an in-house professional; a look across the make-up of our list shows this is, two-thirds of the time, not the It is a divisive question case. As the private equity business has developed, GPs have taken their fundraising in-house, often plucking placement professionals from banks or independent shops. Clearly it is possible to operate within an estab- lished private equity business and still be considered a rainmaker by one’s peers. Which brings us to the methodolo- gy. To compile PEI’s Rainmaker 50 our editorial team surveyed senior profes- sionals across the globe asking them to nominate fundraising professionals. The question was simple: if you were out there raising a fund, who would you want on your team and why? Only those nominated are included in the list, and respondents were only al- lowed to nominate fundraisers from outside of their own organisation. The answers that have come back comprise a spectrum of talented fund- raisers, including bankers, firm found- ers, the young, the old, those who have shepherded tens of billions into strategies and those who have taken risks on small first-time funds. What does it mean to be a modern rainmaker? One of our listed fundrais- ers proffered this definition: either they have put someone in business who otherwise would not be, or they have the power to turn an investor “no” into a “yes”. Looking across our list, there are plenty of both. FUNDRAISING SPECIAL THE RAINMAKER 50

THE PLACEMENT AGENTS

Wilf Wilkinson, Managing partner, Acanthus Advisors Richard Allsopp, Managing partner, Described as one of the best, Wilkinson and his small team at Acanthus have raised Campbell Lutyens capital for established mid-market brands like Egeria, Polaris and Azulis, but he really Those in the business can’t help but made his name on the more challenging proposition of putting first-time managers admire what Allsopp has achieved. In into business, including Cairngorm, Aliter and Novum. 1998 he joined UBS to set up the bank’s global fund placement group, which Joanne Robinson, Director, went on to raise more than $100 billion Robinson has spent almost 10 years with Lazard’s private capital advisory group, under his leadership. In 2001 Stephen working her way up to the role of director in 2014. Praised for her clear-headedness Schwarzman hired his team and they and ability to listen to clients’ needs, she co-heads the firm’s fundraising activities in raised $1 billion of capital outside the Europe with specific responsibility for Scandinavia, the UK, Benelux and France. She US. But it was the “dream formula of total has helped raise capital for a healthy mix of established names such as Investindustrial independence, plus the holy trinity of PE, and emerging forces such as Avedon Capital Partners, PEI understands. infrastructure and secondaries” that drew Allsopp to Campbell Lutyens in 2009. In the last five years, he and his team have Cristina Forcina Westermann, Partner, Warren Hibbert, Managing partner, raised over $70 billion globally, and he BearTooth Advisors Asante Capital expects his 100th fund close to take Forcina Westermann spent more than When we were compiling this list, place in April. 10 years covering institutional investors Hibbert’s name came up again and across Europe in her role as executive again, with insiders describing him as Michael Murphy, Co-head, private fund director in the private funds group calm, smart, likeable, “super effective” group, Credit Suisse at UBS, contributing to more than and building a world-class business. By all accounts, Murphy is one of the 50 fundraising assignments, before The former MVision senior partner co- most experienced fundraisers in the joining BearTooth in 2014. Forcina founded Asante in 2011. It has grown business, having worked on hundreds Westermann was the power behind to a staff of 37 across four offices and is of successful fundraises. We’ve heard NorthEdge Capital’s first fund, which understood to have successfully raised he’s patient, has good advice to offer closed on £225 million in 2013, at every mandate it has worked on. These and, crucially, delivers it well to clients. the time one of the largest first-time include Blue Water Energy – a seminal He’s also worked with many first- fundraises in Europe since the collapse relationship for the firm – and a host of timers, including some of the earliest of Lehman Brothers. other names, such as AnaCap Financial secondaries and private debt funds, Partners, Summit Partners and Welsh, helping to break ground in markets that Carson, Anderson & Stowe. have grown considerably since.

1. Wilf Wilkinson 2 2. Christoffer Davidsson 4 5 3. Richard Allsopp 4. Adam Turtle & Scott Church 5. Julian Pearson 6. Warren Hibbert 7. Brian Levine 8. Marc Wursdorfer 9. Bob Brown 10. Joanne Robinson

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Julian Pearson, Partner, FirstPoint Equity Marc Wursdorfer, Head of EMEA, There’s a high chance Pearson was one of the youngest founding partners of a fund UBS placement group when he co-founded FirstPoint Equity in 2011 at the age of 32. He built Wursdorfer spent 15 years with Credit up a wide LP network at FirstPoint, having previously done so as head of US distribution Suisse before he was poached in January for the private funds group at JPMorgan Cazenove. He helped take UK buyout house by UBS to head up the EMEA team within Synova Capital from a high-net-worth-based debut fund to two further oversubscribed its private funds group, replacing James institutional funds and worked with Melbourne-based mining specialist EMR from its first Moore, who announced his retirement dollar to $1.3 billion in capital raised. One insider tells us Pearson is “second to none”. as co-head of the group in May. In his time at Credit Suisse, Wursdorfer was Alexander Rayden, Managing director, Evercore responsible for primary capital raising in Rayden – a founding member of Evercore’s private funds group – is, in the words of the Nordic region. one of our sources, “a rock star”. Another described Rayden as the best distribution professional they had ever worked with. High accolades indeed. At Evercore, Rayden Bob Brown, Managing partner, looks after coverage of institutional investors in the UK, France, Benelux and the BearTooth Advisors Nordic markets, as well as working on originating, developing and managing capital Brown is described by those in the raising mandates. know as one of the most successful and professional practitioners of the trade, Scott Church & Adam Turtle, Founding Dan Prendergast, Sean Keene, Brian and has been involved in more than 180 partners, Rede Partners Levine, Chief executive, partner, partner, fundraises, including TPG’s first fund and Church, who is ex-Lazard and Merrill Park Hill Silver Lake I. Brown learned the ropes Lynch, teamed up with Turtle – formerly The three co-founders of Park Hill saw under Kevin Albert at Merrill Lynch before at Actis and Credit Suisse – to launch their firm raise more than $16 billion in joining Carlyle, where he was instrumental Rede Partners in 2011. The firm has 2017. Prendergast has spent more than to the firm’s fundraising efforts from grown from four people to 40 and 20 years in the alternatives space, Keene 1999 to 2010, including the launch of advised on primary fundraising and heads the firm’s North American and the Riverstone energy funds. His work at secondaries worth more than €18 billion. Asian private equity distribution, while Advent International helped the firm into They helped raise more than £3 billion Levine heads private equity origination the top 10 of the PEI 300. He left his role ($4.3 billion; €3.4 billion) for HgCapital, and the project management team from there as global head of marketing and LP around £1 billion for Alchemy Partners, New York. “At Park Hill, it starts at the top services to co-found BearTooth in 2014, €1 billion for Apax Partners MidMarket with me and my partners, and we set the which focuses – perhaps unsurprisingly, IX and SKr4.5 billion ($548 million; €446 tone for what it means to be a strong given Brown’s track record – on emergent million) for Summa Equity’s debut fund. advisor to our private equity clients,” firms and product extensions for This pair are just getting started. says Levine. established brands.

Christoffer Davidsson, Partner, 8 Campbell Lutyens 7 We’ve heard clients are saying amazing things about Davidsson, who heads Campbell Lutyens’ US activities. He began his career at ING Barings in the firm’s fund placement group before joining WR Hambrecht. In 2001 he joined Campbell Lutyens where he is responsible for the firm’s North America efforts. With more than $80 billion to 9 10 his name raised on over 80 funds and secondaries opportunities, Davidsson is known for his dedication to excellence. He has helped raise private equity, private debt and infrastructure funds for GPs in almost every region of the world. As the firm’s US and Canada specialist, Davidsson is a name readers will continue to hear more of as Campbell Lutyens pushes into North America. ›› april 2018 private equity international 39 FUNDRAISING SPECIAL THE RAINMAKER 50

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›› David Kimis, Member, private fund advisory group, Lazard Based in Singapore and with Lazard since 2008, Kimis is responsible for raising capital from Asia-based limited partners. He holds a PhD in computer science, and is known for looking at the bigger picture as he strives to get the job done. 1 One insider praised Kimis’s ability to demonstrate a fair and rational thought process in his dealings with GPs and investors alike.

Mounir Guen, Chief executive, MVision It’s hard to find a fundraiser who hasn’t heard of ‘Moose’. The veteran fundraising specialist is known for his boundless energy, strategic insight and experience, which he has put to good use representing some of the biggest IN-HOUSE PROFESSIONALS private equity firms in the world. He has also worked on some very challenging Richard Kunzer, Senior partner, Keiji Hattori, Senior vice-president, fundraises that probably wouldn’t have BC Partners Brookfield Asset Management completed without him, says an investor One of two BC Partners IR pros on our Keiji Hattori, formerly a director in the source. Recent fundraising successes list, New York-based Kunzer joined the Credit Suisse private funds group, is include: the €1.1 billion Chequers firm in 2009 from Credit Suisse. Along the one-man capital raising machine for Capital XVII; Waterland Private Equity with London-based colleague Laurent de Brookfield in Japan. He set up the firm’s Fund VII, which hit €2 billion; the $960 Rosière and head of IR Charlie Bott, he Tokyo office in 2015 and is in charge of million Bregal Sagemount II; and VIG has seen the firm through two sizeable tapping highly sought-after Japanese Partners III’s $540 million final close. post-crisis flagship fundraises totalling institutional capital for the Canadian nearly €14 billion – leading the charge firm’s latest private equity, real estate Pablo de la Infiesta, Managing director, with North American and Asian investors and infrastructure funds. His on-the- Moelis & Company and spearheading the firm’s 2017 move ground coverage in the last two years De la Infiesta is well-known on the into private credit. This year Kunzer will has helped raise a significant amount of European private equity scene. He become co-head of investor relations. capital. joined Moelis & Company’s private funds advisory group last summer after more John Barber, Partner, investor services and group board member, Bridgepoint than a decade at Lazard, where he was Barber’s first experience raising a buyout fund was at WSGP Partners in Los Angeles in managing director and European head of 1991. It was at Helix Associates, a boutique placement agent he joined in 1997, where the private capital advisory group. In his Barber got to cut his teeth on complex deals including spin-outs from larger firms role at Moelis, he heads up the group’s and carve-outs of previously captive managers, such as the first funds of Altor Private EMEA business working on capital Equity, GEM Benelux and Exponent Private Equity. He joined Bridgepoint in 2007 and raising, secondaries and other advisory has seen the mid-market firm through six fundraises, collecting around €16 billion, services to GPs and LPs. De la Infiesta has including the firm’s sixth flagship vehicle which is understood to be nearing its final been actively involved in more than 100 close on €5.5 billion. fundraising assignments aggregating more than $90 billion of capital across Laurent de Rosière, Senior partner, buyout, private credit, turnaround and BC Partners funds globally. A Salomon When BC raised Fund IX in 2013 at €6.7 billion it was viewed as a bellwether for Brothers and Campbell Lutyens alumnus, European post-crisis fundraising, spreading optimism among the GP community that de la Infiesta is respected for his deep there were still LPs out there committing to private equity. De Rosière previously had relationships with leading institutional spells at Citi and Acanthus Advisors and joined BC in 2009 and played an instrumental investors and advisors across Europe and role in raising their two most recent flagship funds. He is also set to take over the IR the Middle East. function as co-head this year.

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1. Laurent de Rosière 4 6 8 2. Keiji Hattori 3. Johanna Barr 4. John Barber 5. Jussi Saarinen 6. Richard Kunzer 7. Michael Sotirhos 8. Remy Kawkabani 9. Holly McMullan 10. Marc St John 9

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Remy Kawkabani, Partner, private Holly McMullan, Partner, head of business development — the Americas, capital markets, Coller Capital Kawkabani has had a hand in more than McMullan has been with fundraising powerhouse Apollo for 10 years. She helps a few landmark events in private equity oversee a team focused on fundraising efforts in the Americas for the firm’s private history. As co-head of Credit Suisse’s equity, credit and real assets businesses. During that decade, Apollo’s total assets fund group and later chief executive under management have grown from $40 billion to $250 billion, including the record- of EMEA for its asset management breaking Apollo Investment Fund IX, which closed just shy of $25 billion last year. business, Kawkabani led capital raises McMullan and her team cover a wide range of clients for the firm, including state and for numerous first-time funds and spin- local pension funds, corporates and endowments, and family offices. out groups, including AnaCap Financial Partners, Gulf Capital, PAI Partners, Michael Sotirhos, Senior managing director, investor relations and business Affinity Asia, Magnum Industrial Partners development, Blackstone and Permira. Perhaps fate had a hand Sotirhos honed his craft at Merrill Lynch, working alongside Bill Riddle, who now in his move earlier this year to Coller runs placement at Lazard, and Mounir Guen, who went on to found MVision. Sotirhos Capital; after all, as European head of the spent nine years at Atlantic-Pacific before joining Blackstone in 2010, where he private funds group at investment bank fundraises across all the private equity products, including tactical opportunities and Donaldson, Lufkin & Jenrette in 2000, he the secondaries unit Strategic Partners. Since 2010, the firm’s PE business’s total assets was instrumental in sourcing, structuring under management has more than quadrupled – from $24.3 billion to $105.6 billion. and completing the acquisition of Sotirhos is also understood to be involved with the firm’s infrastructure platform and Royal Bank of Scotland’s private equity its nascent Asia-focused strategy. One industry insider praised Sotirhos’ interpersonal portfolio by a Coller-led consortium for skills, network and work ethic, while another dubbed him one of the best people in £1.1 billion, a deal some believe marked the business. the birth of the modern secondaries market. Jussi Saarinen, Partner, head of investor Marc St John, Partner, investor relations, relations, EQT CVC Capital Partners Johanna Barr, Managing director, Saarinen joined EQT Partners in January St John could be considered a global co-head of LP services, 2008 as investor relations director, but fundraising icon. The CVC veteran Advent International was promptly promoted to head of joined in 1999 after 13 years at Citicorp Barr was instrumental in helping Advent IR. Prior to joining EQT, Saarinen was and has since helped to raise over $70 International smash its target to close a managing partner at Impact Capital billion in equity capital, including fund its eighth flagship fund on the $13 Partners, an investment firm which he co- commitments and co-investments. billion hard-cap in 2016 after just six founded in 2005. Since joining EQT, the Though he is reportedly set to retire from months in market. One industry peer firm has raised at least 14 vehicles worth his position at the end of March, he has praised Barr’s likeability, very strong LP over €35 billion across five asset classes, certainly gone out with a bang, helping base and network and her international including €10.75 billion for its latest to amass a record breaking €15.5 billion background. private equity flagship. for CVC’s seventh flagship in 2017. ›› april 2018 private equity international 41 FUNDRAISING SPECIAL THE RAINMAKER 50

›› Alexandra Hess, Partner, head Rob Squire, Partner, investor relations, CVC Capital Partners of investor relations and fundraising, Squire joined CVC in 2012 after two years at Coller Capital, where he had made Cinven his name helping raise $5.5 billion for its sixth fund. Prior to this, Squire served as a Hess is the mastermind behind three director within Blackstone’s Park Hill Group division, where he was responsible for Cinven fundraisings, the latest of which raising funds for a variety of strategies, including buyout, growth equity, secondaries closed on €7 billion after just four and mezzanine funds. Since his arrival at CVC, the firm has held some impressive months – and could have raised twice closes, raising €10.9 billion and €15.5 billion for its sixth and seventh flagships. that. She’s known in the business for her cool head and skill at presenting the Thomas Franco, Partner, David Tung, Managing director, investor story to LPs, and she’s well-respected Clayton, Dubilier & Rice relations, Carlyle Group by her colleagues and investors alike. Franco was an advisor to CD&R for Based in Singapore, Tung has been with Hess is one of Cinven’s eight executive 15 years before he joined the firm in Carlyle since 2000, advising on investor committee members and also sits on 2006, where he leads fundraising, as relations in the Asia-Pacific region and its operating committee. She is a co- well as managing investor and external taking responsibility for managing founder of Level 20, a group established relations, strategy initiatives and relationships with key institutional LPs to promote the role of women in activities related to portfolio companies. in the region. Tung began his career at private equity, and leads its mentorship Described as “extremely hands-on and Goldman Sachs before joining Merrill programme with two other co-founders. professional”, Franco has worked on five Lynch’s private equity group. flagship fundraises and numerous co- Queenie Ho, Partner, investment vehicles amassing around Thomas Foussé, Managing director, Affinity Equity Partners $30 billion in capital commitments. investor relations, Carlyle Group Based in Hong Kong, Ho manages He played a critical role in leading the Merrill Lynch alumnus Foussé, based investor relations for the pan-Asian fundraise for Clayton, Dubilier & Rice X, in London, joined Carlyle in 1999. One buyout firm which amassed $6 billion which closed on its $9.4 billion hard-cap fundraising veteran said Foussé was the for its fifth fund earlier this year after less last year having garnered more than $20 best fundraising professional he had than four months in market. Ho started billion in demand. Franco was also one ever worked with. as an associate in the firm’s deal team of the original financial backers behind in 2004 covering pan-Asia, then zeroing PEI Media. in on greater China deals. She took on investor relations responsibility for Fund IV, which closed on $3.8 billion in 2014. 6 4

1. Queenie Ho 2. John Hartz 3. Simon Turner 4. Rob Squire 5. Thomas Foussé 6. Chloé Lavedrine 7. Christiian Marriott 8. Mads Ryum Larsen 9. Alexandra Hess 10. Thomas Franco 11. David Tung 2 12. Philip Yau

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Chloé Lavedrine, Managing director, Centerbridge Philip Yau, Managing director, Since joining Centerbridge in 2014, Lavedrine has focused on the firm’s marketing GI Partners and fundraising efforts, as well as investor relations activities for EMEA. She has Yau is, in the words of one industry contributed to the fundraising of Centerbridge Capital Partners III, a $6.2 billion insider, “a rock star”. He spent 12 years fund that closed in October 2014 and Centerbridge Special Credit Fund III, a $4.2 as a senior leader of the UBS Private billion fund that closed in May 2017, among others. She previously spent about four Funds Group before joining GI Partners years with KKR’s European Client and Partner Group covering European markets in 2017. While at UBS, he was behind the and contributing to several product fundraises from private equity, to real estate, fundraises for firms like Apollo Global infrastructure, long short equity and special situations. Management, Ares Management, Baring Asia, EQT, FountainVest, GGV Capital, Steven Batchelor, Partner, chief operating officer and head of client services, TA Associates and Veritas Capital, and HgCapital was involved in originating primary and Batchelor joined HgCapital in 2003 and has seen the firm through nine fundraisings, secondaries opportunities. Yau currently amassing more than £10 billion in the process. He joined the firm from Morgan serves in a variety of senior roles at GI Stanley, where he worked on M&A and capital market related transactions. Partners, having overseen the firm’s oversubscribed raise. Christiian Marriott, Partner, head of John Hartz, Simon Turner, Co-founders, investor relations, Equistone managing partners, Inflexion Mads Ryum Larsen, Partner, head Marriott learned the fundraising ropes at Hartz and Turner co-founded Inflexion of investor relations, IK Investment Campbell Lutyens and joined Equistone 19 years ago with, in their words, Partners in 2007 from MML Capital. He hit the “a borrowed office, two desks, one Ryum Larsen has been with northern ground running, having a hand in the computer and no capital”. It’s now on its European investment firm IK Investment closing of the firm’s third fund in 2007, fifth fund and has a stable of high-quality Partners since 1990 and after 15 years and then leading the fundraising for the LPs, including a number of large US on the deal team shifted over to become most recent three vehicles, the latest of public pensions. “Everyone here has an the firm’s first head of IR. One industry which closed oversubscribed in March eagerness to unpick things and explore insider praised his ability to tread the fine at €2.8 billion. “We need to treat people new angles, to assess how we might line between LPs’ needs and those of IK. fairly,” he told PEI after the fund closed, improve what we do,” Turner says. “We He has been with the firm through ups “not just because it’s the right way to built this business ourselves, so we have and downs, working on seven fundraises, do business but investors have long great empathy with the companies we most recently the oversubscribed €550 memories.” invest in and support.” million Small Cap II fund. The firm’s latest flagship fund closed on €1.85 billion and was the first it raised without a placement agent. ›› 8 9

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›› Charles Vernudachi, Managing director, business Carl Nauckhoff, Senior principal, head Ivan Massonnat, Partner, investor team, development, of investor relations, Investindustrial PAI Partners Based in Providence’s London office, Nauckhoff is known for being incredibly Massonnat first joined PAI Partners Vernudachi leads the firm’s European smart and professional and has been in 2000, working on the deal side private equity fundraising team in raising private equity capital for until 2004. He later helped set up the addition to working on the group’s 17 years. Having started life as an firm’s investor relations function and private credit initiatives. He also investment banker, he had a spell at participated in the fundraising process helped launch the firm’s US growth MVision, where he worked with clients for Fund IV and Fund V. He left PAI in equity strategy and brought in anchor such as EQT, Segulah, Mid Europa May 2008 to join the newly created commitments from European investors. Partners and Investindustrial, which French mid-market fund Fondations Vernudachi joined from placement he joined in 2009 to lead IR. Nauckhoff Capital as chief operating officer, firm Eaton Partners in 2014, where he sits on the firm’s investment committee before rejoining as a member of oversaw the EMEA distribution and and has helmed two flagship PAI’s investor team in late 2010. origination of private equity funds and fundraisings and several other build-up Massonnat helped the firm come back hedge funds and raised funds for firms funds and co-investments totalling over in style, with a €3.3 billion fundraise for including Summit Partners, Ridgewood €5 billion. its sixth fund. Energy and Omega Advisors. Richard Howell, Partner, head of investor team & capital markets team, Chris Davison, Partner, head of investor PAI Partners relations, Permira Howell has seen PAI Partners through one of the toughest times a private equity firm Former journalist Davison joined can face. In 2009 LPs forced the firm to slash its €5.4 billion fifth buyout fund to €2.7 Permira in 2005 and has since recruited billion after the vehicle’s key-man clause was triggered. For some firms, this would and mentored an IR team of 15 across have spelled the end, but thanks to Howell and his team, PAI came roaring back with the firm’s global offices, raised three its sixth fund, shattering its €3 billion hard-cap to close on €3.3 billion, a feat that generations of flagship funds totalling didn’t fail to impress the rest of the industry. more than €22 billion, launched a co- investment programme and diversified Robert Klap, Principal, Platinum Equity Partners the fundraising programme to take Robert Klap has been with Platinum Equity since 2011, in which time he’s gained a in direct lending, structured credit formidable reputation as a fundraiser in Europe and North America. According to and other strategies the firm has in market sources, London-based Klap helped raise nearly $1 billion for the Los Angeles the pipeline. He rarely loses his calm, firm’s last fund – the 2016-vintage, $6.5 billion Platinum Equity Capital Partners IV – according to colleagues. from Dutch investors alone. He also turns his hand to deal origination.

44 private equity international april 2018 THE RAINMAKER 50 FUNDRAISING SPECIAL

1. Susannah Carrier 8 2. Richard Howell RUBENSTEIN ON THE RAINMAKERS 3. Stephen Bamford 4. Erick Bronner It would be remiss to discuss fundraising 5. Chris Davison rainmakers without referencing Carlyle Group 6. Ivan Massonnat co-founder David Rubenstein. When Carlyle 7. Charles Vernudachi was launched in 1987, Rubenstein – who did 8. Meghan Reynolds 9. Jonas Agesand not have the same financial background as has his co-founders – took on the role that others “did not want to do”: fundraiser. “In the food chain, investing was considered to be a higher calling than fundraising,” he tells PEI. Carlyle now manages nearly $200 billion in investor capital.

9 The role of the “rainmaker” is not as relevant as it once was, adds Rubenstein. “With the amount of due diligence, compliance and legal factors, it’s very unlikely that anyone is going to be able to persuade investors to go into a fund by themselves,” he says. “The fundraiser’s role now is really knowing which investors are worth pursuing. It’s keeping up with contacts, maintaining goodwill with investors and knowing which investors to put the fund heads in front of.” What did Rubenstein look for when recruiting in the early days? “People who were reasonably intelligent, hard-working, were willing to ask people for money and who really thought getting investors into these funds was going to be a good thing for them.”

Susannah Carrier, Managing director, head of fundraising and investor relations, Eleanor Chambers, Partner, head of Silver Lake investor relations, TDR Capital Carrier leads a team at Silver Lake that manages all the fundraising and investor Chambers joined TDR in 2015 after relationships for the firm. Since joining in 2006 as Silver Lake’s first professional 13 years at PAI Partners. The first eight dedicated to these areas, she has significantly expanded the firm’s investor base of those years were spent on the globally. Her team’s most recent efforts include raising the $15 billion Silver Lake investment side before transitioning to Partners V in 2017 and Silver Lake Partners IV in 2013. She previously worked for the the investor relations team. Chambers hedge fund and private equity IR team at Quadrangle Group. started her career in the European acquisition finance group at Bankers Stephen Bamford, Partner, investor relations, TPG Trust/Deutsche Bank. Based in Hong Kong, Bamford, who joined TPG from Goldman Sachs in 2010, is responsible for the firm’s client relationships within Asia-Pacific across its private Jonas Agesand, Partner and managing equity, credit and real estate platforms. He is also responsible for TPG’s Asia private director, fundraising and investor equity fundraising globally and co-leads the firm’s global distribution team with relations, Warburg Pincus Meghan Reynolds. In addition to his day-to-day fundraising responsibilities, Bamford Agesand began his investment career at has helped source strategic investments, initiate new platforms for the firm, and has LGT Capital Partners where he spent 10 played an important role in recruiting and hiring senior partners. years as an investor and fundraiser. His next move was to Blackstone where he Erick Bronner, Global head of Meghan Reynolds, Partner, investor spent three-and-a-half years, after which fundraising and investor relations, relations, TPG he joined Warburg Pincus’s London The Riverside Company Reynolds is based in TPG’s New York office team in 2015. He’s recognised for his One of the founding partners at and over her eight years at the firm has strong work ethic, his strong network placement agent Mercury Capital raised meaningful capital across private of limited partners and his international Advisors after a stint at Merrill Lynch, equity, credit, and real estate assets. She background. During his tenure the firm Bronner joined The Riverside Company was TPG’s first fundraising professional raised $2 billion for a China-focused in 2012. One placement agent described in New York having moved there in fund and $2.3 billion for a financial Bronner as thoughtful, ethical and well- 2012 to build relationships with limited services fund. In May it plans to launch liked and respected by LPs and industry partners across the east coast and build a its next flagship fund, targeting professionals alike. During his tenure he regional team, which is now 10 fundraising $13.5 billion. Agesand’s career has helped raise nearly $4 billion for the professionals. Reynolds also co-leads the has come full circle – his first ever firm, including helping the group make firm’s global distribution team with fellow investment at LGT was in Warburg’s its move into private credit. Goldman Sachs alum Stephen Bamford. 2001-vintage Fund VIII. n april 2018 private equity international 45