june 2007 international page 1

global movers Global movers

Our selection of the most influential people operating in private equity today brings together diverse strategies, geographies and personalities. The common denominator is their ability to shape events around them, adding their own sizeable footprints to the forward march of the asset class.

Turn to the following pages and “Those included are the additions and subtractions you will uncover the identities of before we finally arrived at a list those private equity professionals helping to shape the that we felt best reflected what we who we have defined collectively evolution of the asset class were attempting to achieve. as “global movers”. This marks It could be argued, quite reason- the first occasion in which the at an absolutely crucial ably, that practitioners operating editorial team at PEI, following time in its history – when in North America and Western many discussions with those of Europe are over-represented in the you on the frontline, has drawn public scrutiny has never pages that follow. Certainly, it is up a global list of this nature. been higher and, too easy to assume that the world Which brings us immediately revolves around the more mature to a point of clarification: what consequently, so much markets when the reality is that follows is an alphabetical list, is at stake.” the profile (and, dare we say it, not a ranking. We have quite influence) of private equity’s deliberately assembled an eclectic emerging markets is increasing all mix, sprinkled with representatives from all corners of the time. Our list does capture some flavour of this, but the market: GPs, LPs, mega-deal merchants, mid-market we nonetheless anticipate an increase in representatives sponsors, venture investors, advisers and debt providers from Asia and the world’s other fast-growth regions in among them. To attempt to have positioned one over years to come. another would surely have been an exercise in futility. Others might feel that we have ignored too many of What is more, success is not part of our definition: the leading lights from the world’s largest buyout whether relative or absolute. As it happens, our list is houses. We can only plea in mitigation that we sought full to bursting with successful professionals. But that’s to select only the undisputed leaders in this segment so not the point. Or at least, not the whole point. Our that we could provide fair representation of everyone purpose here is to draw attention not to success per se, else. It’s probably fair to say that we could have drawn but to influence. We believe that those included are up a list such as this based on LBO professionals alone – helping to shape the evolution of the asset class at an and that therefore they had an extra mile to travel in absolutely crucial time in its history – when public order to make the cut. scrutiny has never been higher and, consequently, so Above all perhaps, we should stress that seeking to much is at stake. identify private equity’s most influential people is far Of course, we would not expect universal agreement more an art than a science. The fun is in the debating – with our choices. Indeed, this would be surprising given and we trust that you will join this debate by sharing the vast pool of candidates that warranted considera- your thoughts with us in due course. In the meantime, tion. Arriving at decisions within our team was, after enjoy finding out who, in our estimation, have the all, a far from straightforward undertaking. Many were power to make the earth move. I page 2 private equity international june 2007

Fifty finest Private Equity International is proud to present its selection of market- transforming individuals who give shape and character to private equity today. The list, which is not a ranking, is ordered alphabetically.

For international private equity firms management as for its $2 billion price seeking to flourish in markets suspicious tag. In a country in which private equity of their motives, the approach of Carlyle was until then synonymous with vulture Group’s buyout team in Japan should investing, this was no mean feat. Carlyle perhaps be used as a template. The firm Japan managing director and orchestra- arguably made its breakthrough in the tor-in-chief Tamotsu Adachi has perhaps country in June 2004 with the acquisi- done as much as anyone to transform the tion of wireless data provider DDI perception of private equity in this slum- Pocket. According to many observers, bering giant of a market. tamotsu adachi, the deal was notable as much for the carlyle group Carlyle’s team’s ability to win the trust of Carlyle’s man in Tokyo

sameer al ansari, dubai Two years ago, few industry professionals international capital would have heard of Sameer Al Ansari. Mid-East rising star Today, he is on his way to becoming a household name. Under his leadership, Dubai International Capital has become a prominent player in big-ticket private equity. A number of bold bets on prominent pub- lic and private companies in Europe propelled DIC onto the private equity firmament; ever since the recent sale of Madame Tussauds to Blackstone, its star has risen further. DIC’s pursuit of Liverpool Football Club also boosted its reputation as a serious acquir- er, even though the effort ended in disappointment earlier this year. As a well funded investment vehicle acting on behalf of the seriously ambitious Dubai government, DIC is one of the drivers behind the ongoing evolution of private equity in the Middle East and North Africa. Established in October 2004, the group currently looks after $6 bil- lion of invested and committed capital. Regional and international markets are part of the mandate, direct and indirect investment expertise make up the skill set. So rapid has been DIC’s advance that some observers have questioned the project’s sustainability. But Al Ansari is unfazed: his is a firm commitment to making sure that people equate the group’s name with “smart money from the Middle East”.

hareb al darmaki, “ADIA is by far the most powerful LP in abu dhabi investment authority the Middle East – nobody really knows Secretive but substantial how powerful because it is such a secre- With executive director Al Darmaki in the somewhere between $300 and $500 bil- tive organisation, but it invests huge driving seat, the Abu Dhabi Investment lion. Private equity is an important com- amounts of capital in private equity glob- Authority (ADIA) has become one of pri- ponent in ADIA’s allocation strategy. It ally.” Other powerful LP groups based in vate equity’s biggest institutional LPs. invested $600 million in the flotation of the region include the Kuwait Investment Founded in 1976, ADIA is also one of the AP Alternative Assets, the Apollo Authority (KIA), which manages Kuwait’s most secretive investors in the asset class. Management vehicle listed on financial reserves, the Qatar Investment Its funds under management have not Amsterdam’s Euronext exchange, in Authority and the Kuwait Fund for Arab been made official but are believed to be August 2006. Says one Paris-based GP: Economic Development. june 2007 private equity international page 3

milton berlinski, Whenever a huge buyout is announced – think TXU - chances are high that goldman sachs Goldman Sachs is the lead banker. And in these cases, chances are even higher that The big deal dealer the deal began with Milton Berlinski walking into the meeting room. The highly respected co-head of the financial sponsors group (Alison Mass is the other co- head) took the helm after serving as vice chairman of Goldman’s financial institutions group. Berlinski’s high profile has helped his firm exponentially grow its business with large buyout firms, aided of course by the fact that its largest clients have ballooned in recent years (in part to keep pace with Goldman’s dominant merchant banking arm).

leon black, apollo management Capital markets maestro

During a recent discussion on private equity at a Milken Institute conference, fel- low panelists David Rubenstein, David Bonderman and Thomas Lee on more than one occasion deflected tough questions by saying, “Ask Leon.” Indeed, Black’s Apollo Management isn’t the biggest private equity firm, but it may have the greatest appetite for complexity - not surprising given Black’s scarily virtuosic abil- ities in the capital markets. When not executing “hairy” deals, Black is expanding his firm’s horizons through intricate public listings on Euronext, Nasdaq and a new private exchange being launched by Goldman Sachs. Go ahead and ask Leon what he’s doing next, but the former Drexel pro won’t tell.

antonio bonchristiano, Bonchristiano, the co-head of Brazil’s GP gp investimentos Investimentos, pursues an aggressive and Sao Paulo player globally minded form of investment in South America’s largest private equity market. After obtaining a degree in politics, philosophy and economics from the University of Oxford, Bonchristiano worked at Salomon Brothers in London and New York before joining GP Investimentos in 1995. His firm profited though innovative deals with Chicago’s Sam Zell as well as taking an affiliated entity public on the Luxembourg Stock Exchange. As LPs show more demand for the B in BRIC, Bonchristiano is among the most sought after private equity investors.

The pool of teachers at Tulane david bonderman, University’s school of law is not the most TPG well known breeding ground for great The gutsy professor investors, but David Bonderman is exceptional in this and many other respects. Following his stint as an assistant profes- sor, Bonderman moved to corporate law and then to the family office of Texas’ Robert Bass. After performing brilliantly for Bass, Bonderman and two partners launched Texas Pacific Group (now TPG) with an auspicious first deal – the turnaround of Continental Airlines. Bonderman is known for his ability to quickly understand the fundamentals of a business, and for his roll-up-the-sleeves, contrarian approach to investing. From his base in Fort Worth, Texas, Bonderman is a man of the world in both his investment ambitions and his environmentalist activism. Sometimes the two ambitions blend, as in the proposed buyout of power generator TXU, with its clean- energy agenda. Bonderman also probably possesses private equity’s wickedest wit. He once called US President George W. Bush “the worst president since Millard Fillmore - and that’s probably an insult to Millard Fillmore”. This candour and sense of humour have been valuable in helping his firm give confidence to the managers of struggling companies that TPG will make for a winning partner. As Bonderman himself put it in a rare 2003 interview with The Harbus, the student newspaper of his alma mater Harvard Business School: “In the private equity business, there’s no deal unless you can persuade somebody to sell you their business.” page 4 private equity international june 2007

damon buffini, responsibility for the strategic direc- permira tion of the former mid-market opera- Europe’s standard bearer tor (previously known as Schroder Ventures) in 2000, Buffini has stood out even from this star-studded crowd Permira managing partner Damon in having led the transformation of his Buffini is unquestionably part of a firm into a global mega-deal power- European buyout elite whose mem- house. Rising to the challenge of fac- bers’ list also features names such as ing down fierce critics in trade union Mike Smith (CVC), Martin Halusa ranks has only served to bolster the (), Robin Hall (Cinven) perception of Buffini as a voice that and Gordon Bonnyman (Charterhouse really matters in today’s European Capital). But, having taken over LBO market.

michael calvey, baring vostok capital partners Russia’s prime mover

Under Calvey’s leadership, Moscow-based Baring Vostok Capital Partners has raised a $1 billion fund – the biggest buyout fund ever raised for investments in Russia – there- by establishing itself as the dominant private equity player in the country. Before mov- ing to Moscow in 1994, Calvey plied his trade out of London and New York, where he worked for the European Bank for Reconstruction and Development and Salomon Brothers. Says one London-based banker: “Calvey has really helped to put Russia on the map for LPs. Most LPs are suspicious of investing in what they consider to be a tricky market, but the success of Baring Vostok has done wonders for the perceived attractiveness of the Russian market.” Calvey is one of a handful of Western émigrés to have made their mark in the country. Also prominent is Patricia Cloherty, chairman and CEO of Delta Private Equity Partners and former co-chairman of Apax Partners.

In 1990, Coller Capital was launched jeremy coller, to help develop a market in private coller capital equity secondaries. Since then, the Seminal in secondaries history of the firm and its eponymous founder Jeremy Coller has been dot- ted with a series of notable events: in 1994, Europe’s first secondaries fund; in 1998, the first global secondaries fund; followed by the world’s largest secondaries fund closings in 2002 ($2.6 billion) and April this year ($4.5 billion). The most recent fund was reported to be substantially over- subscribed and could have raised as much as $5.6 billion. CalPERS pri- vate equity head Leon Shahinian (one of Coller’s biggest backers) recently said the firm “stands out among pri- vate equity secondary firms – they have an exceptional team and are a true leader in their field.” And at the head of the team is the irrepressible Jeremy Coller. june 2007 private equity international page 5

The founder of New York-based tim collins, Ripplewood Holdings is loath to talk ripplewood holdings about what he’ll do next – he hates the Doing it his way idea of giving away even one iota of the years of research and contacts he devel- ops before making a move. During the 1990s, he traveled to Japan dozens of times before sealing the deal for Shinsei Bank – among the best private equity bets ever. His maverick turns are some- times greeted with puzzlement, as when Collins converted his firm’s Japan part- nership into a holding company traded on the Brussels Euronext (a precursor to the current wave of private equity firm IPOs). Collins is now spending a great deal of time in the Middle East, likely the location of yet another surprise move.

volkert doeksen, High-flying Dutchman

“I wish I could retire in Holland. Thanks to the likes of AlpInvest, Dutch pensioners will be eat- ing caviar.” Thus spoke a fellow European lim- ited partner in a recent interview with PEI. It’s an apt compliment - not only for one of Europe’s most progressive pension systems, but also for an organisation that, ever since its inception in 1999, has been at the forefront of global private equity. Powered by e30 billion in commitments from its two sponsors ABP and PGGM, the group is one of those rare LPs that don’t really have the access problem: if AlpInvest wants in, most general partners will make room. With offices in Amsterdam, New York and Hong Kong, AlpInvest is the proto- type of the modern-day limited partner: global- ly active, with a large and seasoned team, strong in secondaries and even stronger in direct co-investment. Managing partner and CEO Volkert Doeksen oversees the organisa- tion along with eight fellow members of the so- called “investment meeting”. They are the ones responsible for making sure that the firm’s unassuming headquarters on the outskirts of Amsterdam remains a fixture on the itinerary of the world’s GPs. page 6 private equity international june 2007

Enter the words “legendary VC” into a successes, have solidified Kleiner Google search and the top result is John Perkins’ commanding role among the Doerr. The Kleiner Perkins Caufield & small handful of Menlo Park keiretsu. Byers partner is the best known and best Amazon founder Jeff Bezos calls Doerr connected Silicon Valley - “the centre of gravity in the internet”. ist, which makes him the de facto high- Unlike top buyout pros, Doerr has built est profile venture capitalist in the the image of venture capitalists as glob- world. His investments in Amazon, al do-gooders who create jobs, further Intuit, Sun Microsystems and, yes, technology and improve the environ- john doerr, kleiner Google, among other mind-blowing ment. perkins caufield & byers Silicon Valley centre of gravity

wes edens, Before the term “convergence” came into vogue, Wes Edens, chief executive of New fortress investment group York-based Fortress Investment Group, was building an investment platform that The Fortress opener would span private equity, real estate, lending and even aircraft investment. His firm is the classic tight-lipped investment partnership, and yet it recently went public on the New York Stock Exchange in a move that prompted dozens of GPs to ponder similar listings. They’ll have to show similarly explosive growth – already in the past year Fortress’ AUM has increased 72 percent to $36 billion. At 45, Edens and his firm appear to have arrived at the future of private equity well ahead of rivals.

john ehara, unison capital Japan’s buyout pioneer Founded in 1998, Unison Capital became one of the “big three” independent Japanese fund managers alongside Advantage Partners and MKS Partners. While the history of the other two firms pre-dates Unison, markets sources name Unison co-founder John Ehara as the founding father of Japan’s buyout industry. Says one: “He was the first to begin applying the Western buyout model to Japan – a true pioneer.” A former partner at Goldman Sachs (one of the youngest in the firm’s history), Ehara became the voice of Japanese private equity in 2005 when elected the first chairman of new industry body the Japanese Private Equity Association.

stephen feinberg, cerberus capital management Rustbelt rejuvenator

At press time, Feinberg’s Cerberus Capital $7.4 billion Chrysler investment includes over its investors with strong returns and Management had been selected as the a quote not from Feinberg but from new a talent for deals with hair on them – new majority owner of Chrysler, the Cerberus chairman, John Snow, the for- pension liabilities, hulking industrial major US car manufacturer that in the mer US treasury secretary. Although the assets, organised labour. Behind closed 1980s became a symbol of renewed firm has investments in differing sectors doors, Feinberg has proven a master of American industrial vigour. Chrysler has around the world, its highest profile numbers but also good at deflecting again fallen on hard times, along with the moves have involved the auto industry. Cerberus’ rather scary profile. In an rest of the US auto industry, but this time Feinberg reportedly talks up his blue- announcement that caught many in the the man with the plan is not the very pub- collar background in negotiations with private equity industry by surprise, the lic Lee Iacocca but the intensely private these companies. During negotiations United Auto Workers came out in support Stephen Feinberg, head of Cerberus. The with General Motors for financing divi- of the Cerberus investment. A happy Cerberus website reveals no information sion GMAC, Feinberg reportedly ending for Chrysler will dramatically about Feinberg or any other Cerberus expressed his interest in the deal as being improve private equity’s public image professional. The announcement of the partly patriotic. Cerberus has clearly won around the world. june 2007 private equity international page 7

paul fletcher, Many private equity firms nowadays actis engage in investing in exotic locations. Private equity explorer But few do it in as globe-spanning a fash- ion as the former UK government affili- Bangalore, Beijing, Cairo, Casablanca, ate. Following an MBO led by senior Delhi, Johannesburg, Karachi, Kuala partner Paul Fletcher in 2004, Actis has Lumpur, Lagos, Mumbai, Nairobi, Sao been building up its asset base to $3.4 Paolo and Singapore: Actis, whose ori- billion. Emerging markets private equity gins date back to 1984, calls itself an may be a much more crowded space than emerging private equity market special- even a few years ago. But Actis is still ist, and it has the office network to leading from the front when it comes to prove it. A London-based dedicated exporting private equity investment Africa team complements the line-up. expertise to less developed economies.

christopher flowers, jc flowers & co The financial whiz

Like Tim Collins, Christopher Flowers’ career as a private equity investor was super-sized by the success of Japan’s Shinsei Bank. Flowers was co-architect of that deal, and of several other innovative deals since then sponsored by his firm, JC Flowers & Co. The former Goldman Sachs banker has reportedly finished raising a whopping $7 billion for his second private equity fund. One of the strengths of the Flowers net- work is that many of the firm’s limited part- ners are also deal referrers and co-investors. The list of Flowers’ breakthroughs is impressive. Before recently agreeing to pur- chase student loan provider Sallie Mae for $25 billion, JC Flowers was the first finan- cial sponsor to buy a stake in a German government-owned Landesbank. The firm’s bids for the assets out of bankrupt broker-dealer Refco and struggling Bisys highlighted the fact that Flowers is a true insider to the global financial industry.

From his perch as head of merchant richard friedman, banking within Goldman Sachs, goldman sachs Richard Friedman oversees one of the Merchant banker to the world world’s largest private equity plat- forms. The firm’s Principal Investment Area recently closed a $20 billion fund; it has 120 investment professionals. If you add in the mezzanine debt, real estate and urban investment that fall under Friedman’s merchant banking umbrella, it is hard to find someone who oversees a larger pool of private investment capital. Goldman discourages a star system, and so Friedman isn’t nearly as visible as are the heads of the only two or three private equity firms larger than Goldman’s. He joined the firm in 1981, was named partner in 1990 and entered the partnership pool in 1996. Friedman, who lives in New York, is the chairman of the firm’s investment committee. Goldman’s private equity reach extends around the world, most notably in Asia, where managing director Henry Cornell oversees activities. page 8 private equity international june 2007

Established in 1996 by three former Confirmation of the esteem in which the Goldman Sachs bankers – Alfred (Fredi) firm is held arrived in March last year by Gantner, Marcel Erni and Urs way of a highly successful e1.4 billion Wietlisbach – Swiss alternative asset flotation – the first public listing of a pri- manager Partners Group has grown from vate equity funds of funds manager. humble roots in the picturesque lakeside Among the chief beneficiaries were the town of Zug to become a giant of the pri- co-founders, who between them retain a vate equity industry. The firm has rolled 45 percent stake in the business. Speak to out innovative investment programmes industry peers and you will find all three with breathtaking speed - never failing to held in high regard, but Gantner is alfred gantner, capture the imagination of investors – viewed by many as the dynamic, forceful partners Group while expanding its physical presence to yin to Erni and Wietlisbach’s understat- Swiss heft London, New York and Singapore. ed, cerebral yang.

From the United Brotherhood of Carpenters to the California Public Employees mario giannini, Retirement System, private equity investment and advisory giant Hamilton Lane has hamilton lane amassed a client list as notable for its diversity as its sheer length (125 clients in total, Supreme strategist representing $59 billion of advisory assets, according to the firm’s website). Piloting the firm’s strategic course is chief executive Mario Giannini. One of his more notable accomplishments in this capacity was selling 40 percent of Hamilton Lane’s shares to a group that included the investment arm of Bill Gates, at the back end of 2003 in a move designed to secure the firm’s long-term future.

mounir guen, mvision Fundraiser extraordinaire

Mounir (“Moose”) Guen has assembled an impressive global network of clients since founding London-based placement agent MVision in 2001. To name just a few: European buyout funds EQT and Mercapital, European venture firm Sofinnova Partners, and emerging markets clients Brait in South Africa and CHAMP Private Equity in Australia. His approach appears to involve establishing a presence in every country and every segment. Says one London-based GP: “Moose is the hottest placement agent out there. GPs love him because he appears to raise funds effortlessly.”

euan hamilton, royal bank of scotland Debt dynamo

As head of the operation, Hamilton has Shinsei Bank. Hamilton leads a deep been fundamental to the global expan- bench of experienced industry pros pro- sion of Royal Bank of Scotland Leveraged viding innovative and diverse financing Finance. The bank, pre-eminent in the solutions. One London-based GP com- provision of debt to European buyouts, ments: “RBS is widely considered to be has recently established new footholds in the top provider of leveraged finance to the US and Japan. The Tokyo office the private equity market. It has financed opened in August 2005 with the recruit- some very high profile deals and the team ment of an eight-strong team from that Hamilton leads is first class.” june 2007 private equity international page 9

guy hands, terra firma Full of surprises

A pioneer of securitised private equity Odeon and UCI cinema chain in 2004 deals in Europe, Hands is one of the and of wine retailer Threshers in 2003. most high-profile and celebrated play- He previously worked at Goldman ers in the market. One London-based Sachs for 12 years and in 1994 founded banker remarks: “Hands is something a private equity business at Nomura of an enfant terrible in the private equi- International, known as Nomura ty world – he likes to do things a bit dif- Principal Finance. He subsequently led ferently.” Terra Firma, the London- the spin-out of this business, which based buyout firm he founded in 2002, became Terra Firma in 2002. Terra recently competed in the £11 billion Firma recently bought Pegasus Aviation battle for Alliance Boots. It ultimately Finance for $5.2 billion from Oaktree lost out to a KKR-led consortium but Capital. This was the firm’s second its participation underlined Hands’ biggest deal to date behind the $8.8 bil- audaciousness. His deals at Terra Firma lion buyout of German property busi- have included the acquisition of the ness Viterra in May 2005.

Try getting hold of busy David Jackson – no easy task by any means. A former david jackson, Lehman Brothers banker in New York City, Jackson made a career-transforming istithmar move when he went to Dubai as CEO of Istithmar, the globally active merchant Dynamic, opportunistic banking arm of Dubai World. Jackson’s approach is thoroughly opportunistic: an investment in Wall Street start-up Perella Weinberg, a commitment to Spice Air India, and big-ticket real estate deals in London and New York are all part of the Istithmar portfolio. The group sources investments both east and west of its Dubai home, and is the only Middle Eastern principal investment house to have opened an office in China. Istithmar, like Abraaj Capital and DIC, is a key catalyst of Middle Eastern capital into international private markets. The man who has moved the business into this position is David Jackson.

conni jonsson, Under Jonsson’s charismatic stewardship, eqt Sweden’s EQT has developed a multi-strat- Nordic light egy private equity asset management busi- ness that has arguably seen it come to resemble more closely the alternative asset powerhouses of the US, such as Blackstone and Carlyle, than any of its peers in Europe. Jonsson co-founded EQT in 1994 and has since then overseen the firm’s expansion both strategically, through dif- ferent product lines, and geographically, through a presence in Asia. The firm now manages e10.5 billion in different types of funds out of its network of offices in northern Europe and Hong Kong. EQT’s partners recently bought out a 36 percent stake in its management company for e31.2 million from Investor, the investment vehicle of Sweden’s Wallenberg family and the biggest investor in EQT’s funds. page 10 private equity international june 2007

vinod khosla, khosla ventures From Sun to ethanol

It’s hard to find someone still actively investing in Silicon Valley with more impeccable credentials than Vinod Khosla. He was a co-founder of Sun Microsystems, a partner in dominant venture firm Kleiner Perkins Caufield & Byers and now, as head of Khosla Ventures, a major proponent of alter- native energy, having personally invest- ed heavily in biofuel companies, many of them based on ethanol technologies. In his current role, Khosla’s influence on the industry is based much more on the attention he is bringing biofuels than on the raw dollars he has spent. Khosla’s impact can already be seen - within the venture capital investment market, energy investments levels have surged. In an interview with environ- mental blog Grist, Khosla recently had this to say about his current investment strategy: “When I was at Kleiner Perkins in 2001 ... I was looking at tionary electricity source, hydrogen believes his targeted sector will benefit what you might call the ‘traditional’ fuel cells made little sense for cars. society in other ways. On US oil venture energy sectors – fuel cells, That’s when I started reading every- dependence, he has bluntly asked: “Do hydrogen, all that. I began to realize thing I could get my hands on about we want to feed farmers or Mid-East that while fuel cells made sense as a sta- petroleum alternatives.” Khosla also terrorists? I mean, give me a break.”

If his gig at Citi doesn’t work out, Michael Klein might consider becoming an event michael klein, planner. His annual, invitation-only private equity conference in Miami is widely citi regarded as the premier gathering in the industry, not because there’s sunshine and Sees around corners golf, but because the content is so compelling. On centre stage is Klein’s own analy- sis of the global private equity market – a slideshow presentation that has usually been a veritable preview of coming trends. Klein, the co-president of Citi Markets & Banking and vice chairman of Citibank International, built the firm’s financial sponsor business into the powerhouse it is today. From this vantage point, Klein, who came to Citi by way of Salomon Brothers, has correctly predicted the further growth and institutionalisation of private equity. Says one admirer of Klein: “He’s proven to be a visionary and has seen trends emerge before others.”

chris kojima, goldman sachs private equity Group Vintage visionary With some 100 people on the team, erful investment bank. Joint co-heads series stands out as a provider of cre- offices in New York, London, San Chris Kojima, Charles Baillie and ative capital in complex secondary situ- Francisco, Tokyo, Hong Kong and Michael Miele are in charge. PEG is a ations, and with GS Vintage IV just Bangalore, and $24 billion under man- bellwether LP, investing in funds glob- having closed on $3 billion of fresh sec- agement, the Private Equity Group ally on a primary and secondary basis. ondary money, Kojima and his col- (PEG) at Goldman Sachs has grown Its work in the latter field, where leagues have plenty of dry powder to into the heavyweight outfit you’d Kojima specialises, has been particular- work with. expect to be affiliated with the all-pow- ly impressive. PEG’s Vintage Fund june 2007 private equity international page 11

Writers assessing the storied career of by co-opting potential adversaries. In the Henry Kravis can’t resist bringing back recently announced acquisition of the debt-drunk days of the 1980s when Harman International, an audio prod- Kravis was to LBOs what Ronald ucts company, KKR and its co-investor, Reagan was to the White House. But a Goldman Sachs, have offered current look at what Kohlberg Kravis Roberts shareholders the opportunity to has done since two heirs apparent - exchange their shares for shares in the Edward Gilhuly and Scott Stuart – left in privatised Harman. This brilliant deal 2005 shows that Kravis is not only still feature, if it works, may have the effect firmly at the helm of the firm, but also of neutralising critics who claim buyout among the most innovative and ambi- deals don’t allow the public to enjoy in tious investors in the world. Far from the growth of a good company once it being consumed by looking for a per- has been taken private. As the person sonal exit strategy, Kravis is unceasing in who did most to shape the image of pri- his desire to see KKR win with its vate equity in its early years, it is notable henry kravis, kohlberg founders still on board. Setting aside the that the final decade of Kravis’ career kravis roberts expansion to Asia, the Euronext listing, may see him again reshape the industry Still on top and expanding deal sizes, one recent deal as it enters the financial mainstream, highlights Kravis’ strategy for winning with KKR as the dominant brand.

Tom Kubr landed in private equity after thomas kubr, an earlier career in aeronautical engineer- capital dynamics ing, and the private equity investment Not just a rocket scientist advisory and asset management firm he started in the late 1990s has duly taken off. Today, Capital Dynamics is a force in the industry, in part because it channels billions of dollars into partnerships worldwide. The firm looks after more than $20 billion of private equity capital, the Washington State pen- sion fund is just one of many significant clients. In addition, ever since taking an early stance on the use of securitisation technology in private equity secondaries, Kubr and Co have also enjoyed a reputation as serial innovators and thought leaders in the asset class. And with the well-timed acquisition of UK fund investor Westport and expansion into North America and Asia, Kubr’s entrepre- neurial acumen and ambition have also been on display. There is more to come from Capital Dynamics.

If you want to know what the weather jim leech, in Toronto is like, give Jim Leech a call. teachers’ private capital He updates his voicemail message daily Toronto traveler with this information. But if you want a read on today’s public pension investment market, don’t use the Ontario Teachers’ Pension Plan as a model – it’s far too advanced to be representative. Low- key Leech, the head of a private affiliate of the pension called Teachers’ Private Capital, oversees a direct investment programme that has become a major player around the world. The $95 billion pension is the sole provider of capital to Leech’s team. Over the past five years, Teachers’ has deployed more than $10 billion in capital in direct investments, often alongside some of the biggest firms in the world, like KKR. Teachers’ itself ranks 20th on the PEI 50, this magazine’s ranking of pri- vate equity firms by size. Leech has a background in corporate leadership and entrepreneurship, not civil service. Following stints at Unicorp Canada, Union Energy and several tech start-ups, Leech joined Ontario Teachers’ in 2001. He is constantly out of Canada scouting for deals, including in the Middle East and South Africa. The firm just opened its first non-Canadian office, in London. page 12 private equity international june 2007

william maltby, Having joined Deutsche Bank in 1996, March last year – a move that saw deutsche bank Maltby spearheaded the creation of the Maltby remain at the helm. His team has Sponsor supremo first financial sponsors team within a advised and provided debt for many European investment bank. The team high-profile buyouts, including private has subsequently mined a rich fee-gener- equity consortium Nordic Telephone ating seam and become a leading adviser Company’s e10 billion buyout of Danish to major European buyouts. It is also telecoms business TDC and Apax now a leading lender, following the merg- Partners’ and TPG’s e1.1 billion acquisi- er of the financial sponsors team with tion of a majority stake in Greek mobile Deutsche’s leveraged finance operation in telecoms company TIM Hellas.

One of the most successful venture capitalists of all time is “very British. . . smart, very michael moritz, well-read, a very arch personality”, according to a recent profile in The Guardian. The sequoia capital article is referring to Michael Moritz, the super-connected Silicon Valley investor and co- Silicon Welshman founder of Sequoia Capital. Although you’ll likely never get into one of Moritz’ funds, you are probably a frequent user of his former portfolio companies – Yahoo, Google, and PayPal, to name a few. A native of Wales, Moritz makes Welshmen everywhere proud and envious. A former correspondent for Time magazine, he gives reporters hope that they too can make the transition to tech billionaires.

Private equity in the Middle East is an arif naqvi, industry under construction, and Arif abraaj capital Naqvi is one of its chief architects. Industry builder Running his rapidly growing invest- ment firm Abraaj Capital from its Dubai base, Pakistan-born Naqvi stands out from the region’s private equity crowd not just as a shrewd financial operator, but also as an elo- quent spokesman and ambassador for his chosen industry. Naqvi sees vast potential for alternative investment across a territory stretching from Morocco all the way across the Indian sub-continent. If, as seems likely, pri- vate equity succeeds in these parts, Naqvi’s contribution will have been significant.

andy o’brien, jpmorgan Leverage rainmaker The current buyout boom wouldn’t be syndications in North America. With the possible without debt financing, and debt size of buyout deals growing ever larger, financing in the US and Europe is domi- there’s been a huge volume of syndicating nated by JPMorgan. Although the leg- of late, and O’Brien has been directing endary Jimmy “Fee” Lee is often high- much of it, collecting fees for his firm in lighted as the debt rainmaker at the process. O’Brien came to JPMorgan JPMorgan, many credit the firm’s ongoing by way of Manufacturers Hanover Trust, leverage finance dominance to Andy which he joined in 1985. The firm was O’Brien, JPMorgan Securities’ co-head of later merged into the growing JP Morgan leveraged finance as well as head of loan Chase empire. june 2007 private equity international page 13

teh kok peng, The Government of Singapore managed by the likes of 3i, Candover gic Investment Corporation (GIC) has and . GIC has also Singapore substance become one of the world’s most sub- been involved in plenty of high-profile stantial limited partners. At the helm of buyouts as a direct investor. For exam- the operation sits Teh Kok Peng, a for- ple, it was part of the consortium led mer Monetary Authority of Singapore by Goldman Sachs that bought and World Bank veteran. Founded in Associated British Port Holdings for 1981, GIC is one of the biggest institu- £2.5 billion and of the Ferrovial-led tional investors in the world with more consortium that bought BAA, owner of than $100 billion under management. London’s Heathrow airport, for It has invested in private equity funds £10 billion.

Thomas Pütter of Allianz in Munich is thomas pütter, Germany’s most senior private equity allianz investor. Charming and armed with the AAA diplomat natural authority of a high-ranking diplo- mat, he has been an eloquent and effective spokesman for the asset class for almost a decade. In April, he handed over the chair- manship of the German Venture Capital Association (BVK) and left its board after seven years of service. In his day job, Pütter runs Allianz Capital Partners, the German insurance giant’s European LBO business that has committed billions of Allianz balance sheet money to more than 20 large investments (he is fond of saying that the word “deal” doesn’t do justice to the long-term value cre- ation process that private equity is all about). He is also managing director of Allianz Alternative Asset Holdings (AAA Holding), which was created in 2005 to integrate the group’s wide-ranging private equity, infrastructure, real estate and alternative energy investment activities. Pütter’s is a calm and measured voice in the heated debate that is shaping Germany’s economic future, and he has access to all the protagonists. As time goes on, we expect him to become even more influential.

renuka ramnath, icici venture India’s big hitter

Under Ramnath’s leadership, Mumbai- neil rimer, based ICICI Venture recently raised an index ventures $810 million fund – the biggest private Euro VC confidence restorer equity fund raised by a domestic GP to Rimer has overseen some ground- date. Ramnath has been at ICICI, India’s breaking European venture successes second-biggest bank, since 1986, and was – not least the $4.1 billion sale of appointed managing director and CEO of internet telecoms company Skype to the bank’s internet business in 2000. She eBay in October 2005. The deal became managing director and CEO of reportedly generated $300 million in ICICI Venture in 2001 after the merger of profits for Index Ventures, the the bank’s internet and venture teams. Geneva-based firm that Rimer co- Since then, she has taken up position in the founded in 1996. Index recently led a vanguard of Indian private equity’s for- $5 million financing round in social ward march. networking site Netlog and closed its fourth fund on e350 million despite uncertain fundraising prospects for European venture capital generally. Says one GP: “With success stories like Skype and Betfair, Index is putting European VC back on the map for LPs whose confidence was shattered after the dotcom crash.” page 14 private equity international june 2007

john robertshaw, The Private Fund Group at Credit with a creative approach to manager credit suisse Suisse is a highly prolific private equity positioning and counts Jeremy Coller, Capital mobiliser fund placement platform, with a gen- Chris Flowers and KY Tang in Hong uinely global footprint. Four people set Kong among its most intriguing clients. its strategy and pace: co-heads John With the three New Yorkers steering Robertshaw and Ray Cosman along the US part of the business and with Tony Bowe in New York, and Kawkabani making rain international- Remy Kawkabani in London. The ly, the bank’s lead in fund placement group combines distributional power work will be hard to catch.

Ivan Ross, a former tax lawyer and now head of the new products group at Goldman ivan ross, Sachs, is influential in private equity, but not really an industry veteran. Instead, he goldman sachs has been the architect of several capital markets innovations that are furthering the Public private equity architect blur between public and private markets. He was a key driver behind the envy-induc- ing IPO of KKR Private Equity Investors, the Euronext listing that raised a permanent pool of $5 billion for Kohlberg Kravis Roberts. Ross, who became a managing director in 1999 and joined Goldman’s lucrative partnership pool in 2002, himself has stoked envy for the attention (and fees) he drew in structuring the KKR Euronext deal (two other investment banks – Citigroup and Morgan Stanley – worked on the deal). KPE (the entity’s ticker symbol) involves a highly complex Guernsey domicile, Amsterdam listing and New York administration. Ross was also involved in the Fortress Investment IPO. On the fixed-income side, Ross drove a deal with Citadel that saw the hedge fund giant be the first to sell unsecured distributed debt out of its fund. The next time you see a private investment firm doing something interesting with itself, Ross is likely behind it.

david rubenstein, carlyle group International herald

Carlyle co-founder David Rubenstein may hold the world record for the per- son most frequently introduced as “a man who needs no introduction”. Given his Herculean speaking sched- ule, he is indeed introduced hundreds of times per year to diverse audiences. As such, he really does need less introducing than many of the other more hidden private market titans who benefit from Rubenstein’s efforts. As one of three Carlyle co-founders, Rubenstein is influential not necessari- ly for any deals he has structured, but for the firm he has built, branded and promoted. In the process, he has been a chief herald of something called the private equity industry, only a few years ago a concept that was met with head-scratching outside of private equity and skepticism within. At press time, the US House of Representatives lobbying group that was largely “He’s the nicest billionaire you’ll ever was preparing to debate the effects of Rubenstein’s brainchild. Rubenstein is meet.” In other words, the perfect can- this industry’s activities on workers and described by those who know him as a didate to be the face of private equity, US companies. Called as a witness was genuinely decent, even humble person. now that the public demands to see a Doug Lowenstein, the head of a new As one endowment executive puts it: face. june 2007 private equity international page 15

stephen schwarzman, blackstone group Gathering no moss

Always bet on Blackstone. The firm has moved from success to success largely because its chairman and chief executive Stephen Schwarzman demands nothing less. The strong, early track record of Blackstone’s private equity business allowed Schwarzman to attract a steady stream of extremely talented people to his firm. The lasting institution that Schwarzman built has meant that it con- tinued to thrive even as some of these talented people struck out on their own. leaders of the private equity industry, $3billion from the Chinese government; It’s the kind of place Schwarzman says he Schwarzman seems to be the one having Schwarzman at his 60th birthday party wished Lehman Brothers were more like the most fun. Schwarzman sightings dancing to Rod Stewart. Who wouldn’t shortly before he quit to form Blackstone have become a staple of Wall Street a want to work with, own shares in, or be with Peter Peterson in 1985. With an nd society news coverage. There’s acquired by a guy who boogies to “Do IPO in the works, now the public will get Schwarzman at the Kennedy Center seat- Ya Think I’m Sexy” one night and then a chance to share in a firm that is seen as ed next to Steven Spielberg; Schwarzman extracts value from history’s biggest LBO the financial services franchise of the at a charity gala; Schwarzman on the the next morning? future. Of the several men identified as Charlie Rose Show; Schwarzman getting xxxxxxxxxxxxxxxxx dominique senequier, axa private equity French empress

With e10 billion under management and counting, Paris-based AXA Private Equity is one of Europe’s leading providers of alternative capital. As part of French insurance giant AXA, it sits right at the heart of corporate France, and as private equity steps up its involvement in the modernisation of French business, the group’s domestic influence is bound to increase even more – both as an LP and a GP. At the same time, expect the group’s global activities to accelerate as well. Dominique Senequier, chief executive, has spent the past 11 years building the platform. “I know of no other insurance company that has come this far in private equity,” says a former employee. With Senequier firm- ly in control of her business, AXA Private Equity is bound to go even further.

leon shahinian, california public employees’ retirement system Go-to guy

Given the size of its private equity programme, when the California Public Employees’ Retirement System shifts, the global private equity boat bobs dramatically. Overseeing some $35 billion in active commitments is Leon Shahinian, a native of Sacramento, where CalPERS is based, and a man at the centre of many of the most vexing issues in mega private equity. Among these – how best to remain exposed to smaller managers despite CalPERS’ need to deploy gigantic cheques? How best to leverage private equity expertise in targeting infrastructure investments? How best to be a great LP while remaining transparent? How best to optimise a sprawling portfolio? Shahinian and team have thought hard about these and many more issues. And did we mention the gigantic cheques? page 16 private equity international june 2007

david swensen, yale university Portfolio craftsman

Five years after it was first released, David Swensen’s popular book, Pioneering Portfolio Management, is about to be re-released in an updated version. Clearly, Swensen has sold a lot of books, but more importantly for the private equity and venture capital industries, he has by example sold the concept of having a large allocation to alternatives. That said, many of the institutions attempting to recreate the magic that Swensen has wrought as head of the Yale University endowment will end up disappointed [public and private] companies react in cludes: “[T]he pool of more than 540 when they find their own GPs haven’t identical fashion to fundamental drivers completed transactions failed to generate performed as well as Swensen’s GPs. The of corporate value, the less volatile private returns even close to sufficient to compen- groups would do well to read p. 226 of entity boasts superior risk characteristics, sate for risk.” This isn’t what LPs new to Swensen’s book, which dashes the notion based solely on mismeasurement of the the asset class want to hear. But it’s likely that private equity GPs tend to outper- company’s true underlying volatility.” He what they’ll discover one or two decades form the public markets. “Although both notes his own study of buyout deals con- from now.

ky tang, recently raised a new $2.8 billion fund – agement and offices in Hong Kong, Seoul, affinity equity partners fully four times bigger than its previous Singapore and Sydney. The firm recently Pan-Asian empire builder $700 million fund that closed in October bought Jaya, a Singapore-listed oil and As it seeks to become the pre-eminent 2004. At the helm is the charismatic Tang, gas services company, for $385 million, homegrown pan-Asian private equity previously chairman of UBS Capital Asia, and is currently attempting a $350 million fund, Hong Kong-based Affinity Equity who co-founded the UBS spin-out in hostile takeover of Australia-listed retailer Partners is making impressive strides. It 2002. Affinity has $4 billion under man- Colorado Group.

A hiking enthusiast, SAIF Partners man- andy yan, aging partner Andy Yan might have saif partners viewed the Chinese China’s growth guru investor’s most recent fundraising as a mere stroll in the park. Launched in November 2006, the fund was more than halfway to its target in January this year, before eventually closing on $1.1 billion in April. The fund drew commitments from a host of blue-chip institutions includ- ing AlpInvest Partners and Harvard University. Thanks to a string of lucrative exits from prior funds, SAIF is viewed as being in the Chinese mid-market vanguard – arguably rivalled only by the lower-profile CDH China. A former managing director at Emerging Markets Partnership, Yan deserves to take much of the credit for his firm’s rapid ascension.

brooks zug, Over the years, Zug has eked out a repu- rently investing a $4.4 billion fund for harbourvest partners tation as one of the most versatile and per- investments inside the US and a $2.8 bil- pioneer ceptive investors in the market. He co- lion fund for investments outside. Zug is founded Hancock Venture Partners in an advisory committee member of funds 1982 and is now senior managing director managed by Advent International, of the subsequently re-named Doughty Hanson, Permira and numerous HarbourVest Partners. HarbourVest is other funds. One Paris-based GP com- one of the world’s biggest private equity ments: “Zug is one of the sharpest investors, with fund of funds, secondary investors out there – he is decisive, intu- and direct investment activities. It is cur- itive and frighteningly intelligent.”