DOCSLIB.ORG

Sample Pages 1.Indd

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Sample Pages 1.Indd The 2009 Preqin Fund of Funds Review - Sample Pages The 2009 Preqin Private Equity Fund of Funds Review - Sample Pages © 2008 Preqin Ltd 1 The 2009 Preqin Fund of Funds Review - Sample Pages Contents 1. Executive Summary 7 11. Fund of Funds as Investors 121 - Regional breakdown of fund of funds managers, attitudes to fi rst-time funds, 2. Data Sources 13 attitudes to emerging markets, allocations to fund types, allocations to secondary purchases and co-investments 3. Review of Fundraising Market 17 12. Fund of Funds as Advisors 131 - Historic fundraising, market share, funds closed by geography, funds closed by GP location, funds closed by fund size, average fund size evolution, - Overview of advisory services offered, proportion of managers offering advisory placement agent use, fi rst-time funds services, geographic breakdown, advisory clients of the largest managers, league table of the top fund of funds providing advisory services 4. Listings of Funds Closed: 2007 - 2008 27 13. Profi les for 230 Leading Fund of Funds Managers 139 5. Review of Funds Currently in the Market 51 14. Analysis of Investors in Fund of Funds 435 - Growth in fundraising market over time, funds raising by geography, funds raising by GP location, funds raising by fund size, biggest funds on the road, - Reasons for investing in fund of funds examination, investor sizes, investor placement agent use, fi rst-time funds experience, make-up of investors in closed funds, investor base by GP location, investor types, returning investors, investor appetite going forwards 6. Listings of Funds Currently Raising 63 15. Investors to Watch 449 7. Fundraising Outlook 79 - Most important 25 institutional investors to watch in 2009 - Fund of funds coming to market in the next 12 months 16. Profi les for 250 Key Investors in Fund of Funds 459 8. Fund Terms and Conditions Analysis 83 17. Index 557 - Typical management fees, reductions for larger LPs, reductions after investment period, carry, preferred return, GP commitments - Fund of funds managers - LP investors 9. Fund Terms Listings 95 - Figure index - Key terms and conditions for disguised fund of funds 18. Other Publications and Services 575 10. Review of the Performance of Fund of Funds 107 - Other Preqin products - Net IRR dispersion, median, top and bottom IRRs, net return multiples, DPI, RVPI and TVPI, cash fl ows, fund selection performance, top managers, synthetic IRR benchmark analysis, fund of funds vs. other PE sectors, experience effect relationship between predecessor and successor fund quartiles, risk and return by strategy © 2008 Preqin Ltd 2 1. Executive Summary - Sample Pages Fund of funds have traditionally been used by access to geographies and sectors where they might Executive Summary investors in private equity in two principal ways. lack expertise, and can be used as a launching pad They are fi rstly used by smaller investors to provide to test out new areas before direct investments are a means of gaining access to a diversifi ed pool of made. Fund of funds have historically served an important investments that would be impossible to assemble function in the private equity world. For investors without considerable expertise, resource and high Fundraising for the sector reached a peak in 2007, they provide instant access to a diversifi ed portfolio levels of available capital. As Fig. A shows, over 50% with a total of $55 billion being raised by 138 vehicles of investments without the need for a complex and of investors currently investing in fund of funds have achieving a fi nal close. It was also a record year for costly private equity investment program, while for made 10 or less fund investments historically. Fig. overall private equity fundraising, with a total of $633 fund managers they act as a vital source of capital – A also shows that a signifi cant minority of investors billion being collected by the industry as a whole. especially for those without a long track record and in fund of funds are very experienced, with over As seen in Fig. B, this represents the continuation those focusing on niche industries and regions. 100 fund investments made historically. These of a period of sustained growth the fund of funds experienced investors use fund of funds to gain industry. Fig. A: Split of Investors in Fund of Funds by Previous Private Equity Fig. B: Funds of Funds Fundraising, 2003 - Nov 2008 Investment Experience % of Fund of Funds Investor No. of Funds in Portfolio © 2008 Preqin Ltd 3 1. Executive Summary - Sample Pages In 2008, the credit crunch has hit hard, and throughout fact that there are now more fund managers than new investments being made. With private equity the year, and especially towards the end of the ever on the road with new fund offerings – a total being an entirely new asset class for many of those year, fundraising for the private equity industry has of 196 funds seeking an aggregate $67 billion. The previously considering fund of funds, the recent slowed dramatically. Fund of funds has been one of majority of these fi rms would have hit the road before turmoil in fi nancial markets has led to priorities being the hardest hit sectors in the industry, and since the the current fi nancial crisis hit with full force, and shifted, and reassessment of current portfolio values Lehman bankruptcy of September 15th and the end although we have yet to see managers pulling out is postponing commitments to new fund of funds of November 2008 there were only 6 fund of funds of the market, we are already seeing reductions in vehicles. achieving a fi nal close, raising just $1.4 billion. This target fund sizes, and extensions in fundraising. represents an 87.5% reduction in fundraising when In addition, fund of funds tend to have the largest compared with the same period in 2007 when 31 It is often the case that newer investors in private investor base of all fund types, typically being made vehicles raised an aggregate $11.2 billion. Typically equity will initially gain access through fund of funds, up of many small commitments. With conditions December represents a strong month for fund of before moving on to invest a larger proportion of their as they are in 2008, it can be very challenging to funds fundraising, with many managers seeking to allocation into direct investments as they become coordinate the completion of fund commitments close their vehicles before the end of the year – it is more knowledgeable and experienced in the asset agreements with so many LPs facing uncertainty with not unusual to see 15% – 20% of annual fundraising class. They are then replaced by additional new regards to their investment portfolios. coming in this month alone. In 2008 it is likely that investors gaining access to private equity for the fi rst fundraising will pick up somewhat during December time, completing this churn of activity in the asset Light at the end of the tunnel in comparison with the barren period between class. September and November, but with many investors Conditions are clearly very tough for fund of funds currently reluctant to commit to new vehicles, we One of the reasons behind the recent decline managers at present, but there is encouraging would not expect to see a dramatic recovery. in fundraising is that many investors are not in news for the industry, and evidence that the recent a position to be making new investments in the drop in fundraising is a temporary situation that will Compounding the challenging conditions for fund current environment. The decline in value of other be overcome in time. The evidence is still showing managers seeking investors for new vehicles is the areas of investors’ portfolios has led to a halt in that fund of funds are performing well and represent © 2008 Preqin Ltd 4 1. Executive Summary - Sample Pages a viable investment choice for both new and Fig. C : Split of Underlying Fund Investments made by Fund of Funds Managers experienced LPs. by Fund Quartile Ranking Although there has been a drop off in fundraising, there is evidence that fund of funds are still doing an excellent job in terms of fund selection. Fig. C shows how successful fund managers have been in selecting the top performing funds. This analysis is based upon information on over 7,366 investments made by fund of funds managers, including 3,206 underlying fund investments made by 94 fund managers for which we have performance quartile information on at least 10 underlying investments. Nearly two-thirds (61%) of the funds invested in by these fund of funds managers were either fi rst- or second-quartile, while investing in a fund of funds they are able to achieve partnerships - fund of funds of vintage 2003 need to only 14% were bottom quartile. a diversifi ed portfolio including exposure to the most achieve IRRs above 24% to be ranked top quartile in demand funds. while those of vintages 2001 to 2002 require IRRs in This positive skew towards the upper quartiles is a excess of 19%. signifi cant achievement, and confi rms that fund of The median IRR performance of fund of funds has funds managers possess strong selection skills. It been good on average, with median IRRs currently Clearly fund of funds remain a viable and popular is important to note that many of the top performing fl uctuating around 5% to 8% for fund of funds of choice for both new and experienced investors, and funds can be the most oversubscribed and therefore vintages 1997 to 2000, increasing from 12% to with such strong historical performance, it is certain hardest to gain access to.
Load more

Recommended publications
  • Leading Private Equity Firms That Invest In
    www.com The Healthcare Investor www.mcguirewoods.com December 31, 2016 Leading Private Equity Firms That Invest in Healthcare (Part IV) This column is the hfinal segment of a multi-part series published in 2016 highlighting some of the more active private equity investors in the healthcare and life science space. These investors are primarily funds that focus largely on growth-stage, buyout and platform funding transactions. They are listed in no particular order, and the first three segments in the series are available here: part one, part two, and part three. Note: To recommend a firm to be profiled in a future column or request a change to a profile, please email [email protected] or fill out the form here. Goldman Sachs Capital Partners — Founded in 1986, Goldman Sachs Capital Partners is the PE arm of Goldman Sachs. Based in New York, the firm is focused on leveraged buyout and growth capital investments. Notable healthcare investments include Biomet, which Goldman Sachs Capital Partners and other investors acquired in 2007. Biomet, now Zimmer Biomet, designs, manufactures and markets products used primarily by orthopedic medical specialists in surgical and non-surgical therapy. Zimmer acquired Biomet from Goldman Sachs Capital Partners and the other investors in 2014. More information about Goldman Sachs is available at www.goldmansachs.com. Peterson Partners — Founded in 2003, Peterson Private Equity (PPE) is a middle-market equity investor that is best known as a flexible growth investor. Based in Salt Lake City, the firm’s initial investments range from $2 million to $20 million across a broad range of asset classes and geographies.
    [Show full text]
  • Chicago's Venture Capital and Private-Equity Firms
    FOCUS: PERSONAL FINANCE CRAIN’S CHICAGO BUSINESS • FEBRUARY 6, 2006 31 CRAIN’S LIST CHICAGO’S VENTURE CAPITAL AND PRIVATE-EQUITY FIRMS Alphabetical listing1 2005 investments 2005 capital Amount 2004 capital 2004 amount Company/phone/Web address Top executive (in millions) Source(s) of funding Chicago Out of area (in millions) Type(s) of investments ADAMS STREET PARTNERS LLC T. Bondurant French $10,700.0 Global public and private pensions, foun- 0 15 $45.0 Diverse $9,400.0 (312) 553-7890; www.adamsstreetpartners.com CEO, CFA, CIO dations, endowments, individual families $41.7 LARGEST FUND ALLIED CAPITAL CORP.2 William L. Walton $3,446.5 Public equity and private debt capital NA NA $1,328.2 Middle-market companies with revenue NEW! (312) 828-0330; www.alliedcapital.com Chairman, CEO $3,261.0 1,524.5 between $50 million and $500 million ALPHA CAPITAL PARTNERS LTD. Andrew H. Kalnow $135.0 Institutions, high-net-worth individu- 0 6 $5.5 Companies with revenues of $7.5 million to $75 (312) 322-9800; www.alphacapital.com Managing partner $135.0 als, family offices, pension funds $10.8 million for buyouts, recapitalizations and expansions AMERICAN CAPITAL STRATEGIES LTD. Malon Wilkus $7,000.0 Public 360$2,900.0 Leveraged and management buyouts, (312) 681-7400; www.americancapital.com Chairman, CEO, president $5,000.0 $2,000.0 recapitalizations, refinancings, ESOPs LARGEST INVESTMENT APEX VENTURE PARTNERS George M. Middlemas $479.0 Institutions, pension funds, 2 17 $37.0 Start-up, early-stage technology companies (312) 857-2800; www.apexvc.com Managing general partner $479.0 private, public funds $39.6 ARBOR PRIVATE INVESTMENT CO.
    [Show full text]
  • Hedge Fund Alert’S Logo — an Ideal Indeed, the Initial Response from Investors Has Been Strong
    APRIL 1, 2015 Andurand, Jen Envision Global-Macro Venture Andurand Capital and SLJ Macro Partners want to form a joint venture for the 6 HEDGE FUND TECHNOLOGY purpose of developing a diversified global-macro program. The partnership would combine the expertise of commodity trader Pierre 2 Real Estate Pro Offers Equity Strategy Andurand and currency specialist Stephen Jen, co-founder of SLJ. The two previ- BlueGold Capital, 2 Tiger Global Alum Set for Big Launch ously worked together at a once-high-flying fund shop led by Andurand that wound down in 2012. 2 Driehaus Extends Hedge Fund Series Although details of the joint venture are still being worked out, Andurand and Jen already have begun approaching potential backers about a fund that would invest in 4 Premium Point Branches Into CMBS a range of instruments. They see the new business as a way to expand their respective 4 LPs Back Fund Launch by MBS Pro repertoires and reach new investors without diluting the focus of their own funds That was a key theme in the decline and fall of BlueGold, which Andurand 4 Copper Rock Alumnus Flying Solo founded in 2007 with partner Dennis Crema. Their flagship fund had a stellar debut, posting a 2008 return of 209% by correctly calling peak oil prices. Investor capital Investors Backing Spinoff Specialist 5 See VENTURE on Page 5 5 Muirfield Repeating M&A Play 12 CALENDAR UBP Curtails Stateside Fund-of-Funds Business Union Bancaire Privee 15 LATEST LAUNCHES There’s talk that could pull the plug on what remains of its fund-of- Due to the annual break in our funds business in the U.S.
    [Show full text]
  • 845-Private-Equity-Contacts-To-Market
    Company Primary Role Prefix First Name Last Name Title Address City State Zip Code Email Address Work Phone Number BDO USA LLP Advisor - Accountant Mr. Matt Manosky Tax Senior Manager 330 N Wabash, #3200 Chicago Illinois 60611 [email protected] 312-616-3966 BDO USA, LLP Advisor - Accountant Mr. Nicholas Maroules Partner 1 S. Wacker Dr., #800 Chicago Illinois 60606 [email protected] 312-730-1332 BDO USA, LLP Advisor - Accountant Mr. Lenny Dacanay Central Region Director- Private Equity Services 330 N. Wabash, #3200 Chicago Illinois 60611 [email protected] 312-730-1305 BDO USA, LLP Advisor - Accountant Mr. Gerard Dentinger Partner 330 N. Wabash Ave., #3200 Chicago Illinois 60611 [email protected] 312-239-9191 BDO USA, LLP Advisor - Accountant Mr. Steven McCullough 330 N Wabash Chicago Illinois 60611 [email protected] 312-730-1361 BKD LLP Advisor - Accountant Mr. Christopher Dalton National Practice Leader - Transaction Services 211 N Broadway #600 St. Louis Missouri 63102 [email protected] 314-236-5174 Brown Smith Wallace Advisor - Accountant Mr. Bryan Graiff Mr. 6 CityPlace Dr., #900 St. Louis Missouri 63141 [email protected] 314-983-1390 CliftonLarsonAllen LLP Advisor - Accountant Mr. Craig Arends Principal 220 S. Sixth St., #300 Minneapolis Minnesota 55402 [email protected] 612-397-3180 CliftonLarsonAllen LLP Advisor - Accountant Mr. Joseph Baez Principal 1301 W. 22nd St., #1100 Oak Brook Illinois 60523 [email protected] 630-573-8600 CliftonLarsonAllen LLP Advisor - Accountant Mr. Timothy Irvin Manager 1301 W. 22nd St., #1100 Oak Brook Illinois 60523 [email protected] 630-368-3623 CliftonLarsonAllenLLP Advisor - Accountant Mr.
    [Show full text]
  • Pe Irr 06-30-20.Pdf
    The Regents of the University of California Private Equity Investments as of June 30, 2020 (1) Capital Paid‐in Capital Current Market Capital Distributed Total Value Total Value Multiple Description Vintage Year (2) Net IRR (3) Committed (A) Value (B) (C) (B+C) (B+C)/A) Brentwood Associates Private Equity II 1979 3,000,000 3,000,000 ‐ 4,253,768 4,253,768 1.42 5.5% Interwest Partners I 1979 3,000,000 3,000,000 ‐ 6,681,033 6,681,033 2.23 18.6% Alta Co Partners 1980 3,000,000 3,000,000 ‐ 6,655,008 6,655,008 2.22 13.6% Golder, Thoma, Cressey & Rauner Fund 1980 5,000,000 5,000,000 ‐ 59,348,988 59,348,988 11.87 30.5% WCAS Capital Partners II 1980 4,000,000 4,000,000 ‐ 8,669,738 8,669,738 2.17 14.0% KPCB Private Equity (Legacy Funds) (4) Multiple 142,535,631 143,035,469 933,559 1,139,305,336 1,140,238,895 7.97 39.4% Brentwood Associates Private Equity III 1981 3,000,000 3,000,000 ‐ 2,943,142 2,943,142 0.98 ‐0.2% Mayfield IV 1981 5,000,000 5,000,000 ‐ 13,157,658 13,157,658 2.63 26.0% Sequoia Private Equity (Legacy Funds) (4) Multiple 293,200,000 352,355,566 198,038,606 1,055,423,626 1,253,462,231 3.56 30.8% Alta II 1982 3,000,000 3,000,000 ‐ 5,299,578 5,299,578 1.77 7.0% Interwest Partners II 1982 4,008,769 4,008,769 ‐ 6,972,484 6,972,484 1.74 8.4% T V I Fund II 1982 4,000,000 4,000,000 ‐ 6,744,334 6,744,334 1.69 9.3% Brentwood Associates Private Equity IV 1983 5,000,000 5,000,000 ‐ 10,863,119 10,863,119 2.17 10.9% WCAS Capital Partners III 1983 5,000,000 5,000,000 ‐ 9,066,954 9,066,954 1.81 8.5% Golder, Thoma, Cressey & Rauner Fund II 1984 3,000,000
    [Show full text]
  • China Internet Report – 2018
    CHINA INTERNET REPORT 2018 www.abacusnews.com/china - i n t e r n e t - r e p o r t Table of Contents 1 China at a Glance 2 2 Four Overarching Themes 11 3 Deep-dive by Sector 21 2 At a Glance: China vs. US Internet Although China’s internet penetration is just over 50%, its sheer scale means there are 3x the number of smartphone users and 11x the number of mobile payment users in China than in the US. Internet Smartphone Mobile Internet Mobile Payment Source: US Census Bureau, Pew Research, Newzoo, Statista, eMarketer, CNNIC, IMF 3 China vs. US – Top Players for Key Verticals IN CHINA IN US 4 Top Chinese Startup Cities Beijing is the country's top startup city based on valuation, followed by Hangzhou, Shanghai and Shenzhen. Total Valuation ($B) # of Unicorns Beijing 305 61 Hangzhou 240 17 Shanghai 115 34 Shenzhen 61 11 Ningde 20 1 Guangzhou 7 2 Zhuhai 6 2 Suzhou 4 2 Tianjin 3 2 Nanjing 2 2 Wuhu 2 1 Guiyang 2 1 Hong Kong 2 2 Chongqing 2 1 Wuhan 2 1 Dongguan 1 1 Wuxi 1 1 Grand Total 773 142 Source: China Money Network 5 Top Chinese Internet Players (1 of 2) As of July 9, 2018 Market Cap/ Company CEO Selected Investors Listed on Valuation (US$) G Squared, Vulcan Capital, Softbank, Goldman NYSE: 1 Alibaba Daniel ZHANG 492.4B Sachs BABA HKG: 2 Tencent Pony MA Naspers, IDG Capital Partners, PCCW 479.6B 0700 Ant 3 Eric JING Alibaba Group, NSSF, CDIB, CCB International Private 150.0B Financial ePlanet Capital, IDG Capital Partners, Google, NASDAQ: 4 Baidu Robin LI 87.8B China Equity Venture TDF BIDU CICC, COFCO, Arbor Ventures, BlackPine Private
    [Show full text]
  • The 4 Big Reasons Private Equity Needs
    Privcap/ 2 016 Data from: Preqin Thought leadership from top private equity investors Including: DEALMAKERAngelo Gordon Audax Bain Capital First Reserve COMPENDIUMJ.C. Flowers Lightyear Capital New Mountain Privcap/ noun / prihv • cap / Provides in-depth articles, videos, reports, and events for the private capital markets community. Whether you’re focused on dealmaking, fundraising, emerging markets, or human capital, Privcap will keep you well-informed of new trends. What We Offer Who We Reach We create video and digital Privcap has a loyal audience of thought leadership for our editorial institutional investors and their websites. Investment managers asset managers. and service providers can sponsor programs to reach our engaged With over 10,000 unique audience. Our editorial and visitors each month, our marketing teams create custom audience comprises: videos, digital reports, webinars, 36% GPs, and more for firm websites, 37% LPs, fundraising collateral, 14% Service Providers, and corporate marketing. and 23% Other. www.privcap.com 04 Meet the Dealmakers A note from Privcap’s editor. 05 How a Silver Lake Vet Launched Her Own Firm Hollie Moore Haynes on using her experience with large-cap tech software deals to start Luminate Capital. Inside 06 Navigating the Global Financial Services Industry An interview with J. Christopher Flowers 27 Mining the Opportunities about his firm’s history and the impact of Created by the ACA the 2008 financial crisis. Steve Klinsky of New Mountain Capital says the Affordable Care Act has opened 08 Trinity Hunt’s Theater Remake several opportunities for PE in the Pays Off With Big-Name Exit healthcare sector. The firm’s Dan Dross explains how a merger of two smaller theater chains 28 Bain Jump-Starts a Pharma Services resulted in an exit-via-sale to AMC.
    [Show full text]
  • 50 Leading Women in Hedge Funds 2013
    50 Leading Women In Hedge Funds 2013 IN ASSOCIATION WITH 50 LEADING WOMEN IN HEDGE FUNDS 2013 50 Leading Women in Hedge Funds 2013 In association with EY HAMLIN LOVELL omen first worked on the floor of the and elsewhere. Schulte Roth & Zabel’s Stephanie New York Stock Exchange in 1943, and Breslow appears again alongside new entrants EY W 1967 ushered in the first female NYSE Nora Jordan of Davis Polk in New York and Effie member. Fast forward to 2013 and one woman sitting Vasilopoulous of Sidley Austin in Hong Kong. Women As the leading global provider of services in Manhattan now presides over the largest prime who originally trained as lawyers are particularly to the hedge fund industry, EY is proud to brokerage in the United States: Teresa Heitsenrether, active in the distressed debt space, with Sonia sponsor the 50 Leading Women in Hedge Global Head of J.P. Morgan’s prime brokerage. She Gardner of Avenue Capital and Jamie Zimmerman Funds survey and to recognize the women is one of more than thirty new names in this year's both making repeat appearances. who make their mark in the industry in a survey, and J.P. Morgan is among many firms in the positive way. We congratulate the women industry that devotes special effort towards devising Sovereign wealth funds have again found their way selected by The Hedge Fund Journal to be human resources policies that help to retain women. into the survey with China Investment Corporation among this distinguished group of leaders. managing director of fixed income and absolute Women continue to be well represented across all return, Roslyn Zhang.
    [Show full text]