JANUARY 26, 2011 Calpers Seeks Bids for Hefty Fund Interests 2 LARGEST FUND MANAGERS Calpers is pitching more than $800 million of fund stakes on the secondary market. 3 NASBIC Extends Membership Reach The $226 billion pension system began showing the offering to prospective buy- ers in the last week or so via UBS, working under the codename Project Alpha. A 3 StepStone Ponders Secondary Offering sale is expected to take place quickly, perhaps in a matter of weeks. 4 Morgan Stanley Chips Away at Target Project Alpha is likely to rank among the biggest secondary-market sales of early 2011. For a portfolio of its size, however, it contains a small number of positions — 4 CIVC Shortfall Made Official an estimated five or six -fund interests of up to $250 million each. 4 China Specialist Shifts to Co-Investing The pledges are weighted heavily toward large vehicles from well-known manag- ers, with sources pointing to Blackstone Group, Carlyle Group, Kohlberg Kravis Rob- 5 Bank Street Maps Marketing Route erts and TPG as fitting the profile for shops whose funds might be in the mix. That said, the specific identities of the underlying managers remain unclear. 5 Constitution Opts for Dual Pitches So what is Calpers’ motivation? Potential pricing appears attractive, with stakes 5 LGV Pitch Enters Second Round See UBS on Page 5 6 Matrix Folds Placement Efforts Jefferies’ Reshaping Fund-Placement Division 7 FUND-RAISING ACTION Jefferies & Co. is restructuring its placement-agent unit while starting a sepa- rate division to raise capital for clients’ distressed-asset and special-situations vehicles. THE GRAPEVINE The new unit would pitch both private equity funds and hedge funds as part of its targeted strategy, with an initial concentration on the U.S. and Western Europe. Millennium Technology Value Partners It would function as part of Jefferies’ high-yield bond desk. of New York has hired Joseph Marks to Kelli Roiter is leading the effort. She moved to the high-yield department at year- line up secondary-direct investments end from Jefferies’ broader placement group, which has suffered from staff losses in companies backed by as well as accusations that it upset some large clients by employing heavy-handed funds. The move was unexpected as marketing tactics. Now the word is that the New York investment bank is planning Marks, a former Coller Capital executive, a new look for the operation, although details of that effort remain unclear. had just co-founded a two-man second- Transfers and defections already have depleted the group’s staff, which recently ary-market brokerage called Castlehaven See JEFFERIES on Page 6 Advisors in mid-2010. His partner there, Tom Dann, now is in talks to bring in TPG Strings Together Small-Investment Series a new staffer and may hire additional personnel. Castlehaven focuses on sales TPG wants to replicate a fund that pursues investments deemed too small for its of interests in funds backed by the U.S. main buyout vehicles. Small Business Administration’s Small The Fort Worth, Texas, firm has yet to set an equity target for the new pool, called Business Investment Company program. TPG Star 2, but is seen as likely to aim for $1.5 billion — the same amount it col- lected for the inaugural fund in the series. It began meeting with investors in recent James Hoffman has left a post inPritzker weeks, telling them it will likely start a formal marketing push during the second Group’s buyout unit to set up his own half of the year. firm. Like Pritzker, Hoffman’s startup, TPG Star 2 would pursue investments up to $75 million each while employing called Magna Capital, is based in Chicago. venture capital, growth-equity, buyout and turnaround strategies. While it would Magna will concentrate on and have the ability to invest globally, the entity would more likely mimic its 2008-vin- recapitalizations of U.S. businesses in a tage predecessor by focusing on deals in North America, India and China. variety of sectors, including industrial TPG has told backers that the first fund is nearly out of capital. That vehicle took See GRAPEVINE on Back Page See TPG on Page 6 January 26, 2011 Private Equity INSIDER 2 Blackstone, Carlyle In Line for Biggest-Manager Throne

Goldman Sachs is still the largest operator of private equity has collected for its newest buyout fund, Blackstone Capital funds in the U.S., but could soon be unseated as new regula- Partners 6. tions force banks to step back from the business. The second-place finisher from 2009,Carlyle Group, is now Goldman’s private equity vehicles had $104.7 billion under in third. Its $97.7 billion tally marks an increase of $9.8 billion management as of Dec. 31, according to Private Equity Insider’s from a year ago, however, and it could breeze into first place by Private Equity Directory. That marks a $10.3 billion decline completing a planned takeover of the €40 billion ($55 billion) from a year earlier, when the bank also was the market leader AlpInvest Partners. — and it has indicated that it will keep chipping away at the As non-bank players, Blackstone and Carlyle will be insu- total. lated from the Volcker Rule. At the same time, the institutions There are even indications that Goldman might spin off its are under pressure to add assets — Blackstone to keep holders private equity operations altogether. The reason: The Dodd- of its publicly traded shares happy by increasing fee revenues, Frank Act’s so-called Volcker Rule, which once implemented and Carlyle to bulk up ahead of an of its will restrict banks from sponsoring alternative-investment own. pools while limiting their investments in such vehicles to an Apollo Management also is among those planning to go pub- amount equal to 3% of Tier 1 capital. Goldman, which repre- lic. It moved up to sixth place from eighth thanks to an increase sents an important source of backing for its own funds, had in assets. TPG, another IPO candidate, slipped one spot to sev- $68.5 billion of Tier 1 capital as of June 30. That means it could enth despite a slight rise in its total. only hold $2 billion of interests in alternative-investment ve- Those who might eventually be in the same boat as Gold- hicles. man include J.P. Morgan. The bank, whose alternative-invest- Who could step up to take Goldman’s place? Number-two ment exposure lies largely in hedge funds, ranks 11th with Blackstone Group is only a hair behind, at $102.3 billion, and $29.4 billion in its private equity vehicles. That’s up $4.4 billion has been adding assets. The firm’s total represents a $15.4 bil- from 2009. Most top players saw their totals increase less than lion increase from a year ago, when it was in third place. $10 billion in 2010. Blackstone’s count stands to grow as well, as the shop con- Private Equity Insider’s Private Equity Directory can be tinues raising capital on top of the roughly $15 billion it already See THRONE on Page 6

Largest US-Based Managers of Private Equity Funds Excludes firms primarily managing real estate or hedge funds

Assets Under Management 12/31/10 12/31/10 ($Bil.) ($Bil.) 1 Goldman Sachs $104.7 19 First Reserve $20.3 2 Blackstone Group 102.3 20 Adams Street Partners 20.0 3 Carlyle Group 97.7 20 Welsh Carson Anderson & Stowe 20.0 4 65.0 22 19.3 5 58.8 23 Lexington Partners 18.0 6 Apollo Management 55.2 24 General Atlantic 17.0 7 TPG 48.0 24 Riverstone Holdings 17.0 8 Oaktree Capital Management 47.3 26 Thomas H. Lee Partners 16.2 9 Credit Suisse 40.8 27 NB Alternatives 16.0 10 32.0 27 TA Associates 16.0 11 J.P. Morgan Asset Management 29.4 29 Madison Dearborn Partners 14.6 12 Cerberus Capital Management 24.0 30 J.C. Flowers & Co. 14.4 13 Fortress Investment Group 23.7 31 Advent International 14.1 14 Angelo, Gordon & Co. 23.0 32 Silver Lake Partners 14.0 15 PineBridge Investments 23.0 33 Commonfund Capital 11.8 16 Hellman & Friedman 22.9 34 TCW Group 11.5 17 Partners 22.0 35 New Enterprise Associates 11.0 18 HarbourVest Partners 21.4 36 BlackRock 10.2 January 26, 2011 Private Equity INSIDER 3

NASBIC Extends Membership Reach Palmer played a key role in both efforts. He joined the group in 2008 from the National Association of Commission- TheNational Association of Small Business Investment Com- ers, and earlier held staff positions in the U.S. House and the panies is broadening its mandate. U.S. Department of Commerce.  The trade group, which until now has represented only pri- vate equity firms backed by the U.S. Small Business Administra- StepStone Ponders Secondary Offering tion’s Small Business Investment Company program, wants to add non-SBIC players to its constituency. As part of the move, In a bid to simplify its secondary-market investments, Step- it’s planning to work with larger shops than those running most Stone Group is mulling the creation of a fund targeting those SBIC vehicles. deals. The organization also plans to change its name to the Small Details of the effort remain unclear, but expectations are Business Investor Alliance. that the La Jolla, Calif., advisory firm will try to raise less than NASBIC’s expanded scope takes aim at mid-size private eq- $500 million — the amount of client capital it currently has de- uity firms — namely, those running funds of up to about $600 ployed among secondary-market deals via at least a half-dozen million. They would include buyout and mezzanine-finance separate accounts. shops, along with operators of funds of funds and secondary- The idea behind establishing a commingled fund would be market vehicles. to reduce the complexity of managing similar activities going The move comes in part as a response to feelings among cer- forward, at a time when interest in such plays has been grow- tain mid-size players that they have been neglected by the pri- ing. Because secondary-market sellers typically like to deal vate equity industry’s main trade groups, the National Venture with single buyers, StepStone generally sets up special-purpose Capital Association and the Private Equity Coun- vehicles to play that role when more than one of its clients want cil. The thought is that the NVCA puts venture capital firms in on a purchase — then distributes interests in those entities first, while the Private Equity Growth Capital Council is will- among its separate accounts. But doing that on a deal-by-by ing to protect big buyout shops at the expense of their smaller deal basis can be an expensive and bureaucratic process. peers. Still, there are some clients that prefer the tailored nature of The dissatisfaction was reinforced in the organizations’ re- separate accounts. For that reason, StepStone is thinking about sponses to a Dodd-Frank Act provision that requires most in- setting up its fund to invest alongside their portfolios. vestment firms with more than $150 million to register with StepStone set out once before to assemble a secondary-mar- the SEC. The NVCA, for example, helped negotiate an exemp- ket fund, only to drop the effort in favor of the separate-account tion for venture capital managers while telling lawmakers that format when all of the vehicle’s would-be backers wanted to buyout shops often eliminate jobs. The Private Equity Growth commit $50 million or more. Should the new fund also attract Capital Council supported the signups, in part reflecting the only big-ticket pledges, the firm would likely stick with sepa- fact that most large buyout specialists already are enlisted with rate accounts again. the SEC. StepStone generated some expectations that it would try For its part, the Private Equity Growth Capital Council has again to start a secondary-market fund with its September pur- been trying to appeal to smaller firms and counts a few of those chase of Silverbrook Private Equity, a new firm whose personnel shops among its members. However, mid-size buyout man- included former Hamilton Lane executive Michael McCabe and agers still were left to absorb higher compliance costs under Pomona Capital alumni Thomas Bradley and Mark Maruszews- Dodd-Frank. ki. They now work at StepStone, which prior to the acquisition “There’s a need for middle-market funds to be represented had only one partner working solely on secondary deals: James in Washington,” NASBIC president Brett Palmer said. Gamett. NASBIC’s increased focus on mid-size shops also ties in with StepStone’s secondary-market clients include Ohio Public heightened interest among those outfits in taking part in the Employees, which opened a $200 million account late last year, SBIC program, which offers low-interest government loans to and Arizona Public Safety Personnel.  fund managers that back small businesses. For example, Per- seus, Riverside Co. and Veronis Suhler Stevenson set out in the past year to assemble their first SBIC funds. NASBIC’s recent lobbying efforts have included persuading lawmakers to exempt SBIC funds from the so-called Volcker Free Snapshots of Fund Operators Rule, a yet-to-be-finalized Dodd-Frank provision that limits In a rush to find out the basics about a buyout or venture capital firm? Or maybe you’d like to sort through the industry’s bank investments in outside managers’ alternative-investment 4,000-plus fund operators in a particular category, asset vehicles. In fact, it appears SBIC pools will be the only type of size or region of the world. No problem. Check out the FREE private equity fund to gain such an exception. NASBIC also Private Equity Directory in The Marketplace section of helped push for a measure that will allow some investors to pay PEInsider.com. no capital-gains taxes on profits from sales of small businesses. January 26, 2011 Private Equity INSIDER 4

Morgan Stanley Chips Away at Target Group and others. That deal proved disastrous as the now- bankrupt FGIC found itself unable to honor its policies — with Morgan Stanley’s latest has begun attracting CIVC realizing less than 10% of its position. institutional backers. Indeed, there has been talk for a while that CIVC would The pledges came by way of the fund’s second close, which miss Fund 4’s capital-raising target. In mid-2010, for example, took place last week with $287 million. That followed a first market players said the campaign was about to wrap up with close in July with $150 million from friends and families of as little as $450 million. That followed a February SEC filing bank executives. The entity, Morgan Stanley Private Markets that indicated the shop had collected just $250 million. Among Fund 5, has an overall equity target of $1.25 billion. the later commitments was a $25 million pledge from Montana However, investors said Morgan Stanley would be satisfied State Board in September. with anything more than $800 million, given weak market con- CIVC invests mainly in business-service, financial-service, ditions. “The fund-of-funds business has not delivered good and marketing-and-information companies. The shop and value across the board and investors are right to pull back a placement agent UBS began marketing Fund 4 in mid-2008 little,” one manager said. alongside a “stapled” secondary-market sale involving $400 mil- On the other hand, Morgan Stanley’s 2004-vintage Fund 3 lion of stakes that held in its previous vehicles. and the 2008-vintage Fund 4 are posting top-quartile returns. BofA, which had been one of CIVC’s largest backers, pulled back Those gains in part reflect an ability to put capital to work more from private equity funds around the same time.  widely than most funds of funds, including capacity for co-in- vestments and secondary-market purchases — both of which China Specialist Shifts to Co-Investing tend to produce larger returns than direct fund stakes. Fund 5 can use up to 25% of its capital for co-investments Fund-of-funds manager Private Equity Analytics has started and 15% for secondary-market deals. That marks a change a new capital-raising campaign, just a few months after selling from Fund 4, which could direct a combined 60% of its equity a large chunk of its holdings on the secondary market. to such transactions. The reason for the step back: Morgan The New York shop hasn’t set an official equity target for Stanley is routing secondary purchases to a fund it set up to the vehicle, dubbed ChinaBridge Crossborder Fund, but ap- focus solely on those deals. parently has an eye on collecting $500 million over the next That vehicle, Morgan Stanley Global Secondary Opportuni- few years. ties Fund, held its final close in May with $585 million. The plan is for the fund to follow in the footsteps of some Morgan Stanley plans to pocket 5% of Fund 5’s profits, prior Private Equity Analytics offerings by investing in main- which is typical for a fund of funds but is only half the typi- land China. Instead of adhering to a traditional fund-of-funds cal carry for a co-investment or secondary-market pool. The strategy, however, it would gradually take on co-investments vehicle invests in small or specialized funds, including those in batches of up to $100 million each. The entity could have a following buyout, venture capital, mezzanine and distressed- pledge-fund structure that would allow limited partners to opt investment strategies. It is run by a unit within the $19 billion in or out of specific deals. Morgan Stanley Alternative Investment in West Conshohock- The shift doesn’t come as a total surprise, given Private -Eq en, Pa. uity Analytics’ recent history. The shop, led by Citigroup Ven- Backers of the previous Private Markets funds include Amica ture Capital alumnus Tom Darling, merged with wealth manager and University of New Hampshire Foundation, along with U.K. MJX Capital in 2009. Darling already counted MJX founder pension systems Northumberland County Council and South Robert Sillerman among his clients at the time of the arrange- Yorkshire Pensions.  ment, which saw him take on the MJX name. But MJX wound up selling a large portion of its holdings the CIVC Shortfall Made Official next year amid word that Darling would re-emerge under the Private Equity Analytics banner with a slightly different strat- CIVC Partners’ newest buyout fund has come up short of its egy. His shop, whose current connection to MJX remains un- equity target. clear, now is talking mostly to large limited partners interested The Chicago firm quietly held the final close for its CIVC in getting a toehold in China’s private equity market. Partners Fund 4 in the past month or so with $375 million. It China’s private investment community has a reputation for had initially talked about collecting as much as $700 million shutting out players without local ties — something Private Eq- for the vehicle, but later lowered its goal to $575 million. uity Analytics presents itself as having in the form of relation- Market players viewed that figure as more reasonable. It still ships with managers including China Renaissance Partners, proved too ambitious though, as weak financial-market condi- Orchid Asia and WI Harper. The shop has said it would co-invest tions stymied capital-raising efforts across the private equity mainly with firms it has worked with before. industry. Potential backers also were turned off by the results Private Equity Analytics has recently cited a 23.5% rate of of CIVC’s largest purchase to date: a 2003 investment in bond return on investments in 11 funds run by six managers, most insurer FGIC alongside Blackstone Group, , PMI of which are not set to mature until 2014.  January 26, 2011 Private Equity INSIDER 5

Bank Street Maps Marketing Route Constitution formed in October 2007, when a Standard Life Investments team led by Daniel Cahill walked out following a Fund-raising plans are taking shape within the growth- dispute over the economics of a planned spinoff. Its first fund’s capital division that former Key Venture Partners executive Ted backers included the U.K. government’s Universities Superan- Mocarski is setting up at Bank Street Group. nuation Scheme, which bought a 10% stake in the management Mocarski’s unit, Bank Street Capital, is expected to begin company. The shop also manages separate accounts, including marketing its first formal fund in the coming year with an a mandate it won last month from private equity newcomer equity target of $150 million to $200 million. Right now, the Westfield Contributory Retirement. operation is investing with a smaller pool of capital from its executives and their acquaintances. LGV Pitch Enters Second Round The timing of the fund’s launch will likely depend on how quickly Bank Street Capital’s initial backing is put to work. The LGV Capital has held a first close for its latest buyout fund. firm has one deal in its portfolio so far, and probably wants to The London firm completed the initial round of marketing add one or two more so it can have some results to cite when it for its LGV 7 Private Equity Fund at yearend with £171 million approaches new limited partners. ($275 million). It is aiming for £250 million overall. Bank Street Group, an investment-banking firm in Stam- LGT invests in U.K. companies with enterprise values above ford, Conn., officially opened Bank Street Capital for business £25 million, with a wide scope that includes consumer, leisure, last week. The new shop focuses on investments in media, tele- service and healthcare businesses. The strategy has worked well communications and related technology businesses — some- lately, positioning some of the shop’s funds as top performers. times drawing on input from two dozen employees of its parent LGV 5, which held its final close in 2005 with £200 million, who specialize in those sectors. was posting a 76.9% rate of return as of Dec. 31. That crushed However, Bank Street Capital won’t get involved as a backer the average gain of 11.4% by European buyout funds from the of Bank Street Group clients. same year, according to Preqin. Likewise, the 2004-vintage LGV Bank Street Capital is positioning itself to fill a void that 4 was returning 65.7% heading into this year — compared to a emerged in recent years as venture capital shops that took part 22.7% average. in growth-capital deals became less active and buyout firms It’s too early to judge how LGV 6 is performing. That fund looked toward larger transactions. At Key, a Boston operation held its final close in 2009 with £98 million. that concentrates on growth-capital plays with backing from LGV, a unit of insurer Legal & General, is one of the oldest Cleveland-based KeyCorp, Mocarski was in charge of venture private equity firms in the U.K. It counts a number of European capital investments. players among its backers, along with several U.S. institutions. Mocarski separated from Key about five months ago. Sepa- They include Carnegie Mellon University’s endowment, DuPont rately, a team that ran funds of funds and secondary-market Capital, MetLife and University of Utah Endowment.  vehicles within KeyCorp’s Key Capital division spun off around yearend to form Cuyahoga Capital. That group, headed byChris - UBS ... From Page 1 topher Hanrahan and Bart Shirley, now is attempting to raise $125 million for a secondary-market entity called Cuyahoga in funds like those in the Project Alpha portfolio recently trad- Capital Partners 4.  ing near net asset value. As for likely buyers, Calpers sees an opportunity to exploit Constitution Opts for Dual Pitches demand from a number of large secondary-market fund opera- tors that are sitting on capital they would like to deploy soon, Constitution Capital is simultaneously assembling a fund of preferably in large chunks. UBS also is giving small and mid- funds and a co-investment vehicle. size players a shot by allowing them to take specific fund inter- The Boston shop began marketing the entities to investors ests or even portions of those positions — say, $100 million of in the U.S. and abroad in recent weeks, each with an equity tar- a $200 million commitment. get of $250 million. It already has collected $14 million for the A single suitor remains a possibility though, as was evi- fund of funds, Ironsides Partnership Fund 2, while gathering denced by a number of sales last year. Two of them involved $6 million for the Ironsides Co-Investment Fund 2. AXA Private Equity, which bought $1.9 billion of fund stakes The tandem offerings mark a change in strategy for Con- from Bank of America and paid €534 million ($730 million) for stitution, which last time around combined the fund-of-funds two private equity units of Natixis. Canada Pension Plan also and co-investment approaches into a single vehicle called Iron- bought more than $1 billion of fund interests from PSP Invest- sides 1. That entity held its final close in June 2008 with $600 ments. million, beating its $500 million equity target. Calpers sold $2 billion of private equity fund interests in Like Ironsides 1, the new funds invest in the U.S. while avoid- 2008 via UBS. That sale, dubbed Project Monarch, saw Conver- ing the smallest and largest underlying vehicles — putting their sus Capital, HarbourVest Partners, Lexington Partners and Pan- money to work with pools of $300 million to $5 billion. theon Ventures emerge as the winning bidders.  January 26, 2011 Private Equity INSIDER 6

Matrix Folds Placement Efforts TPG ... From Page 1 Matrix Group is shuttering its placement-agent unit. just eight months to assemble, and exceeded its equity target The London operation is scheduled to wrap up its activities by $500 million. But given today’s tougher marketing environ- as soon as March. It already has trimmed its staff this month ment, investors expect the firm to remain in the market with from five executives to two: partners Edward Holdsworth and Fund 2 until yearend, and perhaps into early 2012. Charles Lemon. Gone are principal Charlie Jolly, partner Enzo The offering also faces competition for investors with a num- Narciso and associate James Shipperlee. Jolly now works as a ber of mid-size buyout specialists who last raised capital in 2006 vice president at Pathway Capital. It’s unclear if Narciso and or 2007. It should help that the first TPG Star fund has fared Shipperlee have found new jobs. well, with a net rate of return of 8.1% as of Sept. 30. One limited Matrix’s withdrawal from the fund-placement business is partner deemed that figure impressive in light of the fact that due to poor capital-raising conditions. The shutdown came as a the average age of the entity’s holdings is a mere 1.5 years. surprise, however, as is evidenced by the fact that Narciso had The TPG Star name is an acronym for “smaller transactions only arrived in September. He last led the private equity busi- with allied resources.” That is, the original vehicle has access to ness at Union Bancaire Privee of Geneva. the parent shop’s extensive research and operational resources Matrix’s placement division functioned as part of the com- — something TPG views as a selling point. pany’s investment-banking area, which has been expanding. The series was created to capture potentially lucrative deals The placement team launched in 2004 with a focus on small that TPG had to turn away because they didn’t fit the profile of funds, and went on to raise more than €1 billion ($1.4 billion) the firm’s big-buyout funds. The most recent of those vehicles, for clients including Langholm Capital, Life Sciences Partners TPG Partners 6, held its final close in early 2009 with $19.8 and Litorina Kapital. The group never raised capital for Matrix’s billion and the capacity to put billions of dollars into each of own vehicles, which include private equity funds and hedge its deals. funds. Those entities are pitched by other staffers who remain William McGlashan leads a 20-person investment team that on board.  runs the TPG Star portfolio. Limited partners include AP Fon- den 2, Calpers, Los Angeles City Employees, New Jersey State Investment, New York Common Fund, Oregon State Treasury and Jefferies ... From Page 1 Washington State Board.  numbered about 20. In addition to Roiter’s move, the team is losing group head Stephen Gray to VantagePoint Venture Part- Throne ... From Page 2 ners. And Luke Belcastro shifted to Jefferies’ equity capital markets area in September. He was among several recruits who accessed in “The Marketplace” section of the newsletter’s arrived in 2009 as part of an expansion of the bank’s placement website, peinsider.com. The ranking encompasses managers operation — coming on board with former Mallory Capital col- of buyout, venture capital, mezzanine-finance and distressed- leagues Peggy Marshall and Donal Orr. asset funds in the U.S., along with secondary-market vehicles As for the criticisms of Jefferies’ marketing techniques, they and funds of funds. It also includes real estate funds and center around the bank’s handling of commitments from cli- hedge funds run by those firms. However, it leaves out sepa- ents’ prior backers. The talk is that fund managers are only rate accounts and excludes shops that primarily manage real given a short time to round up returning limited partners on estate funds and hedge funds.  their own, with the institution then stepping in to line up those commitments for a fee. And the charges ramp up quickly from there. “They were telling investors, ‘You have 75 days to get your Free Sample Copies re-ups, after which we might charge you double our normal rate, then after six months it goes up to 3 times,’ ” an outside fund-marketing specialist said. He attributed Jefferies’ ability Do you know someone who would like to receive three to employ such tactics to an overflow of demand for placement issues of Private Equity Insider, without obligation? Just services. fax this form to the number below: Jefferies’ recent clients have included Stockholm buyout firm Valedo Partners, which is set to hold the final close for its Name: second fund in the coming weeks above the vehicle’s equity tar- Company: get of 1.6 billion Swedish krona ($250 million). Address: Roiter joined Jefferies in 2008 from Citigroup, where she City/ST/Zip: marketed private equity funds to wealthy individuals. Before that, she marketed investments at Credit Suisse and predeces- Fax: 201-659-4141 sor Donaldson, Lufkin & Jenrette.  January 26, 2011 Private Equity INSIDER 7

FUND-RAISING ACTION

Target Placement Amount Manager Fund, Key Executive Type: Focus Agent (Mil.) Action Alcuin Capital Partners, Alcuin Fund 3, Buyout: Europe £100 Held first close London Mark Storey with £81 million. Black Diamond Capital Management, BDCM Opportunity Fund 2, Distressed C.P. Eaton $750 Held final close Greenwich, Conn. Stephen Deckoff debt with $982 million. Brookfield Asset Management, Brookfield Special Situations 3, Distressed (None) $1,000 Held second close Toronto Cyrus Madon asset with $370 million. Constitution Capital Partners, Ironsides Partnership Fund 2, Fund of funds $250 Held first close Andover, Mass. Daniel Cahill and John Guinee with $14 million. See Page 5 Constitution Capital Partners, Ironsides Co-Investment Fund 2, Co-investment $250 Held first close Andover, Mass. Daniel Cahill and John Guinee with $6 million. See Page 5 LGV Capital, LGV 7 Private Equity Fund, Buyout: U.K. £250 Held first close London Ivan Heywood with £171 million. See Page 5 True North Management Partners, True North Venture Partners, Venture capital (None) $300 Held first close Tempe, Ariz. Michael Ahern with $192 million. To view all past Fund-Raising Action entries, visit The Marketplace section of PEinsider.com

Forum Faculty The NMS Forum

The Ritz-Carlton Palm Beach, Florida Gi`mXk\

FORUM HOST Nancy M. Szigethy Mark A. Angelo Nancy S. Gillespie (/k_8eelXc Founder Founder & President Manager NMS Management, Inc. Yorkville Advisors, LLC Sayles Group LLC Diana Barrett FORUM CHAIRMEN David Lansky 8@I:I8=KKI8EJ8:K@FEJ=FILD President President Conley Brooks, Jr. The Fledgling Fund The Family Business Consulting President Sheila H. Berube Group, Inc. =\YilXip)/ÆDXiZ_(#)'((sK_\G_f\e`Z`XesJZfkkj[Xc\#8i`qfeX Sawmill Private Executive Vice President & Management, Inc. Chief Investment Officer Stuart Lucas WLD Enterprises, Inc. Chairman 9\e\Ôk]ifdk_\^cfYXc\og\ik`j\f]i\efne\[Xm`Xk`fe\og\ikj Verónica Maldonado Wealth Strategist Partners LLC Executive Director Vicente Carrillo-Batalla i\gi\j\ek`e^k_\=88#k_\@ek\ieXk`feXcI\^`jkip#k_\8m`Xk`fe GEM Family Office Managing Director Arthur Margon C.A. Ugave Partner Nfib`e^>iflg#X`iZiX]kfg\iXkfij#X`ic`e\j#c\jjfij#kiljk\\j# Dorothy Collins Weaver Rosen Consulting Group Chairman & Jeff Cook `ejliXeZ\#ÔeXeZ\Xe[c\^XcjkXb\_fc[\ij%N`k_`ej`^_k]lc Chief Executive Officer President & CEO William J. Reik III Collins Capital Policy and Taxation Group Managing Member, CIO i\Zfdd\e[Xk`fej]ifdX[`m\ij\k\Xdf]Xm`Xk`fejg\Z`Xc`jkj# Howard R. Cooper Bristol Investment Partners FORUM ADVISORY BOARD Chief Executive Officer k_`j\oZ`k`e^Xe[`e]fidXk`m\Zfe]\i\eZ\Zfm\ijZi`k`ZXce\n Cooper Family Office David Rosenberg Peter E. “Tony” Guernsey, Jr. Chief Economist & Strategist i\^lcXkfipfYc`^Xk`fejXe[gifZ\[li\j#Z_Xe^\jkfXZZflek`e^ Chief Client Officer, Emeritus Mark H. Daniell Gluskin Sheff + Associates Inc. Wilmington Trust Company Chairman ilc\j#[\XcÔeXeZ`e^#Xe[`ek\ieXk`feXc`jjl\j% Raffles Family Wealth Trust Donna E. Shalala Gailen Krug Pte Ltd President European Private Equity University of Miami Albourne Partners Limited Michael J. Flynn B\pefk\Fg\e`e^8[[i\jj18`iZiX]kI\$i\^`jkiXk`feXe[ Vice President & CIO Inder Sodhi KEYNOTE SPEAKER Kinship Trust Company, LLC Chief Investment Officer @JK

TO REGISTER: Please call 516 933 3700, fax 516 933 3705, or register online at www.nmsmanagement.com (///...$(.'. January 26, 2011 Private Equity INSIDER 8

erably longer than typical buyout firms. ing mezzanine-finance and secondary- THE GRAPEVINE In October, he leftICV Partners, a New market funds, and by co-investing ... From Page 1 York buyout firm he co-founded. alongside its private clients. The bank invests through a private equity division products and services, as well as Texas Employees is seeking a private eq- that deploys client money. UBP, which healthcare products. Magna appears uity specialist to join its investment divi- also invests its own capital, runs private to be receiving backing from Pritzker sion. The recruit would help monitor the equity operations in London, Geneva Group, which counts the Hyatt hotel $21 billion pension system’s $1.3 billion and New York. chain among its holdings. Hoffman, who private equity fund portfolio. Reporting left Pritzker late last month, remains an to investment chief Patrick O’Hara, he or New York buyout shop American Indus- advisor to the firm. she also would manage personnel within trial Partners has hired former Liberty the retirement system’s private equity Partners managing director Ben DeRosa Tarrus Richardson is setting up a buyout staff. In September, the to head marketing and deal origina- firm whose goal is to acquire contract- laid out plans to invest $550 million in tions as a partner. DeRosa started last ing companies that can benefit from around 10 vehicles during fiscal year week. American Industrial is investing the minority-owned designation he 2010, which started Sept. 1. It has an through its fourth fund, a 2007-vintage can provide. Richardson, who is black, 8% target allocation for private equity vehicle with $406 million. would own a controlling stake in each funds, which it expects to reach by 2015. portfolio company, which would gain a Altius Associates advises Texas Employ- American Capital, which invests in marketing advantage by becoming eli- ees on its private equity investments. mid-size companies, is seeking a junior gible to compete for work with organi- staffer to help with portfolio monitor- zations that operate diversity programs. Private bank Union Bancaire Privee ing and deal execution. Focusing on He is about three months away from the plans to increase its exposure to private mezzanine-debt investments, the re- official start of his New York firm,IMB equity investments in the coming year. cruit would work on portfolio-company Development. IMB would target profit- The Geneva operation has less than refinancings and exits. He or she would able companies that already perform 1% of its 72 billion Swiss francs ($76 also be expected to perform due-dili- contract work for government agencies billion) of assets invested with North gence reviews of potential investments, or corporations. Richardson intends to American and Asian buyout funds. It working in the New York office of the hold companies for 10-20 years, consid- wants to broaden its portfolio by back- Bethesda, Md., company.

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