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RECOGNISING THE INDUSTRY’S FINEST

Welcome to the International awards for 2016, showcasing the firms that have, in the eyes of their peers, set the benchmark during the year. Voted for by thousands of readers, they remain the only awards decided solely by the industry for the industry.

Deciding the winners is a painstaking process. Every November, our global edit team starts canvassing the views of colleagues and contacts in the market to find out which firms, funds and deals stood out from the crowd during the year. This year, for the first time, we also solicited nominations for the 69 categories.

We then draw up a four-strong shortlist and leave you to pick a winner, including a fifth write-in box to suggest an alternative, in case you think we left anyone out. As ever, votes poured in from all over the world, proving again that these really are the most keenly contested awards in the private equity industry.

While it was no surprise to see the big names triumph in the blue ribbon categories, there were some notable winners. EQT, for example, consolidated its position as a next-generation giant in the European large-cap award, stepping up from the mid-cap category which it won last year. Meanwhile, Blackstone retained the coveted Large-Cap Firm of the Year in North America in a year in which it topped the PEI 300 and was crowned the world’s largest private equity firm. Ardian won the European Mid-Market Firm of the Year after a truly exceptional year in which it raised €4.5 billion in just four months for its latest mid-cap fund, its fastest-ever raise.

And, of course, there are repeat winners like , Campbell Lutyens, Clifford Chance, Eaton Partners and HarbourVest Partners, proving their enduring quality year-in year-out.

But there were new names, too. Black Toro Capital was Iberia Firm of the Year after spotting a gap in the market for Spanish SMEs and TR Capital scored a notable first win in the secondaries firm category in as it nears the final close on its third fund.

There is one award that is decided solely at our editorial team’s discretion. The Game Changer of the Year goes to Rob Smith, the founder of Vista Equity Partners, which is about to close the largest-ever technology fund. He is profiled on p. 43.

Congratulations to all the winners and the runners-up. The following pages detail their achievements and show why the private equity industry remains such a dynamic force in the world today. Truly impressive stuff. PEI AWARDS ROLL OF HONOUR

AMERICAS SPECIAL SITUATIONS/TURNAROUND LARGE-CAP FIRM OF THE YEAR FIRM OF THE YEAR IN NORTH AMERICA IN NORTH AMERICA KPS Capital Partners Blackstone DISTRESSED DEBT INVESTOR OF THE MID-MARKET FIRM OF THE YEAR IN YEAR IN NORTH AMERICA NORTH AMERICA Oaktree Capital Management ABRY Partners FIRM OF THE YEAR IN CANADA LIMITED PARTNER OF THE YEAR IN HarbourVest Partners NORTH AMERICA Canada Pension Plan Investment FIRM OF THE YEAR IN LATIN AMERICA Board Advent International

CO-INVESTMENT OF THE YEAR IN THE MANAGER OF THE YEAR IN NORTH AMERICA et alia for Adams Street Partners ADT Corporation PLACEMENT AGENT OF THE YEAR IN NORTH AMERICAN DEAL OF THE YEAR NORTH AMERICA Silver Lake Partners and KKR for Evercore Ultimate Fighting Championship LAW FIRM OF THE YEAR IN NORTH NORTH AMERICAN EXIT OF THE YEAR AMERICA (FUND FORMATION) for Intelligrated Proskauer

SECONDARIES FIRM OF THE YEAR IN LAW FIRM OF THE YEAR IN NORTH THE AMERICAS AMERICA (TRANSACTIONS) Strategic Partners Fund Solutions Kirkland & Ellis

SECONDARIES DEAL OF THE YEAR IN LAW FIRM OF THE YEAR IN NORTH THE AMERICAS AMERICA (SECONDARIES) Ardian for Ontario Teachers’ Pension Kirkland & Ellis Plan EMEA LENDER OF THE YEAR IN NORTH SECONDARIES ADVISOR OF THE YEAR AMERICA LARGE-CAP FIRM OF THE YEAR FIRM OF THE YEAR IN FRANCE IN THE AMERICAS Ares Capital Corporation IN Ardian Evercore EQT FIRM OF THE YEAR IN MID-MARKET FIRM OF THE YEAR Equistone Partners Europe IN EUROPE ASIA-PACIFIC Ardian FIRM OF THE YEAR IN IBERIA LARGE-CAP FIRM OF THE YEAR IN ASIA FIRM OF THE YEAR IN AUSTRALASIA Black Toro Capital KKR LIMITED PARTNER OF THE YEAR IN EUROPE FIRM OF THE YEAR IN ITALY MID-MARKET FIRM OF THE YEAR IN FIRM OF THE YEAR IN ATP Private Equity Partners Investindustrial ASIA PAG Asia Capital Everstone Group DEAL OF THE YEAR IN EUROPE FIRM OF THE YEAR IN MENA FIRM OF THE YEAR IN JAPAN , Permira, Mid Europa Partners The Abraaj Group J-STAR for Allegro LIMITED PARTNER OF THE YEAR IN FIRM OF THE YEAR IN THE NORDICS ASIA EXIT OF THE YEAR IN EUROPE EQT Nippon Life Company FIRM OF THE YEAR IN KOREA CVC Capital Partners for Formula One FIRM OF THE YEAR IN SWITZERLAND DEAL OF THE YEAR IN ASIA CO-INVESTMENT OF THE YEAR Equity Partners KKR, , Farallon Capital FIRM OF THE YEAR IN IN EUROPE and Capital Group Private Markets Everstone Group Cinven, Permira, Mid Europa Partners FIRM OF THE YEAR IN TURKEY for GO-JEK for Allegro Bridgepoint FIRM OF THE YEAR IN SOUTH-EAST EXIT OF THE YEAR IN ASIA ASIA SECONDARIES DEAL OF THE YEAR FIRM OF THE YEAR IN THE UK KKR for Alliance Tire Group KKR IN EUROPE Group HarbourVest Partners for SVG Capital CO-INVESTMENT OF THE YEAR IN ASIA FUND OF FUNDS MANAGER OF THE FUND OF FUNDS MANAGER Canada Pension Plan Investment YEAR IN ASIA SECONDARIES FIRM OF THE YEAR OF THE YEAR IN EUROPE Board, Temasek Holdings et alia for Axiom Asia Private Capital IN EUROPE HarbourVest Partners Postal Savings Bank of China 17Capital DISTRESSED/SPECIAL SITUATIONS PLACEMENT AGENT OF THE YEAR SECONDARIES FIRM OF THE YEAR FIRM OF THE YEAR IN ASIA SECONDARIES ADVISOR OF THE YEAR IN EUROPE IN ASIA SSG Capital Management IN EUROPE Campbell Lutyens TR Capital Campbell Lutyens PLACEMENT AGENT OF THE YEAR LAW FIRM OF THE YEAR IN EUROPE SECONDARIES DEAL OF THE YEAR IN ASIA SPECIAL SITUATIONS/TURNAROUND (FUND FORMATION) IN ASIA Eaton Partners FIRM OF THE YEAR IN EUROPE Clifford Chance NewQuest Capital Partners for DFJ Aurelius Equity Opportunities India portfolio LAW FIRM OF THE YEAR IN ASIA LAW FIRM OF THE YEAR IN EUROPE (FUND FORMATION) FIRM OF THE YEAR IN AFRICA (TRANSACTIONS) SECONDARIES ADVISOR OF THE YEAR Clifford Chance LeapFrog Investments Clifford Chance IN ASIA Eaton Partners LAW FIRM OF THE YEAR IN ASIA FIRM OF THE YEAR IN BENELUX LAW FIRM OF THE YEAR IN EUROPE (TRANSACTIONS) Gilde Buy Out Partners (SECONDARIES) FRONTIER MARKET FIRM OF THE YEAR Clifford Chance Kirkland & Ellis IN ASIA FIRM OF THE YEAR IN CEE Mekong Capital LAW FIRM OF THE YEAR IN ASIA Mid Europa Partners LENDER OF THE YEAR IN EUROPE (SECONDARIES) EQT Credit Kirkland & Ellis

42 private equity international annual review 2016 PEI GAME CHANGER AWARD

PRIVATE EQUITY GAME CHANGER OF THE YEAR 2016 Robert Smith, founder, chairman and chief executive, Vista Equity Partners

>25% Average IRR of six existing funds $10.5bn Hard-cap on latest fund >250 WORLD ECONOMIC FORUM/swiss-image.ch/Photo Jolanda Flubacher FORUM/swiss-image.ch/Photo WORLD ECONOMIC Vista’s headcount, up from 68 in 2011 : Source

If technology is once again the sector du family charitable trust. He was joined by jour, then the manager that has to take a Brian Seth, who had worked for Smith at large chunk of the credit for that is Austin, before moving to Bain Texas-headquartered Vista Equity Partners. Capital. On the back of a stellar track record – an The growth of the firm has been rapid. average net IRR which market sources put Since it raised Fund IV in 2011 the head- at more than 25 percent across its existing count has gone from 68 to more than six funds – the firm has helped take pri- 250 professionals. It has added fund lines vate equity investing in technology to a new alongside its flagship buyout funds – a mid- level and created a proposition that limited market buyout fund and a credit fund – and partners have found irresistible. is considering adding two more to the mix: Vista commenced fundraising for its sixth a small market fund and a “long life” buyout flagship buyout fund early last year and it fund, according to documents prepared by quickly became apparent that the $10 billion investment consultant StepStone last Octo- hard-cap would come under some consider- ber, although details on these are scant. All HUMANITARIAN WORK able pressure. That pressure has since told, the while the focus remains on the enter- and the hard-cap has reportedly now been prise software, data and technology-enabled Smith’s global philanthropic works have raised to $10.5 billion. Assuming the fund solutions sectors. received recognition from numerous closes before the $100 billion giant Soft- Smith seems to have built a franchise entities, including the Reginald F Lewis Bank Vision Fund, it will surpass Silver Lake’s with lasting value. Indeed, in 2015 Dyal Achievement Award, the Humanitar- $10.3 billion 2013 vehicle to become the Capital Partners – a specialist investor in ian of the Year Award from the Robert largest technology fund raised to date. private equity firms – bought an 18 percent Toigo Foundation and the Ripple of Robert Smith founded the firm in 2000. stake in Vista for approximately $875 mil- Hope Award from the Robert F Kennedy In his previous role at Goldman Sachs he lion, valuing Vista at about $4.86 billion. His Center for Justice and Human Rights. He advised the likes of HP, Apple and Microsoft next challenge will be to maintain the firm’s is the chairman of the Robert F Kennedy on M&A. He left the bank to found the firm, stellar returns with a fund almost double Center for Justice and Human Rights. n securing a $1 billion commitment from a the size of its predecessor. n

annual review 2016 private equity international 43 PEI EMEA AWARDS

EMEA

LARGE-CAP FIRM OF a further €1 billion to invest in small-cap LIMITED PARTNER OF THE YEAR IN EUROPE businesses. THE YEAR IN EUROPE The 36-strong mid-cap investment 1. EQT team had a storming year across 1. ATP Private Equity Partners 2. Cinven the continent, completing 2. Kirkbi 3. CVC Capital Partners seven new acquisitions, 3. Ilmarinen seven bolt-ons and five Since Thomas von Koch exits, keeping up with ATP, Denmark’s largest , under- (right) took the helm in its record of investing went some personnel changes in 2016. It 2014, Swedish firm EQT has between €500 million and saw its chief investment officer depart moved onto another plane and €700 million per year. and its chief executive Carsten Stendevad 2016 was the year it cemented These include the acquisi- announce that he would step down by the itself as leader of the next generation tion of medical affairs communi- year-end. This has not, however, thrown its of industry giants. cations firm Envision, the first deal to be private equity programme off course. In April, EQT found itself inside the hal- signed by the Ardian UK mid-cap team, In June it allocated a further €700 mil- lowed Top 10 in the PEI 300, with a five- lighting fixtures provider SLV, which it lion to ATP Private Equity Partners, its year fundraising total of more than $18.5 acquired from Cinven, and audio technol- private equity fund investment unit led billion. And this figure didn’t even include ogy business d&b. by Torben Vangstrup. The commitment the debut funds it closed across three new Exits included the sale of Milan-based almost doubled the size of ATP PEP Fund segments or geographies in 2016. First Bruni Glass, disinfection solutions business V, bringing it up to €1.5 billion. Fund V was came the €530 million mid-market credit Laboratoires Anios, German fashion retailer originally launched in 2014 on €800 million fund in April, then the €566 million venture Schustermann & Borenstein and a majority and continues the investment strategy that fund in May, and finally the $726 million US stake in chemicals group Novacap. ATP’s private equity team has been pursuing mid-market private equity fund. since it was founded in 2001: investing in What’s more, the firm hired around global buyout funds, venture and distressed 100 people globally and completed a slew assets funds. of deals, including pulling off three high- The team is understood to have slowed profile European take-privates. Among its its investment pace during the hot market gems on the exit side is Atos Medical, which of 2016. Notably it co-invested alongside scooped a PEI Operational Excellence Apollo Global Management in the $15 bil- Award, impressing the judges with true lion take-private of alarm business ADT and operational value creation and a double- Investindustrial’s investment in Artsana. digit IRR. DEAL OF THE YEAR MID-MARKET FIRM OF IN EUROPE THE YEAR IN EUROPE 1. Cinven, Permira, Mid Europa 1. Ardian Partners for Allegro 2. IK Investment Partners 2. Advent International, Bpifrance 3. Bridgepoint for Safran Identity & Security 3. Carlyle Group for Atotech Fundraising giant Ardian showed no signs of slowing in 2016, raising €4.5 billion European giants Cinven and Permira for its latest mid-cap buyout fund in just teamed up with CEE specialist Mid Europa four months – its fastest-ever raise – and Ardian: dominating the European mid-market Partners to acquire Allegro Group, the ››

44 private equity international annual review 2016 Private Equity Firm of the Year in Benelux for the ninth time 2001, 2002, 2003, 2004, 2005, 2007, 2009, 2010, 2016

True Partnership In 2016 we started to invest Gilde Buy Out Fund V, our €1.1bn dedicated mid-market fund for the Benelux and German-speaking region. We made investments in Royal Ten Cate, amor, Royal Reesink, t-groep and 1982 - 2017 Losberger and realized the investments 35 years of success in CID Lines, Spandex, Dimension Polyant and Roompot from prior funds. Our gratitude goes out to our portfolio company management teams, our LPs and advisors for their continued support. www.gilde.com PEI EMEA AWARDS

›› largest online marketplace and non-food EXIT OF THE YEAR Beyond the return – which is under- shopping destination in Poland, in a $3.4 IN EUROPE stood to be in the region of 4.5x – the billion deal, one of the five largest transac- high profile nature of the wealthy sport, tions in the EMEA region last year. 1. CVC Capital Partners for which often bumps up against the worlds The buyers identified a strong tailwind Formula One of politics and international relations, has for this kind of business; the market is 2. Syntegra for Moleskine made this a private equity investment like expected to double in the next five years. 3. Cinven for Numericable no other. The firms’ investment is expected to be In January 2017 it was revealed that used to accelerate the company’s growth, In what will certainly go down as one of the Formula One’s famed boss and figurehead improve the customer experience, and industry’s most iconic deals, CVC exited its , 86, who had run the make the platform more attractive to the investment in motorsport franchise For- business for 40 years, had been replaced vendors that use it. mula One in 2016, having committed to at the helm of the renamed Formula One The trio found their cultures meshed the business 10 years earlier. Group by News Corp veteran Chase Carey. together well, with a strong focus on CVC acquired the company for an esti- growth and value creation at the heart of mated $1.7 billion in 2006 and in Septem- CO-INVESTMENT OF their investment theses. ber revealed it had sold it to US cable giant THE YEAR IN EUROPE A business of this size is a prime candi- in a deal valuing it at $8 date for an IPO when the time comes – one billion, of which $4.4 billion was equity, 1. Cinven, Permira, Mid Europa for the industry to keep a close eye on. CVC and Liberty said in a joint statement. Partners for Allegro 2. Advent International, Bpifrance for Safran Identity & Security 3. BC Partners, PSP Investments for Keter

Cinven and Permira are certainly no stran- gers to one another; the European titans have teamed up in the past, including as part of a consortium acquiring DIY retailer Maxeda in 2004. But neither firm had made a direct investment in Poland. That’s where CEE specialist Mid Europa Partners came in. Allegro: a clear opportunity for growth Offering on-the-ground experience – including an existing investment in another leading Polish retailer, Zabka Polska – Mid Europa was a key asset at the negotiating table, where other consortium bids lacked a local partner. As well as sharing the burden of the underwriting risk (a $3 billion-plus deal is a very big bite, even for players of this size), both lead partners bring extensive interna- tional and sector experience to the table. What’s more, the trio found their cul- Va va voom: Formula One was valued at $8 billion tures meshed together well, with a ››

46 private equity international annual review 2016 PROVIDING LIQUIDITY SOLUTIONS THROUGH Is honored to receive: PARTNERSHIP INVESTING

2016 was a great year for Black Toro Capital with investments in prime examples of Spain’s industrial landscape: Carbures Europe, Torrot & Gas Gas, Zapatos Marypaz, Antibioticos de León

FIRM OF THE YEAR and the combination of IN IBERIA Farga with La Menorquina.

Black Toro Capital www.blacktorocapital.com Barcelona | Madrid | | Luxemburg BlckToroCapital PEI EMEA AWARDS

What makes 17Capital unique is its pioneering use of preferred equity – a tranche that sits between debt and equity in the – in the secondar- ies market. Instead of selling stakes in their portfolios, holders can take on preferred equity and keep exposure to any potential upside while benefiting from liquidity. Mainstream secondaries professionals may be surprised at 17Capital’s win in this category, but it is clear PEI readers believe the firm, led by Pierre-Antoine de Selancy, deserves recognition for its ground-break- ing work. And after all, isn’t breaking new ground what secondaries is all about? HarbourVest: charting the uncharted SECONDARIES ADVISOR ›› strong focus on growth and value crea- executives from the firm remained humble, OF THE YEAR IN EUROPE tion at the heart of their investment theses. telling sister publication Secondaries Investor in November they “didn’t think it would be 1. Campbell Lutyens SECONDARIES DEAL OF a straight line”. 2. Greenhill Cogent THE YEAR IN EUROPE In a year when the firm celebrated the 3. 30th anniversary of its first secondaries 1. HarbourVest Partners for SVG purchase and closed its Dover Street IX The secondaries advisory landscape in Capital secondaries fund on $4.8 billion, the SVG EMEA is a competitive one with top 2. DB Private Equity, Goldman transaction has set the bar high for PEI’s notch firms giving each other a run for Sachs, Greenhill Cogent for NBGI Secondaries Deal of the Year. Readers will their money. From its London headquar- 3. Credit Suisse and Goldman Sachs have to wait and see just what this innova- ters, Campbell Lutyens set the tone early, for Terra Firma tive firm comes up with this year. orchestrating an €800 million process involving Arcus Infrastructure Partners’ As prominent deals go, either in the buyout SECONDARIES FIRM OF 2007-vintage fund at the beginning of the or secondaries markets, it’s hard to look past THE YEAR IN EUROPE year. The deal not only gave liquidity to at HarbourVest Partners’ unsolicited takeover least 19 LPs, it provided lead buyer Dutch bid for SVG Capital. The Boston-headquar- 1. 17Capital pension administrator APG with a place to tered investment firm launched a dawn raid 2. Ardian invest €420 million and is thought to be the on a Monday morning in September with a 3. HarbourVest Partners largest such deal in the asset class. 650 pence-a-share ($8; €8) offer for shares Campbell Lutyens continued to ramp in the London-listed company, and by 9am London-headquartered 17Capital burst up operations during the year, increasing had accounted for just over 51 percent of onto the market in 2008 with an innovative its headcount to more than 100 worldwide the company’s stock. offering that seems indispensable now but including the hire of Gerald Cooper from What followed was a five-week saga that at the time was somewhat avant-garde. In UBS to co-lead secondaries efforts in North played out in public, with HarbourVest the nine years since then the firm has raised America. The firm is also understood to have finally triumphing over buyers including three funds that have more than doubled in begun working with Abu Dhabi’s Mubadala Canada Pension Plan Investment Board size, and is understood to be seeking around Capital on a deal worth north of $2 billion and Goldman Sachs. Despite the victory, €900 million for its latest vehicle. toward the end of 2016. Impressive.

48 private equity international annual review 2016 PEI EMEA AWARDS

SPECIAL SITUATIONS/ TURNAROUND FIRM OF THE YEAR IN EUROPE

1. Aurelius Equity Opportunities 2. Rutland Partners 3. OpCapita

Few can dispute that Aurelius Equity Opportunities has been one of the busi- est special sits investors in Europe in the last year. In just the first nine months of 2016 the firm made six new investments, including acquiring the European assets of Office Depot which, with annual revenues of €2 LeapFrog: bringing quality pharmaceuticals to the emerging consumer billion, was the largest transaction in Aure- lius’s history in terms of turnover. Aurelius has also been building its The firm assembled a global team of It also pulled off some spectacular exits. resources. In the UK the firm expanded eight specialists, co-led by Felix Olale, These include the sale of denim manufac- its investment team, bringing in Dan Simon who joined the firm as a partner last year. turer Tavex Europe, which generated a 9x and Freya Macken, as well as boosting its Olale’s appointment was one of a number of return just one year after acquisition, and specialist operational taskforce with the key hires LeapFrog made last year, includ- the sale of fidelis HR which delivered a appointments of Gavin Duke, Simon Brott ing bolstering its investor relations team whopping 40x. and Ben Paice. with Xenia Loos, bringing in Karima Ola as partner, and appointing Linklaters head FIRM OF THE YEAR of private equity Stuart Bedford as general IN AFRICA counsel.

1. LeapFrog Investments FIRM OF THE YEAR 2. Helios Investment Partners IN BENELUX 3. Ethos Private Equity 1. Gilde Buy Out Partners It’s all change again, with profit-with- 2. 3i Group purpose investor LeapFrog Investments 3. Gilde Healthcare knocking last year’s winner Helios Invest- ment Partners off the top spot. The largest of the three Utrecht-based LeapFrog has doubled in size in the last Gilde franchises had a busy year in 2016. year, thanks to a $350 million separate It made the final investment from its €800 account with Prudential and $200 million million fourth fund and began deploying from the US government’s OPIC to seed its its €1.1 billion Fund V, which closed in late third fund, which is set to launch this year. 2015. What’s more, the firm has branched out Among the highlights of the year for into the healthcare sector, planting its flag the group, which has been investing in in the sand with the $22 million investment the Benelux mid-market for around 35 Tavex: finding the right fit in Kenya’s GoodLife Pharmacy. years, was the take-private of Ten ›› annual review 2016 private equity international 49 PEI EMEA AWARDS

›› Cate, a transaction of close to €1 bil- broke ground by executing the largest pri- lion which took nearly a year to close. The vate equity deal in Romanian history, buying Netherlands-headquartered company spans supermarket chain Profi for €533 million various areas of the technical textiles and from Enterprise Investors. Processes for composite materials universe, suppling both deals saw Mid Europa beat rival bids materials to sectors ranging from aerospace from a roll call of global blue-chip private to synthetic grass sports stadia. equity managers, suggesting that the firm’s local knowledge and market longevity – it FIRM OF THE YEAR was established nearly 20 years ago – are IN CEE giving it a valuable competitive edge. Earlier in the year, the firm managed 1. Mid Europa Partners something else that marks it out as a cut Ardian: a whole raft of investments 2. Abris Capital Partners above: an orderly transition from founder 3. Enterprise Investors and managing partner Thierry Baudon to the next generation of leadership, co-man- FIRM OF THE YEAR A duo of high profile deals – both hotly con- aging partners Robert Knorr and Matthew IN GERMANY tested – have helped Mid Europa Partners, Strassberg. one of Central and Eastern Europe’s most 1. Equistone Partners Europe recognisable brands in private equity, retain FIRM OF THE YEAR 2. SwanCap its crown as Firm of the Year in the region. IN FRANCE 3. Deutsche Beteiligungs First was the Allegro deal in October, in which Mid Europa teamed up with Cinven 1. Ardian Equistone Partners Europe recorded a and Permira to buy “the eBay of Poland” for 2. Apax France prolific year in deals in 2016, continuing $3.25 billion. Then in November the firm 3. Cinven to deploy capital from its €2 billion Fund V. The firm made 11 investments across the Dominique Senequier’s Ardian proved UK, French, German and Swiss markets in that despite striving for world domina- the first three quarters of 2016, and gener- tion across a whole swathe of strategies, it ated returns of €1.8 billion for its investors. still has its finger on the pulse in its home Equistone made numerous successful exits market, stealing the top spot from fellow in 2016 including a €400 million deal on French native PAI Partners. one of its eight-year-old investments. The As well as raising more than $10 billion firm made a series of 18 bolt-on transac- for secondaries, $3.2 billion for primary tions last year including for OASE, Unither funds of funds investments and €2.65 bil- Pharmaceuticals and Sportgroup. lion for infrastructure, Ardian raised €4.5 Equistone welcomed a team of new billion for LBO Fund VI, its latest mid-cap investment professionals with the appoint- buyout fund, in just four months. ments of Tristan Manuel, Richard Briault- Ardian made a whole raft of invest- Hutter, Roman Hegglin and Taha Hasan, ments, bolt-ons and portfolio company expanding the team to 37. In addition, the sales in France across a range of strategies firm appointed Steven Whitaker as chief during 2016, including acquiring a majority operating officer. In November 2016 Equis- stake in quality management and inspection tone celebrated the fifth anniversary of its services business Trigo from IK Investment spin-out from , ahead of which the Partners and offloading a majority stake in London-based team moved to a new office, Allegro: a banner deal chemicals group Novacap. reflecting the firm’s ongoing growth.

50 private equity international annual review 2016 PEI EMEA AWARDS

FIRM OF THE YEAR machinations were threatening to derail its IN IBERIA remarkable economic growth story. It also moved closer to the $1 billion 1. Black Toro Capital target for its “Growth Markets Health Fund”, 2. CVC Capital Partners which will invest predominantly in South 3. Portobello Capital Asia and sub-Saharan Africa and target social impact as well as financial returns. Black Toro Capital has spotted a gap in Employees say Naqvi has also imbued the Spanish market. Making both debt a sense of responsibility and citizenship in and equity investments, the firm targets the DNA of the firm; adding to his philan-

SMEs which have been abandoned by the Investindustrial: bought into Italian childcare thropic commitments, in July he joined the traditional financial system. Many of these “B-team”, a working group with aims to companies are owned by banks, which are ever to focus on the region, after just three foster sustainable business practices. seeking to reduce their exposure to such months in market. businesses as Spain’s financial sector under- Investindustrial, which is headquartered FIRM OF THE YEAR goes an extensive restructuring in the wake in London, also sealed two notable Italian IN THE NORDICS of the 2008 crisis. deals which no doubt helped its cause. In This clearly resonates with investors. April it agreed with the Catelli family to 1. EQT The firm is gearing up to close its second buy 60 percent of Artsana Group, a holding 2. vehicle on €235 million, having secured company for a range of brands, including 3. Altor the majority of its commitments from childcare brand Chicco. One month later US-based LPs. the firm agreed to merge Italian portfolio EQT may be well on its way to becoming As this issue went to press, Black Toro company Polynt, a specialty chemicals busi- the “Swedish Blackstone”, having diversified Capital II was about to seal its fifth deal, ness, with Reichhold, a US company owned among asset classes, strategies and geogra- taking the fund up to 60 percent commit- by US private equity firm Black Diamond phies to touch all corners of the globe, but ted within just the first year of a three- Capital. the Stockholm-headquartered firm has not year investment period. With portfolio abandoned its roots. companies such as shoe retailer Marypaz FIRM OF THE YEAR For the second year in a row, Thomas and pharmaceutical manufacturing com- IN MENA von Koch’s firm took the crown in the pany Antibióticos de León spread across Nordic region, impressing the industry not the length and breadth of the country, Black 1. The Abraaj Group only with its fundraising and deal-making Toro employs more than 3,000 people. 2. Actis prowess but with its unshakeable goal of 3. Investcorp future-proofing businesses, particularly FIRM OF THE YEAR pertinent in Northern Europe, where IN ITALY As it enters its 15th year since it was estab- investing responsibly is more than just talk. lished by Arif Naqvi, you could say Dubai- EQT has brought on “disruptive” technol- 1. Investindustrial headquartered Abraaj is mischaracterised as ogy experts both to work with its newly- 2. Charterhouse Capital Partners a MENA firm, given the geographic extent funded venture platform and to turbo-charge 3. Wise SGR of its footprint. The firm now has 20 offices the business models of its mature portfolio investing across Asia, Africa, Latin America companies and, crucially, the firm itself. Investindustrial could point to 2016 as and the Middle East. On the deal side, EQT sealed full or par- the year that it cemented its position as Two way-markers in 2016 illustrate the tial exits for four Nordic businesses, includ- the dominant firm in Southern Europe. increasing diversity and reach of the firm. It ing Operational Excellence Award winner The firm started the year with the close closed its first Turkey-focused fund on $526 Atos Medical, and completed the public-to- of Fund VI on €2 billion, the largest fund million at a time when the country’s political private of software business IFS. ›› annual review 2016 private equity international 51 PEI EMEA AWARDS

FIRM OF THE YEAR products organisation Jahwa United, gen- IN SWITZERLAND erating a 3.5x return.

1. Capvis Equity Partners FUND OF FUNDS 2. Partners Group MANAGER OF THE 3. LGT Capital Partners YEAR IN EUROPE

Capvis had a strong year in 2016 making a 1. HarbourVest Partners VAT Group: not taxing series of acquisitions from its most recent 2. LGT Capital Partners fund Capvis Equity IV LP. It bought German 3. SwanCap industrials firm Hennecke Group in April and took a majority stake in Italian cosmet- Boston-headquartered HarbourVest Part- ics business Gotha Cosmetics in Septem- ners has been active in Europe since the ber. The deal signalled Capvis’s emphasis on 1980s and last year saw it reaffirm its com- growth stage investment and the Hennecke mitment to London as a financial centre, in acquisition showed its willingness to invest the wake of Britain’s vote to leave the EU. in a market-leading firm. The Capvis funds “HarbourVest established an office in also divested three companies including the London in 1990, two years before the Maas- partial exit of valve maker VAT Group AG tricht Treaty was signed and three years following its successful IPO on the SIX before it became effective and the EU was Swiss Exchange in April. formed,” it said following the vote. Peyman: flagship deal (enclosed) As well as its more storied secondaries FIRM OF THE YEAR activities – notably its pursuit of SVG Capi- IN TURKEY FIRM OF THE YEAR tal – the firm put more than half a billion IN THE UK dollars to work in primary fund commit- 1. Bridgepoint ments in Europe during 2016, backing both 2. The Abraaj Group 1. 3i Group established in-demand managers, like Advent 3. Turkven 2. Inflexion Private Equity International, Inflexion and Index Ventures, 3. ECI Partners as well new European franchises, such as H2 Bridgepoint, a European mid-market pow- Equity Partners and Marlin Equity Partners. erhouse, has captured the vote from some You could say the comeback is complete. venerable local and regional specialists to be The oldest brand in private equity, which PLACEMENT AGENT OF crowned our first Firm of the Year in Turkey. had lost its way in the run-up to the financial THE YEAR IN EUROPE The firm, which has a small team in Istanbul, crisis, has slimmed down and sharpened its rode to victory on the back of its acquisition focused, with good effect. In the six months 1. Campbell Lutyens of Peyman, a Turkish producer of dried fruit, to September 2016 – when the most recent 2. MVision nuts and seeds. Details of the deal were not results were issued – the firm realised £654 3. Rede Partners disclosed, but it was understood to be at the million ($819 million; €769 million) in pro- smaller end of Bridgepoint’s typical bite size. ceeds from its private equity portfolio at an London-headquartered Campbell Lutyens The deal taps into a wellness trend that has average money multiple of 2.3x. For the past has retained its title as Placement Agent of been driven in Turkey by a ban on unhealthy three years it has generated on average £750 the Year in Europe for the fifth year in a row. snacks in schools. The company is a leader million in cash proceeds a year. Among the The firm has made some significant addi- in its field – it was the first snack producer firm’s 2016 highlights was the sale of May- tions to its global footprint – it now has to introduce resalable bags in Turkey – and born Group, owner of the Tommee Tippee more than 100 staff across its four offices exports to more than 30 countries. childcare brand, to Chinese consumer worldwide – but it has also remained

52 private equity international annual review 2016 PEI EMEA AWARDS

dominant on its European home turf, rais- any single law firm, focuses specifically on (Secondaries) to its victories elsewhere. It ing more than $5 billion in commitments closed-ended private equity, real estate and advised on a number of headline deals in for Europe-focused private equity managers. infrastructure funds, while offering exper- the region, and was again peer nominated; This doubles if infrastructure is included. tise on other types of private fund mandates. among others the firm represented an Among the highlights in 2016 was the investment team at a European bank over rapid fundraise of Deutsche Beteiligungs’ LAW FIRM OF THE their spin-out from the bank and simul- seventh flagship fund, which closed in July YEAR IN EUROPE taneous acquisition of the private equity with total commitments of €1 billion. The (TRANSACTIONS) investment portfolio managed by the team, process was wrapped up in less than three and Partners Group (together with the US months, with Campbell Lutyens acting as 1. Clifford Chance team) in transactions in excess of €1 billion. sole global placement agent. The firm also 2. White & Case “In my view, to properly and effectively assisted IK Investment Partners in moving 3. Debevoise & Plimpton advise clients on these more complex trans- into the small-cap space, helping the firm hit actions, a successful secondaries practice its €277 million hard-cap. The firm capped Clifford Chance advises on complex cross- should include a cross-disciplinary team of the year with a final close for pan-Nordic border transactions across a variety of lawyers, including fund formation lawyers, mid-market FSN Capital at its hard cap of investment strategies, including investment law regulatory lawyers, M&A SKr9.62 billion ($1.1 billion; €1 billion). and transactions. Over the lawyers, ERISA and tax specialists,” Michael past year, notable counsel included advising Belsley, global practice leader, told PEI. LAW FIRM OF THE Cinven, Permira and Mid Europa Partners YEAR IN EUROPE on their $3.25 billion acquisition of Allegro LENDER OF THE YEAR (FUND FORMATION) Group, the largest online marketplace and IN EUROPE non-food shopping destination in Poland. 1. Clifford Chance It was also among a group of law firms to 1. EQT Credit 2. Proskauer secure a lead role on National Grid’s sale 2. Intermediate Capital Group 3. Debevoise & Plimpton of a 61 percent stake in its UK gas distri- 3. GSO Partners bution business to a consortium of over- Proving its expertise really seas investors, including Macquarie EQT Credit closed its first fund focused does have a global reach, Infrastructure and Real Assets, on direct lending to European mid-market Clifford Chance, where Allianz Capital Partners and companies in 2016, surpassing its €500 mil- Nigel Hatfield (right) Qatar Investment Authority. lion target to reach €530 million, one of leads the private funds The deal valued the gas dis- the factors behind its victory in the Lender group, has scooped two tribution business at £13.8 of the Year in Europe award. The fund was awards in the Europe cat- billion. launched in 2015 and has deployed 30 egories. Among others, the percent of its capital across five deals in firm advised on the formation LAW FIRM OF THE Europe. Transactions included companies of Permira Credit Solutions Fund YEAR IN EUROPE in the healthcare, industrial and telecom- II, a pan-European private fund focused on (SECONDARIES) munications sectors in the Nordic region, a wide range of debt investments which is Germany and the UK. It lends capital to one of the first funds of its scope and size 1. Kirkland & Ellis support growth, acquisitions and refinanc- to be raised by a leading European private 2. Proskauer ing. EQT also partnered with CVC Credit fund manager. It also advised Equistone 3. Debevoise & Plimpton Partners on a £110 million ($137 million; Partners on Equistone Partners Europe €128 million) unitranche debt transaction. Fund IV (€1.5 billion) and Europe Fund V Kirkland & Ellis once again proved its The borrower, Paymentsense, is a UK-based (€2 billion). Clifford Chance, which claims worth in the secondaries category, adding card processing company providing services to have the largest geographical reach of the European Law Firm of the Year to small and medium-sized businesses. n annual review 2016 private equity international 53 PEI AMERICAS AWARDS

AMERICAS

LARGE-CAP FIRM where we can create value through opera- of skincare clinics, and an investment in OF THE YEAR IN tional intervention,” said Joseph Baratta, specialist insurer NSM Insurance Group. NORTH AMERICA Blackstone’s global head of private equity. On the fundraising side, the Boston- “As we head into 2017 we have strong based firm secured a 30 percent carry 1. Blackstone momentum, and are well-positioned to with a 9 percent preferred return for its 2. Apollo Global Management understand the changing market environ- ABRY Heritage Partners fund, a debut fund 3. KKR ment and ready to take advantage of the focusing on the lower mid-market, which opportunities it will create.” it launched in May 2016 with a $525 mil- Blackstone kept busy in 2016, investing lion target. or committing more than $6 billion of MID-MARKET FIRM The firm, which was founded in 1989, equity to new deals and existing portfolio OF THE YEAR IN is led by Jay Grossman, Peggy Koenig and businesses, including providing the equity NORTH AMERICA Erik Brooks. for the $6 billion take-private of health- care company TeamHealth Holdings, while 1. ABRY Partners LIMITED PARTNER returning $12 billion of capital to its LPs. 2. Ardian OF THE YEAR IN It also began the investment period for 3. L Catterton NORTH AMERICA its seventh flagship fund, Blackstone Capital Partners VII, and was very active on the fun- ABRY Partners was one of the most active 1. Canada Pension Plan draising front, receiving large commitments firms in the mid-market segment in 2016, Investment Board for its seventh secondaries fund, its Tactical particularly in media, as well as healthcare, 2. Teacher Retirement System of Opportunities platform and its first core information technology, financial services Texas private equity fund, which targets longer- and B2B, with the majority of its deals being 3. California Public Employees’ term investments. add-on acquisitions. Retirement System “We continue to strive to navigate a The 2016 deals out of its $1.9 billion complex market environment nimbly, eighth flagship fund, ABRY Partners Fund Canada Pension Plan Investment Board, take advantage of market dislocations, and VIII, include a majority stake in Derma- which has a private equity allocation of remain disciplined and focused on deals tology Associates, a Dallas-based operator more than 20 percent, grew its total assets to $300 billion in 2016, and has increased its private equity portfolio to more than $63 billion, almost half of which is in direct investments. Transactions completed in 2016 included the acquisition of Ascot, American International Group’s Lloyd’s platform for $1.1 billion, and a $2.5 billion investment to purchase a 40 percent stake in Glencore Agricultural Products from Glencore plc. Senior appointments included the pro- motion of Shane Feeney to senior managing director and global head of private invest- ments, taking over the responsibility for CPPIB’s private investment activities. Ryan Selwood was also appointed man- aging director and head of direct private Skin care: a target area equity and is now responsible for overseeing

54 private equity international annual review 2016 PEI AMERICAS AWARDS

co-sponsorships and other direct private able to combine ADT, the leading alarm ser- from both media rights and sponsorships. equity transactions. vices company, with Protection 1, an exist- The sellers, brothers Frank and Lorenzo ing Fund VIII portfolio company, resulting Fertitta, purchased UFC for $2 billion in CO-INVESTMENT OF THE in the largest sponsor-backed transaction 2000. YEAR IN THE AMERICAS so far this year with an aggregate enterprise For Silver Lake, the UFC deal helps grow value of approximately $15 billion.” portfolio company WME. It first made a 1. Apollo Global Management et strategic minority investment in WME in alia for ADT Corporation NORTH AMERICAN DEAL 2012 and subsequently reinvested in the 2. TPG, CPPIB for Viking Cruises OF THE YEAR company when it acquired IMG in 2014. 3. Ontario Teachers Pension Plan, RedBird Capital and Aethon 1. Silver Lake Partners and NORTH AMERICAN EXIT Energy for J-W Energy KKR for Ultimate Fighting OF THE YEAR Championship 2. Apollo Global Management for 1. Permira for Intelligrated ADT 2. KPS Capital Partners for Anchor 3. TPG for McAfee Glass 3. TA Associates for BATS Global Mixed martial arts is one of the world’s Markets fastest growing sports, so investors are hoping for strong returns from KKR and It is always a sweet spot when a portfolio Silver Lake Partners’ acquisition in July of company aligns perfectly with a firm’s core Ultimate Fighting Championship in a $4 strategy. Package distributor Intelligrated

ADT: a ‘very Apollo-esque deal’ billion deal that was made along with MSD combines two of Permira’s favoured invest- Capital, Michael Dell’s investment vehicle, ment areas: industrials and technology. Per- Apollo Global Management had its busi- and talent agency WME IMG. mira bought a majority stake in Intelligrated est year ever in 2016, deploying more The bouts are transmitted by pay-per- from then-owner Gryphon Investors for than $12 billion in the first nine months view broadcasts to 129 countries. UFC, $500 million in 2012 through its fourth of the year, including more than $8 billion which started in 1993, earns revenue fund, Permira IV. It collaborated closely ›› in private equity. The take-private transac- tion of home-security monitoring company ADT was the largest buyout of the year, and Apollo took full advantage of co-investors’ interest to sign the equity cheque. Teachers’ Retirement System of the State of Illinois was one of the co-investors in the transaction, injecting $30 million. “The most notable completed transac- tion during the second quarter was the opportunistic buyout of ADT, which high- lighted our ability to embrace complex- ity, utilise creative financing, and execute a large transaction,” Apollo co-founder Leon Black said in the firm’s second-quarter earn-

ings conference call in August. Flickr Brimelow, : Lee Source “In a very Apollo-esque deal, we were UFC: fighting for returns annual review 2016 private equity international 55 PEI AMERICAS AWARDS

December sister publication Secondaries Investor reported the unit was on the cusp of raking in a cool $7.5 billion for its private equity vehicle, which went on to close in January 2017. Strategic Partners closed a transaction on average every five days in 2016, completing its 1,000th secondaries deal since inception. Successes include the decision to increase its stakes in tail-end fund Doughty Hanson III, which went on to exit its sole remaining asset, the world’s largest supplier of rotor blades for wind turbines.

Smarter sorting: Permira helped Intelligrated improve its automation systems SECONDARIES DEAL OF THE YEAR IN THE AMERICAS

1. Ardian for Ontario Teachers’ Pension Plan 2. AlpInvest Partners, Canada Pension Plan Investment Board, HarbourVest Partners and Pantheon for Lee Equity Partners 3. KKR

Only two portfolios larger than $1 billion traded in the first half of 2016, according Strategic Partners: blowing away the competition to Greenhill Cogent. Both of these were in North America, a region where Ardian ›› with Intelligrated’s management team SECONDARIES FIRM has been building up its presence. It came to improve its software products, accord- OF THE YEAR as no surprise, then, that the global invest- ing to Permira partner and co-head of the IN THE AMERICAS ment firm emerged as the buyer of one firm’s industrials sector team Richard Carey. of these portfolio sales: Ontario Teachers’ Using its global network and operational 1. Strategic Partners Fund Solutions Pension Plan’s disposal of around $1 billion knowledge in this sector, Permira helped 2. Ardian in private equity interests in a process run bring in big new e-commerce customers 3. by Evercore. such as Fresh Direct and UPS, and planted The deal, of course, was just business as its flag in Brazil and China, among other It’s easy to see why readers chose Strate- usual for Ardian in a year when it amassed operational improvements. As a result, the gic Partners Fund Solutions: the Blackstone the largest-ever pool of secondaries capi- firm posted a more-than-5x return when unit was firing on all cylinders, fundraising tal with its $10.8 billion haul for ASF VII, it sold Intelligrated to Honeywell in 2016 for both private equity and real estate sec- came first in sister publicationSecondar - for $1.5 billion, up 191 percent from the ondaries vehicles. In September, the firm ies Investor‘s 2016 Si30 ranking of the top value at entry. announced it had amassed almost double secondaries fundraisers over the last five the target for its real estate fund and in years, and celebrated its 20th anniversary.

56 private equity international annual review 2016 PEI AMERICAS AWARDS

Despite this, its US SPECIAL SITUATIONS/ Opportunities Fund Xb – a reserve fund head Benoît Ver- TURNAROUND FIRM OF – as of November, according to PEI data. brugghe (left) is THE YEAR IN NORTH AMERICA In the second quarter, Oaktree brought quick to downplay in $1.8 billion for two distressed debt the firm’s achieve- 1. KPS Capital Partners funds. Across the third quarter, Oaktree’s ments: “Some people 2. KKR distressed debt strategy achieved a 4 per- are very good at being a 3. cent gross return. In September, the firm bit more exotic. We are boring,” he told saved rare earth metals producer Molycorp Secondaries Investor in October. “We want Not only did KPS Capital Partners celebrate from bankruptcy by turning the distressed to buy well-known assets where you have its 25th anniversary in 2016, but it was company’s bankruptcy debt into a majority quality and where you can have visibility. also busy investing and returning capital equity stake. The world is a little bit weird today.” to its investors. The firm completed two add-on acqui- FIRM OF THE YEAR SECONDARIES sitions and two portfolio company recapi- IN CANADA ADVISOR OF THE YEAR talisations. It also distributed about $900 IN THE AMERICAS million to investors and exited two platform 1. HarbourVest Partners investments. One of them, Anchor Glass 2. Northleaf Capital Partners 1. Evercore Container Corporation was sold to CVC 3. ONCAP 2. Park Hill Capital Partners and BA Glass for more 3. Greenhill Cogent than $1 billion, allowing the firm to post a HarbourVest is no foreigner to the Cana- 5x return only two-and-a-half years after dian market, as the firm has been investing Three years ago, Evercore’s secondaries its initial investment. there for about 25 years. In 2016, the global advisory group had a staff of around 10 “The Anchor Glass exit marked the cul- firm took it to the next level. It closed ›› professionals. As of January it boasted more mination of our 2016 investment activity,” than 25 – a sign the independent invest- said Jay Bernstein, a partner at KPS. “The ment bank’s unit has grown considerably in success of our investment in Anchor Glass a short period. The firm worked on some demonstrates KPS’s ability to see value of the secondaries world’s biggest deals last where others do not, to buy right and to year, including Ardian’s purchase of $1 bil- make business better.” lion worth of private equity stakes from Ontario Teachers’ Pension Plan, which won DISTRESSED DEBT in our Secondaries Deal of the Year category. INVESTOR OF THE YEAR North America accounted for the major- IN NORTH AMERICA ity of Evercore’s roughly 40 executed deals that closed last year, including a sale of as 1. Oaktree Capital Management much as $500 million worth of private 2. Cerberus Capital Management equity stakes from OPTrust, which man- 3. KKR ages the Ontario Public Services Employees Union Pension Plan. Oaktree Capital Management has returned What is the firm’s secret sauce? “This is a to claim first place in North American dis- boot leather business – the more you go out tressed debt investing. With the exception and meet people and provide good action- of last year, the Los Angeles-based debt able ideas, the more dealflow is generated,” specialist had won the category every says Nigel Dawn, head of Evercore’s private year since 2010. Oaktree bounced back in capital advisory group. 2016 raising $8.43 billion for its Oaktree HarbourVest: targeting Toronto annual review 2016 private equity international 57 PEI AMERICAS AWARDS

its first Canada Growth Fund approach, and are working PLACEMENT AGENT on C$375 million ($286 mil- hard to make 2017 another OF THE YEAR IN lion; €268 million), a venture successful year,” São Paulo- NORTH AMERICA capital and growth-focused based Advent managing fund of funds formed under partner Patrice Etlin (left) 1. Evercore the government of Canada’s said, noting that Advent’s 2. Park Hill action plan. The Latin American investments 3. Eaton Partners fund also makes direct investments. increased by about 17 percent in The milestone came about a year after Har- value in the first nine months of 2016. Private equity in North America has a bourVest opened its office in Toronto, led new favourite fundraising advisor. For the by Senia Rapisarda, a managing director FUND OF FUNDS first time, investment bank Evercore has at the firm. MANAGER OF THE claimed the top spot in the placement “Canada has always been part of Har- YEAR IN NORTH AMERICA agent category. Evercore had a busy 2016 bourVest’s strategy,” Rapisarda said. “Cana- in North America, raising such funds as dian companies and technologies are world 1. Adams Street Partners the $410 million Bridge Growth Part- class. We’re looking for emerging and best- 2. HarbourVest Partners ners – a growth-oriented debut fund that in-class managers and we realise the need 3. Ardian raised capital from insurers, family offices, to build Canadian startups to critical mass.” high-net-worth individuals and other In 2016, the team made 10 fund invest- Adams Street Partners’ fund institutional investors. Earlier in ments, equally split between Canadian of fund business was par- the year, Evercore advised on the and US general partners, and three direct ticularly active on the fundraising of Arlington Capi- investments. investing side in 2016, tal Partners IV, which closed making 25 fund commit- on its $700 million hard-cap FIRM OF THE YEAR ments totalling $737 mil- after being in the market for IN LATIN AMERICA lion across the venture capital just three months. Brown Broth- and buyout sectors. ers Harriman’s BBH Capital Partners 1. Advent International The private market firm hired Brijesh V closed in that same month, also advised by 2. HIG Capital Jeevarathnam (above) from Commonfund Evercore. The fifth fund from BBH Capital 3. L Catterton as a partner and co-head of global venture Partners raised $802 million, beating its fund investment to focus on primary ven- initial $600 million target. For the third consecutive year and the ninth ture capital fund investments; and brought time, Advent International has picked up the in a new investor relations head as part of a LAW FIRM OF THE YEAR Latin American award. The Boston-based diversification into raising some asset class- IN NORTH AMERICA firm marked its 20th year in the region with specific funds. (FUND FORMATION) two new investments. It acquired Mexico- The primary fund of funds team, now based chemical manufacturer Viakem in led by Kelly Meldrum, a partner and head 1. Proskauer April, and its holding company Gotemburgo of primary investments, also raised $2.6 2. Debevoise & Plimpton Participações bought auto parts distributor billion in capital in 2016. 3. Weil, Gotshal & Manges Fortbras Group in Brazil in August. There “Last year, we experienced consider- were also three add-on acquisitions, includ- able growth in terms of assets, offices and Proskauer’s work spans the asset class, cov- ing the purchase of Peruvian Peruquimicos employees,” said Jeff Diehl, a managing ering, among others, private equity, fund in October by chemical distributor port- partner at Adams Street Partners, adding of funds and venture capital. The firm rep- folio company GTM. “We continue to see that the firm also launched a private credit resented Ridgemont Equity Partners, on opportunities that will benefit from our strategy and opened new offices in New the formation of Ridgemont Equity Part- sector-focused and highly operational York and Boston. ners II, a buyout fund with total capital

58 private equity international annual review 2016 PEI AMERICAS AWARDS

commitments of $995 million. The fund was oversubscribed and closed at its hard- cap over the past 12 months. The Proskauer team advised on the closing of more than 10 funds worth over $12.6 billion. One highlight was Ares Corporate Opportu- nities Fund V, a mid-market buyout fund that accrued $7.85 billion. With an original target amount of $6.5 billion, the fund was significantly oversubscribed. It also advised Kirkland & Ellis: the double winner’s HQ is in Chicago long-time client Deerfield Management on the fundraising of Deerfield Private Design that agreed to acquire Neustar, a provider beyond traditional fund portfolio sales. We IV, a healthcare-focused venture fund with of real-time information services, for $2.9 have responded by building out dedicated $2.4 billion in commitments. The private billion, and Warburg Pincus, whose portfo- capacity to cover secondaries transactions equity group at Proskauer is co-headed by lio company, Brigham Resources, it advised around the world,” Michael Belsley (below), Howard Beber, Robin Painter, David Tegeler on the sale of its Permian Basin leasehold global practice leader, told PEI. and Sean Hill. interests and related assets to Diamondback Energy for $2.43 billion. LENDER OF THE YEAR LAW FIRM OF THE YEAR IN NORTH AMERICA IN NORTH AMERICA LAW FIRM OF THE YEAR (TRANSACTIONS) IN NORTH AMERICA 1. Ares Capital Corporation (SECONDARIES) 2. GSO Capital Partners 1. Kirkland & Ellis 3. Lone Star Funds 2. Proskauer 1. Kirkland & Elils 3. Ropes & Gray 2. Proskauer Specialty finance company Ares Capital 3. Ropes & Gray Corporation continued to expand its The winner of two awards in the Americas offering throughout 2016. Externally man- law firm category, Kirkland & Ellis rep- Given its 15-year, well-established aged by an affiliate of , it resented numerous private equity presence in the secondar- topped our sister publication Private Debt firms in multi-million dollar ies market, it’s no surprise Investor’s 2016 list of the largest publicly transactions over the past year. that Kirkland & Ellis once traded business development corpora- selected the firm again scooped the law firm tions, or BDCs, with assets of $9.3 billion. to advise on the $1.28 billion of the year in the second- Successes in 2016 included formalising a sale of Physio-Control Inter- aries category for North direct lending partnership with Varagon national to Stryker Corporation, America. Kirkland repre- Capital Partners. The programme now has with Kirkland having also repre- sented American Capital on the $926 million in first lien senior secured sented the firm when it acquired the com- divestiture of a large portfolio of CLO loans. Ares Capital also announced a $3.4 pany in 2011. Elsewhere, Kirkland advised interests through the formation of a special billion acquisition of American Capital. Vista Equity Partners on several transac- purpose acquisition vehicle and related sale The deal closed in early January, increas- tions, including the $2.35 billion sale of of CLO interests. It also advised GP-spon- ing the size of the BDC to more than $12 TransFirst, a secure transaction processing sors and secondary institutional investors billion in assets. As a result, Ares Capi- and payment technologies provider, to TSYS on fund recapitalisations and restructuring, tal increased its revolving credit facility which was announced in January 2016. as well as tail-end portfolio sales by funds of capacity from an aggregate $2.2 billion to Other clients included Golden Gate Capi- funds. “The secondaries market has evolved $3.5 billion and extended the maturity on tal, which led a private investment group to include a wide variety of transactions these facilities. n annual review 2016 private equity international 59 PEI ASIA-PACIFIC AWARDS

ASIA-PACIFIC

LARGE-CAP FIRM Unilever’s bread and bakery business and OF THE YEAR IN ASIA nutrition supplement supplier OmniActive Health Technologies. 1. KKR Everstone bolstered its senior leader- 2. Baring Private Equity Asia ship team with five new executives, includ- 3. FountainVest Partners ing a former managing director at Advent International who will head the firm’s new In a closely fought race, KKR took the stressed assets business. Along with hiring crown from Baring Private Equity Asia after top talent, the firm also opened its sixth a year of milestones for KKR in Asia. Not office in London. only did the firm reshuffle its investment teams in China, Korea and South-East Asia, LIMITED PARTNER it also readied the launch of its third pan- OF THE YEAR IN ASIA Asian fund, which, at $7 billion, would be Big pharma: Everstone backs drug companies the largest to be raised in the region. 1. Nippon Life Insurance Company KKR invested across the length and 2. National Pension Service of breadth of the continent via its $6 billion award for the first time. The victory fol- Korea Asian Fund II – from Indonesian start-up lowed a year of back-to-back acquisitions. 3. Cathay Life Insurance GO-JEK to India’s second largest insurer India-focused Everstone continued its deal SBI Life Insurance, and most recently with spree this year via its $730 million vehicle It is no surprise that Nippon Life Insur- multi-billion dollar deals in Japan’s corpo- Everstone Capital Partners III. It completed ance Company received almost a third of rate carve-out space. its first US acquisition in October of CRM our readers’ votes in this category. At a Ming Lu (left), solutions provider C3 through its Singa- time when LPs are taking a more cautious head of Asia private pore-based arm Everise Services. approach with their investments, Japan’s equity, says the It also backed pharmaceutical company largest private life insurer by assets has been firm is also eyeing Rubicon Research, drug delivery company making significant moves into alternatives. cross-border M&A Ascent Health & Wellness, Hindustan Nippon Life has allocated $4 billion in Japan and China and companies that benefit from South-East Asia’s consumer growth. KKR also claimed three other titles in Asia this year – Exit of the Year for Alliance Tire, Deal of the Year for GO-JEK and Firm of the Year in South-East Asia.

MID-MARKET FIRM OF THE YEAR IN ASIA

1. Everstone Group 2. Navis Capital Partners 3. Quadrant Private Equity

With 60 percent of the vote, Everstone beat two-time winner Navis to secure this Nippon Life: looking to emerging markets

60 private equity international annual review 2016 PEI ASIA-PACIFIC AWARDS

of its ¥62.3 trillion ($508 billion; €473 billion) in assets to private equity. While 90 percent of the exposure is in the US, Western Europe and other developed mar- kets, the Japanese insurer announced last year that it would invest up to ¥1 trillion in emerging markets, with Latin America a favoured region. Nippon Life is also ramping up invest- ments in overseas companies. It acquired an 80 percent stake in the life insurance business of MLC Limited, a subsidiary of National Bank, one of the larg- est Australian banks. This deal marks the insurer’s first majority stake in a major overseas company.

KKR: tyre company was Asia’s best exit DEAL OF THE YEAR IN ASIA EXIT OF THE YEAR from 73,000 tonnes in 2013 to 170,000 1. KKR, Warburg Pincus, Farallon IN ASIA tonnes in 2016. That lifted the company Capital and Capital Group into the ranks of the top 10 global tyre Private Markets for GO-JEK 1. KKR for Alliance Tire Group producers. 2. PAG Asia Capital for Golden 2. Navis Capital Partners for Golden ATG tyres also featured in the movie Apple Education Group Foods Siam Batman v Superman: The Dawn of Justice. 3 Primavera Capital Group for Yum 3. for Meinian China Onehealth CO-INVESTMENT OF THE YEAR IN ASIA This year’s winning deal was the largest- KKR last year struck one of the largest ever investment in an Indonesian start-up. private equity exits in India when it sold 1. Canada Pension Plan Betting on the world’s fourth largest its controlling stake in Netherlands-based Investment Board, Temasek population, KKR, Warburg Pincus, Faral- Alliance Tire Group to Japan’s Yokohama Holdings et alia for Postal lon Capital and Capital Group Private Mar- Rubber Company for an enterprise value Savings Bank of China kets invested over $550 million in the latest of $1.5 billion. That deal represented more 2. Korea Investment Corporation round of financing of motorcycle hailing than 12 times ATG’s operating profit in and CDC Capital International app GO-JEK, which provides moto-taxi, 2015. 3. HarbourVest Partners food delivery, lifestyle and courier services. Over three years, KKR took ATG – “With a rapidly expanding middle class, which has significant presence in India and It’s easy to see why this roster of high profile increasing urban density and a young demo- Israel – to the next level through strategic investors took the honours for co-invest- graphic that is internet savvy, GO-JEK is initiatives in areas such as production, sales ment of the year in Asia. The target – the well positioned to become the ‘go to’ plat- and distribution in the US, EU and India. state-owned Postal Savings Bank of China form for high frequency daily services Through these changes, which saw KKR – is the largest in China with more than including transport, food, logistics and Capstone dedicate 13,000 hours to ATG, 400 million retail customers and 40,000 payment,” Jeffrey Perlman, head of South- the company’s output volume rose by 43 branches. The transaction was also ahead East Asia for Warburg Pincus said. percent and production capacity climbed of its IPO on the Stock ›› annual review 2016 private equity international 61

PEI ASIA-PACIFIC AWARDS

This is TR Capital’s first win in our buyers including HarbourVest Partners as awards, and its portfolio is diverse and well as local competitors. The direct second- impressive: in 2016 the firm added opto- aries firm emerged victorious in a limited electronic data communications manufac- auction process to clinch the assets which turer Source Photonics through a direct include stakes in electronics recycling man- secondaries deal that provided an exit for agement firm Attero Recycling and d.light limited partners in a fund managed by Fran- design, a solar lighting company in which cisco Partners. It also acquired a portfolio NewQuest made a follow-on investment. of six Indian companies from an innovation NewQuest’s 2016 figures tell it all: eight fund backed by Indian financial institutions. liquidity events, two IPOs, acquired inter-

: Carpkazu Source In a region that is bursting with activity, ests in 13 companies, as much as $150 mil- PSBC: China’s largest bank TR Capital is definitely capitalising on its lion invested, and just six months to exceed opportunities. the hard-cap on its third fund which will ›› Exchange, which raised more than $7 focus on the Indian and Chinese markets. billion in September. SECONDARIES DEAL We’re sure readers will be hearing about CPPIB invested 3.2 billion yuan ($500 OF THE YEAR IN ASIA more of the firm’s deals this year. million; €458 million) alongside big-name investors including Temasek Holdings, 1. NewQuest Capital Partners for SECONDARIES ADVISOR JPMorgan, UBS Group, Alibaba affiliate Ant DFJ India portfolio OF THE YEAR IN ASIA Financial and Tencent for a 17 percent stake 2. Committed Advisors and Eaton in the company. Partners for Asian restructuring 1. Eaton Partners The Chinese state-owned bank hopes 3. Park Hill for Temasek’s Astrea III 2. Park Hill that these strategic relationships with inves- securitisation 3. tors will help to modernise its business with streamlined online payments and more loan India is one market Asian secondaries pro- Throughout 2016, market sources had told products. fessionals have been excited about for a PEI that when the first Asian fund restruc- while. Hong Kong-based NewQuest Capital turing deal closes it would be a watershed SECONDARIES FIRM Partners has been ramping up its focus on moment for such transactions in the region. OF THE YEAR IN ASIA the subcontinent, typified by its purchase Eaton Partners led the charge by running of venture and growth capital firm Draper an impressive restructuring of a fund con- 1. TR Capital Fisher Jurvetson’s India-focused portfolio. taining growth stage assets. The deal, worth 2. NewQuest Capital Partners The deal process began in the second half around $100 million, is thought to be the 3. HarbourVest Partners of 2015 and attracted the attention of global first such deal to close in Asia. Eaton’s process involved 14 consumer The Asian secondaries market may be and tech assets being moved into a new dwarfed by its North American and Euro- vehicle, providing liquidity for existing LPs pean counterparts, but that doesn’t mean and additional runway for the portfolio. The innovative deals aren’t happening there. In firm, which operates from Asian offices in a region that is bursting with potential, it’s Hong Kong and Shanghai, also completed easy to see why readers chose TR Capital: the over $150 million of secondaries deals Hong Kong-based firm added three invest- during the year, including sales of single ment professionals, was understood to be asset LP interests in local funds. If 2017 nearing the final close on its third fund tar- turns out to be the year Asian GPs begin geting $250 million towards the end of last d.lighted: added to the NewQuest portfolio to restructure their funds en masse, they’ll year and opened a Shanghai office in June. last year have Eaton to thank.

64 private equity international annual review 2016

PEI ASIA-PACIFIC AWARDS

FRONTIER MARKET FIRM OF THE YEAR IN ASIA

1. Mekong Capital 2. VinaCapital 3. Anthem Asia

Vietnam-focused firm Mekong Capital has retained its title as Frontier Market Firm of the Year for the third year running. On the exit front, Mekong powered ahead of its peers with four full exits in MobileWorld: Vietnam’s largest online electronics retailer 2016 – jewellery retailer PNJ, telecom con- glomerate FPT and real estate companies Nam Long and Intresco. The firm also par- tially exited Vietnamese mobile phone retail chain MobileWorld, whose shares sold at 89x the original price when Mekong first invested in the company in 2007. Meanwhile, in fundraising, Mekong closed its fourth consumer-focused fund in June with $112 million in capital com- mitments. Mekong Enterprise Fund III has already completed three new invest- ments and four more deals are expected Child’s play: PAG Asia has acquired a Chinese kindergarten chain to close in the first half of 2017. The firm’s Vision Driven Investing framework was 2015, bringing its funds under advisement FIRM OF THE YEAR also a highlight of 2016. It outlines key up to around A$3.5 billion, PEP had a busy IN CHINA value-added approaches in areas such as 2016 continuing to put the capital to work. management, corporate governance and As well as acquiring New Zealand edu- 1. PAG Asia Capital external expertise. cation provider Academic Colleges Group 2. Hony Capital in April, PEP acquired frozen foods pro- 3. Primavera Capital Group FIRM OF THE YEAR vider Patties Foods, the manufacturer of IN AUSTRALASIA household favourite brands such as Four PAG Asia’s strong regional presence served ‘N Twenty Pies. The firm also sold its final it well in 2016. The firm announced the 1. Pacific Equity Partners stake in listed share registry and funds closing of its second Pan-Asia Buyout Fund 2. Affinity Equity Partners administration company Link Group in in January, which was oversubscribed at 3. Quadrant Private Equity September. Having just sealed a bolt-on $3.6 billion. The firm also led a successful deal for its portfolio company Pinnacle investment round for Lexmark Interna- It’s a hat-trick in this category for Aus- Bakery to acquire Allied Mills, a manu- tional in an all-cash deal valued at $4 billion. tralia and New Zealand’s largest private facturer of flour, bakery premixes and The middle of the year brought more equity firm Pacific Equity Partners. Having frozen par-baked bread products, we’d fundraising highs, as the firm announced closed its fifth fund above its hard-cap at wager 2017 will be just as busy for the a further close to its Real Estate Part- A$2.1 billion ($1.6 billion, €1.45 billion) in Antipodean giant. ners Fund on $1.3 billion. The fund ››

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PEI ASIA-PACIFIC AWARDS

›› is already 50 percent invested, and is first close of its third buyout fund, collect- investment into Burger King Korea, acquir- poised to expand PAG Asia’s footprint in ing $150 million. J-STAR made seven new ing 100 percent for 210 billion won ($180 the real estate markets in North-East Asia investments in 2016, including four bolt- million, €171 billion) and becoming exclu- and Australia. ons. The firm also made one exit. sive operator of the franchise. A standout deal for the firm was its $200 J-STAR also grew its operational team Affinity has led the way in navigating million buyout of Golden Apple, a Chinese to four professionals who work closely with Korea’s complex investment market for kindergarten operator, based in Chengdu. the portfolio companies. investors, with big ticket deals showing The firm finished 2016 with $16 billion that it understands the local market and worth of . FIRM OF THE YEAR yields strong returns for investors. IN KOREA FIRM OF THE YEAR FIRM OF THE YEAR IN JAPAN 1. Affinity Equity Partners IN INDIA 2. MBK Partners 1. J-STAR 3. VIG Partners 1. Everstone Group 2. Advantage Partners 2. KKR 3. The Carlyle Group Affinity Equity Partners enjoyed another 3. ChrysCapital successful year in Korea with a bumper exit Partners J-STAR was a hive of activity in 2016. The from Loen Entertainment, a Korean-pop firm bolstered its senior team, promoting music label. The exit generated 6.7x invest- In the eyes of the two people to partner roles in July. The firm ment capital and gross IRR of 98 percent. private equity indus- also closed back-to-back deals at the year’s Loen was the largest private equity exit in try, there is a clear end, investing in two companies out of its Korea in 2016, and surpassed Affinity’s pre- champion when it 2012-vintage J-STAR No 2 Investment vious record exit from its Oriental Brewery comes to investing in India. , which raised $195 investment in 2014. -based Everstone Group, million. In October, the firm neared the In April 2016, Affinity completed its which has won this category every year since 2011, has claimed the top spot again. The firm began investing in distressed Indian companies in 2016, and hired former Advent International director Avnish Mehra to lead the strategy. “Everstone had an eventful and active 2016 with several control deals across mul- tiple sectors such as ITeS, healthcare, and food,” Everstone co-founder and manag- ing partner Sameer Sain (above) said. “We also expanded our presence internationally, and added to our talent pool – both on the investing and operating side. We also drove results using our expertise across several portfolio companies.” The firm bought majority stakes in Indian pharmaceutical firms Ascent Health and Rubicon Research in Mumbai, and acquired bread and bakery brand Modern Girl power: Loan Entertainment proved a hit for Affinity Foods. A very busy and eventful year.

68 private equity international annual review 2016 PEI ASIA-PACIFIC AWARDS

FIRM OF THE YEAR IN SOUTH-EAST ASIA

1. KKR 2. Navis Capital Partners 3. Falcon House Partners

The private equity giant had a year to remember in South-East Asia, making three investments in the mobile technol- ogy, agro-processing and oil and gas sectors. A notable deal was GO-JEK where KKR led a $550 million Series D funding round in the Indonesian mobile ride-hailing and delivery platform. That brought its total investment to $2 billion in the region, where KKR has a long investment history with more than 10 deals and a senior team that averages 16 years of experience. The roster was GO-JEK: providing moto-taxi and delivery services bolstered in 2016 by the addition of new regional head Ashish Shastry, leaving KKR Marc Lau said. “We also spent it deploy- situations investing in the region, poised to expand further in South-East ing capital out of Fund IV and had receiving almost half of all the Asia in 2017 with the growing sectors of good dealflow on co-investments votes. education, healthcare, service sectors, and and primaries.” While single name logistics among the possible targets. The fund of funds manager restructuring has been is also looking to pursue more the core part of SSG’s FUND OF FUNDS investments in its core mar- strategy, one thing that MANAGER OF THE kets which include China, India, has emerged in the last YEAR IN ASIA Japan and Australia, and to increase 18 months, according to the fund’s secondaries and co-investment SSG managing director and chief 1. Axiom Asia Private Capital allocation to more than 20 percent. investment officer Edwin Wong (above), is 2. HarbourVest Partners the opportunity to purchase assets from 3. Pantheon DISTRESSED/SPECIAL financial institutions. SSG closed three such SITUATIONS FIRM transactions in the past year, while raising Singapore-headquartered Axiom Asia takes OF THE YEAR IN ASIA capital for its two latest vehicles targeting the top spot for the first time, garnering a a combined $2 billion. To date the firm is third of the votes. Axiom Asia stood out for 1. SSG Capital Management more than halfway to its target for its two its fundraise for Axiom Asia IV, which had 2. Bain Capital Credit latest funds, SSG Capital Partners IV and a final close of over $1 billion, smashing its 3. Canada Pension Plan Investment SSG Secured Lending Opportunities II, target of $750 million after a little more Board which both launched in September last year. than a year in market. “The pipeline continues and we haven’t “2016 has been a very active year for For the third year in a row Hong Kong- seen this activity since the Asian financial the firm and fundraising was only a small based SSG Capital Management has proven crisis so that’s been very positive,” Wong part of what we did,” managing director there is no contest when it comes to special said. annual review 2016 private equity international 69 PEI ASIA-PACIFIC AWARDS

PLACEMENT AGENT OF THE YEAR IN ASIA

1. Eaton Partners 2. Campbell Lutyens 3. UBS

It has been a successful year for Eaton Part- ners in Asia, following its acquisition by Stifel Financial group in January 2016. The firm placed close to $1 billion of LP interests for three of its Asian GPs. This included an over- Clifford Chance: advised on Chinese healthcare investment subscribed $400 million fund for a Chinese on raising a $750 million fund investing in to 1980. It now has 10 offices in six Asia- GP, which closed in December 2016. The India. Its Funds and Investment Manage- Pacific countries, including two in China firm has also raised its profile in the three ment group is headed by Singapore-based – and Shanghai, both of which have largest market opportunities in the region, managing Partner Kai Niklas Schneider, a been open more than 20 years. and grew its presence in China by welcom- US-qualified lawyer with over 15 years of ing Hitesh Gumnani into its Shanghai deal specialist experience in the funds sector and LAW FIRM OF THE YEAR team. The firm had another active year in the advises clients on all aspects of private funds IN ASIA (SECONDARIES) secondaries market, completing over $150 from formation through to investment. million of secondaries transactions including 1. Kirkland & Ellis GP restructurings. Eaton Partners invested LAW FIRM OF THE YEAR 2. Dechert in the BlackRock-backed iCapital alterna- IN ASIA 3. O’Melveny & Myers tives assets platform, proving that it is open (TRANSACTIONS) to innovative ways to connect clients with Having received numerous nominations, it investors. 1. Clifford Chance was no surprise Kirkland & Ellis won this 2. Shearman & Sterling category. The firm was involved in second- LAW FIRM OF THE 3. Weil, Gotshal & Manges ary transactions representing over $7 billon YEAR IN ASIA during 2016, working on many headline (FUND FORMATION) Clifford Chance was also named Law Firm deals. In Asia-Pacific, it represented Harbour- of the Year in the transactions category Vest Partners on its acquisition of a portfolio 1. Clifford Chance thanks to its extensive work in the sector of Australian and New Zealand assets from 2. Dechert during 2016. Notably the firm advised CVC Rand and the transfer of 3. Debevoise & Plimpton Capital Partners on its $1.1 billion priva- the management team into RMB Capital tisation of Hong Kong-listed Nirvana Asia Partners. It also represented Madison India Over the past year Clifford Chance has been Ltd by way of a scheme of arrangement, Capital Management on its acquisition of a involved in the formation of numerous high- MBK and TPG on their $1.2 billion lever- portfolio of early-stage Indian assets from profile funds. It advised Standard Chartered aged buyout of Wharf T&T, and Carlyle on a large venture capital fund with transac- Bank on the formation of a $1 billion pri- its disposal of its stake in New Century tion financing provided by two large, multi- vate equity fund investing in Asia, Africa Real Estate Investment Trust, a Hong Kong- billion dollar secondary funds. “Our firm has and the Middle East. It also represented listed REIT. It also advised Permira on its been involved in a wide variety of secondary Columbia Pacific Management on the for- multi-year transitional arrangement with transactions over many years from all sides mation of a fund and co-investment struc- the Shanghai-based China team of Unitas of the table, giving us a broad perspective on ture investing in healthcare assets in China, Capital, a private equity firm. The firm has transaction structures and terms,” Michael and another private equity fund manager a strong Asia-Pacific presence, dating back Belsley, global practice leader, told PEI. n

70 private equity international annual review 2016