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2009 European Edition
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Copyright © 2008 by Vault.com Ltd. All rights reserved. All information in this book is subject to change without notice. Vault makes no claims as to the accuracy and reliability of the information contained within and disclaims all warranties. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Vault.com Ltd. Vault, the Vault logo, and “the most trusted name in career information TM” are trademarks of Vault Inc. For information about permission to reproduce selections from this book, contact Vault.com Ltd., 6 Baden Place, London, SE1 1YW, +44(0)20 7357 8553. ISBN 13: 978-1-58131-598-1 ISBN 10: 1-58131-598-8 Printed in the United Kingdom
Thanks to all Vault staff for their help. Special thanks to our family and friends, especially Angelina, Antoine, Ariana, Olivier, Andrew, Goncalo, Christelle and the Candesic team. We are also grateful to all the private equity fund managers who agreed to answer our questions and complete our data.
Vault Career Guide to Private Equity Table of Contents
TABLE OF CONTENTS
PREAMBLE THE SCOOP
CHAPTER 1: What is Private Equity? Who invests Other specific cases CHAPTER 2: The Market Industry statistics Current trends and issues
3 4 4 8 10 10 12
CHAPTER 3: Is It the Right Job for Me? Comparison with other elite jobs Lifestyles Interview with a London director at 3i Interview with former senior partner at London-based mid cap fund Days in the life Career paths CHAPTER 4: The Hiring Process Campus recruiting Networking Search firms Websites Preparing for the interview
26 29 32 33 34 35 39 40 40 41 42 42 42
PROFILES OF 37 REPRESENTATIVE PRIVATE EQUITY FIRMS IN EUROPE
US-ORIGINATED GLOBAL FUNDS with direct presence in Europe Advent International Bain Capital The Blackstone Group The Carlyle Group General Atlantic Goldman Sachs Principal Investment Area Kohlberg Kravis Roberts & Co. (KKR) TPG PAN-EUROPEAN FUNDS 3i Group Allianz Capital Partners /Allianz Private Equity Partners / Allianz AGF PRE Apex Partners AXA Private Equity Barclays Private Equity BC Partners Bridgepoint Capital Ltd. Candover Cinven CVC Capital Partners Limited Doughty Hanson Duke Street Capital EQT Partners Eurazeo European Capital Glide Investment Management HgCapital
47 48 48 53 57 65 71 76 81 87 91 91 98 103 111 118 124 130 135 140 145 151 154 157 161 164 167 171
Vault Career Guide to Private Equity Table of Contents
Industri Kapital Montagu Private Equity PAI Partners Permira Advisers TerraFirma OTHER FUNDS with more regional focus Englefield Capital Exponent Private Equity Investitori Associati Mercapital Sagard MEZZANINE FUNDS Intermediate Capital Group PLC FUND-OF-FUNDS Partners Group
176 181 184 188 195 199 199 202 205 208 211 214 214 218 218
SHORT PROFILES OF 200 OTHER PRIVATE EQUITY FIRMS IN EUROPE
LBO, growth equity and diversified PE Funds Mezzanine Funds Distressed Funds Secondary Funds Fund of Funds
226 304 310 312 316
RECOMMENDED READING WEB RESOURCES ACADEMIC SOURCES INDUSTRY JARGON (glossary) ABOUT THE AUTHORS
337 337 337 338 342
which are state owned pools of money. The list includes LBO. to an extent. All the other firms included in the analysis are listed at the end of the guide with key statistics and contact details. growth capital. funds of funds. 1 . excluding venture capital. The guide excludes sovereign funds. (Including the assets outside of Europe and the funds of funds. This includes mostly direct LBO funds and a couple of examples in each of the other categories.Vault Career Guide to Private Equity PREAMBLE Preamble his guide covers late stage private equity funds only. Together and excluding the funds of funds. Using the Candesic database of private equity firms. distressed. not necessarily the largest ones. our sample reaches €900 billion in total commitments and investments in private equity.) T We selected 37 firms that we deemed representative of Europe. mezzanine funds and. Selecting the top firms was not necessarily clear cut considering the variety of situations occurring in an industry undergoing European convergence. the first 200 firms in our sample manage about €400 billion in commitments and invested assets in Europe. as well as most of the real estate and infrastructure funds. we have identified around 250 companies that meet the following criteria: a minimum of €200-300 million of committed private equity investments in Europe.
THE SCOOP CHAPTER ONE: What is Private Equity? CHAPTER TWO: The Market .
from small equity stakes in new ventures by so-called angel investors to highly leveraged controlling equity investments in multi-nationals. are mostly institutional investors who want to diversify into alternative asset classes. Who invests? Most private equity funds are structured as limited partnerships with a life of between five and ten years.CHAPTER ONE: WHAT IS PRIVATE EQUITY? A s its name implies. as they generally all have a substantial share of the equity. or ‘limited partners’. PRIVATE EQUITY INVESTORS Smaller Investors Investors/GPs (Institutions. The direct investors. with a General Partner and a Manager. private equity investing refers to investments in nonpublicly traded assets. This encompasses a wide range of investments. to ‘buy or build’ a well positioned player in that niche and to give that player the means to 4 . One of the big strengths of private equity is that it closely aligns the interests of investors with those of the fund managers (the general partners) and the management of the companies they invest in. HNWI) Investment Managers Funds of Funds PRIVATE EQUITY FUND Company Management/Entrepreneur Source: Candesic How they make money Private equity investors seek to recognise niches that offer attractive growth prospects. This can also include funds of funds that allow smaller investors access to the asset class.
it is known as a management buyout. venture capital. while larger firms will often provide a range of investment alternatives. founder of KKR. as many of the tech companies that lost equity were backed by venture capital firms. transaction structure or capital structure. Mezzanine finance is the term given to a layer of debt that is typically used to fill a gap when structuring an LBO. In a leveraged buyout the management team is often given or allowed to purchase a stake in the investment. A leveraged buyout is the name given to an acquisition that is funded primarily through debt.Vault Career Guide to Private Equity perform better than its peers. 5 . The firms are typically entrepreneurial ventures that do not have the steady cash flows or track record to raise money through bank loans and public markets. it is likely that some poorly performing funds won’t be able to survive much longer. The mature part of venture capital is called “expansion capital”. who will trust the management team to look after their investment for them. If the current management team is involved in buying the company from existing owners. they attempt to multiply their return by leveraging their investment. which can be either in time. This inherent risk was particularly damaging during the dotcom crash. it is known as a management buy-in. It is sometimes the case that companies seeking venture capital investment may have nothing more than a business plan. and has developed into an accepted industry standard. or MBI. This is done to incentivise the management team and align their interests with the PE firm. This level of debt can have many forms and can offer several advantages over other forms of financing. When the management team involved is an external group that replaces the existing management. and is often a side activity of LBO funds. Chapter One: What is Private Equity? Types of PE—segmentation by stage and product The wider private equity sector can be divided into four distinct types of investment: leveraged buyouts. and therefore have a high risk of failure. Public companies are often taken private. The practice was initially pioneered in the 1970s by banking icons such as Henry Kravis. aided in recent years by low interest rates. As a more difficult credit environment evolves and debtor protection increases. at least in mature markets. using large bank loans or corporate bonds to acquire the firm’s outstanding equity. or MBO. To compensate. mezzanine financing and distressed debt. the venture capital firms expect very high returns on their investments. Venture capital is a form of alternative investment that provides high risk equity to early stage companies. In addition. Some firms will specialise in a single type of investment.
Distressed debt is a high risk form of debt given to a company that is financially distressed or bankrupt. or investing alongside other funds (co-investors like Parallel in the UK). the maturing of the industry and the market downturn of 2000 led many historical private equity investors. to withdraw from the private equity asset class. and therefore present arbitrage opportunities for financial investors such as hedge funds. Another category of private equity investing that is growing fast is the so-called “secondary”. co-investors. Within 6 . While this activity is not new. Distressed firms are typically very volatile and difficult to value. so they can influence the management and decide on the strategy of their asset. often banks or insurance companies. secondary funds and funds of funds This book focuses on primary funds that invest directly into companies. when a fund buys a portfolio of private equity assets or pre-existing investor commitments to private equity. either taking a majority stake. This in turn led to the rapid growth of another segment of investors specialising in the acquisition of these existing portfolios. TYPICAL BIG LBO FINANCING STRUCTURE (PRE-CRISIS) Equity Mezzanine High yield 30% 10% 10% Choice of high yield over mezzanine can be led by: • Market conditions • Pricing • Ease of issue • Possible need to refinance Senior debt 50% Source: Candesic Segmentation by style—direct investors. Dedicated secondary funds concentrate on acquiring all or part of the portfolios from other private equity funds.
one can distinguish between early and mature secondaries.4 8 8 8 7 5.7 5 5 5 5 Source: Candesic PE database KK Ap R Pe ax rm Te C ira rr V BC a Fi C Pa rma Bl rtne ac r ks s to n EQ e Ci T nv en Ch C 3i ar ar te ly Ba rho le G in u ol C se dm a a p Br n S ital idg ac PA ep hs Ind I Pa oint us rtn tri er K s AXapit D Ba A al ou rc P gh lay E ty s H PE a Al nso pin n ve st 7 . Many large diversified funds include it in their activities. TOP 20 DIRECT PRIVATE EQUITY FIRMS BY AuM IN EUROPE* March 2008. €bn (*Doesn’t include funds of funds) 90 86 80 70 60 50 45 40 38 44 Assets or commitments outside Europe Assets allocated to European acquisitions 35 30 25 20 15 10 5 0 30 35 33 32 22 20 19 21 15 11 11 9 11 9 9 11 9 9 8.Vault Career Guide to Private Equity Chapter One: What is Private Equity? this segment. secondary direct funds buy portfolios of direct investments. Finally.
listed We can roughly consider three forms of financing for private equity funds: internal funding. The securities sold can be common stock. and access to permanent capital through public funding (3i. with a market risk somewhere in between the two. and is often used when a company is having difficulty finding additional funding after an unconvincing IPO. and many still conduct them from there.We also listed some of the major funds of funds in Europe. convertible preferred stock or convertible notes. although typically this will only make up around 10% and tends to be the money of the fund managers. There is a trend for hedge funds to allocate a portion of their fund to private equity investments into “side pockets”. limited partnership with external institutional investors. where accredited investors are privately invited to invest in a public company. and are normally sold at a discount due to their relative illiquidity. Eurazeo). Other specific cases A PIPE is a special type of private investment. Crossover funds are investment funds that attempt to fill the gap between private and public equity investing. Segmentation by financing: private vs. Blackstone. with the exception of Vestar. pan-European funds that grew beyond their country of origin and developed teams in major European cities. They simply invest in a number of direct PE funds to diversify their risk. The process has similar characteristics to other forms of stock offerings. Geographic segmentation: global. pan-European or regional players in Europe We also distinguish between major US funds attracted by the investment opportunities in less mature European markets. 8 . They combine private equity investing with strategic public equity investing typically used by hedge funds. on a geographic area of common language. like Canadian owned Sagard in France. and local funds that made the strategic decision to concentrate on their home market or. launched their European operations out of London. for example through a parent company or a family office. Most of the US funds.
During this time there will be an offer to buy back a stated portion of shares from investors. Chapter One: What is Private Equity? 9 .Vault Career Guide to Private Equity Interval funds are somewhere between open and closed-end funds in that they do not provide daily liquidity. Interval funds have proven popular since being introduced in 1992 as they provide retail investors with access to private equity investments with a degree of liquidity. but have specified periods when shareholders are able to redeem and distribute shares with the fund.
it is difficult to merely describe the boom of the past seven years. by the ability of many institutional investors to allocate a larger portion of their assets to the asset class and by the surge of new investors like sovereign funds. come from the McKinsey Global Institute’s “The New Power Brokers”. but we don’t think the fundamental attractiveness of the private equity model has changed. which seem rather conservative. the growth is fuelled by the strong and sustainable performance of the best managers. professional and mostly independent LBO firms have occupied a leading position in the market. We may be in the midst of a bust. Industry statistics In 2007. banks are mostly present as General Partners or co-investors and. culminating in a financial crisis. Of course. merchant banks or early forms of family offices have been responsible for organised venture capital. that have halted the most visible transactions.” The industry has experienced an average growth rate of 14 per cent since 2000. and would argue for a temporary correction of the recent excess. has been the adjunction of high yield (junk) debt to the financing of companies with mature cash flows and the widespread use of leverage. The major transformation. research provider Private Equity Intelligence announced that. Today.CHAPTER TWO: THE MARKET P rivate equity may well be the oldest form of financing. with the notable exception of Goldman Sachs. there is more awareness of the possibilities offered by private equity for companies in need of financing. In the US as well as in the UK. which appeared in October 2007) . The same process is happening now in the rest of Europe. of which 700 billion were LBO funds (these figures. the private equity industry had reached assets under management of $2 trillion and had the firepower to acquire up to $2. 10 . From a demand perspective. and after a year of depressed markets. “[They] are predicting a $5 trillion industry over the next five to seven years. as we publish this guide (late 2008). In the last 30 years. beginning in the 70s. the major players are independent firms. following a record fund raising of more than $500 billion. and a growing pool of experienced managers with the skills required to execute these transactions. the direct presence of investment and commercial banks has been eroded as most internal funds have gained their independence. A year later.4 trillion in enterprise value. From a supply perspective. global private equity assets under management represented about $1. with the sum of the undrawn money and portfolio company holdings.1 trillion. often to reduce the risk of a conflict of interest with the increasingly important clients of the banks. despite the current difficulties in the LBO segment. For a long time.
Another possible consequence is a more relaxed approach to risk and an expected decrease in the overall performance 20 15 10 5 0 20 Employment statistics In terms of employment.The recent fast growth of commitments has led to an overhang with too many investors chasing too few deals . the top 50 PE firms worldwide employed less than 4.Vault Career Guide to Private Equity Chapter Two: The Market EUROPE-PRIVATE EQUITY FUNDS RAISED AND INVESTED €bn. Perep & Preqin (2007).000 investment professionals. the venture capital and the family offices. If we add the smaller firms.000 investment professionals in 2007.4 24 35 28 29 28 40 37 Commitments raised Funds invested .One of the consequences is a rush towards bigger deals . equity commitments to and worldwide investments by European PE funds 100 90 80 72 71 90 100 70 60 50 48 47 70 45 40 35 30 25 20 30 27 25 20 19 15 10 8 7 15 11 11 9 9 9 9 9 8. we may reach 20. of which 19 9 19 6 97 19 9 19 8 9 20 9 00 20 0 20 1 02 20 0 20 3 0 20 4 05 20 06 20 07 Source: EVCA. PE remains a niche. Candesic 11 .
EUROPEAN PRIVATE EQUITY FUND MANAGERS BY COUNTRY OR REGION European private equity fund managers by country Other 2% Eastern Europe 3% Switzerland 4% Benelux 4% Italy 5% Spain 6% Nordic 7% Germany 10% France 17% UK 42% Source: Candesic PE Database Current trends and issues After two decades of relative confidentiality. In France. A meta-review of 12 existing studies by A.000 investment professionals. as well as a sometimes narrow sense of fiduciary duty.000 are based in Europe. These numbers look particularly low when compared to the millions of people employed at the companies owned by the private equity funds. the excessive debt levels seem to be losing importance as debt providers now refuse the extreme conditions demanded by PE investors before the summer 2007. a study made by accounting firm Constantin for the French Association of Private Equity Investors (AFIC) on more than 100 French companies undergoing 12 . The industry regularly stands accused of profiteering and asset-stripping. This seems to be an unfair accusation.g.. But critics point out that the report didn’t distinguish buyouts from venture capital. Other concerns include the lack of transparency and accountability. the top 240 PE firms operating in Europe currently employ about 4.we estimate 7.000 jobs in the United States between 2000 and 2003. Blackstone) has raised questions and sometimes fierce critics.T. politicians and the general public. According to the Candesic database. the private equity industry has come under increased scrutiny from the media. Kearney claimed that private equity created 600. The public disclosure of the huge compensations that successful partners can achieve (e. Among the major concerns. as most studies showed—at least until recently—that private equity backed companies create more jobs than their public equivalents.
Lyceum Capital. Charterhouse. TPG and 3i. including Apax.. Cinven.9 per cent on average and other elements of remuneration being on average better developed and more attractive for all LBO employees. Doughty Hanson.1 per cent per annum (with 78 per cent of it from new jobs and 22 per cent from external growth).3 per cent per annum vs.000 net jobs were created in Europe by buyout-financed companies between 2000 and 2004. Hermes Private Equity. which showed that employment at privately acquired firms grew by more than 8 per cent. SEIU (Service Employees International Union) warn that the study’s claims are based on selfreported information from a small set of portfolio companies—just 99 out of more than 1.. The Blackstone Group.A. they find that companies owned by private equity funds have a net reduction of their workforce of 1 per cent over two years. ISIS EP LLP. CVC. but was later dismissed by many academics as biased.000 US transactions from 1980 through 2005. Montagu Private Equity. by commission of the World Economic Forum.Vault Career Guide to Private Equity LBOs showed that their headcount grew by 4. Terra Firma Capital Partners Ltd. 2. 2005) led to similar findings. They also find that these firms default slightly more often than the average public firm. HgCapital.) In January 2008. Legal & General Ventures Ltd.6 per cent. This differs from the positive result of another study commissioned by the Private Equity Council. Bridgepoint. 2004) and in the UK (“Employment Contribution of Private Equity and Venture Capital in Europe”. BC Partners. but only half as much as those with similar leveraging. in 2007 the BVCA announced the formation of “an independent working party under the Chairmanship of Sir David Walker to draw up a voluntary code on a ‘comply or explain’ basis to address the transparency of the industry and levels of disclosure”. Candover. It is also unique in that it is not suspected of having any bias or external influences. Similar studies in Germany (“Economic Impact of private Equity in Germany”. F. a lobbyist group. KKR.. Josh Lerner from Harvard and Steven Davis from Chicago published the most extensive study to date regarding the issue. Chapter Two: The Market 13 . Barclays Private Equity Ltd. Centre for Entrepreneurial Studies in London. Permira. This growth was partnered with salaries increasing by 3. Exponent Private Equity. whereas the national average was only 0.400 companies that underwent a buyout during the period studied. (The 2005 study by the Center for Entrepreneurial and Financial Studies (CEFS) for the EVCA claims that more than 400. The World Economic Forum study doesn’t examine what would have happened to the jobs had the transaction not occurred. The Carlyle Group. Reviewing 5. Twenty-three private equity firms operating in the UK issued a statement to support this initiative.Z Institute. In order to address the transparency and profiteering concerns.
000 180 $65bn 300. when the tightening of the world credit markets led to major collapses in the hedge fund industry where the effect of this credit adjustment is more immediately visible.000. 14 .000 660.000 350. Lee Partners Apollo Warburg Pincus General Atlantic * $60bn in other asset classes 100 50 53 $55bn 1. The situation may have arisen in the US but spread immediately to Europe. Debt providers finally started to object and refuse the conditions dictated by the buyout funds. with a flourishing of so-called “covenant-lite” debt financing. SEIU. This was further confirmed during the summer of 2007.000 430. the UK pharmaceutical retailer acquired by KKR. Candesic analysis The credit crunch Leverage in the buyout industry reached an all time high in 2007.000 390.000 360.000 280.000 # of Companies in portfolio 40 45 200 Total turnover $102bn $72bn $87bn Employees 560.000 375. which led to an increasingly lenient approach to risk. This signaled a severe correction of both leverage levels and the conditions associated with the loans.000 300. In June 2007.Main Private Equity Firms Are Giant Conglomerates PE FIRM KKR Blackstone Carlyle Bain Capital Apax TPG Permira GS Capital Partners CVC Cerberus Providence Equity Thomas H. banks were left sitting on £5bn of debt from the financing of Alliance Boots.000 AuM $86bn $32+60bn* $75bn $50bn $35bn $30bn $30bn $30bn $29bn $22bn $21bn $20bn $16bn $15bn $14bn Source: press search.000 86.
Before the credit crisis. According to the McKinsey Global Institute. the situation has further deteriorated and many insiders acknowledge that they don’t expect to close many transactions during the year. One likely consequence will be that private equity funds will have more difficulty competing against strategic investors as their access to cheap financing will be limited. the term “locusts” was famously used in 2005 by the leader of the Social Democrats and again by the former CEO of Deutsche Boerse in his vitriolic book Invasion of the Locusts.Vault Career Guide to Private Equity In spite of a record first half year in 2007. the economic. While countries like France or Spain have had substantial growth in the recent years. regulatory and cultural environment remains more favourable in Northern Europe. In the months leading up to the second quarter of 2008. for whom the system was originally designed. it is tempting to try and renegotiate terms or simply withdraw their offer. investment banks could earn up to 25 per cent of their fee income from advisory related to private equity firms. “firms that have relied more on leverage than skill may shut down”. Even in the UK. than improve public perception. the UK still represents about a third of the activity. This hasn’t prevented funds from expanding throughout Europe. The industry’s negative reputation is relatively new and differs from country to country. This is more the case for mega buyouts which are more likely to rely on financial engineering for value creation. This in turn will contribute to lower returns. In Germany. In Europe. But invoking the “material adverse change” clause doesn’t work well and the break up fee can be heavy. Chapter Two: The Market Regional differences The private equity industry has historically grown first in Anglo-Saxon countries. public perception about private equity deteriorated in 2007 following widely publicised critics of the attractive tax status General Partners enjoy. For private equity firms involved in major transactions that they cannot easily finance anymore. after an activist fund led to his departure. The subsequent reform of the tax system is more likely to penalise entrepreneurs. One immediate consequence is the general impact on the investment banking business. supposedly the friendliest place in Europe. This has tainted the industry’s reputation ever 15 . but they recognise the strong cultural differences. This hostility has resonated elsewhere in Europe. the total value of buyouts between August and October 2007 was 60 per cent lower than during the same period in 2006. this number has fallen to around 10 per cent with a direct impact on the banks’ profitability.
5 -2. It is tempting for politicians to use private equity firms as scapegoats.0 -2.5 3.4 1. Apax still considers Germany a friendlier environment for private equity than France. in a country where social consensus has dominated for fifty years.5 0 -0.1 2.0 -1.8 1.8 3.0 0.8 4.1 -2.9 3.0 -2.1 Italy Slovakia Czech Rep.5 -1.5 -3.5 -1.5 4.0 1. PRIVATE EQUITY ENVIRONMENT RANKINGS IN EUROPE 2007 grades 5.0 2.6 2.0 3. In spite of that.5 1.6 1. and it is all the more easily done when some players carry out transactions with an approach that is considered too aggressive.5 1.since.9 1.8 3. Hungary Spain Portugal Belgium France Greece Poland Ireland Austria Norway Finland Denmark UK Germany NL CH Sweden -0.0 4.7 -3.5 2.0 Source: Apax 16 .8 3. all of Southern Europe and even Norway.3 -1 -2.2 -2.
This is an unintended result of the original attempt to support the financing of risky ventures by private equity. the selection bias between good and poor performers and the general accuracy of the valuation of the assets still in the portfolio. Aggregate industry returns are lower following a boom. and expects the short-term performance of private equity funds to remain very strong. private equity increases efficiency. by the so-called venture capitalists. However. while the returns of established funds are much less affected by these industry cycles. Kaplan and Schoar find “a large degree of heterogeneity among fund returns. Persistence and Capital Flows”. Today. large buyouts consistently outperform public stocks. starting with the access to sufficient data. against 14. cash flows are relatively stable and predictable.) Nevertheless. this depends on the sample and the period considered. by definition. they exceed those of the S&P 500 gross of fees and equal them net of fees. They could also have a beneficial impact on the economy with net job creations. According to a study he conducted in 2005 with Antoinette Schoare from MIT. More precisely. They also find that market entry in the private equity industry is cyclical." says economist Steven Kaplan of the University of Chicago. Chapter Two: The Market When looking more closely at their results. this tax treatment appears generous to 17 . Taxation General partners in private equity funds have been increasingly criticised for paying a very low amount of taxes on their revenue. Some other studies have shown more mixed results— over the last ten years US buyouts could have outperformed the stock market (though whether this can be proven is something of a grey area)—but buyouts seem to be an attractive asset class for limited partners and individual investors through their pension plans. Until 2008. There are a couple of limitations in the assessment of the industry performance. carried interests were taxed at the level of capital gains at 15 per cent in the US and at a special level of 10 per cent in the UK.” (This is from Kaplan and Schoar’s 2004 “Private Equity Performance: Returns. suggesting that these funds subsequently perform worse.Vault Career Guide to Private Equity Costs and performance "On balance.9 per cent five-year rolling IRR. a 2008 report by Thomson Financial for the EVCA shows that European private equity firms achieved a 15. The returns also improve with partnership experience. when 75% of the capital is invested in buyouts where. Funds [and partnerships] started in boom times are less likely to raise follow-on funds. but most of this effect is driven by the poor performance of new entrants.5 per cent for US buyout groups. Returns persist strongly across funds raised by individual private equity partnerships.
In the US. hedge funds tend to benefit from having a variety of people with expertise in different places within the capital markets chain. and they are increasingly accused of being too lightly regulated. a measure that should be limited enough to prevent a massive exodus of funds. in the exit strategies and ultimately in the motivation of the management of the target companies. PE funds invest primarily in very illiquid assets and lock their investors for the entire term of the fund. hedge funds are pushing into less liquid markets such as mid-caps to compensate for the lower returns in their traditional fields. In the competition with PE. they attract top talent. including those who went public. In October 2007. They have similar organisational and to an extent compensation structures. first as mezzanine providers. This leads to differences in the asset valuation. They differ mostly from each other in their time horizon and the liquidity of their investments. in general. the UK government announced their decision to raise the rate to 18 per cent. Lately. major players have lobbied hard to kill a Senate bill and a measure by the House of Representatives that would increase the taxation of carried interests to 35 per cent or more instead of 15 per cent. in the timing of performance compensation. Many hedge funds have entered the LBOmarket. distressed hedge funds compete with their PE counterparties. Activist hedge funds make direct bets when they demand board seats after building a position in a company. The competition • Cooperation and competition with hedge funds Hedge funds are similar to private equity funds in many respects. In 2007.many. and the shorter investment horizon becomes less obvious a difference. while most hedge funds pursue absolute returns and invest in very liquid assets. But. their search for new alpha leads them to build their own PE funds where they can hold “side-pocket” investments. They are now trying to at least double the five year grace period contained in the draft proposal and to ensure that all private equity firms will be treated equally. and PE funds have to 18 . At the same time. Finally. hedge funds are starting to hire PE managers. PE represented about 10% of hedge funds’ investments. they need to raise funds from institutional investors. they offer high performance and seemingly lower correlation to other asset classes. they are often highly leveraged.
In real dollars. a Canadian company.Vault Career Guide to Private Equity Chapter Two: The Market increase the salaries of their mid-ranking managers. Insiders mention that. the previous RJR-Nabisco record was finally beaten in 2007 with the $44bn acquisition of TXU by KKR and TPG. mega LBOs remained rather rare.4bn. in November 2007. the mega deals continued with the first buy-out of a FTSE100 company. While their core businesses remain quite distinct. China) and large family offices represent a further inflow of liquidity that targets the biggest assets. after VNU in the Netherlands ($11bn). By June 2007. In Europe. if we include infrastructure deals. There were 27 of them in the period ending August 2007. since 2005. which invests on behalf on the Qatar Investment Authority. the major funds have multiplied their acquisitions of assets with an enterprise value above $10bn. • Other competitors Government-sponsored principal investors (Dubai. with targets like Sainsbury’s regularly featuring in the media. More mega deals could well happen once the markets have settled. the major LBO funds had accumulated so many commitments that a $100bn acquisition by a consortium was ready to happen at any time. Sovereign funds can disturb the market as they don’t have the same performance requirements or culture. sometimes competing with the biggest PE funds. 19 . Shortly after. while hedge fund managers get their performance every year. hedge funds and private equity are now experiencing a melt down in most periphery segments. Wind in Italy ($13bn) and TDC in Denmark ($14bn). following the financial markets turmoil that started in the summer of 2007. when KKR bought Alliance Boots for $24bn in 2007. One difficulty PE employers may face when retaining their managers is that they have to wait many years for the realisation of their investment before they receive their carry. This is less likely in the medium term. and lately buying stakes in the funds directly. terminated discussions to buy the retailer for £13. some well-known sovereign investors have started their due diligence after the acquisition! The $100bn ticket Since the buyout of RJR-Nabisco by KKR in 1989. on several occasions. the $50bn mark was almost reached with the buyout of BCE. Delta Two. But. of which four were in Europe. Many of them need to find ways to invest the huge amounts of money they manage and are less concerned with the risks they are taking. sometimes partnering with them in club deals.
Blackstone made the headlines when it went public and raised $4 billion through an IPO.Largest Deal in Europe 9 8. The degradation of the environment since the summer 2007 and the disastrous 20 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 2005 2006 2007 2008 . They were not the first ones but certainly the most publicised.4 Source: Candesic Private goes public Ironically. starting with KKR. In 2007.LBOs WITH EV>$10bn 50 45 40 35 30 25 20 15 10 5 0 15 11 11 9 9 9 9 30 BCE TXU (KKR+TPG) HCA (Bain + KKR + ML) Hilton(Blackstone) Alltel (TPG+GS) Alliance Boots (KKR) . which will most likely IPO on the NYSE. Several other funds were planning a similar move. private equity funds have come to realise that public money offers several advantages: it is a permanent source of capital and most small shareholders are unlikely to be actively tracking the fund’s activities.
“Write-offs are kept artificially low for reputation reasons. Overhang In private equity jargon. In March 2008. In 2007.Vault Career Guide to Private Equity Chapter Two: The Market performance of the Blackstone shares have halted most ambitious plans. Eurazeo or KKR Amsterdam have lost 25 to 50 per cent of their value in less than a year. listed PE vehicles in Europe have been slammed by the market: shares of 3i. What’s next So. overtook trade sales by value of total divestiments. albeit slightly slower than previous predictions. repayment of shares or loans. Perep Analytics recognise seven exit categories for private equity investments: trade sale. Goldman Sachs estimated at $400 billion the amount of uninvested capital raised by private equity firms. Another issue is the impact on the asset allocation plans of the institutional investors. secondary buyouts. mega LBOs were delayed if not cancelled. overhang refers to unused (uncalled) capital commitments. what’s next? Prior to the September 2008 crisis. It is somewhat similar to “dry powder”. With the tightening of the credit markets and the temporary death of mega LBOs and club deals. returns were already mixed. In a September 2007 conference. if the capital remains in cash for too long. targets are going to be smaller as big groups are tempted into 21 . write-offs and sales to financial institutions. it becomes difficult to invest. and still. for the first time since at least 1992. Altamir (Apax France). secondary buyouts reached a record 30 per cent of all exits and. Putting the money to work is a condition to charge the management fees on a continuous basis. Like Blackstone. high leverage ratios seemed out of the question. it it often tempting to merge a hopeless dog with a better run company as long as there is limited risk to damage the better one”. initial public offerings. which may explain some of the recent appetite for buying stakes in public companies. Exits In their yearly report commissioned by the EVCA. which refers more generally to the cash reserves kept on hand to cover future obligations. sale of quoted equity. the market was expected to continue to grow at a significant pace. Carlyle’s David Rubinstein said that the average holding period is likely to rise from four to six years. For a while. According to a fund manager in London. Candover Investments.
an even greater period of expansion than the “golden age” it went through in the last five years.the middle market. Firms like Blackstone. including giving management a stake in the companies they run”. Cerberus and KKR with its Capstone unit will leverage their strong restructuring experience and target more distressed assets. institutional investors are unlikely to lose their appetite for the industry and the McKinsey Global Institute forecasts a further increase of global private equity assets under management to $1. the mid market showed its resilience. ultimately.4bn by 2012. a doubling in five years. returns will remain strong and Private Equity will remain attractive to investors “because the techniques used by sponsors to improve companies have been proven to work. Citigroup expects private equity to soon overtake property and hedge funds as the most popular alternative investment for pension funds. However. In the first half of 2008. 22 . again. reckoned that Private Equity will now spend a year or so in “purgatory” before entering the “platinum age”. For Rubinstein. David Rubinstein. In a keynote address at the 2008 Wharton conference.
GETTING HIRED CHAPTER THREE: Is it the Right Job For Me? CHAPTER FOUR: The Hiring Process .
with a typical organization and business model and the recruiting of professionals at undergraduate.000 PE FUND MANAGERS IN EUROPE (Higher Diploma) Bachelor only 31% Unknown or none 11% PhD/JD/MD 5% MBA 25% Master 28% Source: Candesic PE database. January 2008 26 . While the activity has been around for centuries. Because the competition is more global.000 PE FUND MANAGERS IN EUROPE (Most significant previous job) Asset management 3% Strategy & management consulting 10% PE 11% Audit & transaction services 10% Banking 11% Investment Banking 24% None 11% Other 20% Source: Candesic PE database. as long as wealthy investors have been able to acquire stakes in private companies. the recruiting tends to be more competitive and PROFILES OF 4. private equity in Europe has clearly become more competitive as teams compete directly within and across countries for the same assets. it is only in the last few decades that it has become an industry. From our interviews.CHAPTER THREE: IS IT THE RIGHT JOB FOR ME? P rivate equity is a relatively new industry. graduate and experienced levels. January 2008 PROFILES OF 4.
Globally.Vault Career Guide to Private Equity international candidates with language skills are targeted. Our database shows that more than 60 per cent of the investment professionals have an MBA. ESCP-EAP. especially in the UK where it is common to start working after a bachelor’s degree. St. Other institutions that have substantial amounts of graduates in the industry tend to be the best business and economic schools in each big European country: Stockholm School of Economics. but its attractiveness has grown even faster. INSEAD. Cambridge. London Business School. Those who only have an undergraduate degree tend to be younger analysts. HEC and Oxford are the most represented academic institutions across all the professionals. Harvard. a PhD or another advanced degree. accounting together for about 20 per cent of them. Gallen.The industry has grown very fast. London School of Economics. The institutions represented are—no surprise—the top universities in Europe (typically top 5-10 universities in each country) and top 15 global programs for MBA graduates. Bocconi is the clear challenger to the group of five and sometimes seems to be the sole local provider of managers in Italy. Chapter Three: Is it the Right Job For Me? TOP UNIVERSITIES ATTENDED Number of professionals* *Double counting allowed for staff with several degrees 250 210 200 204 177 170 168 150 100 104 72 72 69 66 62 61 59 57 49 49 44 42 42 38 37 37 50 0 ha rto n Source: Candesic PE database. January 2008 Po L lyt BS ec hn iqu e D Co urha pe m nh ag en St G all en IEP Pa ris M an ch es te r M un ich St an fo rd IN SE AD H ar va rd Ca m br idg e or d Bo cc on i AP EC SS LS SE ine au ph CP O ES ES D Co l W um H xf -E bia E C E 27 .
half of them worked in investment banking or other areas of banking. The most frequent previous employers are PWC. MOST FREQUENT FORMER EMPLOYERS Number of professionals 150 Private equity 138 Investment banking 120 109 Strategy consulting Audit & transaction services 95 90 93 86 77 74 71 70 65 64 57 53 51 51 46 46 45 44 41 60 30 Ba in lL yn ch KP M Ar JP M G th ur org An an de rse n BC Ci G tig ro up M er ril Source: Candesic PE database. Most investment managers have started their career in another area: the Candesic database shows that less than 20 per cent of private equity fund managers started their career in private equity (11 per cent at their current employer and the rest at a previous PE firm). McKinsey and the top tier US investment banks. More than 10 per cent of all fund managers had previous experience in strategy consulting. especially leveraged finance.However. the vast majority of graduates do not start their career in private equity: they will first get their training in related areas of advisory or in top management positions. Out of the other 80 per cent. January 2008 28 UB D S BN eloi tt Er P P e ns ari t & ba s D eu You tsc n he g Ba nk C Le red 3 it i hm an Suis Br se o AB the N rs Am ro PW M Mc C or Ki n g G an S sey ol dm tan an ley Sa ch s 0 . and the same percentage came from audit and transaction services (note that the numbers don’t add up to 100 per cent because many fund managers had several jobs previously). and 20 per cent worked outside of the finance industry.
the team of like minded brilliant professionals. 29 . women represent only 10 per cent of investment professionals and 11 per cent of all professionals (which includes CFOs. A prolonged recession with limited exit opportunities can destroy most of the expected remuneration. In addition. low hanging fruits have disappeared in developed countries. Many mega funds have quickly dispatched their fund managers to work on improving the existing portfolio companies. and another seven years to gain full access to the carry. Optimists will explain it by an improved access at junior level: women represent 15 per cent of the analysts and associates. Unlike in many other areas of asset management. typically three to seven years after the investment. COOs and those engaged in business development. The industry is also more likely to be hit by global economic downturns. In addition they are found proportionally less often in senior positions. and the perks. Comparison with other elite jobs A significant proportion of private equity fund managers got their initial professional experience in investment banking. The most recent example is how the 2007 US subprime mortgage crisis has led to a sudden and complete halt of all multi-billion dollar LBOs. There are exceptions at both ends of the private equity spectrum. whether dealing with high tech start-ups set up by highly educated PhDs or on the mega LBOs of firms with global operations. I am the client of my former colleagues and I feel like I can set the pace”. For all these reasons. Part of the stress is also linked to the performance dependant reward model. private equity doesn’t appear to be an “equal opportunity”area. fluency in the local language is necessary to interact with the management team of a local private firm. fundraising and risk management). but in most European countries. the diversity of activities. A recent BVCA report showed that only 50 per cent of the private equity firms in the UK paid out a carry to their managers. one should expect the staff turnover—so far extremely low—to increase in the private equity industry like in any other maturing industry. “now. English is the common language. They appreciate moving into jobs that give them a better lifestyle and often better compensation. Finally.Vault Career Guide to Private Equity Chapter Three: Is it the Right Job For Me? Most fund managers tell us they like their job. As one insider says. The IB background is essential as fund managers end up developing their own valuation models that they rarely share with their advisors. the access to the carry is long and becoming longer at those firms that can pay it: it takes an average of seven years to be promoted to partner. Pessimists will question their chances to get promoted against men. They also tell us that they work harder than they did ten or twenty years ago. the opportunity to work closely with executives. New risks appear and limited partners become more and more sophisticated. managers get their share of the profits only after the PE fund sells the company.
and the opportunity to participate directly to the implementation or monitoring of implementation of the strategy. Understanding the jobs: The investment process and the roles in the private equity firm Most private equity firms are small (roughly 10-20 people for each billion dollars under management) and organised along the same lines. Numerous insiders coming from management consulting see their move as a natural career progression. and a very light support staff (as most noncore activities are outsourced). Some firms have a dedicated person or team and most will leverage the entire senior team. While this may be an extreme situation. There are however many common features: the small team of bright professionals. operating partners who can advise. with a relatively heavy senior investment team supported by a few juniors. In new or in smaller funds. One can say that. 30 . become frustrated after years of advising top executives and feel the need to “do things by themselves”. but they are generally the ones who keep working late a long time after I left the office”. The skills required in most hedge funds are somewhat different. The only job that varies significantly from one firm to the next is deal origination. weeks. sometimes days. This is mainly due to the timeframe of the investment: hedge funds get in and out of an investment within months. second or take over the management of the portfolio companies. Quantitative skills are often more developed and required. often with international backgrounds. on average. The MD of a French mid cap fund states that “one of my great joys is to coordinate the various advisors. with the advantage of being closer to the real operations of the companies in their portfolio. private equity roles are more well rounded and come with more variety in the day to day job.Like management consulting. it is certain that the private equity fund manager doesn’t have to report to the limited partners the way top executives in public companies report to their shareholders. In certain firms they have to develop their own network to identify early investment opportunities. they are also likely to participate in fundraising. an individual or a small team in charge of fund raising. Some consultants. Senior fund managers are likely to be involved in most steps of the private equity investment process. In any case. It can be a lot of work. in direct contact with the top management and other professionals. this is always encouraged as early identification and exclusive access to deals is one of the main drivers of performance. the exceptional remuneration opportunities and the high flexibility being close to the top of the value chain. especially those who didn’t have prior significant line experience. private equity offers the opportunity to work across industries and geographies on various management issues.
Secondary sale .Reorganisation . • Due diligence.IPO .Trade sale . Most big firms will have to analyse hundreds of targets.Optimisation of operations .Vault Career Guide to Private Equity Chapter Three: Is it the Right Job For Me? INVESTMANT PROCESS OF PRIVATE EQUITY FIRMS Fund raising Deal sourcing Acquisition Postacquisition Exit Management • Investment strategy • Investors hunting • Set up funds • Networking • Identification of investment opportunities • Preliminary investigation • Prioritsation of opportunities • Due diligence • Set up of financial structure • Valuation • GP agreement • Investment Committee decision • Contract preparation • Portfolio Monitoring • Portfolio and company management . management consultants and other specialised advisors). Typically. accountants. Fund managers will assess the various opportunities brought by investment bankers. In a fund of funds. they will select and monitor their various advisors (investment bankers. lawyers. often leaving the investment bankers with the responsibility of coordinating the team. Managers will conduct most of the diligence themselves. the due diligence will be more targeted at the financial performance and investment process of the fund. During the due diligence. 31 . • Financial structure. The fund manager will discuss the financial structure and the use of leverage with the debt and mezzanine finance providers. brokers and other contacts in their networks.M&A . Some firms have a thorough process of monitoring thousands of public and private companies to identify underperformers or companies with non-core assets and excess costs.Strategic review • Vendor due dilligence • Valuation • Partial or total divestment through .Write-off Source: Candesic • Deal sourcing. They may have to get approval from the General Partners. no more than 25 per cent of the deals are proprietary—the rest comes from the bankers (50 per cent) and from affiliated funds or advisors (25 per cent).
• Investment Committee. Often working within a team, the fund manager will put together the various elements of the investment case and will submit it to the investment committee, composed of the senior partners and some of their advisors. • Acquisition. Once the case is agreed upon internally, the team can make a binding offer to the vendor. If it is accepted, the acquisition proceeds, and may last three to six months, with the due diligence likely to continue in the background. • Post-acquisition. The performance of the companies in the portfolio is constantly monitored and actions are taken if the results deviate from the tight plan that was agreed upon with the management. Some firms will just have a fund manager sitting on the board of the company; some will delegate one of their employees to work with the executive team; others will put entire teams of operational consultants to work. • Exit. After a period of three to seven years, the portfolio company should have repaid a substantial part of its debt. Hopefully, the new company has a reasonable leverage ratio and can be sold with a handsome profit to the public through an IPO, to another PE firm, or to a strategic investor through a trade sale. In recent years, numerous secondary and tertiary transactions have occurred, when further growth in the ownership of a bigger private equity firm is considered the best option, i.e., the option that maximises the current value of the portfolio company. The firm will hire an investment bank to manage the sale process and prepare an Information Memorandum (IM). It will generally hire accountants to prepare the Vendor Financial Due Diligence document, and sometimes consultants for the Vendor Commercial Due Diligence document.
Private equity can be demanding. Like other high-paying jobs, it comes with a lot of stress. One French Managing Director observes that the globalisation of the business makes life more difficult than it was 20 years ago, when nobody knew what private equity was. “We were a small club of professionals and had plenty of opportunities. Now we compete against the world for every asset”. However, since most of the fund managers have had a previous experience in consulting, leveraged finance or investment banking, the transition to private equity is generally very satisfying: “You have fewer hours, less hierarchy, you work more for yourself, and you direct the work of others”, remarks a former M&A banker.
Vault Career Guide to Private Equity
Chapter Three: Is it the Right Job For Me?
Interview of a London director at 3i
– What do you like most about PE? PE work is a daily challenge. I love being an entrepreneur. – What do you dislike about PE? The time pressure can be pretty intense! – What recommendations would you give to a graduate interested in PE? It is important to have previously worked in a different environment. There are basically three options. I believe experience in transactions services (Big 4 accounting) is great you gain excellent analytical financial skills. People who worked in investment banking have great technical skills (What is a good/bad investment?) but regarding their entrepreneurial mind-set, they can sometimes have difficulties. I believe that the most important skills are the soft skills—hard skills can be learnt, but PE is a people business. My main role is communicating with the management. We need to build personal relationships in order to influence the decision-making process from an informal perspective. These types of skills are best learnt at a strategy consultancy. – What does the team structure look like? 3i, for example, has small teams of 3-4 PE fund managers and boosts the teams during project phases with external legal, tax, strategy and finance consultants. But companies like Permira or Cinven staff their teams with up to 10 people. – How do you work together with the management of acquired companies? First of all I sit on the board of the company. There is always a formal and an informal role. The formal role includes that we are a part of the organisation. We are not consultants, we are shareholders. The informal role includes personal relationships with the management. These relationships are often the key to making a good decision together. – What role does pressure play in the daily work of PE fund managers? Please explain from an internal (teamwork) and external (work with management of acquired companies) point of view. The pressure is positive as long as the projects are going well. If the fund is losing money from that investment then the pressure increases significantly. It is even worse than for an entrepreneur. It is the money of the partnership and they are all alpha-people who do not like to lose money. Fortunately, in my ten years in PE I have never had that situation.
– What are the exit strategies? Normally you do not want to exit unless you want to retire. Some people leave PE after a major mistake. The few that do leave have a lot of opportunities though, for example as a CEO or CFO. Our PE firm offers fund managers the possibility to move into one of our portfolio companies which can be interesting. However it is always a psychological problem for senior PE fund managers to work again as employees. The mindset is different and the change is often very difficult.
Interview with a former senior partner at London-based mid-cap fund
– What do you like most about PE? PE is a hectic industry with lots of eagerness. Throughout the three steps of the private equity investment process (fundraising, transforming company, selling) there are a lot more areas involved: legal side, financial side, strategic side… – What recommendations would you give to a graduate interested in PE? The corporate finance area of a bank is a good way of starting with PE because mainly the same tasks are involved. When you work as a management consultant, it is always the same as one aspect of PE you will experience: the commercial due diligence. It would be good if consultancies could put their PE guys to work for a while within private equity companies so that they would get the whole picture. The best way to go into PE is to begin with a start-up PE firm. That way you grow into the process. Working in PE should be at least for 15 years. Normally it takes up to 10 years to fundraise and to build the portfolio and, basically, in the last 5 years you will make the money. Fundraising for our company meant 25 people working 5 years until we had 200 million pounds together. – What are the exit strategies? It is difficult to leave a private equity firm because your incentives are always paid off a couple of years later. By leaving you accept that you don’t receive your full shares of all the deals you did. I quit private equity at 45 but everybody in my company was very surprised because it was an unusual move.
Vault Career Guide to Private Equity
People who work in PE have to be very clear about the fact that the work is very intense and the cultural pressure is often very strong. We had to get rid of people during the last few years because they became too ambitious about their shares. It did not serve the company anymore.
Chapter Three: Is it the Right Job For Me?
Days in the life: Senior investment manager in London for major pan-European LBO fund
7.30 am: I’m on my way to work checking my emails via BlackBerry. 8.00 am: Breakfast meeting regarding a potential target company with experts. 9.00 am: Today, I attend a management presentation. When we have a project running I normally participate in contract negotiations with the company owners or the financing banks which last late into the evening. 13:00 pm: I use lunch time to review my synthesis of market studies. I make sure that the consulting teams we hired for commercial due diligence are working in the right direction. We feel we have to challenge them by asking for updates or for more information regularly. On another day I would have lunch with colleagues or advisors and discuss potential projects. Afternoon: Today, we don’t have contracts to negotiate and have organised a financial due diligence presentation by a Big Four accounting firm at our office. Dinner: If we had negotiations in the signing phase of the project I would stay at the office for a long night. Shortly before the final offer I will occasionally need to pull an all-nighter, but that is something I can expect and am prepared for. Today, as we are still discussing potential targets I can leave the office at 8pm for a dinner meeting. I like to use meal times for meetings, although usually only have one of these meetings a day.
Day in the life: Business school student, junior analyst role as intern in France for pan-European multibillion mid-cap LBO fund
9.00 am: I get into the office and glance over the finance section of the daily paper and a dedicated private equity newspaper we get delivered. 9.30 am: Team meeting. We normally talk about any issues and news relating to a deal in process, a company in our portfolio, or a new investment opportunity.
10.30 am: I start work on an IM (investment memorandum) which must be finished within three weeks as we made an indicative offer last week. I start reading the commercial and financial due diligences; I have a quick discussion with the director in charge of the investment to talk about what points from the diligences he wants me to focus on. 13.00 pm: Lunch. 14.00 pm: I keep working on the IM. 15.00 pm: Presentation with the management team to a large bank to get an idea of how much debt they would be willing to provide, and at what rates. 17.00 pm: In the wake of the previous meeting, we have a rough idea of the leverage level and interest rate for the deal and I update the financial model to check how the internal rate of return (IRR) evolves with the new conditions. 17.30 pm: Call with an alternative potential debt provider for the same deal. Apparently they are not as interested as the first bank in this particular deal, but gave us an idea of what benchmark levels we could expect. 18.00 pm: I have to find some peer comparables and make some research slides on investment opportunities. During my research, I come across some other companies which may interest the team, so I gather some key figures on each one. 19.30 pm: I start preparing a presentation for investors for the new fund which is being raised. 20.30 pm: Leave the office.
Day in the life: Investment manager in Spanish local fund
8.00 am: Breakfast with a potential business partner and a representative of an investment bank. We discuss the possibility of partnering to acquire an asset that is for sale. The potential business partner operates in the same sector and the combination of our skills and experience could be beneficial in this particular deal. 9.30 am: Return to the office and catch-up on e-mail and news. 9.45 am: Review and sign a non-binding letter of interest for the potential acquisition of a target company. We have been working hard on the analysis of this opportunity—today we submit our indicative offer.
Vault Career Guide to Private Equity
10.15 am: Review a pack of due diligence reports on a potential investment we are considering. The pack includes the main findings on the financial, fiscal, commercial and legal areas, produced by a team of advisors assisting us in this transaction. We have an investment committee meeting later on and need to be well prepared for the discussion. 11.45 am: Review Investment Memorandum (IM) prepared by internal deal team on the same transaction. 13.00 pm: Interview a candidate for an analyst position in our fund. 14.00 pm: Lunch with the former manager of a large company. At this stage of his career he would like to lead a management buyout. We discuss a couple of potential investment opportunities and agree next steps. 16.00 pm: Investment committee meeting. We have a lively discussion around a potential investment that we are considering, its merits and risks. We are in exclusivity and getting close to a final commitment. 18.30 pm: Internal meeting to discuss overall status of projects we are working on. 19.30 pm: Meeting with a consulting firm. They have come here to present their thoughts and views on the healthcare sector at our request. We discuss trends and opportunities. 20.45 pm: Go home.
Chapter Three: Is it the Right Job For Me?
Day in the life: Junior associate at a small fund in Milan, Italy
9.00 am: I start the day with research on the logistic market for an IM in process. When working on a new sector, it is necessary to understand exactly how it works and be able to explain it to others. I discuss with other analysts who have more exposure to the sector and conduct my own research on the internet, as well as in internal documents and databases. 11.00 am: Briefing conducted by the boss to prepare the next meeting. 11.30 am: Meeting with two directors of a German real-estate group willing to participate in an investment in Russia. Two senior associates and I are present to listen to their objectives, explain our offer and answer questions. 13.00 pm: Lunch with our guests.
We often run into political aspects (it can be difficult to stop them!) so the meeting is quite long.30 am: Marketing calls with business partners: M&A advisors.30 pm: I set up the prospective profit & loss and compute returns for the logistic venture.00 pm: Reading a new information memorandum (IM) describing a fashion retailer for sale. I go back to my IM on logistics. 14.00 am: Arrive at the office. lawyers. 9. 16. Entrepreneurs typically want to share a lot of the details of their ideas.30 am: Meeting in our office with CEO and CFO of a German mid-size company looking for expansion capital to acquire a competitor.00 pm: Evaluation of the progress on the logistic IM. financial model.30 pm: Debriefing with the boss.20 pm: End of the working day. overview of the mail) followed by a 15-minute daily briefing with investment team (main tasks for the day).30 pm: I call the initiator of the logistic project to ask for technical details that will be included in the IM. accountants and PE firms regarding marketing plan (6-10 calls). summary of the main points. because they want to be really really sure we understand. Day in the life: Partner at German mezzanine fund (€500m AuM) 9. 38 .00 pm: Reading the financial due diligence by PWC on our most promising deals (construction industry).00 pm: Meeting with an Italian entrepreneur looking for financing of a new venture.00 pm: Lunch with the two visitors. Some fundraising calls too. 16. we share our first impressions and decide if we should carry on discussions further. 15. 21. 15-minute daily briefing with the office manager (agenda of the day. 10. signature of documents.14.00 pm: Conclusion of the meeting. etc) and distribution of tasks for the new deal. 20. 12. 18. 18. 21.00 pm: Progress review on construction deal with investment manager (Research.
Only hedge funds have deep enough pockets to buy out private equity fund managers. there doesn’t seem to be a lot of life after private equity.00 pm: Conference call with English lawyers to discuss progress on fundraising for new fund.00 pm: Debriefing with the team.30 pm: Dinner with lawyer. 39 . 20. even a CEO role proves to be difficult as managers typically have five to 10 years of carry that they risk losing if they leave the fund. There are a few cases of fund managers who transferred to a top executive position in the industry. “Why move if I get everything I want here?” While we don’t have the most precise statistics. but a more natural development is to spend increasing time in nonexecutive director positions until full retirement. most people leave private equity to go into … private equity! This can be moving into a larger fund. Not that there wouldn’t be opportunities.Vault Career Guide to Private Equity Chapter Three: Is it the Right Job For Me? 19. 20. creating one’s own fund or sometimes moving into an operational or interim management position in the portfolio. If not in the portfolio. but as most of our interviewees observed. Career paths Maybe because it is such a young industry.
they often don't recruit on campus. this has gone up to 39 in 2007. Blackstone. After an internal or external screening. For experienced candidates. 40 . Blackstone. In recent years. They warn however that only a tiny percentage of interns may receive an offer afterwards as the firms often don't have the need for more permanent staff. We expect the number of schools visited to grow once the current credit crisis softens. Carlyle or Goldman Sachs PIA. unless one has an aggressive international expansion. It is changing fast: according to Sandra Schwarzer. the big ones like Alpinvest. the average seems to be two rounds. but this used to be the exception. And there are a couple of opportunities for internships at other schools: in France. a couple of candidates will be invited to a set of three or four rounds of interviews. like 3i. many interviews are one on one. There are however a couple of exceptions. Alliaz. Axa PE and Barclays PE advertise on the Intranet of top Parisian business schools to recruit interns. While in 2006 a record 26 students declared joining a PE/VC firm straight after INSEAD. The firms are small. Other HR responsibilities can be outsourced. and so are the recruitment needs. Even for internships. Indeed. While this is based on anecdotal evidence. The key success factors for entering the industry are the academic pedigree and the networking skills. for example. at least nine PE firms participated in 2007 in company presentations or Career Fairs. Many firms don’t have a recruiting or HR person but a recruiting committee chaired by one of the fund’s managers. Axa or Goldman Sachs PIA may have appeared on selected MBA campuses like INSEAD or LBS for graduate recruiting.CHAPTER FOUR: THE HIRING PROCESS M ost private equity funds don’t have a very formal recruitment process. The fit with the individual fund managers is a key component in a small transaction team. who heads career services at INSEAD. Bain Capital. Campus recruiting Because most firms don't have a very formal recruitment process. an excellent track record is of course another requirement. It is also encouraging that an increasing number of the top MBA students have a summer internship in PE firms (20 at INSEAD in 2007). a growing number of funds now value the opportunity to recruit a couple of young analysts for a gap year. the turnover is low.
The Nottingham University Business School created the Centre for Management Buy-out Research (CMBOR) in 1986 in partnership with Barclays Private Equity and Deloitte to monitor and analyse management buyouts. The Munich-based Centre for Private Equity Research (CEPRES) is managed HEADHUNTERS TARGETING PRIVATE EQUITY In the UK • Blackwood Group • Kinsey Allen Consulting • Marks Sattin Private Equity • Parker Linton Associates Ltd • Private Equity Recruitment (more for juniors with a couple of years experience • Stevenson James Search & Selection • Walker Hamill • Wood Hamill In France • CT Partners • Alvedis Conseil • Boyden • Egon Zender In Germany • PER (out of London) • Grip (Frankfurt) In Spain • Korn Ferry • Heydrick & Struggles Source: Candesic interviews 41 . sponsored by Barclays Private Equity. ESSEC in France launched a private equity chair in 2006. sometimes with a summer internship or even a gap year working as an analyst. like Chicago GSB in London. Some of them. also provide a private equity club where students can meet with alumni in the industry. • Several European business schools are developing dedicated research focusing on private equity issues. This often gives students an opportunity to start networking very early. the Private Equity Institute has been established to advance the understanding and practice of private equity.Vault Career Guide to Private Equity Chapter Four: The Hiring Process Networking • All top business schools now offer a private equity elective. At London Business School.
Preparing for the interview The type of questions depends a lot on the background of the managers. Their research currently focuses more on hedge funds but could soon extend to private equity. our interviewees directed us to local specialist firms. Website Firm websites are often disappointing for candidates applying to small or mid-size funds.academically by Goethe Business School in Frankfurt and Technical University Munich. Most company websites won’t even mention the name of a recruiting person or give specific contact details. The typical mandate is to replace a senior manager or fill new senior positions following an expansion plan. EDHEC in France is the exclusive provider of preparatory courses in Europe for the CAIA exams that cover all alternative asset classes. Cass Business School is currently launching the Cass Private Equity Centre (CPEC) which will promote understanding and provide evidence of the key issues and challenges in the industry. But strongly motivated candidates should not hesitate to try their chance through the switchboard. Search firms Headhunters are mostly involved in looking for specialist skills. One experienced candidate for a position in a London-based mid cap fund told us that “each former consultant asked me to draw a value driver tree and conducted a typical consulting case interview while each former investment banker tested my negotiation skills and my knowledge of valuation models”. While the major executive search firms all claim to be involved. It is understood that the right candidate is already part of the club or will be personally introduced. 42 .
Knowing the definitions and differences between free cash flows to equity and free cash flows to the firm. Finance questions – IRR vs. multiple – How to motivate management – How do you value a company? What is a P/E ratio? – LBO model: candidates are expected to be familiar with LBO models. how do you know what to buy? – How would you do it? – Which deal can you describe and what do you think of it? – If you had that amount of money. – What are the pros and cons of using mezzanine to finance a transaction? In which cases will you consider it? What should you be aware of? 43 . In some cases. how to choose the appropriate discount rate and calculate it. At a major London-based firm. candidates are given a laptop and asked to build an LBO model. and how average EBIT or EBITDA multiples have been doing lately may be a deciding factor. the candidate has to build a simple model on paper. They are likely to be asked to comment on a simple valuation model that may contain a relatively obvious miscalculation. what would you buy in this country? Behavioural questions – What do you do in your spare time? – Tell me about yourself.Vault Career Guide to Private Equity Chapter Four: The Hiring Process General questions – Why PE? – Why this firm? – What makes a good deal? – How would you find deals.
how much leverage can you afford? How do you find out? – Full case study including analysis of the growth drivers in an industry. One Associate candidate in London reports being sent all the case study material 24 hours prior to the interview with the request to prepare a presentation to the Investment Committee. Case studies – For a given EBITDA in a given industry. 44 . major risks and competitive positioning of an asset.Industry questions – How many transactions can an analyst work on simultaneously? In a year? – Give an example of an industry with high Capex. with no Capex.
37 REPRESENTATIVE PE firms in Europe US-ORIGINATED GLOBAL FUNDS with direct presence in Europe PAN-EUROPEAN FUNDS OTHER FUNDS with more regional focus MEZZANINE FUNDS FUND-OF-FUNDS Profiles of .
com EUROPEAN LOCATIONS London (HQ) • Amsterdam • Bucharest •Frankfurt • Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) REST OF THE WORLD Boston (HQ) • Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further affiliates in five other countries THE STATS Chairman: Peter A.ADVENT INTERNATIONAL UK Regional Headquarters Advent International plc 111 Buckingham Palace Road London SW1W 0SR UK Tel: +44 20 7333 0800 www. Media & Telecoms Healthcare & Life Sciences Industrial Financial stages: International buyouts. see "contact us" at www. of Offices: 15 KEY COMPETITORS 3i • Apax • Barclays Private Equity • Cinven • Montagu COMPANY FOCUS Sectors: Business Services & Financial Services Retail & Consumer Technology.com For other offices. recapitalization and growth equity investments (up to €500m equity).adventinternational. Brooke Employer Type: Independent Private Company Total private equity funds under management: about €11bn (2008) Employees: 130 investment professionals.adventinternational. of which 65 are in Europe (2008) No.com 48 . some venture capital Types of financing: Majority equity EMPLOYMENT CONTACT In the US: info@adventinternational.
Founded in 1985 as a spin-off of TA Associate’s international operations. the average outlay is on the smaller end of the range. in Central Europe and Latin America. health care. retail and consumer. industrial and technology. in 1987. In North America and Europe. Most important funds FUNDS Advent International GPE VI LAPEF IV (Latin America) Advent International GPE V ACEE III (Central Europe) Advent International GPE IV VINTAGE YEAR 2008 2007 2005 2005 2002 FUND CAPITAL €6. While most of the big names in private equity have outposts in Europe and Asia. The firm's venture investments usually run from $5 million to $20 million.Vault Career Guide to Private Equity Advent international THE SCOOP International investment London and Boston-based Advent International is truly an international private equity firm.0bn Middle of the road Advent invests in middle-market companies in five core sectors: business and financial services. not to be confused with UK-based Advent Venture Partners. Prague and Kiev. primarily in North America. In the last two years alone. between $20 million and $60 million. 49 . media and telecom. the typical Advent investment is $20 million to $200 million.5bn €330m €2. and the largest-ever private equity fund dedicated to Latin America. the first private equity-backed public-to-private deal in Central Europe and Spain. Advent is also responsible for a number of firsts in the global private equity landscape. with 15 offices around the world. it has opened new offices in Amsterdam.6bn $1. Advent takes "international" to another level. the first global private equity fund. the firm has backed more than 500 companies in some 35 countries. Advent also manages venture capital funds focused on start-up to revenue-stage companies in Health Care & Life Sciences.3bn €2. they put together the first leveraged buyout in Hungary and Poland. from Argentina to Southeast Asia.
the UK’s leading specialist provider of extended warranty plans for domestic electrical goods. of global electronics manufacturer Moeller Group. in an auction to Doughty Hanson. Advent bought a stake in Fat Face. Advent bought a majority stake in Casa Reha. Advent headed again to Germany. Advent announced the first fully-financed public-to-private transaction since the summer’s turbulence in the credit markets with the £524m acquisition of Domestic & General Group plc (D&G). from Alpha Group. Advent invested in the drilling services and equipment company Boart Longyear and Italian vending machine operator Gruppo Argenta. In 2007. This highly successful restructuring attracted the praise of the judges who saw the deal as “an outstanding example of a traditional private equity house taking on a difficult asset and turning it around”. for Moeller in Germany. a German private nursing home group. and the Emerging European Deal of the Year. One month later. ranging from a Romanian paints business to a technology company in the U. Deal-making Advent has been on a shopping spree as of late with a clear acceleration in the last three years.In December 2006. the French discount retailer. In September 2005. the leading provider of back-office processing services to financial institutions in Brazil. Advent announced the sale of the group to HgCapital. catapulting Casa Reha into the top five of German private nursing home groups. doubled the size of the company with the acquisition of competitor SozialKonzept. a share registration business they renamed Equiniti. the private equity group picked up Making Memories. the firm won an impressive and unprecedented four industry awards at the fourth annual European Private Equity Awards organised by EVCA. The list included the European Private Equity House of the Year as well as the European Mid-Market Deal of the Year. Advent International acquired Worthing.1bn. In early 2005. for Terapia in Romania. it took a majority stake in Stokomani. the firm brought in the new year with the acquisition of Proservvi. In August. It pursued a buildup strategy and.K. in 2007. 50 . the global private equity group acquired five different companies. The same year in the UK.K. Advent had already shown its skills in Germany with the 2006 turnaround and sale for €1. In France. Then in April. the active casual wear market leader in the U. across the Atlantic. this time to buy a €770m majority stake in German fashion discount chain Takko from Permira. which was on the verge of bankruptcy when acquired in December 2003. In December. In December of the same year. In June. for £550m from Lloyds TSB Registrars. the Utah-based provider of scrapbook and card-making products.
About half of them are based in Europe. wall and decorative ceramic tiles. Higher Diploma Master’s (23%) Bachelor’s only (30%) Unknown (1%) PhD/JD/MD (5%) MBA (41%) Source: Candesic Most significant previous job Strategy consulting (13%) Audit & transaction services (7%) Banks (35%) Other (45%) Source: Candesic 51 . But the European team is not different.Vault Career Guide to Private Equity Advent international The firm is also active all over Eastern Europe. it opened an office in Prague and. the firm has its share of American MBAs. it acquired a 70 per cent stake in KAI Group. and a 70 per cent stake in Bucharest-listed Ceramica Iasi. it announced the first members of its Kiev team in Ukraine. with almost half of the professionals holding an MBA. In December 2007. one of Romania’s leading ceramic bricks and clay roof tiles producers. and Harvard by far the most represented school in the team. within two days. Bulgaria’s largest manufacturer of interior and exterior floor. GETTING HIRED Advent International has around 130 investment professionals working out of 15 offices around the world. in September. As a firm “half” headquartered in the US. In April 2007.
it does provide contact details for each of its outposts. accounts for 12 per cent of the European professional staff. employees have relatively diverse backgrounds.com). 52 .Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 20 15 Wharton (4) 10 Oxford (5) Cambridge (6) 5 INSEAD (10) Harvard (18) Source: Candesic 0 Top 5 former employers (# of professionals) 8 7 6 5 4 3 2 1 0 Merrill Lynch (3) ING (3) UBS (5) Dresdner (6) McKinsey (8) Source: Candesic While the most represented former employer.adventinternational. McKinsey. Although the firm does not offer employment information on its web site. Former bankers represent 35 per cent of the team. Candidates interested in working for Advent International should get in touch with the appropriate office (see "contact us" at www. slightly below the industry average.
175 in private equity No. www. Bain Capital Europe: Stuart Gent Employer Type: Private Company Total private equity funds under management: $50 bn in 2008 Employees: 650. Bain Capital: Joshua Bekenstein and 25 other partners Managing Director. Mayfair Place London. of Offices: 7 Boston (HQ) • New York • Honh Kong • Shanghai • Tokyo KEY COMPETITORS Blackstone • KKR • TPG EMPLOYMENT CONTACT www. mezzanine.baincapital.baincapital.com/careers COMPANY FOCUS Sectors: Information Technology Communications Healthcare Industrial & Manufacturing Retail & Consumer Products Financial Services Investments 53 . high yield debt EUROPEAN LOCATIONS London (HQ)• Munich REST OF THE WORLD THE STATS Managing Director. Industry consolidations Types of financing: Majority equity.ADVENT INTERNATIONAL BAIN CAPITAL 111 Huntington Avenue Boston. MA 02199 USA Tel: (617) 516-2000 London Office: Bain Capital LTD Devonshire House 6th flr. participation.co.uk Financial stages: Venture. W1J 8AJ UK Tel: +44 20 7514 5252 www.com.baincapital. Management buyouts. expansion and growth capital for private & public companies. with 270 investment professionals.
Most important funds FUNDS Bain Capital Fund XI Bain Capital Europe III Bain Capital Fund X VINTAGE YEAR 2008 2008 2006 2005 2004 FUND CAPITAL $20bn (target) €3. Notable deals include Burger King. Bain was also part of a consortium of private equity firms led by Silver Lake Partners to acquire SunGard Data Systems. at least $4bn more than was originally anticipated. Brookstone.5bn $10bn $6bn $5bn Bain Capital Fund IX Bain Capital Fund VIII 54 . Burlington Coat Factory.THE SCOOP Dealmakers Bain Capital traces its roots back to 1984. adding to a total of over $40bn currently under management. thanks in part to a longstanding habit of joining club deals. instead of pension funds. It also differs from its peers in that it raises funds mostly from university endowments. T. According to Fortune magazine. Coleman Andrews and Eric Kriss decided to leverage their private equity know-how by forming their own leveraged buyout and venture capital firm. instead of the standard 20 per cent. That doesn’t seem to have been much of an issue so far. was valued at $11. completed in August 2005. when Bain & Company partners Mitt Romney (a former Governor of Massachusetts and presidential candidate). Domino's Pizza and Duane Reade. The deal. today the Boston-based private equity firm has invested in more than 240 companies with an aggregate transaction value in excess of $100 billion. Bain Capital charges a 30 per cent fee to its limited partners.4 billion. making it the largest technology privatization and the second largest leveraged buyout ever completed— a record that lasted for only a few months. Toys R Us. The firm raised $13bn in 2006. Bain Capital would go on to more than double its transaction size the next year.
from Deutsche Bahn for around €1.2bn. was able to buy Brenntag. as reported in Forbes. which took another ten months to get shareholder approval).Vault Career Guide to Private Equity Bain Capital Another clubber Between 2000 and 2002 Bain Capital went over a year without completing a deal. Bain Capital made four times its 2002 initial investment in Burger King over five years. Jack Wolfskin and Süddekor. The floodgates truly opened in 2006. was invested in Europe. Brookside Capital is Bain's public equity affiliate. equity and commodity markets. Absolute Return Capital (ARC) manages $600 million of capital in fixed income. a global distributor of industrial and specialty chemicals. according to The Deal. In Europe the firm doesn’t make the headlines as often as it does in the US. public equity and leverage debt assets. the many Bain Capital has offices in Boston. This simmering of transactions was not a case of taking it easy. with current or past investments in companies including ProSiebenSat. and the 2003 acquisition of Warner Music Group made $3.2bn for 3Com. focuses on seed through late-growth equity investments in technology companies.5bn. In the following years.1 Media. In 2007. about a third of its last fund. when Bain completed an historic twelve transactions with a total value of $85bn (when including the $26.76bn for American Standard's bath and kitchen unit and $2. but merely running their companies in tough market conditions instead of buying new ones. Bain Capital Ventures. Shanghai and Tokyo. In October 2007 Bain Capital accepted an offer by paint and stain maker PPG Industries for coatings producer SigmaKalon at a price of around €2. The one.25bn investment in just a little over a year. the venture capital arm. whose European deals have been a mix of midmarket and large.9bn for Guitar Center. In 2004 Bain Capital. 55 . while not matching the 2006 success. The major transaction of 2006 was the acquisition of HCA hospitals with KKR and Merrill Lynch for $33bn. Although the majority of Bain's efforts are geared toward private equity (through Bain Capital Private Equity and its European affiliate Bain Capital Limited). It sold the company to BC Partners only two years later for around €3. and Sankaty Advisors invests in high-yield securities. London and Munich. to which it recently added Hong Kong.2bn on a $1. New York. It employs 175 deal professionals in the private equity division. targeting publicly traded companies with long-term growth potential.1bn including debts. Bain Capital Fund X. the company also dabbles in venture capital. paying $1. It is however an active investor. of which only 16 are based in Europe. in particular in Germany. Bain Capital has nonetheless been busy. $1.7bn Clear Channel transaction with Thomas Lee. Overall.
56 . Bain Capital seeks professionals with a combination of deep local expertise and international credibility. it takes an active role in improving the business. For example. a managing director at Bain Capital in London. Candidates interested in working for the buyout firm can learn more about current job openings—and apply—online. GETTING HIRED According to Dwight Poler. industry attractiveness and competitive position.baincapital.Value-added With its close ties to Bain & Company. Bain Capital doesn’t disclose the profiles of the rest of the team." Once Bain invests in a company. According to the firm. maybe to protect themselves against competitors. which may have lacked the credibility on the investment committee at home”. which starts off with a multi-week training program designed to introduce newcomers to Bain's "value-added" investment approach. it should come as no surprise that Bain Capital's investment approach draws on its partners' consulting expertise. That may explain why half of the London senior team graduated from Harvard Business School. To complement its investment team.com). Others only sent people from the US to make sure they had the experience and the trust back home. its investment professionals evaluate companies on a "people-intensive. consulting-based due diligence process" that looks at "financial performance. maybe because the names change slightly faster than usual in the industry. Bain Capital has both a web site and a career page ("careers" at www. Unlike many private equity groups. the company offers a two-year associate program in any of its offices. with their first degree often obtained at top French engineering schools. but some research shows the same top pedigrees as with the senior team. market potential. the firm has been using operating partners for more than fifteen years and currently has more than thirty of them helping to improve the operations in the portfolio. but found they lacked the reach and experience locally. “Some firms franchised by hiring a local team.
7bn (As of October 2007) 2007 Revenue: >$3bn Employees: 500+ (of the 400 professionals.com/careers 57 . Debt. W1J 5AL U. 98 work in private equity) No. Phone: +44 (0)20 7451 4000 www.ADVENT INTERNATIONAL THE BLACKSTONE GROUP 345 Park Avenue New York. corporate partnerships and industry consolidations Types of financing: Main: Majority equity Other: Minority equity.blackstone. Schwarzman Employer Type: Listed company (NYSE) Ticker Symbol: BX Total private equity funds under management: €32. turnarounds. with a preference for out-of-favour. minority www. of Offices: 9 REST OF THE WORLD New York (HQ) • Atlanta • Boston • Los Angeles • Hong Kong • Mumbai • Tokyo KEY COMPETITORS Bain Capital • Goldman Sachs • KKR • Permira • TPG EMPLOYMENT CONTACT COMPANY FOCUS Sectors: All. NY 10154 Phone: +1 (212) 583-5000 London office: The Blackstone Group International Limited 40 Berkeley Square London.K. Mezzanine.blackstone. under-appreciated industries Financial stages: Leveraged buyout acquisitions of seasoned companies but also transactions involving start-up businesses in established industries. Investment in third party fund.com investments. Shareholder loans EUROPEAN LOCATIONS London (HQ) • Paris THE STATS Chairman and CEO: Stephen A.
hedge funds. Blackstone publicly denounced a front page article in The New York Times “filled 58 . Today. Most important funds FUNDS Blackstone Capital Partners VI Blackstone Credit Liquidity Partners Blackstone Capital Partners V Blackstone Real Estate Partners V VINTAGE YEAR 2008 2007 2007 2006 2002 FUND CAPITAL $20bn (target) $2. completed in February 2007. in August 2007. a healthy $32 billion came from corporate private equity. Twenty years later. The $38.000 employees. the firm has raised more than $36 billion across six private equity funds. other asset management and advisory services—but its private equity business has become its bread and butter. making it one of the four or five biggest private equity funds in the world. The group boasts expertise in a number of areas—including corporate debt. While the firm managed a record $92 billion in 2007.7 billion Blackstone Capital Partners V fund. Blackstone's first buyout fund closed in 1987 at $950 million. itself followed by the announcement of a $51.25bn $6. Its sheer size exposes it to the scrutiny of the public and the media.45bn Blackstone Capital Partners IV In total.000. Blackstone set another record when it established its $21. Blackstone controls or has a stake in 45 companies totaling $72 billion in revenue with 350.1bn $21. was the largest private equity transaction until the $45 billion acquisition in October 2007 of TXU by KKR and TPG.7bn $5. In July 2007.THE SCOOP B is for Big The Blackstone Group got started in 1985 as an M&A advisory boutique with a staff of four and a balance sheet of $400. making it the largest first-time fund ever. and as Blackstone's funds get larger. so do the deals. real estate.7 billion acquisition of BCE by Teachers’ a few months later.7 billion buyout of US real estate firm Equity Office Properties Trust. In total. Blackstone has invested in over 114 companies worth more than $200 billion.
rigorous due diligence and an active role in monitoring portfolio companies. In addition. refining and automotive parts. While the share price didn’t recover. an operator of branded visitor attractions. It was the first time Beijing has invested its foreign reserve in a commercial transaction.1bn in one of the largest IPOs in history. myths. Ignoring swings in conventional wisdom about the attractiveness of certain sectors.Vault Career Guide to Private Equity The Blackstone Group with inaccuracies. Blackstone completed the acquisition of Merlin Entertainment.000 people in 12 countries and across three continents and manages a balanced portfolio of 51 attractions that includes iconic brands LEGOLAND. AT&T and Sony. more specifically. for £102. explaining. Blackstone announced a $500 million unit repurchase programme.5 million. with an unofficial target of $20 billion. Merlin now employs 13. However. For China. it may be a way to bypass the restrictions that prevent it from making sensitive investments in Western countries. giving it close to 10 per cent of the shares. The transaction indicated the firm's seriousness about the leisure sector and. such as AOL Time Warner. Blackstone will receive preferential access to China's market. European attractions and theme parks. It is widely believed that by having China as a partner. and misrepresentations that give a false impression of Blackstone’s tax situation and that of its partners”. China's government announced it had agreed to make a $3bn investment in the Blackstone Group in the form of non-voting common units. The firm has a dedicated senior operating partner who is responsible for overseeing the strategic. The company's investment approach also includes partnerships with leading corporations. Blackstone puts its money in "B-list" industries such as cable television. In early 2008. rural cellular. and employs former Clevel executives who act as advisors and board members. Blackstone reportedly sent. the firm announced the deal with the Tussauds Group to create the world’s second biggest visitor attractions operator after Disney. 59 . “We believe our common units are undervalued”. it is understood that China’s foreign reserve agency has agreed not to invest in rival private equity groups for 12 months. nine months after being issued to the public. a fundraising prospectus to some investors for the new Blackstone Capital Partners VI fund. operational and financial performance of its investments. In May 2007. Shortly after. Blackstone raised $4. Building blocks In 2005. shares in Blackstone languished at 35 per cent below the $31 issuing price. in the first quarter of 2008. B-list industry investing Blackstone invests in what it calls "out of favor" industries. Two years later.
a U. coal mining company. from Legal & General Ventures for £267m. Gardaland and Alton Towers. Despite missing the La Tasca tapas bar auction. Dungeons. Goldman Sachs and TPG to acquire Biomet in Poland in September 2007. refiner of petroleum products (acquired by Valero in 2005). Inc. a Houston-based wholesale electric power generating company. British Airways London Eye. an oil exploration company. Previous energy investments include Premcor. the enlarged Tragus now has over 230 outlets and is the leading player in the French and Italian restaurant sectors. the group also entered into a strategic alliance with Roland Berger Strategy Consultants in February 2001.S. six months after selling the Extended Stay Hotels to the Lightstone Group for $8bn. Sea Life. It also partnered with the other buyout giants KKR.3bn. Texas Genco. first with the MA Potters sites followed by the Strada pizza chain in a £140m deal. one of the largest midmarket restaurant chain operators in the UK. To cover Europe. it bought Kloeckner Pentaplast. Blackstone acquired Tragus Holdings. Another sector of interest to Blackstone is energy. In December 2006.Madame Tussauds. The firm is also expanding into Eastern Europe and in 2007 invested a reported $178 million. the private equity group acquired an 80 percent stake in Sithe Global Power. In 2007. for a 51 per cent stake in Lattelecom. The partnership gave Blackstone access to intellectual capital and local knowledge of key European markets. In Europe.. as part of a $575 million MBO.896 properties totaling approximately 490. it paired with PAI to acquire United Biscuits for €2. Going global While Blackstone's primary market is North America. an outpost in Hamburg in September 2003. the world’s leading manufacturer of rigid plastic films from Cinven for €1.3bn. the firm is also active in manufacturing. a U.000 rooms in 76 countries and territories. 60 . with 2. In July 2007. In December 2006. the New York-based firm has increased its focus on Europe and Asia in recent years. and Kosmos Energy. Hilton Hotels Corporation is the leading global hospitality company. In May 2007. an office in Mumbai in May 2005 and an outpost in Hong Kong in January 2007.S. Foundation Coal. the Latvian telecommunications company majority-owned by the Latvian government. The group opened an office in London in August 2000. Blackstone re-entered the hotel sector and took Hilton Hotels private for $26bn in an all-cash transaction. Tragus grew by acquisitions. In 2005.
was over $103 billion.C. boasted that it owned more than 13 million square feet of real estate in Boston. In 2000. Blackstone's mezzanine funds of $2. These various vehicles have aggregate capital commitments of over $11 billion. has had its hands in several high-profile transactions over the years. They include seven US CDOs ($4. BDA is a relatively new group (created in 2002) and manages several CDO (Collateralised Debt Obligation) funds for investment predominantly in senior secured loans. the real estate group. for example. RCN Corporation switched from Merrill Lynch to Blackstone for its financial restructuring negotiations with its senior secured lenders. A few years ago. the firm advised Comcast on its $18 billion acquisition of Adelphia Communications. Delta Air Lines hired Blackstone to assist with its restructuring efforts. The total enterprise value of the 223 transactions effected by the real estate operations from 1992 through September 30.3 billion to 61 . senior debt vehicles. to capitalise on the recent dislocations in the credit markets. proprietary hedge funds and publicly-traded closed-end mutual funds. And. In 2006. involving $350 billion of total liabilities. Blackstone advised China Development Bank on its plan to invest $14 billion for a stake in Barclays PLC. Mostly active in the U. in December 2007 Blackstone closed a new Credit Liquidity Fund on $1. this number is now significantly bolstered and the unit may have the largest real estate portfolio on the Street. Blackstone's restructuring department has advised companies and creditors in more than 150 situations. In 2005.Vault Career Guide to Private Equity The Blackstone Group More than just private equity Although Blackstone's private equity group has earned the firm an elite status. And. With the recent inclusion of Hilton.7 billion) and four European CDOs ($2.. they opened an office in London to expand their advisory service offerings beyond their U. its other divisions should not be discounted.S. 2007. Blackstone advised PaineWebber on its $10. San Francisco and Washington. It includes funds of hedge funds. New York.8 billion sale to UBS. including two big financial services deals. and Alliance Capital Management on its $3.S. Blackstone also acted as lead advisor in the restructurings of both Enron and Global Crossing. D. 2007. operating out of the New York.5 billion purchase of Sanford C. Blackstone's corporate debt group is actually two businesses: Blackstone Mezzanine Advisors and Blackstone Debt Advisors (BDA). Equity Office and Trizec Properties. base.1 billion are among the largest of their kind and have investments in firms such as Colt Defense LLC. London and Paris offices. mezzanine funds. Bernstein. The marketable alternative asset management segment manages more than $40 billion as of September 30.9 billion). In an attempt to cut costs to avoid bankruptcy. The firm's M&A group. in July 2007.
predominantly from Harvard and the other top US universities. including securities issued by CDOs. GETTING HIRED Most senior investment professionals had a career before joining Blackstone. the recruiting is much more diversified. The main difference with other players is the absence of accountants. as well as 120 professionals.invest globally in a broad range of debt and debt-related instruments. with a significant proportion coming from industrial sectors. While a third of them went to investment banking. as most of the team is still located in the US. In January 2008. senior debt and CLO funds. for $1 billion. Tomilson Hill). an alternative asset manager that will bring its $10 billion under management in mezzanine. Half of the senior private equity team holds an MBA. which had a staggering $27 billion of assets under management in funds of hedge funds as of November 2007. Blackstone announced the acquisition of GSO Capital Partners. 62 . credit. Last but definitely not least is the Blackstone Alternative Asset Management unit (headed by BAAM president and CEO J.
0 2.0 1.Vault Career Guide to Private Equity The Blackstone Group Higher Diploma Master’s (5%) Bachelor’s only (40%) PhD/JD/MD (2%) MBA (53%) Source: Candesic Most significant previous job Strategy consulting (7%) Banks (33%) Other (60%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 15 12 9 6 3 0 Georgetown (3) Columbia (3) Stanford (4) U-Penn (8) Harvard (13) Source: Candesic Top 5 former employers (# of professionals) 3.0 0.5 2.5 0.5 1.0 Goldman Sachs (2) JP Morgan Chase (2) Citigroup (2) Morgan Stanley (2) Credit Suisse (3) Source: Candesic 63 .
for those who have relevant experience and local language skills where appropriate. Experienced hires can contact the firm via an online application. The recruiting process typically involves an on-campus interview followed by one or two rounds at the firm's New York office. they should contact the London Human Resources department at recruitingeurope@blackstone. Students whose schools Blackstone does not visit can apply for these programs online. Recruiting typically takes place in the fall for full-time programs and in January for internships. In Europe. its private equity group operates in London. The group hires recent undergraduates as analysts and recent MBAs as associates. the firm provides information on summer internships and campus recruiting. Hong Kong and Mumbai. as well as experienced and international hiring. University of Texas at Austin and University of Virginia. While Blackstone currently has nine offices in six countries. recruitment is handled on a case-by-case basis. check out the careers section of the company web site. University of Pennsylvania. University of Michigan. New York. or have significant experience working in the relevant geographic region.To learn more about job opportunities with Blackstone.com or visit the How To Apply section for more information on submitting an application online. There. 64 . However. US schools on Blackstone's campus schedule include Harvard.
Managing partners: William E.com Financial stages: Buyouts. real estate.com 65 . of Offices: 29 in 21 countries REST OF THE WORLD Washington DC (HQ) • Charlotte • Denver • Los Angeles • New York • Newport Beach • San Francisco • Mexico City • Sao Paolo Beijing • Hong Kong • Mumbai • Seoul • Shanghai • Singapore • Sydney • Tokyo • Beirut • Cairo • Dubai • Istanbul COMPANY FOCUS Sectors: Aerospace & Defense Automotive & Transportation Consumer & Retail Energy & Power Healthcare Industrial Real Estate Technology & Business Services Telecommunications & Media KEY COMPETITORS IN EUROPE Bain Capital • Blackstone • CVC • KKR • Permira • TPG EMPLOYMENT CONTACT Europe: email@example.com. infrastructure Types of financing: Majority equity. D'Aniello Employer Type: Private Company Total private equity funds under management: $58bn in 2007 (€9bn in Europe) No.com Japan: hrjapan@carlyle. David M. venture capital. mezzanine.C. D.com Asia: hrasia@carlyle. of Employees: 995 (560 investment professionals) No. 20004-2505 Tel +1 (202) 729-5626 London office: Lansdowne House 57 Berkeley Square London W1J 6ER United Kingdom Tel +44 (0)20 7894 1200 www.. Conway Jr. Gerstner Jr. NW Washington.ADVENT INTERNATIONAL THE CARLYLE GROUP 1001 Pennsylvania Avenue. Rubenstein. leveraged finance EUROPEAN LOCATIONS Barcelona • Frankfurt • London • Luxembourg • Milan • Munich • Paris • Stockholm THE STATS Chairman: Louis V. participation. Daniel A.com United States: hrusa@carlyle.
It was founded in 1987 by David Rubenstein. Most important funds FUNDS Carlyle Partners V Carlyle Infrastructure Partners I Carlyle European Partners III Carlyle Realty Partners V VINTAGE YEAR 2008 2007 2007 2007 2005 2005 2005 2005 2005 2004 FUND CAPITAL $15bn (target) $1. Instead.35bn $3. Since then. based company is quick to tell you that it doesn't "swing for the fences"—that is. preferring to hit more singles (and doubles and triples) with fewer strikeouts. Stephen Norris and Greg Rosenbaum and named after the New York City hotel. Jr.. Carlyle points to its caution as a trait that sets it apart from competitors—that.80bn $0.80bn $1.00bn $7. But the Washington D. and 15 per cent a JD.15bn €5. with about 50 per cent holding an MBA.68bn $0. and its team of 560 investment professionals. MD or PhD. William Conway. Daniel D'Aniello.44bn Carlyle Partners IV Carlyle European Partners II Carlyle Asia Partners II Carlyle/Riverstone Energy III Carlyle/Riverstone Renewable Energy I Carlyle Mezzanine Partners I Well connected Carlyle has historically been famous for its political connections. and former UK Prime Minister John Major. The controversy around its access to funds and government contracts led 66 . the group has invested around $20 billion of equity in more than 600 transactions.80bn $3.C. the group pursues a conservative investment approach.85bn €1.THE SCOOP Carlyle talks baseball With nearly $58 billion under management before the demise of Carlyle Capital Corp. Senior advisors have included former US President George Bush Sr. the Carlyle Group is one of the world's largest private equity firms. go for home-runs. Indeed.
and Arthur Levitt. Just a month earlier. leveraged finance and real-estate. the former Chairman of the SEC. the firm exited an investment in satellite operator PanAmSat.6 billion. Carlyle also manages various mezzanine and high yield funds. In 2007 the group hired a variety of traders from defunct Amaranth Advisors and launched the Multi- 67 . which took a 7. as evidenced by the acquisitions in 2006 of energy infrastructure provider Kinder Morgan for $22 billion. but the majority of its deals are management-led buyouts. for example. with Riverstone Holdings LLC. In the last three years. While private equity remains its focus. It still boasts renowned advisors like Lou Gerstner.5 per cent stake that valued the group at $20 billion.9 billion. information technology. Carlyle is currently raising its biggest fund ever with a target of $15 billion for U. which owns about 5. the Carlyle Group is a global company with 29 offices in 21 countries. which was sold to competitor Intelsat. The firm dabbles in venture capital. the group has increased the size of its investments to focus on jumbo multi-billion dollar club deals with the likes of Blackstone and Kohlberg Kravis Roberts (KKR). from Ford Motor Company for $15 billion—beating out other private equity groups vying for the investment. Blackstone and Permira for $17.Vault Career Guide to Private Equity The Carlyle Group Carlyle to review its portfolio and reduce its exposure to companies too dependent on government contracts.2 billion price tag paid by Intelsat represents a $600 million gain for the private equity consortium. buyouts.6 billion. the world's largest vehicle rental group. and Freescale Semiconductor with TPG. it already raised a new €5 billion fund for European buyouts as well as its first infrastructure fund. it focuses on a few key sectors. including telecom and media. acquired PanAmSat for $2. the Abu Dhabi sovereign fund. Back in 2004. aerospace. the investors had already made millions off the investment by taking 42 percent of PanAmSat public in an IPO that raised $2. the private equity group joined forces with Clayton. the buyout activities boast an average annual return of 34 per cent. The $3. since 2007. club deals have increased in size. According to Fortune. real estate. Dubilier & Rice and Merrill Lynch Global Private Equity to acquire Hertz. Among its investors. the Carlyle Group. together with KKR and Providence Equity Partners. energy and industrial. Join the club Although the group considers investments in a wide range of industries. the former CEO of IBM. In September 2005. What's more. Carlyle counts CalPERS. Geographically. Recently. and its European and Asian investments already account for a third of its assets.S.5 per cent since 2001. and. in August 2005. In 2007.
becoming a strategic partner with the U. Carlyle was more deeply hit by the bankruptcy of Carlyle Capital Corporation. That same year Bayer sold H. With 125 investment professionals.e. Carlyle’s CEO had been one of the first public figures to raise the alarm bell on the exess levels of leverage. Ministry of Defence. fifty of them dedicated to buyouts. in 2006. its first hedge fund. Starck to Advent International and The Carlyle Group for €1. The private equity group first got involved in Asia in 1998 when the firm acquired a controlling stake in Korea's KorAm Bank for $450 million. it set up in 2006 the Middle East and North Africa (MENA) group with four offices. In total. with the opening of new offices in Beijing. KKR. In particular. its $22bn Euronext-listed credit (i. QinetiQ was successfully floated on the London Stock Exchange.Strategy Master Fund. In April 2004. In 2006. While Carlyle’s European transactions tend to be smaller than in the US. then sell. In February 2003.K. Eastern outlook In 2005. Hellman & Friedman and AlpInvest Partners to acquire Dutch publisher and market research giant VNU Group (Nielsen) for $10bn. with an opening value of $700 million. Lee Partners. representing a $650 million profit for Carlyle and a 250 percent return on investment for the group's investors. wait three to five years. the main shareholder. In addition.C. 68 . the Carlyle Asia buyout group has eight offices. KorAm was sold to Citigroup for $2. Thomas H. In 2007 Carlyle sold its remaining 10 per cent stake for £140m.. Carlyle partnered with Blackstone. The timing wasn’t ideal and the performance in the second half of 2007 wasn’t impressive. mortgage-backed securities) fund. contributing to a total profit of at least £240m from its four-year investment in the company. Old Europe Carlyle is able to leverage its expertise in the defense & aerospace sector internationally.2bn. the Carlyle Group announced a significant expansion of its pan-Asian investment activities. the European team is one of the largest among all private equity firms. In 2008.7 billion. Mumbai and Sydney. it acquired a 30 per cent stake in British defence research company QinetiQ for £150m. So what is the group's recipe for success? Combine a new CEO and management team with streamlined operations. and the news came as a shock. the group has been involved in several landmark deals in Europe.
Associates are typically recent undergraduates with a strong GPA and two years of investment banking or consulting experience.Vault Career Guide to Private Equity The Carlyle Group In 2007. Typical former employers are McKinsey and BCG in consulting. It also acquired Arsys. investment banking or consulting experience. which in turn employ more than 280. Associates at the Carlyle Group go through a formal twoyear program.S. investor relations and legal. Investment professionals are involved in the analysis. Asia or Japan).. alongside Cinven. and JP Morgan and Lazard in investment banking. administration.000 workers and have $87 billion in sales. Carlyle took a participation of 35 per cent in Numericable and Completel. support professionals.48bn in the second largest investment undertaken by a Private Equity Fund in Spain to date. Senior associates generally hold an MBA and have three to four years of private equity. associates and senior associates. In 2007. execution. with Mercapital for €160m. which encompasses accounting. Support professionals are part of the investor services team. GETTING HIRED The Carlyle Group offers opportunities for investment professionals. human resources. Carlyle’s global portfolio included 200 companies across all activities. Candidates interested in applying for a position at the Carlyle Group should send a resume and cover letter to the appropriate region (U. monitoring and exit of private equity investments. information technology. the Spanish provider of web hosting and domain registration services. corporate communications. Europe. 69 . and the Spanish Certification Group Applus+ for an enterprise value of €1.
Higher Diploma Bachelor’s only (48%) Unknown (3%) PhD/JD/MD (6%) MBA (23%) Master’s (20%) Source: Candesic Most significant previous job Strategy consulting (9%) Audit & transaction services (5%) Banks (36%) Other (50%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 ESCP-EAP (4) HEC (5) Cambridge (5) INSEAD (6) Harvard (7) Source: Candesic Top 5 former employers (# of professionals) 8 7 6 5 4 3 2 1 0 BCG (4) Lazard (5) JPMorgan (5) McKinsey (5) LaSalle Bank (7) Source: Candesic 70 .
EMPLOYMENT CONTACT Phone: +1 (203) 629-8600 For additional contact information. check the company website at www.9bn 2008 Assets under management: $17bn No. Fourth Floor London SW1Y 5ES. UK Tel: +44 20 7484-3200 www. expansions. Denning Employer Type: Private Company 2007 Revenue: $6. buyouts.GENERAL ATLANTIC Head office: 3 Pickwick Plaza Greenwich.C.com Types of financing: Minority to majority equity in private and public firms EUROPEAN LOCATIONS London • Düsseldorf OTHER LOCATIONS Greenwich (HQ) • New York • Palo Alto • Washington. of Employees: 150 No.generalatlantic.generalatlantic.com 71 . D. consolidations and build-ups MOST IMPORTANT FUNDS GA operates with an “evergreen” fund structure in which its partners make staggered long-term commitments. of Offices: 9 KEY COMPETITORS IN EUROPE Permira • Summit Partners • TA Associates • TPG COMPANY FOCUS Sectors: Financial Services Media & Consumer Healthcare Enterprise Solutions Communications & Electronics Energy & Resources Financial stages: Investments range from $50m to $500m in equity for growth. (Portfolio support office) • Hong Kong • Mumbai • Sao Paulo (Portfolio support office) THE STATS Chairman: Steve A. CT 06830 Tel: +1 (203) 629-8600 UK office: 83 Pall Mall.
General Atlantic announced a name change. Today. the tech private equity group has around $15 billion in capital under management. General Atlantic generally invests in eight to 12 companies per year. the firm first began to seek investments outside the U. NYSE Euronext and Lenovo. Ford.S. dropped the "partners" to reflect the fact that it is a limited liability company. The company. The firm distinguishes itself with its evergreen funding structure and its long-term investment horizon. for an annual investment target of $1 billion. nearly half of the firm's portfolio investments are foreign companies. while Ford assumes responsibility for the group's operations. Denning was a consultant with McKinsey & Co and Ford was an investment banker with Morgan Stanley. it has established offices in London. Since then. The two newlycreated positions reflect the company's succession plans—Denning continues to oversee strategy and capital raising. 72 . They only make investments where they believe that they can help the management team build a market leader over five to 10 years. Founded in 1980. in the 1990s. Mumbai. Succession plans In February 2005. Denning was named chairman. Before joining General Atlantic in 1991. a managing director and chairman of the firm's investment committee. Its portfolio includes holdings in Hewitt Associates. and William E.THE SCOOP The Atlantic and beyond Connecticut-based General Atlantic is a global private equity group with an exclusive focus on information technology. Dusseldorf. All in. Hong Kong. not a partnership. and currently boasts over 50 companies in its portfolio. continuing to manage its investment activities. process outsourcing and communications investments. They invest not only in providers of information technology but also in those companies for which technology is a key competitive differentiator. was named president. co-founder and chairman of the firm's executive committee Steven A. They both received their MBAs from Stanford. previously known as General Atlantic Partners.In the same month. Sao Paulo and Singapore and has invested in more than 160 companies.
Since that time. the firm took a minority stake in Navigon. the world’s premier full-service international e-payment service provider. the world’s leading provider of retail systems solutions with 2. In December 2006. Cerberus had bought it out of administration in June for £204. which had been a strategic TDS partner since its 1998 IPO.1 billion. in 2007 General Atlantic acquired twelve new companies for total capital of $2. the original domain name registrar that was part of Verisign before being spun off in 2003.100 staff across 19 countries. General Atlantic took a minority equity share in GETCO. They now have about 6. for a price of €2. LHS AG and TDS AG. General Atlantic. 73 . In Germany. a minority shareholder. it acquired Dutch company GlobalCollect. It had also invested in CompuGroup AG. increased its equity holding from 27 per cent to 71 per cent in 2003 at €2. in December 2005. they acquired a third of Torex Retail Holdings Limited. Two months later. one of which was believed to be a £600m offer from General Atlantic.4 million.Vault Career Guide to Private Equity General Atlantic In the pits In February 2007. a leading electronic liquidity provider and trading firm. General Atlantic invested a rumored $800 million for Network Solutions. While the terms of the transaction were not disclosed. from Waterland Private Equity Investments and Prime Technology Ventures. In 2006.35 per share. a 40 per cent premium to the company’s share price even after it announced it was in bid talks again. Selfridges and Argos. The firm has also been active in the UK. it sold its stake to Fujitsu Services. from Cerberus in August 2007. Torex provides software. who paid £593m for the whole of Northgate.80 per share. they’ve lost significant market share to discount operations like eNom or GoDaddy. one of Europe's leading suppliers of mobile navigation systems. In May 2007. Northgate formally terminated “any discussions with a third party that may have led to its acquisition”. Shortly after. the European IT services arm of the Fujitsu Group. hardware and services to major UK retailers like Tesco. GA agreed to sell its stake to KKR. Altogether. the media reported that UK-based Northgate Information Solutions had received several acquisition offers.6 million domain names under management. In December 2007.
While General Atlantic offers a few internships in the US, the European operations with only thirteen investment professionals are too small to justify it. The global team is heavily weighted with former investment bankers, mainly from Morgan Stanley, and consultants, mainly from McKinsey, these two happening to be the former employers of the Chairman and of the President. General Atlantic does not provide information about job opportunities on its web site. Interested individuals should contact the firm's offices directly.
PhD/JD/MD (1%) Bachelor’s only (34%) Unknown (7%) MBA (46%) Master’s (12%)
Most significant previous job
Strategy consulting (14%) Audit & transaction services (8%) Banks (41%) Other (37%)
Vault Career Guide to Private Equity
Top 5 universities attended (# of professionals)
**double counting allowed for staff with several degrees
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
Stanford (2) ESCP-EAP (3) Oxford (3) Harvard (4)
Top 5 former employers (# of professionals)
15 12 9 6 3 0
Deloitte (5) Citigroup (5) Goldman Sachs (5) McKinsey (8) Morgan Stanley (15)
UK Regional Headquarters Advent International plc 111 Buckingham Palace Road London SW1W 0SR 10-15 Newgate Street, Christchurch UK Court 20 7333 0800 Tel: +44 London EC1A 7HD www.adventinternational.com United Kingdom Tel: +44 (0)20 7774 1000
GOLDMAN SACHS ADVENT INTERNATIONAL PRINCIPAL INVESTMENT European Locations AREA
London (HQ) Amsterdam • Bucharest •Frankfurt • Kiev Replacement, Seed, Small Prague vate, • Madrid • Milan • Paris • buyout • Warsaw • Bratislava (affiliate) • Oslo (<$15m equity), Start-up, Turnaround – (affiliate) restructuring, Infrastructure, Funds of funds
www.goldman-sachs.ro/services/investThe Stats ing/private-equity Chairman: Peter A. Brooke Employer Type: Independent Private Company THE STATS Total private equity funds under Co-heads of PIA Europe: Sanjay Patel management: about €11bn (2008) and Hughes130 investment professionals, Employees: Lepic Head of European Private Equity Group of which 65 in Europe (2008) Europe:Offices: 15 No. of Mark Boheim Employer Type: Division of publicly listed Goldman Sachs (NYSE) Ticker Symbol: GS Total private equity funds under manageCompany Focus ment: About $50bn (globally) Employees: 85 (PIA in 2007) Sectors: No. of Offices: 5 & Financial Services Business Services Retail & Consumer Technology, Media & Telecoms Healthcare & FOCUS COMPANY Life Sciences Industrial Sectors: All sectors Financial stages: International buyouts, recapitalization and Financialequity investments (up to €500m growth stages: Bridge, Expansion - development, Large equity), some venture capital buyout ($150m-$300m equity), Mega buyoutof financing:equity), Mid market Types (>$300m buyout ($15m-$150m equity), Other Majority equity early stage, Privatisation, Public to pri-
Types of financing: Main: MajorityWorld Minority Equity, Rest of the Equity, Mezzanine Boston (HQ) Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • EUROPEAN LOCATIONSFurther affiliates in five other countries London
Key Competitors REST OF THE WORLD
3i • York (HQ) • San Francisco • Hong NewApax • Barclays Private Equity • Cinven • Montagu Kong • Tokyo
Employment Contact KEY COMPETITORS IN EUROPE
In the US: firstname.lastname@example.org Bain Capital • Blackstone • Carlyle • For • Permira • see KKR other offices, TPG"contact us" at www.adventinternational.com
CAREERS CONTACT AND WEBSITE
email@example.com (Private Equity Group) http://www2.goldmansachs.com/careers/
Vault Career Guide to Private Equity
Goldman Sachs Principal Investment Area
Goldman Sachs, the pre-eminent investment bank, has been an active private equity investor for more than twenty years. Since 1986, Goldman Sachs' Principal Investment Area has formed 13 investment vehicles aggregating $56 billion of capital and investing in over 600 companies. The firm’s Principal Investment Area has over 125 professionals split across offices in New York, San Francisco, London, Hong Kong and Tokyo, with separate divisions handling different classes of investments, namely: Most important funds
GS Capital Partners VI GS Mezzanine Partners 2006 GS Infrastructure Partners I GS Capital Partners V
2007 2006 2006 2005 2003
$9bn $6.5bn $8.5bn $3.5bn
GS Mezzanine Partners III
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, dealing with privately negotiated equity investments Infrastructure Investment Group manages Goldman’s infrastructure fund, aimed at making direct investments in infrastructure or infrastructure related assets Goldman Sachs Mezzanine Partners manages the largest dedicated mezzanine fund in the world, and looks to provide mezzanine finance to large complex deals Real Estate Principal Investment Area, through the Whitehall Funds, has raised around $24 billion to invest alongside partners in real estate assets Real Estate Alternatives currently manages a single fund with $650 million allocated to identifying interesting real estate investments
Technology Principal Investment Area invests from various funds, including GS Capital Partners VI, targeting technology companies in all stages, investing anywhere from $2 million in early stage ventures to $250 million in mature private equity situations Urban Investment Group is the primary investment vehicle for Goldman Sachs to invest in companies owned or operated by ethnic minorities, or real estate developments targeting urban areas Goldman Sachs Private Equity Group mainly manages funds of private equity funds, although also makes secondary and direct co-investments
Rise of the traders
Established in 1991, the GS Capital Partners Funds are part of the firm's Principal Investment Area in the Merchant Banking Division. Goldman Sachs Capital Partners is the direct private equity arm of Goldman Sachs, having invested $17 billion in the twenty years from 1986 to 2006. In 2005, GS Capital Partners closed their fifth fund at $8.5 billion, with 30 per cent coming from Goldman, in line with their proprietary investment approach. Shortly after, the fund teamed up with Cinven to acquire Ahlsell AB, the Nordic distribution business, in a deal that is estimated to have valued the company at €1.4 billion. It also bought wind generation company Zilkha Renewable Energy and sold it two years later as Horizon Wind Energy to Portugal’s largest utility, EDP, for more than $2.1 billion, with a profit of $900m. That same year, Richard Sharp, then European head of the principal investment area, was nominated as one of the 100 most influential people in European capital markets by The Financial News. In the UK, Sharp and his team had been aggressively targeting companies such as BAA, ITV, AB Ports, London & Continental Railways and Mitchells & Butlers pubs, threatening them with takeovers. In the case of ITV, Goldman, together with Blackstone and Apax, intended to replace the chief executive with their own candidate. When the ITV board rejected the consortium’s offer, they appealed directly to shareholders. At one point, Goldman’s top management realised the danger of too aggressive a move, especially when competing with and upsetting its investment banking and private equity clients. In 2006 former CEO Paulson called off the “London dogs” and Sharp stood down as chairman for Private Equity.
Invariably, Goldman's success raises questions about conflicts of interest. Will the firm be tempted to keep the sexiest deals for itself? The management argues that they
Vault Career Guide to Private Equity
Goldman Sachs Principal Investment Area
rarely pursue deals on their own but rather in club deals. Moreover, they demonstrate their commitment to the clients in investing alongside them while helping them raise the funding for their acquisitions. Goldman doesn’t always hunt in herds. In 2005 for example it snapped up the cable company Pirelli, now renamed Prysmian Cables & Systems, for €1.3 billion, outbidding Bain Capital and Texas Pacific. But most of the significant transactions are club deals. Back in 2002, a consortium made up of Texas Pacific, Bain Capital and Goldman Sachs bought Burger King from Diageo, the British drinks company, for $1.5 billion. After bringing in new management and streamlining the operations, the three firms raised $393 million through an IPO in 2006, retaining a majority stake in the company. Other recent club deals include: the 2005 privatisation, along with EQT, of ISS, a Denmark-based integrated service company, for DKK 22.1 billion (€2.97 billion); the 2006 take private of Kinder Morgan, a pipeline company, with the Carlyle Group and Riverstone Holdings for $22 billion; and that same year, the acquisition of Linde’s forklift division KION Group together with KKR for €4 billion. In 2007, GS Capital Partners teamed up with TPG Capital in an offer to buy telecommunications giant ALLTEL for nearly $25 billion in the largest ever leveraged buyout at that time. Also in 2007, Goldman and KKR agreed to the $8 billion buyout of upscale audio equipment maker Harman International Industries. In a sign of the changing times and amid tightening global credit conditions, the two bidders decided later that year to pull out, invoking a clause regarding "a material adverse change in Harman's business”. In October they agreed with Harman to end their buyout and instead buy $400 million of the company’s bonds. In 2007, GS Capital Partners closed its sixth fund, GS Capital Partners VI, at a cool $20 billion, $9 billion of which came from within Goldman itself. GS Capital Partners does not focus on specific sectors, but has traditionally targeted the $1 billion plus mega-deals. In September of 2007, Goldman announced that the new VI fund would see a shift in strategy, moving away from the blockbuster deals that the credit crunch has all but halted and towards smaller investments, ideally Private Investments in Public Entities (PIPEs). The change in deal size will not slow the pace of investment though, with the $20 billion pool of money expected to last only two to three years.
The firm is also a leading player in the mezzanine area. In 2006, GS Mezzanine Partners closed their fourth fund, GSMP 2006, with a staggering $9 billion of
ro/careers/our-firm/divisions/mbd/index. making large mezzanine investments from $40 million to $500 million.committed capital. GS Distressed Opportunities focuses on distressed debt and equity investments in private equity partnerships. after a long process where candidates meet a number of employees proportional to their prior experience. Goldman Sachs Private Equity Group (PEG) is a leading investor in private equity funds. Strong achievers from any background have their chance but somehow. Analysts and associates are assigned a mentor to assist in their professional development. graduates as associates and some experienced hires. Goldman Sachs is universally famous for the quality of its recruiting services.html 80 . The firm invests in leading companies with enterprise values ranging from $500 million to $10 billion. Their background and previous academic and professional achievements tend to be stellar. making it the largest mezzanine fund in the world. GETTING HIRED The Merchant Bank division offers 10-week summer analyst and associate internships in its locations worldwide. and primarily invests in PE funds from the US. GS Vintage funds participate in secondary market transactions and portfolios of direct investments. The fund will target the Americas and Europe. It’s no different in merchant banking. Candidates interested in joining the private equity area will find all information at www. they tend to be Oxbridge or Harvard graduates with a stint at Bain or McKinsey. Interns get an opportunity to learn about principal investing activities and increase their chances to get invited to interview upon graduation. Latin America and Asia. with over 85 professionals.goldman-sachs. This represents a couple of positions in the London PIA. They hire the best of the best. with a variety of strategies and sector focuses. aimed at partnering with sizeable equity investors to structure complex transactions. while also retaining the capacity to act as a co-investor for particular direct investments. The PEG is subdivided into three separate programmes: GS Private Equity Partners is the global primary fund of funds. The division recruits undergraduates as analysts. Analysts go through a two. The PEG manages over €16 billion.to three-year program while associates start with a five-week trainee program to refresh the theory and familiarise them with the tools and the working environment. Europe.
) Chief executive: Johannes Huth Employer Type: Private Company Total equity assets: €86bn (As of October 2007) No. Financial stages: Leveraged buyouts Types of financing: Majority equity. co-investment in majority equity. of Employees: 400 No. of Offices: 6 REST OF THE WORLD New York • Menlo Park • Hong Kong • Tokyo KEY COMPETITORS IN EUROPE Bain Capital • Blackstone • Goldman Sachs • Permira • TPG COMPANY FOCUS Sectors: (Organised into nine primary industry groups globally) Chemicals EMPLOYMENT CONTACT London: +44 207 839 9800 New York: +1 212 750 8300 Menlo Park: +1 650 233 6560 81 .kkr.ADVENT INTERNATIONAL KOHLBERG KRAVIS ROBERTS & CO. NY 10019 Phone: +1 (212) 750-8300 Fax: +1 (212) 750-0003 London office: Stirling Square 7 Carlton Gardens London SW1Y 5AD +44 (0)20 7839 9800 Paris office: 24 rue Jean Goujon 75008 Paris +33 (0)1 53 53 96 00 www. (KKR) Head office: 9 West 57th Street Suite 4200 New York. debt EUROPEAN LOCATIONS London • Paris THE STATS Founding Partners: Henry Kravis & George Roberts (Jerome Kohlberg left in 1987 and founded Kohlberg & Co.com Consumer Products Energy & Natural Resources Financial Services Health Care Industrial Media & Communications Retail Technology.
the firm has a long-standing reputation that works to its advantage when going after deals. the largest buyout transaction over two decades and still the largest ever in real dollars (RJR Nabisco for $31.3 (NAV)bn €4. Most important funds FUNDS KKR European fund III KKR Millennium II KKR PE Investors (Euronext Amst. Of these.: KPE) KKR European Fund II KKR Financial (NYSE: KFN) VINTAGE YEAR 2008 2007 2006 2005 2004 FUND CAPITAL €8 (target)bn $16. homebuilding. 26 are what the firm calls "members. All in. The firm is very strong in Europe where it controls or owns stakes in 18 companies with about $50 billion in total revenue. Hong Kong and Tokyo. consumer products. Founded in 1976. is a recognised leader in the private equity world. the firm owned 40 companies that generated more then $100 billion revenue with 560.5bn $18 (NAV)bn The KKR way So what's the secret behind KKR's success? For one. KKR has completed more than 160 transactions worth $410bn." who have an average of 16 years with the firm. the firm quickly built a reputation for itself as both innovator and head honcho. the largest buyout in Europe and two of the largest Canadian buyouts.. KKR also boasts a network of key relationships in "Main Street" industries. Diversification is another key factor for the private equity group. industrial and manufacturing.THE SCOOP Head honcho Kohlberg Kravis Roberts & Co.4 billion in 1987). energy. communications. In 2007. Its achievements include the first billiondollar buyout transaction. health care. financial services. Paris. Menlo Park. media 82 .6bn $5. traditional industries and less conventional sectors. commonly known as KKR. The firm's industry experience includes chemicals. London. as well as throughout Wall Street. which has invested in both fledgling start-ups and established corporations.000 employees. The private equity guru employs 100 professionals based in New York. hospitality and leisure.
8 in German job creation between 2000 and 2005. (KKR) and retail. in the Netherlands. Yet another reason for KKR's success is its long-term view: the firm's average investment period is seven years. Franz Muntefering. in Germany. the French directory provider. Wincor posted an annualised return above 50 per cent. pursue acquisitions and divestitures. Asia is one arena in which KKR is not a top dog. "incentivise" management and employees. While competitors like the Carlyle Group have been in Asia since the late 1990s. Tarkett. That has changed in the last two years with the opening of offices in Hong Kong and Tokyo. The London-based team led by Johannes Huth added a new record with the biggest private equity transaction ever in Europe. although the firm has held a handful of companies for more than 10 years. and the company recently ranked No. KKR has been late to get into the mix. an £11 bn ($22bn) acquisition of AllianceBoots in 2007. The next frontier The private equity firm's European division has been busy in recent years. Wincor more than doubled its worker force after KKR took over in 1999. chairman of the Social Democrats. has staged a remarkable turnaround. One of the group's earliest acquisitions. a flooring products company. the Danish telecom operator. likened private equity firms such as KKR to "swarms of locusts sucking the substance" from German companies. In 2000. KKR brings a certain level of expertise to the table in terms of managing its portfolio companies. 83 . the firm owns TDC. which was only established in 2005. and PagesJaunes. KKR launched Capstone. Still. and several recent investments in Asia.Vault Career Guide to Private Equity Kohlberg Kravis Roberts & Co. KKR owns five companies including NXP. which focus on 100-day plans. the firm boasts an annual rate of return of roughly 27 per cent according to Fortune. This know-how includes the ability to attract strong management. However. KKR dealmakers are divided into these 11 industry groups. with current portfolio companies in several countries: Legrand. the leading pharmacy network in the UK. Since going public in 2004. in addition. provide effective oversight and maximise value when exiting investments. an electrical device manufacturer. banking information systems specialist Wincor Nixdorf. a consulting firm that works exclusively for them and helps with improving operations and measuring company performance. Finally. as the current attitude toward foreign buyout firms is none too friendly. KKR would do well to proceed with caution in Germany. KKR owns another five companies including Kion Group and the ProSeibenSat1 media company. Most importantly. the majority of KKR’s eighteen European acquisitions have been outside of the UK. were all acquired through the Paris office. Maxeda and Nielsen. arrange financings.
500 stores around the world. when Primedia sold its About. with 681 in the U. Experts say part of the retailer's appeal was its real estate. 1 special interest magazine publisher in the U. Primedia has been engaged in a fair amount of buying and selling.2bn. the acquisition of the Auto Interiors Exposition & Conference from VNU. dating back to 1989 when Primedia was first getting its feet on the ground. the media company was originally known as K-III Communications. That year also marked the completion of the $6. targeting the retailer’s toy business by itself. While stockholders clearly had faith that the takeover was a good thing for the company (the stock increased dramatically prior to the completion of the deal). Goldman Sachs and TPG of Biomet in Poland in September 2007. In August.S. The private equity group has made a number of investments. For one. reflecting the start-up's financial backers (KKR). In 2007. Furthermore.65 billion and with Permira to buy SBS Broadcasting S. as well as the rest of the U. which includes 1. and the purchase of NHU Publishing. it has been partnering with the other buyout giants. It also announced the discontinuation of its Education Segment and retained Goldman Sachs and Lehman Brothers to explore the sale of its Enthusiast Media segment (PEM). or with Permira in December 2006 to acquire ProSiebenSat1 in Germany. KKR had planned to go it alone.On the selling block Specialty publishing and targeted media company Primedia is one of KKR's longest running investments. Lately. it sold Gems Group to Aspire Media's Interweave Press.S. it had already sold its hunting. Toy story KKR may not have competitors. but later joined forces with Bain Capital Partners and Vornado Realty Trust to buy the whole company (including its babyproducts stores). toy industry.com web site to The New York Times Company. for approximately $2. KKR is not new to partnering: in 2005 for example. shooting and fishing titles to InterMedia Partners and Films Media Group (FMG) to Infobase Publishing Co. A new issue came in 2007 as the company. the private equity group teamed up with Silver Lake Partners to acquire Agilent's semiconductor business for $2.A. Originally. PEM was finally sold to Source Interlink Companies for close to $1. A major sale came in 2005. beefing up its portfolio of magazines while selling off key assets. Toys R Us faces increasing competition from the likes of Wal-Mart and Target. In fact. Other transactions that year include the sale of Bankers Training & Consulting Company to BAI.55 billion. As of late.6 billion acquisition of Toys “R” Us. for example the joint acquisition with Blackstone. others remain skeptical about the investors' ability to turn things around. faced 84 . the No.S. The next year. the bricks and mortar retailer has yet to find an online strategy that works.
was renamed Energy Future Holdings Corp..7 billion acquisition of Canadian Telco BCE by Teachers’ (the Ontario Teachers' Pension Plan). With this operation. previously listed on the New York Stock Exchange and the Chicago Stock Exchange.S. which is why the firm was not very happy to lose many of its original partners. Luminant. KKR partnered with Clayton. a holding company with three separate and distinct business units with separate boards. Mike Tokarz and Scott Stuart who were instrumental in establishing KKR's reputation and track record in the 1980s. management teams and headquarters: TXU Energy.1bn transaction. This ends a long saga that commenced a year earlier with the termination of takeover discussions with its largest shareholder. (KKR) intense scrutiny after global recalls of millions of toys made in China over excessive lead paint levels that sparked safety concerns. The company.3bn. including Saul Fox. Dubilier & Rice to complete the acquisition of U. its long-term contracts. Ned Gilhuly. The difficulty to finance or refinance the debt led to the sudden death of multi-billion dollar LBOs. No one knows how long it may last. The year of the mega deals In 2007. recurring revenue and high levels of cash flow were particularly attractive to private equity companies. 85 . General Atlantic. Ted Ammon. Scott Stuart and Edward Gilhuly left the firm in September 2005 in order to start their own investment fund. Gate closed After the credit crunch of 2007. for approximately £593 million. a regulated electric distribution and transmission business. outsourcing and information technology services. a competitive power generation business. in a transaction valued at $45bn. and Oncor.Vault Career Guide to Private Equity Kohlberg Kravis Roberts & Co. It also partnered with TPG for a new record with the acquisition of Dallas-based energy company TXU Corp. The day before Christmas. Defectors at the gate KKR prides itself on a low turnover rate among its employees. business had to slow down. a provider of specialist software. Foodservice from Ahold in a $7. KKR announced the acquisition of Northgate Information Solutions. and with Goldman Sachs and Citigroup to acquire Dollar General for $7. a competitive electricity retailer. and a market leader in human resource and payroll processing. but firms like KKR are forced to pursue smaller targets or focus on their existing portfolio. Northgate works on one in three UK workers' salaries and fields most 999 calls made to the police. for a rumoured £600 million. KKR regained the crown for the largest buyout from arch-rival Blackstone before losing it again a few months later following the announcement of the $51.
and is considered one of the most closely controlled private equity firms in the business. 86 . The firm intended to apply to list its common units on the NYSE under the symbol “KKR”. some people still wonder if KKR has spent sufficient time dealing directly with succession. most with an INSEAD or Harvard MBA. KKR has expanded beyond equity financing for buyouts and has launched several credit vehicles. Stuart and Gilhuly. Its staff in Europe are typically former employees from the likes of Goldman Sachs and McKinsey (the latter at Capstone in particular). it successfully raised more than €4 billion with the public listing of a fund on Euronext Amsterdam. following the bad performance of Blackstone’s IPO. KKR filed a registration statement with the SEC for a proposed $1. it is still yet to happen. describing Kravis and Roberts as "fully engaged and the right guys to run KKR". What next? Over the years. including KKR Financial. GETTING HIRED KKR does not provide employment information on its web site. the credit crunch and the losses in the mortgage holdings of KKR Financial. both 63 with no plans to retire. told The Wall Street Journal that their departure had nothing to do with the founding partners. In June 2007. listed on the NYSE. In 2006. roommates at Stanford Business School. While the firm filed an amended prospectus six months later in November.Insiders suspect that the move may have been triggered by the founding generation's reluctance to give up the reins. Candidates interested in working for the private equity firm in Europe should contact the firm directly at its offices in London and Paris. Two years later.25bn IPO of its “common units representing limited partner interests in its partnership”. KKR's publicly traded affiliate. KKR is run by Henry Kravis and George Roberts.
Stirling Square 5-7 Carlton Gardens London.TPG 301 Commerce Street. of Employees: 150+ investment professionals No.C. SW1Y 5AD United Kingdom Tel +44 (0) 20 7544 6500 www. Suite 3300 Fort Worth.com Growth and TPG Biotechnology add value to companies in their early and growth stages. Jim Coulter & Bill Price Employer Type: Private Company Private equity assets under management: $50bn No. TX 76102 United States Tel +1 (817) 871-4000 London office: 2nd Floor. of Offices: 17 REST OF THE WORLD Fort Worth (HQ) • Menlo Park • Minneapolis • New York • San Francisco • Washington. TPG EMPLOYMENT CONTACT Phone: +44 (0) 20 7544 6500 87 . public equity and debt investing EUROPEAN LOCATIONS London • Luxembourg • Paris • Moscow THE STATS Managing Partners: David Bonderman. • Beijing • Hong Kong • Mumbai • Shanghai • Singapore • Tokyo • Melbourne KEY COMPETITORS IN EUROPE Bain Capital • Blackstone • Goldman Sachs • KKR • Permira • Apax COMPANY FOCUS Sectors: Industries undergoing change created by industry trends. spinouts. economic cycles or specific company circumstances Financial stages: Through TPG Capital.tpg. recapitalizations. D. Types of financing: Private equity. joint ventures and restructurings. global public and private investments executed through leveraged buyouts. The firm’s growth platforms. venture capital.
000 employees. Of late. Neiman Marcus and Petco Animal Supplies. TPG has partnered with other firms to buy luxury retailer Neiman Marcus. In 2006. which was shortly the largest LBO since the RJR Nabisco buyout in 1989. It was also the most active private equity player in 2006 as it struck deals worth about $101 billion. low-risk investments such as SunGard. together with KKR. say insiders. more than half of the group's capital had gone toward high-quality. Its previous experience in the utility sector was less fortunate as it failed to buy Portland General Electric in 2005 because of a pushback from the Oregon Public Utility Commission. These days. Investments have included technology (Seagate Technology). Crew). a significant landmark for TPG considering it launched its first fund in 1993 with $720 million. purchased Midwest Airlines and Canadian pharmaceutical company Axcan. airlines (Continental). the company closed its fifth fund at $15 billion of capital commitments. retail (J. China’s largest computer maker. a stake in Lenovo Group. The firm also invested in Washington Mutual.8bn In the past. 88 . Buyout funds FUNDS TPG Partners V TPG Partners IV VINTAGE YEAR 2006 2003 FUND CAPITAL $15bn $5.THE SCOOP On a roll Founded in 1993. TXU. Texas Genco Holdings). The companies in its portfolio represent a total of about 500. Up until recently. the firm is bigger and busier than ever. TPG is a leading private equity firm with some $50 billion in assets under management and more than 120 transactions under its belt. the ones other investors wouldn't get anywhere near—think Burger King. consumer products (Ducati). TPG has pursued distressed companies. SunGard Data Systems and. entertainment (Harrah’s) and energy (Energy Future Holdings— formerly TXU. media (Univision). These days TPG is also focusing on distressed investing now that take private transactions are very difficult in the current credit environment.
private equity firms to establish a European business. Finally. in October 2006. In 2003 and 2005. TPG’s interest in airlines has been a constant feature over the last 15 years. In spite of all the turmoil in the market. In 2007.S. TPG generated an 81 per cent gross IRR. TPG showed a distinctive ability to identify lucrative investment opportunities. in 2007. And that was it.9 per cent of Italy’s state-controlled airline Alitalia along with MatlinPatterson and Mediobanca for a reported €5bn. TPG realised strong gains on its investment in TIM Hellas when the company was sold to Weather Investments in February 2007. 2007 was a good year for TPG. In fact. Still. According to FinancialNews.1 billion. It has finally thrown in the towel in November. Scottish & Newcastle Retail and Findexa. but officially withdrew in December.4 billion.7 billion. it was said to be bidding for at least 39. TPG led another consortium including British Airways to acquire Spanish airline Iberia for a reported €3. the company managed to close the largest buyout ever at the time—TXU (now called Energy Future Holdings). although the private equity group is no ingénue when it comes to the rest of the world. Go Europe TPG is based in the Lone Star State. and the first buyout in Greece with the acquisition of 81 per cent of TIM Hellas for €1. In 2007. airlines have been more difficult to acquire. TPG won Thomson's European buyout deal of the year for its acquisitions of UK retailer Debenhams for £1. four are in Europe and seven in Australasia. TPG's total return on its $64 million investment was nearly $700 million. TPG was one of the first major U. most of them opened in the last three years. Punch Taverns. TPG took a 42 per cent stake in French television firm TDF. TPG acquired Midwest Air Group in a $451 million transaction backed financially by Northwest Airlines.Vault Career Guide to Private Equity TPG Evolution From the very beginning. after failing to put together a consortium with a majority of Italian investors.4bn. With a new management team focusing on lucrative business and a better aircraft utilization. It also finalised several billion plus in other deals: the acquisition of Sabre Holdings with Silver Lake for $5. In May 2007. which started with Continental Airlines in 1993. the 89 . past transactions include Ducati Motor. Debenhams was floated on the London Stock Exchange in June 2006 and TPG remains the company’s largest shareholder. TPG has failed to win the €40bn worth of European deals it bid for in 2007. TPG was unable to get the necessary shareholder approval and failed to acquire Australian airline Qantas. Out of its 17 offices. Outside of the US. The firm also invested in America West Airlines and Singapore airline Tiger Airways Pte and. the acquisition of Harrah's Entertainment with Apollo for $31 billion.
he expects that most major private equity firms will probably be public companies within five years. managing partner David Bonderman stated that.acquisition of business communications specialist Avaya. More hits than misses When you take a gamble on down-and-out companies. “and I hope that TPG will be one of the last ones. By mid-2005. but these have still proven to be quite profitable for the firm. like other major private equity firms. and finally. "Being public is not my favorite thing. the franchise had already earned more money than it had in all of 2004. Insiders tell us that the London team is diverse. the IPO was a success and in February 2007 TPG recovered its initial investment by selling some shares. In a December 2007 interview with Reuters. again with Silver Lake. And Burger King. Some of TPG’s lower-returning investments include Gate Gourmet Group. bought in 2002. looks like a success story. for about $8. you're bound to have some misses from time to time." Bonderman said. TPG’s third fund is one of its most successful. TPG is nearing a deal to buy a $5 billion stake in a public company: troubled mortgage lender Washington Mutual.3 billion. In 2004. while he has no immediate plans to take his firm public. with a majority of investment managers hired from other private equity firms or from investment banks. Candidates interested in learning more about job opportunities with TPG should contact the office of their choice at www. TPG and another private equity group sold off Petco for a gain of nearly six times their initial investment of $190 million just four years earlier. together with GS Capital Partners.” In the meantime.tpg. as of April 2008.com/contact. 90 . the privatization of Alltel for $27 billion. Rumor has it that. In May 2006. TPG has been scrutinizing the Blackstone $4bn IPO and is exploring the sale of a minority stake in the firm or even a public offering. GETTING HIRED TPG doesn’t disclose the profiles of its team. Bally and Ducati Motor.
3I GROUPINTERNATIONAL ADVENT 16 Palace Street London SW1E 5JD United Kingdom Tel: +44 (0)20 79 28 3131 www. Infrastructure and Quoted Private Equity.18bn Employees: 750 investment professionals in 2008 No. Debt. of Offices: 24 in 14 countries Amsterdam • Barcelona • Copenhagen • Frankfurt • Helsinki • London • Lyon • Madrid • Milan • Munich • Paris • Stockholm • Stuttgart • Zurich REST OF THE WORLD New York • Menlo Park • Beijing • Hong Kong • Mumbai • Shanghai • Singapore KEY COMPETITORS COMPANY FOCUS Sectors: All sectors. Financial stages: Mid-market buyout up to €1 bn equity).7bn (As of March 2007) 2006 Revenue: €4.3i.3i. with specialist global teams in Oil Gas & Power Technology Media Business Services Financial Services Healthcare and Consumer.com Types of financing: Main: Majority Equity Other: Minority Equity. Investment in third party fund. Shareholders loans EUROPEAN LOCATIONS THE STATS CEO: Philip Yea Employer Type: Public listed company (LSE) Ticker Symbol: III Total private equity funds under management: €10.15bn 2005 Revenue: €4.html 91 . Advent International • Apax • Barclays Private Equity • Bridgepoint • Montagu EMPLOYMENT CONTACT www.com/careers/current-opportunities. Growth Capital. Mezzanine.
Recently.5 billion. with €5 billion of committed capital. in order to efficiently develop each business unit: Buyouts. the US and Japan and was listed on the London Stock Exchange in 1991 with a market capitalisation of £1. it is probably the most diversified. In 2005. and at its current value of £6. 3i sold the world’s largest foreign exchange specialist – Travelex – for £1 billion to Apax. 3i launched its fifth and largest European fund. In 1967. 3i is one of the largest European private equity companies by assets under management and the largest by number of transactions. In the following years. which it went on to sell for £4. Shortly after. Back then. generating a 10 times return on investment. 3i was badly hit by the technology bubble burst of 2000 and in 2001 restructured its organisation towards a three sector strategy. In 1999 the company raised €2 billion for its second European fund. 3i invested mainly in Europe.3bn €2bn 1999 A brief look into the past In 1945 the demand for risk capital for growing independent businesses in the United Kingdom was quite high. the firm made its first venture capital investment by buying a share of Oxford Industries for £90. It had bought the company on 30 December 1998—just days from the formal introduction of the Euro that many thought would destroy the business. Growth Capital and Venture Capital.000.7 million. the company was listed on the New York Stock Exchange. In 2006.7 billion under management and in the last five years has completed 400 trade sales and 46 public offerings.5 billion is the only private equity firm included in the FTSE 100. the company had €10. Most important funds FUNDS 3i eurofund V 3i eurofund IV 3i eurofund II VINTAGE YEAR 2006 2004 FUND CAPITAL €5bn €3. 92 .THE SCOOP With 750 professionals. The firm is a true generalist and along with being one of the oldest British firms. William Piercy was the first to lead the 3i Group in England.
often regulated or with significant long-term contracts The newly formed QPE team or quoted private equity unit will invest in majority holdings of mid sized companies with enterprise value of €100 million to €2 billion. The infrastructure unit is truly global whereas the QPE team operates in Europe only. the rest of the private equity business is divided into Growth Capital and Buyouts. investing between €1 million and €75 million per transaction. The team normally invests between €10 million and €150 million per transaction and is currently the fastest growing division of 3i. • • • 93 . The Infrastructure team invests amounts of €70 to €400 millions in infrastructure assets. Today.Vault Career Guide to Private Equity 3i Group Presence in all stages of private equity The venture capital unit operates in Europe and the United States. defined as asset-intensive businesses that provide essential services over the long term. • Growth Capital focuses on minority holdings in emerging markets such as Asia. Its main focus is on start-up and earlystage operations. Buyouts is the largest team with 90 professionals. It takes controlling positions in European mid-market companies and has achieved an impressive 40 per cent yearly IRR since 2001. with the newly formed Infrastructure and QPE groups completing the picture.
a Stockholm-listed real estate company. the focus has been on developing their presence in Asian and Nordic markets. in more than 250 British and German small companies. are trying to break into. Eastern Europe is another area that private equity firms. 3i has conducted business in 20 regions and various growth sectors. Thanks to its long existence and to the diversity of its geographic. 3i sold its shares in Nordic Modular to Kungsleden AB. In 2007. the company remains committed to the mid-markets and won the Private Equity News’ mid-market firm of the year award in 2006. 3i formed a CEE team and acquired EDS. making ten times its initial investment of 2005. Poland and Hungary. Expansion plans 3i expanded early throughout Europe. In addition. 3i understands the potential of growing markets around the world but still remains strong in its traditional European regions. Sweden and Denmark as well as Greater China. 3i in particular. There is also an SMI team of 17 professionals that manages minority holdings. In 2007. experts and multinationals. sector and financing experience. with a combined market value of €600m.While growing in size and reach. 3i offers a rare access to the widest range of local business communities. entrepreneurs. 3i opened a new office for its Growth Capital unit in New York. the team was reinforced with a first appointment in Warsaw. 94 . and for the last 10 years. the leading web-offset printer in the Czech Republic. A few months later. Since its creation in the United Kingdom in 1945. In 2007. The company expanded its target acquisition regions to Finland. for about €100 million. it has expanded to 14 countries across the world.
over 10 per cent of all employees studied at Cambridge or Oxford. its employees tended to study predominantly in Europe rather than in the US. The 3i Infrastructure fund has been listed on the London Stock Exchange since March 2007. 3i’s percentage of graduate degrees is relatively high compared to other private equity companies. 3i established an infrastructure fund which made its first public investment of €305 million. a German business in which 3i acquired a 45 per cent stake. In France most employees studied business at HEC. 95 . Candidates are expected to demonstrate an ability to work together across business lines and national boundaries. Compared to other global players. and in the Nordic region. GETTING HIRED 3i wants to attract “people with an international mindset. people who thrive in a multidisciplinary and challenging environment and people with a highly focused and ambitious mindset”. 3i has a varied European culture which makes flexibility and cultural openness particularly important. one being Oil Tanking. when it bought three oil tanking businesses. at the Helsinki University and the Stockholm School of Economics. and has so far raised €1 billion. INSEAD and London Business School account for more than 25 per cent of all MBAs at the firm.Vault Career Guide to Private Equity 3i Group Infrastructure fund In 2007. Due to the strong UK presence.
Higher Diploma Bachelor’s only 32% Unknown 7% PhD/JD/MD 6% MBA 28% Master’s 27% Source: Candesic Most significant previous job Strategy consulting 11% Audit & transaction services 17% Banks 21% Other 51% Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 20 15 HEC (9) 10 LBS (10) Cambridge (16) Oxford (17) INSEAD (18) 5 0 Source: Candesic Top 5 former employers (# of professionals) 20 15 JPMorgan (6) 10 Deloitte (9) McKinsey (11) Anderson (16) PWC (17) Source: Candesic 5 0 96 .
Almost a quarter come from the industry. closer to the traditional private equity establishment in St James.Vault Career Guide to Private Equity 3i Group 3i is composed of a diverse group of 250 professionals. The new office is designed to favour the interaction between managers and entrepreneurs and has achieved the desired mix of startup and professional environment. The main previous employers are the Big Five and McKinsey. 97 . The largest team is based in London. Candidates will find that 3i provides plenty of information on recruitment and careers on their website. Only half of them had their previous jobs in professional services (mostly consulting and transactions services) or investment banking. where it recently moved to new premises next to Buckingham Palace.
allianz. Stefan Sanne (ACP). expansion.agfpe. €7bn (funds of funds) and €2bn (AGF PE) Employees: 200 in 2004 (Allianz Private Equity Holding) No.allianz.apep.com www. co-investment.com Types of financing: Majority equity. Jonny Maxwell (APEP) Employer Type: Subsidaries of Allianz AG Total private equity funds under management: €2bn (direct). Mr.com www.acp. of Offices: 4 REST OF THE WORLD New York • Singapore KEY COMPETITORS 3i • Apax • AXA Private Equity EMPLOYMENT CONTACT Tel: +49 (0)89 38 00 70 10 COMPANY FOCUS Sectors: Automotive Specialty Chemicals Renewable Energy Healthcare Financial stages: ACP: Private Equity direct investments (MBO. mezzanine EUROPEAN LOCATIONS Munich (HQ) • Paris (Allianz AGF Private Equity) • London THE STATS Managing directors: Mr. financial restructuring) APEP: Funds of funds AGF PE: Funds of funds and VC 98 .ALLIANZ CAPITAL PARTNERS/ ADVENT INTERNATIONAL ALLIANZ PRIVATE EQUITY PARTNERS/ ALLIANZ AGF PRIVATE EQUITY Königinstraße 19 80539 Munich Germany Tel: +49 (0)89 38 00 19900 www.
banking or content media. 99 . developing German middle-market companies. the funds of funds and some venture capital activities. who occasionally partner with colleagues in London on select investments. Allianz Capital Partners ACP manages only its parent’s own funds. with €2bn spread across 20 investments in the last 10 years. insurance. Along with running ACP he is also head of Allianz Alernative Asset Holding. It included Allianz Capital Partners (ACP) for direct investments. the team typically does not make direct equity investments in real estate. Allianz Private Equity Holding was formed to integrate the various private equity activities of the Allianz Group and of its banking arm Dresdner. They will consider conglomerate restructuring. ACP was established in 1998 and has since grown to include 40 professionals based in Munich.Vault Career Guide to Private Equity Allianz Capital Partners/ Allianz Private Equity Partners/ Allianz AGF Private Equity THE SCOOP In 2002. Thomas Pueter As Germany’s most senior private equity investor. he is seen as a calm voice that carries a measure of influence. While it presents itself as generalist. however. a business unit created in 2005 to tie together the group’s alternative assets ranging from private equity to real estate to alternative energy. privatizations and public-to-private MBOs relying on equity or mezzanine financing. ACP has an edge over independent PE firms in that it can tap the full resources of the Allianz Group to enhance their portfolio companies’ value where other firms may have struggled. In the debate that is currenlty shaping the German economic outlook. Allianz Private Equity Partners (APEP). Thomas Pueter is seen as a charming and eloquent spokesman of the industry. but only in certain asset classes. The team invests in European assets in the realm of €30 million-€350 million. they shy away from start-up financing and operational restructuring.
in 2007. for a consideration of £772. together with Lufthansa and Apax. to Terra Firma. this involves conducting due diligence of PE partnerships. Allianz Private Equity Partners Allianz Group investors who wish to invest indirectly into the private equity sector are channelled through Allianz Private Equity Partners.5m. The then CEO Wanching Ang was appointed to the management team. and with 3i and a strategic investor. Deutsche Seereederei. from the Dutch State for €415m. In July 2007 Allianz announced that they were forming an indirect PE investment business group in London. having bought it for £1.4bn to Three Delta. headed by the controversial former head of Standard Life PE Jonny Maxwell. In May 2007. Like most other major buyout players. and subsequently resigned from Allianz in November to ‘pursue personal interests’.Team power ACP conducts only a few key transactions every year. With 48 professionals spread across offices in Munich. the European vending business of Compass Group. ACP is increasingly teaming up to win transactions. a leading publishing and security identification group. respectively. Maxwell to take over her duties. valuations of unrealised PE portfolios. ACP bought Selecta. 2010. it sold Four Seasons Healthcare. with the expansion of a New York office and an acquisition of Dresdner’s private equity funds portfolio following in 2002 and 2003. the team has a truly global investor base. In 2006. In 2004. Selecta operates as many as 150. the consortium has agreed not to lay-off any employees for operational reasons until December 31.15bn from Alchemy in 2004. research on the private equity market and presenting their ideas to an investment committee. 100 . ACP sold Tank and Rast. it partnered with ABN AMRO Capital to acquire Sdu. the German motorway service operator that had been privatised in 1998. New York.000 vending machines. a leading UK nursing homes operator. for £1. leaving Mr. A little bit of history APEP was formed in 1996 when Allianz started its private equity program. To convince the previous state owners. Singapore and AGF Private Equity in Paris. to purchase ferryshipping company Scandlines Group. representing 14 times EBITDA. As a ‘fund of funds’ their main responsibility is to efficiently invest a pool of funds in various PE firms.
which is to be expected since their only true office in Europe so far is in Munich.Vault Career Guide to Private Equity Top of the Deutsche league The current assets under management are in the region of c. Allianz could soon become a true pan-European player and catch up with its dynamic archrival Axa Private Equity. Allianz Capital Partners/ Allianz Private Equity Partners/ Allianz AGF Private Equity Allianz AGF Private Equity Since Allianz bought French Insurance company AGF. and professional services. New York and Singapore. The team is becoming more international as both ACP and APEP pursue more European investments. With the opening of the London office and the integration of AGF Private Equity. In February 2007 APEP announced it was closing its first fund of funds to investors at €823 million. APEP is divided into four teams: Management Team. They are located in Munich. Allianz’s top graduate university is Munich University. There is a large proportion of employees who joined with prior private equity experience. Allianz Group companies invested about €200 million. Investment Team. Clients and Products team. French operations had kept their name while being slowly integrated. with the remainder coming from institutional and private investors. 101 .3 billion. secondaries. €1. The firm doesn’t disclose the profiles of the team. In 2008. making it the most successful German fund of funds to date. The same applies to the smaller French team of eight in the funds of funds and secondary investments of AGF Private Equity. there are five INSEAD graduates (with another five in the other PE divisions of the group). GETTING IN Allianz Capital Partner’s investment team consists of specialists from seven countries who provide extensive knowledge of local markets. with a diversified sector experience in private equity. industrial corporations. €7 billion with an annual commitment rate around c. However. out of 40 ACP employees in Munich. AGF Private Equity becomes officially Allianz AGF Private Equity and brings its private equity activities in funds of funds. and Business Operations team. investment banking. which is spread across 10-20 investments per year. co-investments and venture capital to the group.
of Offices: 15 COMPANY FOCUS Sectors: Tech & Telecom Media Company Focus Retail & Consumer Sectors: Healthcare Business Services & Financial Services Financial & Business Services Retail & Consumer Technology.adventinternational.apax.com Tel: +44 20 7333 0800 www. Brooke Total private equity funds under manageEmployer Type: 2008 ment: $35bn in Independent Private Company 132 investment professionals Employees: Total private equity funds under in 2008 management: about €11bn (2008) No. Large Mega buyout Life Sciences Industrial buyout (€150m-€300m equity). of Offices: 10 Employees: 130 investment professionals. Small buyout International buyouts.adventinternational.com 103 . see "contact us" at www. Martin Halusa Employee The StatsType: Independent Private Company Chairman: Peter A. some venture capital Types of financing: Main: Majority Equity Types of financing: Others: Minority Equity. Public to private. PrivatisaFinancial stages: tion. Shareholders loans Majority equity Rest of the World Boston (HQ) Tokyo • Singapore (affiliate) KEY COMPETITORS • Buenos Aires • Sao Paulo • Mexico • Further Warburg Pincus • Carlyle • TPG • Provaffiliates in five other countries idence • KKR • Blackstone • Advent International • BC Partners • Cinven • CVC • Permira Key Competitors 3i • Apax • Barclays Private Equity • EMPLOYMENT CONTACT Cinven • Montagu Email: careers@apax. of which 65 in Europe (2008) No. recapitalization and (<€15m equity) growth equity investments (up to €500m equity).APAX PARTNERS ADVENT INTERNATIONAL 33 Regional Headquarters UK Jermyn Street London SW1Y 6DN Advent International plc United Kingdom 111 Buckingham Palace Road Tel: +44 (0)20 78 72 London SW1W 0SR 6300 UK www.com EUROPEAN LOCATIONS European Locations London (HQ) • Madrid • Milan • Munich • Stockholm • Paris (Apax Partners Amsterdam • Bucharest •Frankfurt • France) Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) REST OF THE WORLD New York • Hong Kong • Mumbai • Tel Aviv THE STATS CEO: Dr. Media & Telecoms Financial stages: Healthcare & (>€300m equity). Mid market buyout (€15m-€150m).com Employment Contact In the US: firstname.lastname@example.org For other offices.
Somerfield and Travelex. Milan.3bn €4. Most important funds FUNDS Apax Europe VII Apax US VII Apax Europe VI Apax Europe V VINTAGE YEAR 2007 2007 2005 2002 FUND CAPITAL €11.8bn €4. with a total value of $35bn at initial offering. Apax also had the distinction of leading the consortium that pulled off the largest LBO in Europe: a $15. tracing its roots back to 1969 when the investment firm was known as Alan Patricof Associates. an early investor in Apple and AOL. 275 of which are currently in their portfolio.THE SCOOP Apax Partners is one of the few European private equity firms that has global ambitions. Maurice Tchenio. including well known names like Tommy Hilfiger.2bn $0.2bn Apax overtook Permira as the largest European PE firm. currently the French office Chairman and CEO. and Alan Patricof. After closing the most recent Europe VII fund at €11. Stockholm and Madrid. the firm also has a large presence in the U. the “father of British venture capital” and high profile Labour supporter. leaving CVC in third. Still kicking Apax Partners is a veteran in the private equity biz. The firm was co-founded in 1972 by Sir Ronald Cohen.4bn Over the last three decades the firm has raised in excess of $35bn and has invested in almost 400 companies. as well as offices in Hong Kong and Mumbai. In 1977 the French/British venture known as Multinational Management Group merged with Alan Patricof’s American Investment Company. Based in the UK with European offices in Munich.3 billion deal in 2006 for Denmark’s incumbent telecom operator TDC. Until the acquisition of Alliance Boots by KKR in 2007. forming the basis of Apax Partners 104 . In the last twelve years Apax has listed over 65 companies on global stock markets.S.
to create a Euronext-listed vehicle with a market capitalisation of about €250m.. and their focus is shifted towards growth companies and mid-market buyouts. consumer and retail. the private equity group is well-positioned. media. Apax Partners French exception Under the leadership of Maurice Tchenio the French office has always had a large degree of independence. Global powerhouse If you ask John Megrue. less than two years from his 60th 105 . co-CEO of Apax Partners' U. The decision making is completely centralised in Paris. So in January 2004. there are firms that want to become global leaders. In 2007 it merged two of its investment vehicles. In 2005 the company looked to enhance its expertise in fast buyouts. Apax Partners is an exception. The firm has always been one of France’s pioneering private equity firms. Apax Partners. Karp & Megrue. Europe and Asia and a strong history to build on. As with many international mergers the offices initially operated as relatively separate entities until the late 1990s. says Megrue. there are those that want to become niche specialists. is fully owned by its 10 French partners and 28 investment professionals. in its current form of Apax Partners SA. Sir Ronald and other partners were already discussing succession back in the late 1990s. creating the first ‘Fonds Commun de Placement a Risque’ (FCPR) and co-founding the French Private Equity Association (AFIC). The French office can invest alongside the other funds of the firm. Apax targets deals in five sectors: tech and telecom. In 2002 the global assimilation was made official when the firm changed its name to Apax Partners Worldwide LLP. ultimately agreeing to a retirement age ceiling of 60.S. As a whole. The times they are a-changin' Although many private equity firms have struggled with the transition from one generation to the next. with over 40 companies currently under management. and acquired the specialist firm Saunders. On the one hand. wants to be in the first group. Funds managed by the French office exceed €2bn. With 10 offices spread across the U. but insiders claim that the lack of integration can be an issue when competing on panEuropean transactions against more thoroughly integrated competitors. Funds advised by Apax Partners invest globally in large businesses with an enterprise value of between $1 billion and $5 billion. on the other. Altamir & Cie and Amboise Investissement.S. healthcare and financial services. operations.Vault Career Guide to Private Equity as we know it. and. the private equity industry is undergoing a polarization of sorts.
In the same year it also realised a profit on Swedish medical product company Mölnlycke Health Care Group. a venture capital company with a social mission co-founded by Apax Partners in 2002 and chaired by Sir Ronald Cohen. Alan Patricof was involved in the very early financing of Apple Computers and extracted significant value when the company expanded. Killer deals Apax history has its count of killer deals. one of the largest returns in European Venture Capital history. Apax turned a $3 million investment in Autonomy Corporation into a $900 million payout. In June 2005. “Our next fund will be 100 per cent buyouts. when it was sold 106 . he had been with Apax Partners for 15 years and described the management changes at Apax as "organic. In 1998. Apple Computers and Office Depot. as reported by Bloomberg. In the past. and retired from that office in August 2005. The private equity group's merger with SKM in the US is another sign of changing times. social investment and educational initiatives that work towards the alleviation of poverty in deprived communities worldwide”. naming Martin Halusa as his successor. maintaining a leadership position but giving Halusa significant breathing room. In 2007. Now the company employs the same investment strategy across its global platform: investing in large stable businesses with the capacity to expand. Halusa wasn't exactly a newbie. "You have to be at the venture capital stages to be able to do a large deal because that is where a lot of the industry knowledge comes from”. retail and communications companies such as America Online. the firm made 40 times its investment on the sale of UK Healthcare at Home to mezzanine provider Hutton Collins. In 2007 however. and our focus is on the more stable end of the business''. after raising its new fund.S. Apax keeps an interest in VC though. Halusa shut Apax's Silicon Valley office in California. Halusa told Real Deals. the firm's US division has been focused on smaller venture-capital style investing—think first/second-stage and mezzanine financing to high-tech. Sir Ronald stayed on as chairman. Our venture results have been very volatile. it set up the Apax Foundation to support “entrepreneurial. The combination with Connecticut-based SKM allows Apax to handle bigger buyout deals in the U. In 2005.birthday. co-founder Sir Ronald Cohen stepped down as chief executive. rather than revolutionary”. One of the foundation’s key investments is in Bridges Community Ventures. resigned from the National Venture Capital Association and announced. While some wondered how the firm would fare with Sir Ronald gone.
in December. Lately it has been particularly busy in the media and healthcare sectors. Its main sector of activity is technology and telecom with more than 70 companies in the portfolio. the largest private hospitals operator in the UK. though. In August 2006 Apax joined the private equity consortium headed by KKR to acquire an 80. Apax invested $190m to acquire an interest in CME. The report reviews the private equity operating environment for 33 countries and underlines the difficulty of operating in the region. Apax has recently increased its focus on media assets in Europe. Apax Partners Compulsive shopper Apax is organised along five sector areas and closes 12-15 acquisitions a year. now known as NXP Semiconductors. a leading distributor and manufacturer of generic pharmaceuticals in the US. a TV broadcasting company traded on the NASDAQ and the Prague Stock Exchange with 107 . Because it already owned GHG. It was also a co-investor in Greek mobile telecom group TIM Hellas.9 per cent stake in Trader Media Group from Guardian Media Group and. In March 2007 it acquired a 49. it took control of Unilabs of Switzerland and intends to delist it from the SWX Swiss Exchange. which sold to Weather Investments for €3. In 2006.85bn. Part of the explanation may be in the “Private Equity in the Public Eye” report it published with the Economist Intelligence Unit in July 2007. Looking East Surprisingly for a firm this size.Vault Career Guide to Private Equity to Investor AB and Morgan Stanley Principal Investments for €2.1 per cent stake in the Semiconductor Division of Royal Philips Electronics. many of them being take-privates. Apax doesn’t have a strong track record in Eastern Europe. The combined group is a European leader in medical diagnostic and several other areas of healthcare services.4bn. partnered with Guardian Media Group to acquire publisher Emap for £2bn. In November 2007 it completed the acquisition of Qualitest and Vintage Pharmaceuticals. Apax had to divest the Capio hospitals in the UK. It took UK toy and media firm HIT Entertainment private in June 2006. raising about ten times the initial investment. In December 2006 it completed the de-listing of British specialist business information provider Incisive Media alongside management. After acquiring Swedish healthcare operator Capio in 2006 and delisting it from the Stockholm Stock Exchange.
In 2005. Strategy consulting has an unusually high presence. managers don’t get to work across industries. However they tend to join Apax after several years of experience. Newspaper reports also announced a plan to take a stake in India's Patni Computer Systems. headed by Neeraj Bharadwaj. headed up by senior partner Max Burger-Calderon. the company opened an office in Hong Kong. In Paris. mostly in investment banking. HEC is the most frequent graduate diploma. Slovakia.leading television stations located in Croatia. The next year. to give it a stake in India’s fast-growing healthcare industry. Romania. GETTING HIRED Apax staff is organised in in-house knowledge centres and fund managers organised in sector teams. In 2007. MBAs from Harvard Business School alone represent a striking 22 per cent of this workforce. often complemented with an MBA. it teamed up with Prathap Reddy. one of India's most prominent entrepreneurs. the UK and France. Apax investment professionals were educated at the very best universities. and allows the private equity firm access to exclusive information. it opened its second Asian office in Mumbai. mostly in the US. strategy consulting or both. This organisation shows Apax’s focus on knowledge-based business. 108 . with McKinsey the largest previous employer (15 per cent of the professionals) and pretty much every top 10 strategy consultancy represented. Unlike many competitors. Slovenia and Ukraine and reaching an estimated 82 million people Eastern and Central Europe. Czech Republic. together with TPG.
Vault Career Guide to Private Equity Apax Partners Higher Diploma Bachelor’s only (13%) Unknown (2%) PhD/JD/MD (8%) MBA (54%) Master’s (23%) Source: Candesic Most significant previous job Audit & transaction services (4%) Banks (32%) Other (28%) Strategy consulting (36%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 30 25 20 15 10 5 0 Oxford (9) Wharton (13) Cambridge (13) INSEAD (14) Harvard (29) Source: Candesic Top 5 former employers (# of professionals) 20 15 Deutsche Bank (5) 10 Morgan Stanley (5) Goldman Sachs (8) 5 BCG (8) McKinsey (29) Source: Candesic 0 109 .
Candidates can contact the Apax human resource department to read their HR inside report on the private equity industry. 110 . Apax warns however that “due to volumes of emails [they] are only able to respond to those invited for interview”.
infrastructure. to €500m equity). seed & Life Sciences Healthcareand other early stage. +33 (1) 44 45 93 10 Cinven • Montagu Mega buyout (>€300m equity). Industrial early secondary and secondary funds of funds. of Offices: 6 management: about €11bn (2008) Employees: 130 investment professionals.com For other offices. Brooke ment: €15.com Equity • 3i • Apax • Barclays Private Tel. Media & Telecoms Technology. Head of Human Key Competitors Resources rh-AXApe@AXA-im.com 111 . Expansion capital.7bn (2008) of which €5bn is Employer Type: Independent Private in direct funds Company almost 200 Employees: Total private equity funds under No. of which 65 in Europe (2008) COMPANY FOCUS No.AXA PRIVATE EQUITY ADVENT INTERNATIONAL 20 Regional Headquarters UK Place Vendome 75001 International plc AdventParis France 111 Buckingham Palace Road Tel: +33 1 44 45 9200 London SW1W 0SR UK www. co-investments. recapitalization and growth equity investments (up mezzanine Majority equity.small buyout (<€15m equity). mid buyout market buyout (€15m-€150m equity). Primary. of Offices: 15 Sectors: All Financial stages: Company Focus Rest of the World KEY COMPETITORS Boston (HQ) 3i • Advent • Barclays Private Equity • Tokyo • Singapore (affiliate) • Buenos Montagu • PAI • Sagard Aires • Sao Paulo • Mexico • Further affiliates in five other countries CONTACT FOR RECRUITMENT Anne Marion-Delpont. Business Services & Financial Services Retail & Consumer public to private.AXAprivateequity. some venture capital Types of financing: Majority equity Employment Contact In the US: email@example.com Tel: +44 20 7333 0800 www.adventinternational. Financial stages: Types of financing: International buyouts. fund of funds) Amsterdam • Bucharest •Frankfurt • Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) REST OF THE WORLD New York • Singapore THE STATS Chairman & CEO: Dominique Senequier Employer The StatsType: Subsidiary of AXA Total private equity funds under manageChairman: Peter A. see "contact us" at www. large Sectors:(€150m-€300m equity).com EUROPEAN LOCATIONS European Locations Paris (HQ) • London (HQ)Frankfurt • Milan • London (infrastructure.
72bn €0. In 2007. a magnificent “hotel particulier” on the Place Vendome in the centre of Paris.55bn €0. the firm raised $7 billion in all its business activities.60 (estimate)bn €~1. up 45 per cent since December 2006. handpicked Dominique Senequier to build a private equity arm.9)bn €0. Most important funds FUNDS AXA LBO Fund IV AXA Co-Investment Fund III AXA Expansion Fund II AXA Secondary Fund IV VINTAGE YEAR 2007 2007 2007 2007 2006 2007 2006 2006 2005 FUND CAPITAL € ~1. She had started her career in the civil service and quickly rose to become one of the most powerful women in the industry. AXA PE has six relatively independent offices across the globe. Over the last ten years.THE SCOOP AXA Private Equity is a subsidiary of AXA. It was founded in 1996 after Claude Bebear. one of the major global insurance companies. The majority of the business is conducted through the French office in Paris. then powerful CEO of AXA. with 40 buyout transactions mostly in France. She grew the business into one of the major buyout firms in continental Europe.10 ($2. however. where the firm opened an office in 2001. AXA has been one of the most active continental European players. 30 per cent of the previous fund was allocated to Germany.35bn €2. The firm is now building up its Italian team to allow for a more pan-European approach to 112 . but the firm is trying hard to expand internationally and break into the top ten buyout firms globally.72bn €2.50 (estimate)bn €0. The bulk of it is for direct investments and the firm now manages $22 billion out of its main office.9)bn €0.50bn AXA Mezzanine Fund I AXA Secondary Fund IV AXA Mezzanine Fund I AXA Co-Investment Fund II AXA LBO Fund III The strategy and goals are clearly set Today.10 ($2.
and she doesn’t hesitate to refuse to sign off on investments when in doubt. The firm also focuses on large secondary fund transactions and has become one of the major players in that segment. the funds achieve top quartile performance. from VC to relatively large buyouts (“upper middle”). She is a tough and no-nonsense manager. AXA Private Equity Strong firm values Much of the success of the firm may be traced to Senequier’s forthrightness that is said to often make men uncomfortable. in order to allocate and evaluate the right investments. 113 . saying: “whoever understands the balance sheet of an insurance company can quickly understand the balance sheet of any company”. has won AXA PE some of the world’s most important investors for its various funds. Its strategy. AXA PE decided to enhance its global reach by opening an office in Singapore. which consistently produces sustainable returns and a confidential loyalty towards the investors.Vault Career Guide to Private Equity opportunities on the basis that private equity has an important role to play in making European business more competitive. but lost to PAI Partners. In 2004. growing the Venture activity in Asia by backing innovative companies already in the firm’s portfolio. She traces part of her success to her previous experience. According to internal AXA information. AXA PE is committed to achieving an excellent return on investment for all investors. It is said to have successfully developed a fine tuned valuation measurement system based on its pool of experts and its experience. AXA was one of the five nominated firms for the 2007 Financial News award of French Private Equity Firm of the Year. The internationalisation of the business is on the right track with 42 per cent of direct investments in 2007 coming from outside France. AXA PE’s funds span all financial stages. and supporting some Euro zone companies in the Buyout funds which are either involved in joint ventures in China or are delocalising their activities there. with a net IRR ranging from 30 per cent to 35 per cent in the first three generations of LBO funds and from 30 per cent to 85 per cent in the first three generations of secondary funds of funds. The Asian office has three functions: providing a platform for the Funds of Funds activity in Asia. afraid of no-one and nothing. through mezzanine and funds of funds.
the largest owner of broadcast and telecoms infrastructure in continental Europe. has always been very strong. CABB acquired the Swiss specialty chemicals firm SF-Chem AG. It subsequently withdrew from the deal. the firm has been particularly active in the chemical and related industries. which means a particular emphasis is placed on transparency at AXA PE. in the autumn of 2006 the firm made the headlines with its €4. However. This link means that AXA Group is exposed to the reputational risks associated with large private equity firms. one of the world's leading suppliers of chemical building blocks and specialty intermediates. In 2006. kicked off 2007. of TDF (formerly Télédiffusion de France). but are also reflected in the way the firm relates to investors. Later in the year. Recently. The final acquisition of CABB GmbH. The firm benefits from its diversified activities. AXA PE initially teamed up with KKR. the small caps team may have historical knowledge of a target analysed by the mid cap team. who later joined the rival consortium formed by Eurazeo and Goldman Sachs. taking part in the biggest auctions. the large cap team can leverage the infrastructure one. in an effort to acquire a 52 per cent stake in France Telecom directories subsidiary PagesJaunes. they emphasise that they differentiate themselves “via a policy of ethical and responsible investments”. with an average stake between 20 per cent and 33 per cent of each fund. together with TPG. The standards represent international ethical norms for an objective presentation of performances. Since 2006.9 billion acquisition. AXA PE gained recognition for this transparent approach. gaining access to a wider range of deals and improved fundraising opportunities. portfolio companies and funds. international experience and transparency.She has also championed the four company values: performance. expertise. Playing with the big guys The firm is now an established player and doesn’t hesitate to partner with the major international private equity firms. fund of funds and co-investments may pass leads to each other. All in the family The relationship between AXA PE and its parent company. These values are part of the internal structures. being the first French capital investment company to conform to the Global Investment Performance Standards (GIPS). 114 . In their public presentations. AXA PE benefits from this strong relationship. AXA Group. AXA Group insurance companies are the lead investors in AXA PE’s funds. with a particular focus placed on transparency within the investment industry.
a specialty chemical company it bought for €130m. Among the employees. Insiders confirm that all profiles are likely to be considered as long as they can demonstrate strong achievements. Today. AXA Private Equity GETTING HIRED AXA PE has about 200 employees with a diverse range of backgrounds and regional expertise. The same year. a much higher proportion than the industry average. The recruitment seems to be more diverse than at most competitors. Eliokem followed through the next year with the acquisition of the Polymer Division of Indian-based Apar Industries. AXA PE completed the acquisitions of Diana Ingredients. and Synerlab. AXA PE offers its international expertise to help European companies develop realistic expansion strategies to Asian or American markets. Gerflor (bought in 2006) and Larivieres (sold for €300m in 2007). a major natural ingredients producer for €710m. strategy consultants or transaction services advisors. bringing international market knowledge into management board decisions to create stability and security in portfolio companies. one can find a medical doctor and a jetfighter pilot and there is no strong majority of investment bankers. Construction is another industry of particular expertise with recent transactions including Champeau/Gau (divested in 2004. one of the leading French pharmaceutical sub-contractors.Vault Career Guide to Private Equity AXA PE has owned Eliokem. 115 . reinvestment in 2006). Support functions account for half of the headcount of the company. Women represent almost half of the workforce.
Higher Diploma Bachelor’s only (2%) Unknown (3%) PhD/JD/MD (10%) MBA (15%) Master’s (70%) Source: Candesic Most significant previous job Insurance (8%) Audit & transaction services (5%) Banks (33%) Other (54%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 Bocconi (4) ESCP-EAP (4) Dauphine (6) HEC (6) ESSEC (8) Source: Candesic Top 5 former employers (# of professionals) 6 5 4 3 2 1 0 ABN Amro (2) HSBC (2) Axa Group (3) Credit Agricole (4) BNP Paribas (6) Source: Candesic 116 .
the company focuses on employees that are able to build on specific geographical market knowledge from the very beginning. They tend to be master’s students from the top business schools in Paris.Vault Career Guide to Private Equity AXA PE regularly employs interns for periods of up to one year. Because of their various foreign offices and the international strategy. and are often recruited after their internship. Because AXA PE has many separate activities. In 2007. it is possible for a candidate to end up being interviewed by a completely different product team depending on the current recruiting needs. The international factor is rated highly within AXA PE´s application measurements. interns represented over 13 per cent of the total workforce. with a preference for international backgrounds. AXA Private Equity 117 .
recapitalization and growth equity investments (up to €500m equity). Brooke Total private equity funds under manageEmployer Type: Independent Private ment: about Company €5bn (2008) Employees: 59 investment professionals Total private equity funds under in 2008 (including 12 in infrastructure) management: about €11bn (2008) No. Gonzague De Blignières and The Stats Peter Hammermann Employer Type: Subsidiary of Barclays Bank Chairman: Peter A. of Offices: 15 Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu COMPANY FOCUS Company Focus Financial Sectors: stages: Mid market buyout Financial Services Business Services & (€15m-€150m equity). some venture capital Types of financing: Majority equity Sectors: All sectors Employment Contact In the US: info@adventinternational. replacement.adventinternational. of Offices: investment professionals. 8th Floor UK Regional Headquarters London E14 4BB Advent International plc United Kingdom 111 Buckingham Palace Road Tel: +44 (0)20 75 12 London SW1W 0SR 9900 UK www. & Consumer Retail expansion capital. Employees: 130 8 of which 65 in Europe (2008) No.com For other offices.infrastructure Healthcare & Life Sciences Types of Industrial financing: Majority equity. equity co-investment Financial stages: International buyouts. Media & Telecoms Technology.com EUROPEAN LOCATIONS European Locations London (HQ) • Birmingham • Manchester • Milan Bucharest •Frankfurt • Amsterdam••Munich • Paris • Reading • Zurich Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) KEY COMPETITORS 3i • Advent International • Apax • Axa PE • Rest Bridgepoint • European Capital • of the World HgCapital • Montagu • Sagard Boston (HQ) Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further EMPLOYMENT CONTACT affiliates in five other countries Tel: +44 (0)20 75 12 9900 THE STATS Co-Heads: Tom Lamb.BARCLAYS PRIVATE EQUITY ADVENT INTERNATIONAL 5 North Colonnade. privatisation. see "contact us" at www.adventinternational.com Tel: +44 20 7333 0800 www.com 118 .barclays-private-equity.
France. Since their first investment in 1982 the firm’s 45 professionals have invested in over 350 transactions. has established a £450 million Infrastructure Investors (I2) Fund in partnership with Societe Generale and 3i.25bn The investment strategy is mid-market (under £500 million). Third time lucky BPE’s most recent fund. In line with previous funds. French and German offices. 119 . But insiders reckon that BPE’s excellent track record made it very easy to reach its target. Support Services and Consumer & Travel. investments are typically from these local markets. Barclays PE will invest Europe III predominantly in the UK. Germany. the Europe III fund. The firm is headquartered in the UK but has a strong presence in France and is technically run by co-heads from the UK.4bn (of which €1. With offices spread throughout the UK. meaning the remaining €650 million investment came from the parent company. The UK investments focus on core strengths that have been developed in the Financial Services.Vault Career Guide to Private Equity Barclays Private Equity THE SCOOP Barclays Private Equity. The firm also has an Infrastructure team of 12 investment professionals based in London and. Germany. whereas the continental offices take a more generalist approach when evaluating potential investments. possibly reflecting the shift towards mid-market deals in the ongoing credit crisis. a subsidiary of Barclays bank. in addition to its own UK and European infrastructure funds.7 billion comes from blue chip investors) earlier than anticipated. The fund is structured in a “semi-captive” way.417bn €1. Italy and Switzerland.65bn €1.4bn $0. is a leading pan-European firm that focuses on lower mid-market transactions. raised its target €2. France. with an average of 10-15 per year. Barclays plc. Healthcare. Italy and Switzerland. Most important funds FUNDS BPE European Fund III + Barclays PLC Barclays European Infrastructure Fund II BPE European Fund II + Barclays PLC BPE European Fund I + Barclays PLC VINTAGE YEAR 2007 2006 2005 2002 FUND CAPITAL €2.
370 beds. and four in the first half of 2007. The centre is a leading commentator on private equity activity throughout Europe. It had acquired 90 per cent of TUJA in March 2006 from Berlin-based Odewald & Compagnie and supported the company through an aggressive buy-and-build strategy in which headcount increased by 12.42 million in the BIMBO of the business in 120 . it sold HR services firm TUJA Group to Adecco in June 2007 for €800 million after only 15 months. and recently released statistics highlighting the detrimental effect of the credit crisis on private equity deal flow. The Centre for Management Buy-Out Research. a market leader in the provision of secured personal loans in Italy. it has owned Médi-Partenaires. chemical and biodiesel industries. or CMBOR for short. Since then the company has made six acquisitions in the same sector. is a data collection and analysis pool to track the proliferation of Management Buy-Outs throughout Europe.5 million secondary MBO led by Duke Street Capital. Switzerland and Austria.000 in 12 months. A first post-deal acquisition was completed in France in June 2007 and a second one is expected abroad in the coming months. the world leader in the fields of engineering and supply of plant and machinery to the edible oil. along with Deloitte.Nottingham leads the way In a pioneering move back in 1986 Barclays. In February 2007. Barclays Private Equity had invested £18. In September 2006. since 2005. set up the first European MBO think-tank at Nottingham University. the firm acquired a majority stake of Euro Fiditalia. At the time of the sale. with records covering over 25. A smaller but typical transaction is the sale in December 2007 of UK retailer The Original Factory Shop via a £68. it acquired Belgo-Italian company Desmet Ballestra. The rise and rise of buy-and-build Barclays Private Equity has a long and successful track record of pursuing rapid buyand-build strategies across Europe: In France. the third largest player in the French private hospital market with 18 clinics and 2. Four clinics were already acquired in 2005/2006. with a turnover of €430m. TUJA was one of Germany's leading temporary employment agencies and operated a network of 127 branches in Germany. In Germany.000 companies.
Another landmark deal is the successful listing of LSL Property Services plc (UK) on the London Stock Exchange in November 2006. Barclays Private Equity Awards One of Barclays Private Equity's most publicised exits is that of Admiral—the direct motor insurer. the M&A and buyouts publication. Barclays Private Equity was also awarded “Private Equity House of the Year” by Real Deals/BVCA in 2005 and “Exit of the Year” for Admiral by Acquisitions Monthly. Europe 2005 where it also claimed a third award—“European Disposal of the Year”—for Admiral. the firm was named “UK Private Equity Firm of the Year. LSL is one of the UK’s leading estate agency/surveying companies. PREMIUM communications is a provider of multilingual services for technical support. The acquisition was performed in a post recovery situation and has been followed by a successful phase of both organic and external growth. The market capitalisation at listing was £211 million. motors and generators. The company went public on the LSE in a €1 billion flotation in September 2004. In recognition of this and other divestments. BPE sees the investment as a base on which to build significant growth through acquisitions in Switzerland and other German speaking countries. controls.” and “European Private Equity Firm of the Year” at the Financial News Awards for Excellence in Private Equity. including drives. In October 2007. In 2006 Barclays Private Equity was voted “Fund of the Year” by the Real Deals/BVCA Private Equity Awards. such as Hobbs. and its managed funds retained a 29 per cent stake at the time of listing.Vault Career Guide to Private Equity November 2004 and doubled the warehousing capacity of the retailer in three years. Other highlights include the buyout of Converteam from ALSTOM in November 2005—Converteam is a world leader in power conversion engineering. Edotech and GLS Educational Supplies. BPE announced an acquisition in Switzerland. 121 . Barclays Private Equity arranged the £60 million MBO in July 2004. Salter Houswares. Barclays Private Equity achieved a total return of 15 times its original investment and an IRR of 87 per cent over nearly five years. its fourth country of operation. developing systems and equipment which convert electrical energy into mechanical energy. user helpdesks & services for SMEs.
they generally join the firm with significant experience. the late Arthur Andersen and KPMG are the most prominent former employers). The team is very stable. However there are opportunities for analysts: in Paris for example. with four PhDs and one lawyer in a buyout team of 47 professionals. there is a rolling 6-month intern position that allows business students to get a serious introduction to the sector at a renowned firm. with the MBA as rather an exception). and may lead to a full time position.GETTING HIRED While Barclays PE managers were educated at top schools in Europe (Cambridge and ESSEC are the most represented. There is some diversity in the team. Higher Diploma Bachelor’s only (25%) PhD/JD/MD (10%) Unknown (23%) MBA (8%) Master’s (34%) Source: Candesic Most significant previous job Audit and transaction services (21%) Strategy consulting (11%) Other (26%) Banks (42%) Source: Candesic 122 . In line with other private equity firms Barclays recruits primarily from Investment Banking and Big 4 accountancies (PWC. which limits opportunities for experienced hires.
5 3.5 1. with growing teams in continental Europe. Barclays PE obviously has more staff in the UK.0 2.5 1.0 Oxford (2) EM Lyon (2) St.5 0.0 BNP Paribas (2) Barclays (3) KPMG (3) Arthur Anderson (3) PWC (4) Source: Candesic Being a subsidiary of a UK firm.Gallen (2) ESSEC (3) Cambridge (3) Source: Candesic Top 5 former employers (# of professionals) 4.0 1. 123 .5 0.Vault Career Guide to Private Equity Barclays Private Equity Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 3.0 2.5 2. The Paris and Munich offices have their own websites with contact details for potential candidates.0 1.0 3.0 0.5 2.0 0.
adventinternational.com Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu Large buy-out. MBI. Public Retail & Purchase of quoted shares private.com International buyouts.com Tel: +44 20 7333 0800 www. Brooke Employer Type: Independent Private Employees: 45 investment professionals Company in 2008 Total private equity funds under No.adventinternational. of Offices: 15 Sectors: All sectors Financial stages: Company Focus Rest of the World EMPLOYMENT CONTACT Boston (HQ) firstname.lastname@example.org REST OF Locations European THE WORLD New York London (HQ) Amsterdam • Bucharest •Frankfurt • Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo KEY COMPETITORS (affiliate) Apax • Permira • Cinven • CVC • KKR • Bain Capital • Blackstone THE STATS Managing partner: 9 managing partners Employer The StatsType: Private Company Total private equity funds under manageChairman: Peter2008 ment: €11bn in A. Consumer Technology.bcpartners.com For other offices. Secondary purchase/reSectors: capital. Leveraged build up. see "contact us" at www. of which 65 in Europe (2008) COMPANY FOCUS No.BC PARTNERS ADVENT INTERNATIONAL 43-45 Portman Square UK Regional Headquarters London W1H 6DA Advent International plc United Kingdom 111 Buckingham Palace Road Tel: +44 (0)20 7009 London SW1W 0SR 4800 UK www. recapitalization and EUROPEAN LOCATIONS growth equity investments (up to €500m London some venture capital equity). of Offices: 6 management: about €11bn (2008) Employees: 130 investment professionals. (HQ) • Geneva • Hamburg • Milan • Paris • Milan Types of financing: Majority equity 124 . Instituplacement Business Services & Financial Services to tional BO. Media & Telecoms Healthcare & Life Sciences Types of financing: Industrial Main: Majority equity Financial stages: Employment Contact In the US: info@adventinternational. MBO.
at about the time of the collapse of Barings Bank that was famously documented in the movie “Rogue Trader”. It is worth noting that BC Partners has no link with Baring Private Equity Partners (BPEP).Vault Career Guide to Private Equity BC Partners THE SCOOP The firm was founded as Baring Capital Investors in 1986. they plan to acquire fifteen to twenty businesses. it bought General Healthcare Group from Cinven for €2. which finalised its MBO from parent company and Baring’s owner ING Group in 2004 and invests via four regional fund groups in Russia. Asia. Over the next six years. India and Spain. BC Partners recognised the opportunity for the private sector to become more involved in the treatment of NHS patients in the UK. NHS gold In 2000. they can commit over €2bn of equity to any given one and are ready to contribute significant additional capital to grow it. and the Partnerships in Care psychiatric operation back to Cinven for about £560m. In 1995. the new owner supported considerable organic growth and made two significant hospital acquisitions to optimise national coverage. To take advantage of this opportunity. Funds FUNDS BC European Capital VIII BC European Capital VII VINTAGE YEAR 2005 2000 FUND CAPITAL €5.3bn Since 1986. with enterprise values typically in the range of €300m to €4bn.9bn €4. it became independent through its own MBO and renamed itself BC Partners. While they target only two or three acquisitions every year.2 billion. Over the next five years. allowing management to focus 125 . Attractive changes in healthcare policy further underlined potential growth prospects. In 2005. it sold separately the health screening and occupational health operation BMI Healthcare services to The Capita Group Plc. BC Partners has invested in 66 companies with a total enterprise value of over €54bn. GHG was the largest acute care hospital provider and leading independent provider of specialist psychiatric care services in the UK.
a leading South African hospitals group. which acquired exclusive pay-TV broadcasting rights for Bundesliga football. the decision to acquire the business may show BC Partners’ bet that the long-term fundamentals of the market remain good. Contrarian outlook In 2007. Amadeus is a leading global distribution system and technology provider for the travel and tourism industries. where they are invested in Brenntag. funds advised by BC Partners completed the acquisition of Intelsat.3bn. the country’s largest food retailer. Amid fears of a slowdown in the UK real estate market. the third largest operator of nursing homes and rehabilitation clinics. for US$16. and Picard. 126 . a world leader in fixed satellite services. it recently announced the acquisition of a majority interest in Migros. and a combination of leading London estate agency Foxtons. the transaction was the largest ever deal in the European healthcare services sector. also comprising mortgage broker Alexander Hall. They also hold a 38 per cent stake in Unity Media.3bn. In Turkey. BC Partners acquired two corporate companies: Bureau van Dijk Electronic Publishing from Candover for a rumoured €700m. It may also be a sign that there will be opportunities to streamline and consolidate a sector built on a 15 year growth wave. Another landmark transaction was the joint acquisition with Cinven of Amadeus in 2005 for €4. which at €3bn was the second largest LBO in Germany to date. the largest LBO in Spain to date. the leading casino operator in Southeastern Europe—which was the largest public to private LBO in Greece. the leading frozen food distributor and a former success story in the French PE landscape. bought from Candover in 2004 for €1.35 billion to a consortium led by Netcare. it owns Regency Entertainment. At that time. for an estimated £390m. One thing is for certain though. Well established on the continent BC Partners has a strong foothold in Germany. the firm operates Medica. everyone will be scrutinising how the new owner will adapt to a fast changing environment.on its core business. In Greece. In 2008. it sold the acute care hospitals for £2.5bn despite the turmoil in the credit markets. In France. In 2006.
Investment managers are not recruited straight from school.Vault Career Guide to Private Equity BC Partners GETTING HIRED BC Partners investment managers work as one team across its six country offices. Teamwork skills. mostly in strategy consulting and investment banking. international exposure and the ability to operate in several languages are therefore highly valued. Higher Diploma Bachelor’s only (49%) PhD/JD/MD (2%) MBA (40%) Master’s (9%) Source: Candesic Most significant previous job Audit & transaction services (6%) Banks (32%) Other (26%) Strategy consulting (36%) Source: Candesic 127 . They must accumulate significant experience before joining. BC Partners doesn’t advertise for recruiting.
Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 6 5 4 3 2 1 0 Bocconi (4) HEC (4) Cambridge (5) INSEAD (5) Harvard (6) Source: Candesic Top 5 former employers (# of professionals) 8 7 6 5 4 3 2 1 0 Merrill Lynch (3) McKinsey (3) Morgan Stanley (4) BCG (4) Bain (8) Source: Candesic 128 .
recapitalization and Main: Majority Equity growth equity investments (up to €500m equity). ADVENT INTERNATIONAL 30 Regional Street UK Warwick Headquarters London WC1B 5AL Advent International plc United Kingdom 111 Buckingham Palace Road Tel: +44 (0)20 74 32 London SW1W 0SR 3500 UK www.com For other offices.adventinternational.adventinternational.eu affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu Employment Contact In the US: info@adventinternational. Mid-market buyHealthcare & Life Sciences out (€15m-€150m equity).com EUROPEAN LOCATIONS European Locations London (HQ) • Frankfurt • Luxembourg • Madrid • • Bucharest • Stockholm AmsterdamMilan • Paris •Frankfurt • • Warsaw Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) KEY COMPETITORS Rest of the World 3i • Apax • Barclays Private Equity • Cinven • CVC • EQT • Industri Kapital THE STATS Chairman: David Shaw Employer The StatsType: Private Company Total private equity funds under management: €8bn in 2007 Chairman: Peter A.eu Tel: +44 20 7333 0800 www.com 130 . of Offices: 15 Consumer Financial services Healthcare Media Company Focus Support Services Transport Sectors: Business Services & Financial Services Financial stages: Retail & Consumer Expansion – development. see "contact us" at www.bridgepoint. COMPANY investment of which 65 in Europe (2008) Sectors: No. of Offices: 8 Company Total private equity funds under management: about €11bn (2008) Employees: 130FOCUS professionals. some venture capital Types of financing: Majority equity Boston (HQ) Tokyo • SingaporeCONTACT EMPLOYMENT (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further info@bridgepoint. Large Technology. Brooke Employees: 60 Independent Private Employer Type:professionals in 2007 No.BRIDGEPOINT CAPITAL LTD. Replacement Industrial Types of financing: Financial stages: International buyouts. Media & Telecoms buy-out (€150m-€300m equity).
In the land of the blind Although global credit conditions have all but put the brakes on large-cap private equity deals. 131 . The fund is set to close in early 2008. with offices spread throughout seven other major European cities. having invested over €8bn in 150 transactions. The firm has a strong 25-year track record of investing mainly in Western and Northern European markets. even though it has yet to make any exits from its 2005 vintage fund. and has handed back over €5 billion to its investors in the last five years. acts as an overarching advisory panel to the local teams who do the work on the ground. as of June 2007. they have an advisory committee made up of external industry experts who are present at every investment evaluation. Bridgepoint is seen as a premium brand with consistently solid returns. triggering predictions of a PE market crash.5bn €2bn 2002 Outside looking in One of Bridgepoint’s unique selling points is their reliance on impartial external advice. THE SCOOP Bridgepoint is a UK-based mid-market specialist headquartered in London.Vault Career Guide to Private Equity Bridgepoint Capital Ltd. Bridgepoint has announced the closure of its fourth fund ahead of even the most optimistic expectations. and is said to encourage an open minded outlook amongst employees. having over-subscribed the €5bn hard cap. The 2001 vintage fund alone is said to have returned over two times investors’ money at a 37 per cent annual return rate. who recently recruited the dean of INSEAD among their ranks. Most important funds FUNDS Bridgepoint Europe IV Bridgepoint Europe III Bridgepoint Europe II VINTAGE YEAR 2008 2005 FUND CAPITAL €4 (target)bn €2. The advisory committee. The firm tends to emphasise this transparency and accountability between investors and management.
Bridgepoint tripled their investment in the UK storage group Safestore and made 4. Bridgepoint bought the company in an £86m buy-out transaction in January and has made a four times return on the sale. a Franco-American Aerospace component supplier for €254 million. Bridgepoint was already recognised as the exemplar European midmarket firm: it was named “European Mid-Market Firm of the Year” in Private Equity International’s Global Private Equity Awards for 2004.A “proper” European mid-market firm A few years ago. In 2006.500 employees and 2006 revenues of €249 million. Leeds Bradford International Airport in the UK for €214 million and Global Design Technologies. Another major event of 2007 was the sale of UK-based diagnostic imaging services provider Alliance Medical to Dubai International Capital for £600m. French optical Alain Afflelou for €470 million and UK clothing retailer Fat Face for €540 million. the firm invested €885 million and returned €2 billion to investors. Europe's No. The widening of Europe In March 2007 Bridgepoint announced the opening of an office in Warsaw to address the market in Central and Eastern Europe. 132 . it acquired Gambro Healthcare. as well as “European MidMarket Buyout Firm of the Year” in Financial News' annual awards for excellence in private equity in 2003 and 2004. That year. It also sold French nursing home operator Medica to BC Partners for €750 million. pre-empting other bidders in an accelerated process. In May. 2 dialysis care services group from Swedish firm Gambro. Less than three years earlier Bridgepoint had acquired the company together with Alpinvest for €330 million. including Dutch educational publisher Infinitas Learning (formerly Wolters Kluwer Education) for €774 million. Furthermore Bridgepoint made a 760 per cent return on the sale of Nordic car park operator CarPark. Bridgepoint did even better with a record number of acquisitions. It also won the award for “Best Middle Market Buyout” at the 2003 European Private Equity Summit & Awards in Paris. Acquisitions include German lens-maker Rodenstock (€660m enterprise value). In 2007. Lately.5 times their money on Swedish care services provider Attendo. Bridgepoint has lived up to its reputation. Italian perfumery chain Limoni for €480 million. In November it acquired Polish CTL Logistics from its founder. CTL is Central Europe's leading private rail logistics company and one of the largest private rail operators in Europe with 2.
Vault Career Guide to Private Equity Bridgepoint Capital Ltd. They have a strong investment background and the top former employer is the former Natwest Bank. now part of RBS. predominantly from Ernst & Young and PWC. Higher Diploma Bachelor’s only (27%) Unknown (17%) Master’s (24%) MBA (32%) Source: Candesic Most significant previous job Strategy consulting (10%) Audit & transaction services (17%) Banks (35%) Other (38%) Source: Candesic 133 . Bridgepoint also supplements their teams with a few strategy consultants and transaction service professionals. GETTING HIRED Bridgepoint consists of small investment teams with experience in local markets.
neaster@bridgepoint. with INSEAD and Harvard leading the pack. MBAs now account for a third of the managers.eu. If you are interested in joining the firm.Higher Diploma Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 Harvard (3) INSEAD (3) Bocconi (4) Manchester (4) Cambridge (7) Source: Candesic Top 5 former employers (# of professionals) 5 4 GE (3) 3 PWC (3) 2 Ernst and Young (4) UBS (4) RBS (Natwest) (5) Source: Candesic 1 0 Cambridge and Manchester dominate in the pedigree of the UK team. Bridgepoint invites you to contact their human resources team at gill. while Bocconi – no surprise – is the most frequent alma mater in the Italian team. 134 .
5bn (of which €2.com COMPANY FOCUS Sectors: Media Financial Services Support Services Leisure Healthcare Technology Industrial Other sectors Financial stages: Large buy-out (€150m-€300m equity). Shareholders loans EUROPEAN LOCATIONS THE STATS Managing Director: Colin Buffin Employer Type: Public listed company (LSE) – unique structure with plc owning ltd Ticker Symbol: CDI Total private equity funds under management: €3.candover. Mid market buyout (€15m-€150m equity) 135 .CANDOVER 20 Old Bailey London EC4M 7LN United Kingdom Tel: +44 (0)20 74 89 9848 www.com Types of financing: Main: Majority Equity Other: Debt.9bn from third parties) Employees: 39 professionals in 2007 No. Mezzanine. of Offices: 5 London (HQ) • Madrid • Milan • Paris • Dusseldorf (may be relocated) KEY COMPETITORS Apax • BC Partners • Bridgepoint • Cinven • CVC • EQT • Industri Kapital • PAI EMPLOYMENT CONTACT info@candover.
Candover appointed Jens Tonn to the role. and shortly after. In 2002. it has since grown to be a truly Western European player. a former McKinsey partner. it made a return of ten times its investment. met Henry Kravis. But Germany would prove to be more difficult. the firm doesn’t have a German office anymore and the German team works out of London.000 from Electra. and in 2006 relocated Aldo Maccari from London to Milan to open the Italian office. in November 2007.THE SCOOP Candover is a London based firm specialising in large-cap. although each new office was established with a key partner in charge. In one of its earliest transactions. its longstanding French partner who had contributed to the successful buyout of Picard. After nine years. to learn about a new kind of transaction that was gaining popularity in the US: leveraged buyouts. the firm appointed Kurt Kinzuis to head up the German team.5bn €2. That same year. 3i and various UK pension funds to set up Candover. Also in 2002. the first buyout firm in Europe. in the newly created position of Origination Director with responsibility for coordinating Candover's deal sourcing activities across Europe. the confectionary unit Famous Names. 136 . he got together £100. In 1980 Roger Brooke. following his decision to leave the company and head Vestar’s new German office. co-founder of KKR. A few months later. The firm also named Humphrey Cobbold. Candover hired Cyrille Chevrillon. The expansion outside of the UK was slightly behind other firms. Candover formally opened an office in Madrid shortly after. Alejandro von der Pahlen joined the firm as an adviser to originate deals in Spain and Portugal. making people take notice. buyouts. a former diplomat turned CEO. Most important funds FUNDS The Candover 2005 Fund The Candover 2001 Fund The Candover 1997 Fund VINTAGE YEAR 2005 2002 FUND CAPITAL €3.7bn €1.4bn 1998 While Candover began life as a niche investment firm focusing on UK deals. to head the Paris office. and often high profile. Candover appointed Boris Hentze as Head of Germany. Currently.
PLC. from Advent International. a leading global manufacturer of flexible pipeline. the investment in Capital Safety Group. For many years. Candover acquired Capital Safety Group from Electra Private Equity. where Candover provided the private equity and partnered with other firms to enlarge the equity commitment. Some initial conclusions about the PE slow down were actually founded on publicly available Candover investment research. and Parques Reunidos. creating an average rate of return of 34 per cent. Candover Investments plc and wholly owned subsidiary Candover Partners Limited. which they expect to continue into 2008.5 billion. a UK based designer and manufacturer of height safety and fall protection equipment. It is currently awaiting the result of its public offer for Stork N. An excellent and consistent track record Candover generally acquires three to five companies in a year. Candover has been publishing a quarterly barometer of private equity in Europe. Alma Consulting Group. They tend to have pan-European activities. its typical investment has an enterprise value of around €500 million. the European leader in cost reduction and tax recovery services. which represents a total value of €1.Vault Career Guide to Private Equity Candover Evaluating investments Over the last 27 years Candover has closed nine funds with almost €9bn worth of investor money raised. Candover’s managing directors. For example.V. In 2007. the firm has taken these funds and completed 134 buyouts to date. Colin Buffin and Marek Gumienny. good growth opportunities and company values between €150 million and €1 billion. was evaluated in May 2007. a strong market position and real growth potential. mezzanine and private equity funding. Candover particularly looks for companies in Benelux and the UK with solid management. While the amounts are often undisclosed. the firm was particularly active with several key exits taking place. from Apax Partners. valued at €40bn. allows for a very transparent investment process. In 2007. have been with the firm for close to 20 years. The latest Candover 2005 Fund focused on investments in the European markets. Capital Safety Group has a high quality management team. a European operator of attraction parks. The deal value was set at £415 million and funded by debt. with eight transactions made before 2008. which Gumienny has referred to as a “healthy correction” of the market. They are unique in that the structure of the company. through an IPO on the 137 . Candover realised the majority of its investment in Wellstream. The transaction has an estimated IRR (Internal Return Rate) of 23 per cent over the next 9 years.
In 2007 the consortium sold it in two parts: Vetco Gray to GE Oil and Gas for $1. and sold Get.London Stock Exchange. Cambridge and Oxford feature prominently among employees’ degrees and 40 per cent of them hold an MBA from a prestigious university. It sold it in 2007 to Nordic Capital. 3i and JP Morgan Partners acquired Vetco International from ABB Oil & Gas for $925 million.9 billion and Aibel to Ferd Private Equity (now Herkules Capital) for $0. mostly Harvard. the Norwegian cable TV operator. GETTING HIRED Candover has built a team of 35 to 40 professionals hired from various industries. 138 . Candidates interested to apply should contact the office of their choice on Candover’s website under “Contact us”. to Quadrangle and GS Capital Partners for €745m. realising an IRR of 50 per cent. In December 2004. But as usual investment managers join with significant previous experience in banking. with a return of four times its original investment.9 billion. Candover. consulting or the industry. INSEAD or LBS. In July 2004. Candover led the €465m management buyout of the Thule Group. It also sold Bureau van Dijk Electronic Publishing to BC Partners with a return of 2. realising an IRR of more than 40 per cent. a Swedish company and the world leader in sports utility transportation.3 times its original investment. accounting.
0 0.0 2.5 2.Vault Career Guide to Private Equity Candover Higher Diploma Master’s (54%) Unknown (3%) MBA (40%) Source: Candesic Most significant previous job Strategy consulting (17%) Audit & transaction services (20%) Banks (26%) Other (37%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 LBS (3) Oxford (3) Harvard (4) INSEAD (4) Cambridge (7) Source: Candesic Top 5 former employers (# of professionals) 3.0 1.5 0.0 BCG (2) McKinsey (2) Arthur Andersen (3) 3i (3) PWC (3) Source: Candesic 139 .5 1.
Cinven does not recruit graduates nor does it offer internship programmes. Paternoster Square City.cinven. It is currently not recruiting at any level.com EUROPEAN LOCATIONS London (HQ) • Frankfurt • Milan • Paris OFFICES IN PLANNING New York • Hong Kong THE STATS Managing Director: Robin Hall Employer Type: Private Company Total private equity funds under management: €9bn Employees: 57 professionals in 2007 No. COMPANY FOCUS Sectors: Business & Financial Services Healthcare Industrials TMT Retail Leisure Consumer Financial stages: Large MBO/MBI (EV>€500m with at least 100m equity). of Offices: 4 KEY COMPETITORS Apax • Bridgepoint • Candover • BC Partners • CVC • PAI • Permira EMPLOYMENT CONTACT None.CINVEN INTERNATIONAL ADVENT Warwick Court. Public to private Types of financing: Majority Equity 140 . Country London EC4M 7AG United Kingdom Tel: +44 (0)20 76 61 3333 www.
Due to early success the private equity activities of the Railways Pension Scheme and Barclays Bank Pension Funds were absorbed by Cinven in 1988 and 1990 respectively. with two investments having been executed in each country. at €6. Since their founding. Cinven announced that it was going to open offices in New York and Hong Kong ahead of its next fundraising. enabling the firm to build on the €60 billion worth of transactions it has led so far. Each year. The next European opening could be in Spain or in the Netherlands.5 billion it is one of the largest funds dedicated solely to European buyouts. and lays claim to having executed more large. However. complex European buyouts than any other firm. Cinven has a prescence in the major European financial centres. and seeks to bring a pan-European dimension to the businesses’ future opportunities. sometimes with an entreprise value of several billion. in early 2008.Vault Career Guide to Private Equity Cinven THE SCOOP Since 1977 Cinven has been one of the largest private investment funds dedicated solely to the European market. and gained their independence in 1995 following the Thatcher legislation that privatised British Coal. which exceeded its target of €5 billion. Paris. In July 2006 they announced the closure of the “Fourth Cinven Fund”. while the Italian office was opened in 2006. Frankfurt and Milan. 141 .5bn €4. Most important funds FUNDS Fourth Cinven Fund Third Cinven Fund VINTAGE YEAR 2006 2002 FUND CAPITAL €6. France and Germany opened in 1999. The management then decided to buy themselves out from the pension fund owners. Cinven invests in only a handful of companies of significant size. Cinven has invested in 23 transactions with more than €1 billion total consideration.4bn It’s all in the name Cinven originated as the in-house private investment arm of the British Coal Pension Funds (Coal INvestments VENture). with offices in London. which was one of the largest pension schemes in the late 70s.
which they acquired in 2005. behind Numéricable. In the summer of 2007. Cinven diversified their portfolio by investing in the Industrial and Leisure sectors from 1999. Gondola is the largest group in the UK casual dining sector and operates the 525 of famous brands like PizzaExpress. they own companies who operate in financial services as well as in retail and consumer industries. at €5. with a view to consolidate the fragmented Iberian healthcare market. Recent focus on healthcare 2007 was the year of healthcare. the acquisition of additional brands with growth potential and the pursuit of other consolidation opportunities through selective acquisitions. the global leader in in-vitro allergy diagnostics and the European leader in autoimmunity diagnostics.4 billion. Cinven acquired a 67 per cent stake with the strategy to support and accelerate the roll out of new stores across its core markets.A diversified portfolio of companies After an initial focus on TMT and Healthcare. for close to €1. Cinven acquired BUPA’s 25 hospitals in the UK for a total consideration of £1. At the beginning of the year. Cinven will support further growth through the roll-out of existing formats. Although Cinven recently lost against BC Partners in the auction on data provider Bureau van Dijk. a TMT company called Dutch Cable. it is likely that Cinven will be back in the fundraising market in the next two years. 421 of which are in France. Camaïeu is a leading women’s fashion retail chain with 557 stores. Altogether. The other two investments of 2007 were both in retail.335m transaction. with three out of five acquisitions in the sector.4 billion. Cinven also took private Gondola Holdings in a €1.3 billion. Cinven acquired Phadia. In 2006 Cinven gained their largest acquisition. In addition to those sectors. With about £400m in revenue. this represents a significant strategic exposure to the healthcare sector. 142 . The second largest deal was in 2006. with the acquisition of the Amadeus travel distribution services for €4.44 billion as well as Spanish hospitals USP Hospitales for a total consideration of €675 million. Dutch Cable became the second European cable operator in their portfolio. ASK and Zizzi.
Cinven has a diverse European team but the core group is definitely English.Vault Career Guide to Private Equity Cinven GETTING HIRED There are 51 professionals working at Cinven. Oxford. Higher Diploma Bachelor’s only (37%) Unknown (2%) PhD/JD/MD (2%) MBA (15%) Master’s (44%) Source: Candesic Most significant previous job Audit & transaction services (8%) Banks (40%) Other (31%) Strategy consulting (21%) Source: Candesic 143 . educated at Cambridge. While Bain & Company tops the list of their previous employers. investment banks account for 40 per cent of them. LSE and Edinburgh.
it is clearly not the policy of the firm to advertise positions. 144 . Many of their partners have been involved since the very beginning in 1988.Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 10 8 6 4 2 0 ESCP-EAP (3) LSE (3) HEC (4) Oxford (4) Cambridge (10) Source: Candesic Top 5 former employers (# of professionals) 6 5 4 3 2 1 0 JP Morgan (3) Morgan Stanley (3) Goldman Sachs (3) BCG (4) Bain (6) Source: Candesic Cinven has one of the most stable teams in the private equity industry. Candidates will have to rely on their personal networks and their good fortune to fill a potential vacancy. Maybe for that reason. Their strategy is to retain employees for as long as possible in order to preserve their knowledge and expertise.
Infrastructure EMPLOYMENT CONTACT email@example.com EUROPEAN LOCATIONS Luxembourg (HQ) • Amsterdam • Brussels • Copenhagen • Frankfurt • London • Madrid • Milan • Paris • St.cvc. Helier • Stockholm • Zurich THE STATS CEO: Fred Watts Employer Type: Private Company Total private equity funds under management: €20.com 145 . Large buy-out (€150m-€300m equity). of Offices: 18 REST OF THE WORLD New York • Hong Kong • Seoul • Singapore • Tokyo • Sydney KEY COMPETITORS Apax • BC Partners • Bridgepoint • Candover • Cinven • EQT • Industri Kapital • PAI COMPANY FOCUS Sectors: Distribution Food/Beverages IT/Media Manufacturing Retail Services Financial stages: Mega buyout (>€300m equity). CLOs (second lien and mezzanine instruments). Public to private Types of financing: Main: Majority equity Other: Debt.9bn in 2007 Employees: 135 (of which 100 investment professionals) in 2007 No.CVC CAPITAL PARTNERS LTD 111 Strand London WC2R 0AG United Kingdom Tel: +44 (0)20 74 20 4200 www.
looking to hold companies for more than 5 years. CVC boasts 135 employees with 16 nationalities. with high profile takeovers such as Formula One. The virtue of patience CVC has a slightly longer than average investment horizon. making it one of the most successful pan-European houses. they have aggressively expanded into Australasia and recently opened their first office in the US. Together these companies have combined annual sales of €55.THE SCOOP CVC Capital Partners was founded in 1981 as Citicorp’s European private equity arm. the average partner tenure is 12 years. and the AA roadside assistance 146 . manufacturing and service sectors. one of the largest and most extensive in the private equity industry. and currently holds a portfolio of 53 firms mainly in the retail. currently. the firm has made around 260 investments with a total value of €65bn. Their third European fund achieved annual returns of over 40 per cent after fees.3 billion and employ approximately 431. Although still focused on European assets. the motorsport management company. They operate a network of 18 offices on four continents. CVC are major players on the European scene. In 2005. CVC was awarded the title of “Best European LBO Firm” by the Private Equity International Awards as well as “Most Impressive LBO Sponsor” by EuroWeek. Most important funds FUNDS CVC European Equity Partners V CVC European Equity Partners Tandem Fund CVC European Equity Partners IV CVC Capital Partners Asia Pacific II CVC European Equity Partners III VINTAGE YEAR 2008 2007 2005 2005 2001 FUND CAPITAL €11(target)bn €4bn €6bn $2bn $4bn Since inception. This helps keep partners around longer.000 people. and was subsequently bought out by the firm’s partners in 1993.
two in the U. 147 . they have had 12 deals. Samsonite. They opened their fifth office in the region in Singapore in 2007. CVC appointed Christopher Stadler.. CVC Capital Partners Ltd Global coverage CVC Asia Pacific has been one of the most active private equity investors in the Asia Pacific region and has completed 25 MBOs there in the last seven years. the luggage company. CementBouw and Koninklijke Volker Wessels Stevin in the Netherlands.7bn. and 75 per cent of PBL Media in Australia. previously head of InvestCorp's private equity business in North America.S. as the relatively steady cash flows are less reliant on things like consumer spending. CVC announced the appointment of Stephen Vineburg as Chief Executive of a newly established infrastructure investment business. to open and run their first American office in New York. global chemical distributor Univar for €1. The same year. their nine investments were already regionally diversified – four in Europe. AA.Vault Career Guide to Private Equity firm. The list includes a diverse group of companies such as Belgium specialty chemicals firm Taminco for €0. and the growing infrastructure team is thinking about doing the rounds for €2bn of their own. In December 2007. geographies and economic environments. they faced their first major conflict in Asia as unions at Coca-Cola Korea Bottling Company plants opposed their acquisition of the business. four in Asia and one in Australia. Their latest fundraising effort is rumoured to be targeting €11bn.8bn. In 2006. one in Asia and one in Australia. German firms Ista and DYWIDAG-Systems International. Danish retailer Matas. In 2007. although in current market conditions this looks ambitious. In 2007 too. of which eight were in Europe. CVC’s portfolio covers a wide variety of industries. A new $2 billion fund will be launched in 2008.5bn. now merged with Saga. for $1. to make investments globally. the UK roadside and insurance business. Amtek Engineering from Singapore. The trend towards lower risk infrastructure funds is driven by worsening market conditions.
WHU or ESCP-EAP. like Stockholm. Higher Diploma Bachelor’s only (12%) Unknown (5%) PhD/JD/MD (2%) MBA (30%) Master’s (51%) Source: Candesic Most significant previous job Strategy consulting (12%) Audit & transaction services (7%) Banks (45%) Other (36%) Source: Candesic 148 .GETTING HIRED CVC Partners boasts a true pan-European team with professionals educated at a wide range of top universities across Europe.
law. accounting. To learn more about employment opportunities at CVC you can email humanresources@cvc. private equity and other areas of asset management. Their previous backgrounds include investment banking primarily. with a range of experiences in consulting.Vault Career Guide to Private Equity CVC Capital Partners Ltd Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 6 5 4 3 2 1 0 ESCP-EAP (4) Stockholm (4) INSEAD (4) WHU Koblenz (5) Cambridge (6) Source: Candesic Top 5 former employers (# of professionals) 10 8 6 4 2 0 PWC (4) Goldman Sachs (4) JPMorgan (5) McKinsey (7) Citigroup (10) Source: Candesic An insider mentions that CVC has a very competitive environment with a culture of strong collegiate rivalry. The investment professionals have an average of eight years service within the firm. 149 . property development and general management in various industries.com.
com COMPANY FOCUS Sectors: All sectors Financial stages: Expansion – development.doughtyhanson. Shareholders loans 151 . Technology venture. 15 nationalities in 2008 No. Real estate Types of financing: Main: Majority Equity Other: Minority Equity. of Offices: 8 Apax • Bridgepoint • Candover EMPLOYMENT CONTACT info@doughtyhanson.DOUGHTY HANSON 45 Pall Mall London SW1Y 5JG United Kingdom Tel: +44 (0)20 76 63 9300 www. Doughty Employer Type: Private Company Total private equity funds under management: €5bn (estimate) Employees: 123 staff (56 professionals). Large buy-out (€150m-€300m equity).com EUROPEAN LOCATIONS London (HQ) • Frankfurt • Luxembourg • Madrid • Milan • Munich • Paris • Stockholm KEY COMPETITORS THE STATS Executive Director: Nigel E. Mega buyout (>€300m equity). Mid market buyout (€15m-€150m equity).
152 . Milan. The firm had already announced two acquisitions using Fund V: Norit. Munich. real estate investments and mid to large cap leveraged buyouts. The company as a whole has an aggregate acquisition value of €23 billion in over 100 transactions. a global manufacturer of systems for building applications.5bn The firm is not particularly sector focused. CTSA. their current portfolio includes companies from sectors as diverse as luxury goods. Show me the money In May of 2007. The technology venture capital investments can be as little as €0. In December. and Avanza. to the Eaton Corporation for €1. Fund IV VINTAGE YEAR 2007 2005 FUND CAPITAL €3bn €1. with €3 billion of investors’ money earmarked for European leveraged buyouts. Cashing out In early 2008. media. they have regional offices in Frankfurt. the largest independent bus operator in Spain. Fund V Doughty Hanson & Co.55 billion. The firm invests in market leading companies with enterprise values between €250 million and €1 billion and prefers to be the sole investor with a majority stake in the company. Luxembourg. engineering. Doughty Hanson closed their fifth fund.THE SCOOP Founded in 1985. aptly named Fund V. the firm is closing its sale of the Moeller Group. Paris and Stockholm. the third largest bus operator in Spain.1 million for seed investments and €10 million for later stage investments. with a strictly European portfolio. retail. was added to the portfolio for an enterprise value of around €90 million. Although the majority of Doughty Hanson’s investment professionals are based in London. Madrid. Most important funds FUNDS Doughty Hanson & Co. early stage technology investments. manufacturing and building materials. a Dutch purification technology company. mobile phones. Doughty Hanson is a leading UK private equity company that splits its efforts between three investment activities.
Still they remain one of the few established private equity firms that do not disclose any information about their team members. The impending lawsuit will undoubtedly scrutinise the underlying assumptions. GETTING HIRED In April 2008. PricewaterhouseCoopers was recruited to value the business. a French high-end battery maker. London School of Economics. the luxury luggage maker. but when it comes to valuing businesses one thing is certain – there is always room for interpretation. Oxford. Hellermann Tyton.1bn including pension liabilities. Doughty Hanson increased tremendously their transparency when they unveiled their 2007 annual report. enabling Nigel Doughty and Richard Hanson to buy out the other remaining co-founder. who had retired the previous summer. The firm was acquired by the Munich team using the €1. a cable company. The sale is the second exit from Fund IV. 153 . and TV3. INSEAD graduates represent more than 10 per cent of the investment team. While investment professionals are expected to bring significant industrial experience to the team. and came up with a value of £104 million. for the same shares. which closed in early 2005.Vault Career Guide to Private Equity representing a three times return on equity and a gross IRR of 54 per cent. Companies still in the portfolio include Tumi. or 11 times the PwC valuation.440 shares. Roe’s 12. Doughty Hanson The crystal ball of valuations In 2007. Roe’s profession he put together his own model. with a price tag of €1. the Irish TV company. the first being Saft. the firm occasionally hires juniors from Stockholm School of Economics. Cambridge or HEC. meaning a total of €1 billion has been returned to investors with nine Fund IV investments yet to be realised.4 million for Mr. Bruce Roe. PwC came up with a figure of £9.5bn Fund IV. since valuing companies is Mr.
DUKE STREET CAPITAL Almack House. Institutional BO. Leveraged Build Up. of Offices: 2 KEY COMPETITORS Apax • European Capital • Montagu • Quilvest EMPLOYMENT CONTACT mail@dukestreetcapital. Rescue/turnaround. 28 King Street. MBO.com Types of financing: Main: Majority Equity Other: Shareholders loans EUROPEAN LOCATIONS London (HQ) • Paris THE STATS Managing Director: Peter Taylor Employer Type: Private Company Total private equity funds under management: £2bn Employees: 34 in 2007 (18 investment professionals) No. Refinancing bank debt. MBI.com COMPANY FOCUS Sectors: Business Services & Outsourcing Retail & Consumer Healthcare Leisure Financial Services Financial stages: Expansion/development. Mid market buyout (£15m-£150m equity) 154 .dukestreetcapital. London SW1Y 6XA United Kingdom Tel: +44 (0)20 74 51 6600 www. Public to private Large buy-out (£150m-£300m equity). Secondary purchase/replacement capital.
Duke Street uses an operational improvement strategy to add value. In December of 2007. but their expertise and experience is currently focused around these sectors. adding to the 84 outlets currently owned by OFS. adding to the flurry of activity in the preceding year. Brambles Food. The firm points out that they will consider any opportunity. with acquisitions and organic growth bulking up the portfolio companies. for £76. Duke Street had closed 49 transactions in the business services. By the end of 2007. DSC VI. the firm sold its €1.Vault Career Guide to Private Equity THE SCOOP Since 1980.85bn In 2004. from their offices in London and Paris. Duke Street Capital has been involved in mid-market private equity investments in the UK and France. In June of 2007. for an estimated £210 million. Food Partners. a value retailer headquartered in Burnley. the leading supplier of pre-packaged sandwiches in the UK. The firm is currently in the process of investing its sixth fund.5bn leveraged loan CDO management business to Babson. valued at £68. to concentrate on its private equity business. Most important funds FUNDS DSC VI Duke Street Capital VINTAGE YEAR 2006 FUND CAPITAL €0.5 million.9 million plus debt. In 2007. will see a nationwide growth strategy roll out new shops throughout the UK. Duke Street acquired Oasis Healthcare. The deal. acquired a major competitor. healthcare. UK. with approximately €2 billion under management. a subsidiary of MassMutual. In April. The firm specialises in management buy-ins and actively advertises for experienced managers to approach them with potential investment opportunities. retail and consumer. the firm acquired The Original Factory Shop. a leading corporate dentist. 155 . and retains the services of industry experts as operational partners. The sector is very fragmented—corporate dentists account for less than 5 per cent—and many industry observers are predicting further consolidation. leisure and financial services sectors. the DSC V fund went through the “build” stage of a “buy and build” strategy. Hutton Collins had recently bought into James Hull Associates and Legal & General Ventures had acquired a controlling stake in Integrated Dental Holdings.
Although it is hard to draw conclusions from such a small number of professionals. Management consultants are absent and only one Big Four accounting firm. with about three quarters of them in the UK. is represented. PricewaterhouseCoopers. 156 . Dauphine and ESCP-EAP being the most popular undergraduate universities. While two thirds of the investment professionals have a Master’s degree. the majority came from top investment banks and from other private equity firms. with Durham. the MBA is the exception. Recruiting The educational background of Duke Street professionals is very diverse. the team is relatively small and hiring needs are filled ad hoc. Cambridge. Insiders point out that there is no specific recruiting policy.GETTING HIRED Staffing The firm’s 21 investment professionals are split between London and Paris.
Mid market buyout (€15m-€150m equity). of Offices: 9 KEY COMPETITORS 3i • Apax • Carlyle • Industri Kapital • Nordic Capital CAREER CONTACTS +46 8 (0)50 655 300 COMPANY FOCUS Sectors: All sectors Financial stages: Expansion – development. Large buy-out (€150m€300m equity). Public to private.eqt.ADVENT INTERNATIONAL EQT PARTNERS PO Box 16409. Seed. Other early stage.se EUROPEAN LOCATIONS Stockholm (HQ) • Copenhagen • Frankfurt • Helsinki • Munich • Oslo REST OF THE WORLD New York • Hong Kong • Shanghai THE STATS Managing Partner: Conni Jonsson Employer Type: Private Company Total private equity funds under management: €11bn Employees: 80 professionals in 2008 (67 investment professionals) No. Linnégatan 6 103 27 Stockholm Sweden Tel: +46 8 50 655 300 www. Mega buyout (>€300m equity). Start-up. Small buyout (<€15m equity). Privatisation. Turnaround–restructuring Types of financing: Main: Majority Equity Other: Mezzanine 157 . Replacement.
insolvencies. This drop could be somewhat explained by the increasing total value of the funds.4bn €2. Most important funds FUNDS EQT V EQT Expansion Capital II (mezzanine) EQT Opportunity (distressed) EQT IV VINTAGE YEAR 2007 2007 2005 2004 FUND CAPITAL €4. Investor AB’s contributions have fallen from a high of 32 per cent in EQT III to 12 per cent of the latest EQT V. In particular. although this still represents a reduced investment by Investor AB in real terms. the firm’s partners agreed to buy an additional 36 per cent of EQT Partners for €31. Benelux. based in Sweden. The firm targets leading medium-sized companies. and to a lesser extent in Finland. EQT Partners (an abbreviation of “equity”) is a leading private equity house. Denmark and Germany. 158 . The opportunity fund invests in turnarounds. the firm is active in Scandinavia.2 million from Investor AB. The remaining investment comes from the Nordic area (30 per cent). The firm has over €11 billion under management. Finland.THE SCOOP Founded in 1994 by Investor AB. leaving the nest In 2007.5bn €0. Austria. The rest of the portfolio companies are in Greater China. and has invested €5 billion in 60 companies. Switzerland and Germany. taking their total ownership to 69 per cent. Currently. mezzanine financing and special situation investments.2bn €0. Europe (30 per cent). specializing in buyouts. in the European based funds. North America (25 per cent) and other parts of the world (15 per cent). as the EQT V fund is more than twice as large as EQT III. the European portfolio is invested mostly in Sweden. restructurings and special situations where revenues exceed €50 million. with a particular focus on Northern Europe and China.5bn Growing older. This separation away from Investor AB is also noted in the fundraising.
to no avail. The firm is currently looking for outstanding candidates with relevant experience to join its Greater China team 159 . the Danish cleaning company. EQT plans to partner with Goldman Sachs Capital Partners to list ISS.4 billion. meaning that they have ultimate control over the company even though it is publicly listed.Vault Career Guide to Private Equity Royal connections EQT has a little more clout than their fund size would suggest. the German flavours and fragrances firm. EQT focuses primarily on professionals with investment banking experience (half of the professionals). EQT listed Symrise. The family currently owns the majority of the preferred stock in Investor AB. with a significant oversubscription resulting in a total offering volume of around €2 billion. which they took private in 2005 for €4 billion. making it the biggest German IPO that year at €1. Teams are staffed based on their regional and industrial experience. a diesel engine manufacturer. The “local” industry is also well represented with former employees from Volvo. Radisson SAS. while former strategy consultants represent a distant second. EQT Partners GETTING HIRED EQT Partners has 67 investment professionals with a broad range of industrial and financial backgrounds. which has been trading below the value of its assets for years. who own a controlling stake in Investor AB and are one of Sweden’s wealthiest families. as they are backed by the Wallenberg family. and further investments in Eastern Europe. Tognum has outperformed the German mid-cap index by around 3 per cent. the Nordic countries and Germany. at the top end of its price range. Copenhagen and Helsinki. EQT prefers to list their portfolio companies when exiting investments. Bertelsmann or VIAG. In 2008. having been involved in several successful public offerings in the past. which holds superior voting rights over regular shares. was listed on the German mid-cap index in 2007. In 2006. The most represented universities among staff are Stockholm. with EQT still owning around a fifth of the shares. Recently. EQT’s other future ambitions include opening an office in Hong Kong. ABB. The Wallenberg’s were famously nicknamed “the Royal family of Swedish business” for their heritage and success as bankers and industrialists. Since listing. The majority are based in Europe. a further sign of EQT’s strong Nordic roots. activist investors have tried to initiate a break-up of the group. Candidates can register their application and CV on EQT’s website. Tognum.
5 1.0 3.5 0.5 3.0 UBS (3) JPMorgan (3) Morgan Stanley (4) Goldman Sachs (4) McKinsey (4) Source: Candesic 160 .0 2.0 1.0 0.Higher Diploma Bachelor’s only (9%) Unknown (4%) MBA (21%) Master’s (66%) Source: Candesic Most significant previous job Strategy consulting (12%) Audit & transaction services (3%) Banks (45%) Other (40%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 12 10 8 6 4 2 0 NYU (3) INSEAD (3) Helsinki (7) Copenhagen (7) Stockholm (12) Source: Candesic Top 5 former employers (# of professionals) 4.5 2.
com EUROPEAN LOCATIONS Paris (HQ) • Milan (Euraleo) KEY COMPETITORS Bridgepoint • PAI THE STATS Chairman of Executive Board: Patrick Sayer Employer Type: Public listed Company (Euronext Paris) Ticker Symbol: RF Total private equity funds under management: €2.ADVENT INTERNATIONAL EURAZEO 32 rue de Monceau 75008 Paris France Tel: +33 1 44 15 0111 www. Minority Equity 161 . public equity.7bn (value of PE portfolio on 31/12/07) Employees: about 20 investment professionals No.eurazeo. of Offices: 2 CAREERS CONTACT +33 1 44 15 0111 COMPANY FOCUS Sectors: All sectors Financial stages: Mid market buyout (€15m-€150m equity). real estate Types of financing: Main: Majority Equity.
The following year. Eurazeo was ranked as the number one French PE firm. only to be released the following year through a public offering.1 billion worth of French companies. Eurazeo sold more than €2. Though listed on the Euronext. Friklin. Rexel was acquired in the largest European LBO at the time.THE SCOOP In April 2001. high barriers to entry. the gas and water distributor dating back to 1881. from satellite operations to vehicle rentals. From 2003 to 2006. In 2007. and exiting Terreal. Eutelsat. with a heavy focus on French companies requiring an investment of over €200 million. well above the market average. Eurazeo is effectively owned by institutional investors. were all acquired that year. Eurafrance and Azeo. Not too fussy Eurazeo is not sector focused and prefers to invest in a range of industries to hedge its exposure to any given sector. a division of France Telecom. Eurazeo was formed through the merger of two renowned French investment companies. having made several substantial investments that year. Keeping busy In 2003. formerly known as Gaz et Eaux. and Terreal. and acquiring Eurocar. Eurazeo kept the deal flow going strong by recapitalizing Eutelsat. In 2006. In 2005. It has invested in a wide range of industries. while moving away from their home market by launching an Italian office. shedding any non-strategic investments.000 vehicles. a French brick producer. while maintaining its significant positions in major listed corporations. with the public owning only 12 per cent of the shares. Eurazeo has balanced its private equity investments by allocating 10-15 per cent of its portfolio to real estate assets. Since 2002. which reached an astonishing IRR of 105 per cent. Eutelsat and Fraikin were sold. the €3 billion invested boasted an annual IRR of 53 per cent. profitability and recurring cash flow. In 2006. a hotel chain. a European rental truck company with over 52. realising IRRs of 59 per cent and 162 . The firm currently has an enterprise portfolio value of €6 billion. although each investment must adhere to the four underlying principles refined over the firm’s 150 year history: quality of management. acquiring B&B. almost half of it in private equity. the firm sold off its portfolio of funds and liquidated its Asian assets.
and Vanguard. 163 . In 2007. Eurazeo launched Euraleo in Italy.php.fr/uk/emploi/form. a significant advantage when trying to get access to deals in France. GETTING HIRED Eurazeo’s investment team currently consists of about 20 professionals. the German car park operator. in a 50/50 joint venture with Banca Leonardo. The sister company is managed by Alessandro Foti and concentrates on the Italian private equity market. half of whom previously worked for an investment bank. they acquired Apcoa. the US car rental group. Candidates can upload their CV and submit their application on the company website at www.5 per cent respectively. Eurazeo invested in Gruppo Banca Leonardo in Italy and APCOA in Germany. They typically graduated from the French elite schools Ecole Polytechnique and HEC and at least two of them started their careers within the French government. The same year. To further develop the non-French European business. Eurazeo is a very French company but its European ambitions may create opportunities for strong candidates from other European countries. for €885 million.eurazeo.Vault Career Guide to Private Equity Eurazeo 37.
europeancapital. Mezzanine (up to €250 million) Types of financing: Main: Majority Equity Other: Minority Equity 164 .com COMPANY FOCUS Sectors of focus: All sectors Financial stages: Buyouts (€50 . of Offices: 3 CAREERS WEBSITE info@EuropeanCapital.com EUROPEAN LOCATIONS London (HQ) • Frankfurt • Paris KEY COMPETITORS 3i • Barclays Private Equity • Montagu THE STATS Managing Director: Nathalie Faure Beaulieu Employer Type: Public listed company (LSE) Total private equity funds under management: €2.3bn Employees: 19 in 2007 No.€500 million).EUROPEAN CAPITAL ADVENT INTERNATIONAL 25 Bedford Street London WC2E 9ES United Kingdom Tel: +44 (0)20 7539 7000 www.
a leading commercial printer in Central and Eastern Europe. targeting middle-market European firms worth between €5 million and €500 million. European Capital manages €1. €10 million was invested in Euro-Druckservice. Being an affiliate firm to American Capital has several advantages—the fund uses American Capital’s back office functions. the London office made key investments in the retail sector. €29 million was invested in Soflog Telis. a women’s clothing retailer. legal and compliance teams. €22 million was invested in Global Design Technologies. including the operations. a window pane manufacturer and distributor. and finally. with the further two offices in Madrid and Frankfurt opening in 2007. with the Frankfurt office making its first investment in July 2007. a significant advantage to a relatively new private equity house which would never have happened if they had been a standalone firm. were only established in 2005. The European Capital team alone were extended a €900 million credit facility in 2006. parent company of European Capital. The first European offices. European Capital Equity I. and €8 million was invested 165 . a provider of specialised fittings for the aerospace industry.5 million was invested in Tiama.5 million was invested in Fat Face. The group is also in the process of developing a new fund. is the largest publicly traded private equity company in the world and the only alternative asset management firm in the S&P 500. in Paris and London. £18. In 2007. a valve manufacturer. the Paris office made several investments in the manufacturing sector and related industries. the firm allows shareholders the opportunity to invest in mid-market private companies in all sectors throughout North America and Europe. €12. and benefits from the same access to cheap and available credit. an active lifestyle clothing brand.Vault Career Guide to Private Equity European Capital THE SCOOP American Capital. a provider of logistics to major industrial consumers.6 billion of funds. The majority of the firm’s investments have come from the French and British offices. and DEVGLASS. €30 million was invested in Camaieu. With over $20 billion under management. undisclosed investments were made in Groupe Sud Robinetterie. a manufacturer of in-line inspection devices. That same year.
166 . MIT and Durham University. representing locally hired staff and professionals hired from within American Capital to European locations. and Selecta. from institutions such as HEC. the well known frozen food group. Two of the 21 professionals came from Credit Suisse and two came from Société Générale. but include top universities such as Dauphine University. European Capital does not run a formal recruitment process. The universities are varied. a French retailer of footwear and clothing.in Vivarte. the food group that owns casual dinning chains such as Pizza Express and ASK.com to discuss potential opportunities. iglo Bird’s Eye. ENPC and Wisconsin University. the largest vending services company in Europe. although potential candidates can contact the firm at info@europeancapital. making them the most popular former employers. GETTING HIRED The investment professionals at European Capital studied at a mixture of American and European undergraduate universities. Around 40 per cent of the professionals come from other private equity companies and 30 per cent from banks. Other well known acquisitions around that time include Gondola Holdings. Six out of the 21 professionals have an MBA.
of Offices: 3 CAREERS CONTACT info@gilde. Consumer Goods.3bn Buyout Partners) Employees: 40 in 2007 No. Other Financial stages: Mid market buyout (€15m-€150m) Types of financing: Main: Majority Equity Other: Minority Equity. Basic Industries.nl COMPANY FOCUS Sectors: General Industries. Boudewijn T.gilde. Shareholders loans 167 .nl www.ADVENT INTERNATIONAL GILDE INVESTMENT MANAGEMENT Newtonlaan 91 BP Utrecht 3584 Netherlands Tel: +31 (0)30 21 92 535 www.com EUROPEAN LOCATIONS Utrecht (HQ) • Paris • Zurich KEY COMPETITORS 3i • AAC Capital Partners • Advent International • Barclays Private Equity THE STATS General Partner: Mr. Services.gildepartners. Molenaar Employer Type: Private Company Total private equity funds under management: €2bn (€1.
Rabobank still has close ties to Gilde and continues to act as a key investor in their funds. Gerhard Nordemann. Rabobank continued to support the fund. contributing 20 per cent of the total. although the management team thought independence would help attract new institutional investors. commented on the fundraising. with thirteen other institutional investors including Allianz Private Equity Partners. currently boasting around €2 billion under management.43bn Gilde Investment Management is divided into three business units: Gilde Equity Management (GEM) Benelux Partners invests in Benelux headquartered mid-market firms. the European Investment Fund. Gilde Healthcare Partners is a venture capital company that invests in European or US emerging healthcare companies in the therapeutic. co-managing partner.6bn €0. Gilde Equity Management Based in The Netherlands. only to be released through a management buyout in 2005. Gilde Buy Out Partners focuses on mid-market companies based in continental Western Europe. diagnostic and medical device sectors. they closed their new institutional fund at its €150 million hard cap. with a transaction size of €75-600 million. the Dutch cooperative bank. In 1996. In 2006. Most important funds FUNDS Gilde Buy Out Fund III Gilde IT Fund (Fund I and II) VINTAGE YEAR 2006 1996 FUND CAPITAL €0. the firm became an independent subsidiary of Rabobank.THE SCOOP Founded in 1982. Gilde Equity Management (GEM) is one of the few private equity houses focusing exclusively on small to mid-market Benelux companies. drawing on institutional investors outside of Rabobank for the first time. Gilde Investment Management is a Dutch private equity and venture capital firm. saying that it closed ahead of schedule with high quality blue chip investors. 168 . with a transaction size of €15-75 million. Rho and Proventure.
a gene therapy company. CurTec. In 2007. commented on how successful the investment had been. Switzerland and Austria. And the other one Since 2000. mostly through Euronext. Gilde Healthcare Partners has been investing in emerging healthcare companies mainly from Europe and in some cases the US. a Dutch IP services provider. Gilde has been providing seed money to entrepreneurs since its inception in 1982. and made the first exit from the second healthcare fund in 2007. a UK-based rival. while under Gilde ownership. Codi. focusing on the upper end of the mid-market.Vault Career Guide to Private Equity The firm received the regional 2007 M&A award for “Best Private Equity House Mid Market”. The firm has made four exits from its first fund. which at €600 million is one of the larger funds targeting mid-cap companies in the region. a Dutch subscription service. Novagraff. the Swiss coffee roaster. the firm made its most recent exit. Ad van Geloven. Novasep. and Royal Swets & Zeitlinger. Hamal Signature and Royal Peijnenburg in the food industry and Axxicon. but has been particularly successful in the food and manufacturing industries. with the second fund closing in 2007 at €150 million. listing AMT. The firm’s €1. Gilde Investment Management Gilde Buyout Partners Gilde Buyout Partners is the most substantial of the three divisions. In September 2006. investments such as All Crump. Gilde Buy Out Partners closed its most recent Buy Out Fund III. Glide acquired Nedschroef. although the first healthcare fund wasn’t initiated until 2000. France. a Dutch manufacturing firm. Boudewijn Molenaar. and is regarded as one of the key players focusing on the Benelux region. selling Dutch coffee roasting company Drie Mollen International to CapVest Equity Partners. Merkur. on Euronext in Amsterdam.3 billion under management exclusively targets companies in Benelux. another Swiss coffee roaster. GEM is not sector focused. meaning they are able to contribute up to €120 million in a single transaction. a managing director at Gilde. and First Choice Coffee. Hevea/Dunlop and De Oliebron/Kroon-Oil in manufacturing being examples. In January 2008. allowing the company to go through a buy and build growth strategy to become a pan-European player. the firm acquired Ginger. Germany. 169 . a French chemicals company. The firm is not sector specific and has seen recent transactions come from a variety of industries. Bakker Bart.
Free University of Amsterdam. investment banking.GETTING HIRED With offices in The Netherlands. consulting. Their employees have previous backgrounds in finance. including the State University of Groningen. University of Rotterdam. Groningen Rijks University and Leiden University. which they obtained at top institutions including INSEAD and Wharton. Only six out of the 33 professionals have an MBA. 170 . Gilde’s staff of 40 professionals is highly multinational. with a large variety of former employers. Since Gilde is a Dutch firm. many of the professionals were educated in Dutch Universities. industry and private equity. Switzerland and France.
Turnaround – International restructuring buyouts. Large buyout Industrial (€150m-€300m equity). financing: Types ofsome venture capital Main: Majority Equity Types of financing: Majority equity Rest of the World CAREERS CONTACT Boston (HQ) firstname.lastname@example.org www.com 171 .L Ticket Symbol: LSE: Brooke Employer Type: Independent Private Total private equity funds under manageCompany ment: €2.adventinternational.hgcapital. InThe Stats vestment Trust Chairman: Peter A. Media & Telecoms Financial stages: Healthcare Life Sciences Expansion –&development.com European Locations EUROPEAN LOCATIONS London (HQ) • Amsterdam • Munich Amsterdam • Bucharest •Frankfurt • Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo KEY COMPETITORS (affiliate) 3i • Advent International • Apax • Barclays PE • European Capital • Montagu THE STATS Managing Director: Ian Armitage Employer Type: Private Company. recapitalization and growth equity investments (up to €500m equity). Public Financial stages: to private.adventinternational.com For other offices.ADVENT INTERNATIONAL HG CAPITAL UK Regional Headquarters 2 More London Riverside Advent SE1 2AP London International plc 111 Buckingham United Kingdom Palace Road London (0)20 70 89 Tel: +44SW1W 0SR 7888 UK Tel: +44 20 7333 0800 www.com (affiliate) • Buenos Tokyo • Singapore Aires • Sao Paulo • Mexico • Further affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu Employment Contact In the US: info@adventinternational. Mid market buyout (€15m-€150m). HGT. Privatisation.5bn Total private equity funds Employees: 70 in 2007 under management: about €11bn (2008) No. see "contact us" at www. Replacement. of Offices: 15 COMPANY FOCUS Sectors: Consumer & Leisure Healthcare Focus Company Industrials Sectors: Services Business Services & Financial Services TMT Retail & Consumer Technology. of Offices: 3 Employees: 130 investment professionals. of which 65 in Europe (2008) No.
an Oxford-based wind energy developer called Ridgewind. the Hg Renewable Power Partners fund completed its most recent acquisition. with approximately €1. The company is developing over 200MW of UK wind project across 12 sites. HgCapital is sector specific. 172 . the firm was acquired by Merrill Lynch and integrated into the ML Investment Management division of the bulgebracket bank. In 2007. Blowin’ in the wind In addition. media and telecommunication (TMT). waste and hydro energy. turnarounds. bringing HgCapital’s European wind portfolio to over 120MW in operation or construction and 700MW in development. Germany and Benelux. Three years later. The firm’s offices in London. The firm invests in a range of technologies including wind farms. public-to-private and scaling up for fast growth. and typically invests in mid-market companies with enterprise values between €75 million and €500 million. Mercury Private Equity was one of the original private equity players in the European mid-cap market. with capital provided at various stages of the businesses. geothermal.5 billion under management. Amsterdam and Frankfurt represent their focus on Western Europe.THE SCOOP Founded in 1985. In 1997. requiring different investment types such as leveraged buyouts. solar. the firm was spun off as an independent unit. The firm currently has around €2. France. rebranding itself HgCapital – the chemical symbol for mercury and also an acronym for High Growth. The firm has worked with a broad range of companies. the firm manages the largest European fund for renewable power projects. meaning they are one of the leading investors in the European renewable energy sector. Ireland and the UK. healthcare. acting as a general private equity investor in the following sectors: consumer & leisure. Current investments include wind farm projects in Germany. Ireland. and past investments have focused on the UK.3 billion of committed capital. management buy-ins. Italy. industrials. operational improvement initiatives. with investments in a biomass fuel company and a wind turbine manufacturer completing their portfolio. biomass. services & technology.
a UK spa and beauty products business.Vault Career Guide to Private Equity Hg Capital Trust yourself The firm also manages an investment trust. Handing over the reins In 2007. Mondo. the firm added to its healthcare portfolio by acquiring Casa Reha. Nic Humphries will be taking over day to day running as Chief Exec. the sale of Schenck realised proceeds of £34 million. the firm invested in several new opportunities. known as HgCapital Investment Trust. the Trust delivered a share price total return of 19 per cent per annum against 7. Americana. the clothing brand responsible for Bench and Hooch brands. which was their seventh transaction in the preceding five months. In early 2008. with a new cast ready to leave their mark on the firm. the firm sold The Sanctuary. The award was given in recognition of consistent returns and sector-leading performance. combined with the sale of Hirschmann Electronics. and Fabory. All in all it was a very successful period for HgCapital—the joint disposal of CS Group and IRIS Software. allowing investors the chance to invest in a diversified range of private equity activities with some liquidity. In 2007. leaving Ian Armitage to move from Chief Executive to Chairman. In the same period. in the decade spanning 1997 to 2007. the plastic toy manufacturer.8 per cent over the final year. a lighting systems company. with eleven other partners helping him run the fund and its investments. cummulated in an annual rate of return above 75 per cent. The 2007 acquisition of Fabory represents the firm’s fifth investment in the Benelux region since opening an office in Amsterdam two years earlier. 173 . In late 2007. the firm won the “Private Equity Investment Trust of the Year” award at the Investment Week Awards for the third year running. SLV. at an impressive 85 per cent annual rate of return.3 per cent for the FTSE index. were all acquired by HgCapital. to PZ Cussons for £75 million. making them the only company to have ever completed the hat-trick. after seven years in charge. the talc mining group. which takes a minority interest in all of HgCapital’s private equity investments. Leonard Licht retired as Chairman. In addition. the German care homes business. the industrial fastener distributor. Schleich. Several other promotions signify a change in leadership. and a share price growth of 21.
Harvard. top previous employers are leading consulting firms. HgCapital does not run a formal recruitment process. Almost a third of the professionals hold an MBA. HgCapital’s professionals have a variety of backgrounds. In terms of employment.com to discuss potential employment opportunities. INSEAD and London Business School. which is roughly the same as the number of professionals who came from investment banks. almost a fifth of HgCapital’s professionals have a background in strategy consulting. 174 . Interestingly. but can be contacted at info@hgcapital.GETTING HIRED HgCapital’s investment team studied at the typical elite universities including Oxbridge. Big Four accounting firms and top tier investment banks.
0 Merrill Lynch (2) Goldman Sachs (2) KPMG (2) Deloitte (3) Bain (3) Source: Candesic 175 .5 2.Vault Career Guide to Private Equity Hg Capital Higher Diploma PhD/JD/MD (2%) Bachelor’s only (38%) Unknown (7%) MBA (30%) Master’s (23%) Source: Candesic Most significant previous job Strategy consulting (19%) Audit & transaction services (14%) Banks (19%) Other (48%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 LBS (2) INSEAD (2) Harvard (5) Oxford (5) Cambridge (7) Source: Candesic Top 5 former employers (# of professionals) 3.5 1.5 0.0 1.0 2.0 0.
some venture capital Main: Majority Equity Types of financing: Majority equity Rest of the World Boston (HQ) CAREERS CONTACT Tokyo • Singapore (affiliate) • Buenos +44 (0)20 73 04 4300 Aires • Sao Paulo • Mexico • Further affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu Employment Contact In the US: email@example.com Tel: +44 20 7333 0800 www. of which 65 in Europe (2008) No. of Offices: 5 Employees: 130 investment professionals. of Offices: 15 COMPANY FOCUS Sectors: Manufacturing (31 per cent) Service (24 per cent) Company Focus Retailing Sectors: & Distribution (18 per cent) Wholesale Business Services(8 per cent)Services Food processing & Financial Retail & materials (8 per cent) Building Consumer Technology.adventinternational.INDUSTRI KAPITAL ADVENT INTERNATIONAL Brettenham Headquarters UK Regional House.adventinternational.com 176 .com EUROPEAN LOCATIONS European Locations London (HQ) • Hamburg • Oslo • Paris Amsterdam • Bucharest •Frankfurt • • Stockholm Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) KEY COMPETITORS 3i • Apax • Barclays Private Equity • EQT • Nordic Capital THE STATS Chairman and Chief Executive: Björn Savén The Stats Employer Type: Private Company Chairman: Peter A. Media & Telecoms Specialised process (8 per cent) Healthcare & cent) Media (3 per Life Sciences Industrial Financial stages: Financial stages: Mid-market buyout (€15m-€150m equity) International buyouts.com For other offices. 5 Lancaster Place London WC2E 7EN Advent International plc United Kingdom 111 Buckingham Palace Road Tel: +44 (0)20 73 04 London SW1W 0SR 4300 UK www. recapitalization and growthof financing: Types equity investments (up to €500m equity). see "contact us" at www. Brooke Total private equity funds under manageEmployer Type: Independent Private ment: €5.7bn Company 70 staff (30 professionals) in Employees: Total private equity funds under 2008 management: about €11bn (2008) No.
which had a final price tag of €373 million. two in Denmark and one in Norway. Overall. opening in 2006. the largest transaction was the acquisition of Magotteaux. five in Sweden. Over the next four years. France and Germany. after which their fifth and sixth funds closed at €825 million and €1. The Paris office was a late addition. after the firm had already purchased several French companies. 177 . the fund made eight investments.7 billion. sponsored Björn Savén in raising the Scandinavian Acquisition Capital Fund. Most important funds FUNDS The Industri Kapital 2007 Fund The Industri Kapital 2004 Fund The Industri Kapital 2000 Fund VINTAGE YEAR 2007 2004 FUND CAPITAL €1. In 1993. a subsidiary of Skandinaviska Enskilda Banken. the firm branched out from its London base and opened regional offices in Stockholm and Oslo. mainly from Scandinavian investors. with €5.7bn €0. the firm closed its third fund at €750 million while also opening an office in Hamburg. Their current portfolio has 20 European companies. after gaining independence. The firm set up shop with an office in London and closed its fund at €108 million. the fund sought independence and went through a buyout from its parent bank.Vault Career Guide to Private Equity Industri Kapital THE SCOOP In 1989. Benelux.1bn 2000 In 1993. the firm has acquired 64 companies from a range of industries. the firm had closed its second fund. when their fourth fund closed at €2. with €250 million of capital from investors in Europe and North America.7 billion under management targeting Scandinavia. Two years later. a global grinding media and casting supplier. indicating their ambitions to begin investing in Germany.825bn €2.1 billion. respectively. As of early 2008. By 1995. The firm’s further fundraising ambitions peaked in 2000. with a total combined turnover of over €7 billion. Industri Kapital was managing four active funds. renaming itself Industri Kapital 1989 Fund in the process. Enskilda Ventures Ltd.
so be sure to point out any regional knowledge. JP Morgan. Several were trained at strategy consultancies like Bain & Company. Together the teams speak twelve languages. Norway. ABN Amro and of course Enskilda. Germany. a key driver of successful transactions. the former mother company. For Industri Kapital it is very important to recruit professionals who fit into their regional teams. Switzerland. Finland.GETTING HIRED Industri Kapital has investments teams in Sweden. Their decisions are mainly dependent on the language skills and local experience of applicants. France and the Benelux. Candidates should contact directly the office they would like to apply to. Denmark. Austria. Top former employers are Morgan Stanley. The team is European but with a majority of Scandinavians. and a significant proportion graduated from the well reputed Stockholm School of Economics. 178 . Their regional investment teams enable the private equity company to establish local networks and knowledge bases. About half of Industri Kapital employees have a previous experience in investment banking.
0 PWC (2) JPMorgan (2) Bain (2) Enskilda (2) Morgan Stanley (4) Source: Candesic 179 .5 1.5 2.0 2.0 1.5 3.5 0.0 0.Vault Career Guide to Private Equity Industri Kapital Higher Diploma PhD/JD/MD (3%) Bachelor’s only (23%) Unknown (3%) MBA (17%) Master’s (54%) Source: Candesic Most significant previous job Strategy consulting (14%) Audit & transaction services (14%) Banks (38%) Other (34%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 IEP Paris (2) INSEAD (2) HEC (3) Harvard (3) Stockholm SE (8) Source: Candesic Top 5 former employers (# of professionals) 4.0 3.
com Types of financing: Main: Majority Equity EUROPEAN LOCATIONS London (HQ) • Düsseldorf • Manchester • Paris • Stockholm THE STATS Chief Executive: Chris Masterson Employer Type: Private Company Total private equity funds under management: €3bn Employees: 43 in 2007 No.montagu.MONTAGU PRIVATE EQUITY 2 More London Riverside London SE1 2AP United Kingdom Tel: +44 (0)20 73 36 9955 www. Mega buyout (>€300m equity) enquiries@montagu. of Offices: 5 KEY COMPETITORS Advent • International • 3i • Apax • Barclays Private Equity • HgCapital CAREERS CONTACT COMPANY FOCUS Sectors: Aerospace & Defence Engineering Chemicals Electronics Food & Beverage General Financial General Industrial Healthcare Media Pharmaceuticals Retailers Support Services Transportation Financial stages: Large buyout (€150m-€300m equity).com 181 .
Most important funds FUNDS Montagu III HSBC Private Equity Partnership & HSBC Private Equity European LP VINTAGE YEAR 2005 2002 FUND CAPITAL €2. in a deal that valued the business somewhere in the region of £60 million. and instead emphasise how important it is to back the right management team. retaining Chris Masterson.9 per cent stake in the business and still uses the firm as their primary vehicle for private equity investments in Europe. to head the firm as CEO. which is derived from the well known 19th century London stockbroker Montagu & Samuel. The firm typically invests between €100 million to €1 billion in a given deal. Düsseldorf and Paris. Manchester.The firm is not sector oriented. Montagu’s investment philosophy can be described as “no-nonsense”. points out that Montagu’s strategy doesn’t include Management Buy-Ins (MBI).26bn €1bn Since 1968. with an impressive historic rate of return and a current total of €3 billion under management. the former MD of HSBC Private Equity. but pursues larger deals through co-investments with other firms. The firm looks as a priority for niches that are easy to defend. investment professionals at Montagu do not have a sector specialisation. they have an underlying principle that capital providers often have too much belief in their own ability to add value. 182 . Chris Masterson.THE SCOOP In 2003. Montagu boasts that they have fired less than 10 per cent of the CEOs of companies they have acquired— defying a practice that is very common amongst private equity firms. so it’s crucial they are happy with the target company’s current CEO and management team. can still succeed. HSBC spun off its European private equity unit in a management buyout. the firm has invested in over 400 companies. The firm was re-branded as Montagu Private Equity. Unlike at most other private equity firms. HSBC retained a 19. Montagu got to keep the network of European offices in London. In fact. Chief Exec of Montagu. and instead prefers to believe that a strong investment opportunity. even in a weak market. Stockholm.
the French pharmaceuticals business. Sheffield Hallam. Sebia. Only two of the 43 professionals came from strategy consulting. the UK industrial company. Newcastle and HEC all make an appearance as well. one from Booz Allen and one from McKinsey.Vault Career Guide to Private Equity In 2007. Birmingham. The firm also made a tidy return on the 2006 management buyout of Misys General Insurance. was bought for £160 million. The undergraduate qualifications of Montagu’s professionals are unusually mixed. the hair styling group trading under GHD. Oxford. with almost a fifth coming from transaction services firms such as PricewaterhouseCoopers. The two most notable. In 2007. Logstor. the Danish pipe manufacturer. and Open International. for five times their original investment after only two years. Around a third of Montagu professionals came from an investment banking background. Montagu Private Equity GETTING HIRED Sixty per cent of the Montagu professionals are based in the UK. the waste management group. which they subsequently named Open International Limited. the firm only made two acquisitions: UK-based Jamella Group. continuing the trend of pursuing an opportunity as opposed to an industry. the German pharmaceuticals group. twelve per cent in Germany and a handful in Sweden. In 2006. Bristol. acquired for €1. which they bought for £860 million in 2003. with a fifth in Paris. Heriot-Watt. 183 . and most expensive. the firm made another four acquisitions in a variety of sectors. the firm made one of their more successful realisations by selling Cory Environmental. the British software business. and universities like Reading. was acquired. British Car Auctions. were all acquired by Montagu in 2006.03 billion in 2005 and Linpac. Montagu acquisitions were BSN Medical. the British vehicle auction business. and Unifeeder. buying it for £182 million and selling it for £276 million a year and a half later. Cambridge and ESSEC all have three alumni at Montagu. the Danish transport and logistics company.
paipartners. Mid market buyout (€15m-€150m equity). of Offices: 5 EMPLOYMENT CONTACT www.com COMPANY FOCUS Sectors: Consumer Goods (including Healthcare Services Capital Goods Financial stages: Large buyout (€150m-€300m equity).com LOCATIONS Paris (HQ) • London • Madrid • Milan • Munich KEY COMPETITORS BC Partners • Blackstone • Cinven • CVC • Eurazeo • LBO France • Wendel THE STATS Chief Executive: Dominique Mégret Employer Type: Independent private company since 2002 buyout from BNP Paribas Total private equity funds under management: €7bn Employees: 49 professionals in 2007 No.PAI PARTNERS 43 avenue de l'Opéra 75002 Paris France Tel: +33 (0)1 55 77 9101 www. Public to private Types of financing: Majority equity and shareholders loans 184 .paipartners.
Madrid. 185 .7bn €0.21bn 2001 The firm has around €7bn under management and typically invests in medium to large size public or private companies. London. other consumer goods and healthcare The Services group includes the consumer retail industry. distribution. infrastructure and media The Capital Goods group focuses on the packaging. PAI operates in three sectors that are just being redefined: • • • The Consumer Goods group covers the food industry. aeronautics. all of them in Western Europe. building. the last decade has seen investment activity in ten countries.Vault Career Guide to Private Equity PAI Partners THE SCOOP PAI is a rapidly growing European private equity firm that has fast become the largest French player and one of the largest investment houses in Europe. with investments in the range of €500m – €3bn. Most important funds FUNDS PAI Europe V PAI Europe IV PAI Europe III VINTAGE YEAR 2008 2005 FUND CAPITAL €5. Milan and Munich. the company is exclusively European. it had been a founding shareholder of RTL Group and had supported the successful development of the group in Europe until it sold its stake to the Group Frère years ago. automotive.4bn €2. With 49 professionals split across five European offices in Paris. In 1931. electrical appliance industries and chemicals sectors PAI has a long history of financing large companies that goes back to its roots as a division of Paribas bank.
the merchant bank now part of BNP Paribas.Expensive taste During the summer of 2007.1bn). PAI built an 80 per cent stake in the public company Kaufman & Broad. The year 2005 was key.3bn.000 employees and a turnover of £1. This brings it within reach of the largest fund in the region. the European leader in the textile rental and well-being services industry (€1. Italian firm Saeco. Elis. a leading European manufacturer of biscuits and snacks with 9. Historical legacy PAI partners is one of the most experienced private equity firms in Europe. and Saur. the market leading apparel retailer in Spain (€1.5bn. Previous important acquisitions have included many other leading European companies.4bn acquisition of Lafarge Roofing. the No.1 billion pool. current Chief Exec. exited).5bn. roofing components and chimney systems. a leader in the water distribution. the worldwide leader in natural ingredients to the food industry (€1. a 12. Dominique Megret. one of France’s leading developers and builders of homes with a turnover of about €1. the leading European coffee machine manufacturer (€825m). and Yoplait.5bn). Cortefiel. Permira’s €11. points out that they have only been truly independent for a few years and have the capacity and desire to grow. The scale of its ambitious fundraising has taken the industry by surprise. sanitation and waste management in France (€1bn.4 billion. Playing in the major league After two years of rumours.000 employee company headquartered in Luxembourg and the worldwide leader in tiles for pitched roofs. meaning we can expect to see PAI bidding in the largest European 186 . Vivarte. UK-based United Biscuits. Hansen. exited). with 9 acquisitions including: Danish company Chr. exited). into its current form PAI Partners. Kwik-Fit.3bn. were all significant acquisitions for PAI. and they have emerged as one of the key players in the European market. Earlier that year. The firm was spun off from BNP Paribas in 2002. PAI led the €2. with historical links tracing back to Paribas Affaires Industrielles in 1872. the leading specialist retailer of footwear and clothing in France (€1. 2 worldwide producer of fresh dairy products. shrugging off concerns about the state of the global credit markets. Although they have been around for centuries. Europe’s largest automotive fast-fit services provider (£800m). PAI recently announced the closing of their Europe V acquisition fund at €5.
ESSEC. and are found in sectors where they have experience and an extensive network of contacts.Vault Career Guide to Private Equity auctions. The fund’s predecessor. PAI will only invest in companies that are number one or two in the sector. That underscores the strong Investment Banking background of PAI employees. Europe IV. PAI’s recruiting is significantly biased toward French “Grandes Ecoles”. GETTING HIRED The Europe-wide team is composed of 49 professionals from several European countries who have considerable combined sector experience and in-depth knowledge of the European markets. ESCP-EAP or Sciences Po. HEC. can be sold to trade buyers. 187 . [trying] to add from time to time the flavour of genius”. PAI Partners The continental approach As one of the few large funds based in continental Europe. Only 15 per cent of them hold an MBA. was also one of the largest continental European funds when it stopped raising new money in 2005. Many PAI employees formerly worked for investment bank Paribas before it merged with BNP in 1999. Because of its French roots. although they admittedly adopt an Anglo-Saxon mindset to investing. Insiders tell us that there is no real opportunity for summer internships as “it takes at least three months to train interns”. Dominique Mégret qualifies that mindset and investment philosophy regularly in interviews. with about half its investment professionals being graduates from Polytechnique. PAI generally employs five or six graduate trainees for a gap year during their studies. describing PAI’s investment strategy as “professional and organised. A couple of them receive an offer once they graduate from school. PAI have benefited from a surge in takeover activity there.
PERMIRA INTERNATIONAL ADVENT ADVISERS 20 Southampton Street London WC2E 7QH United Kingdom Tel: +44 (0)20 7632 1000 www. of Offices: 12 (from second half 2008) New York • San Francisco • Hong Kong • Tokyo KEY COMPETITORS Apax • Bain Capital • Blackstone • Carlyle • CVC • KKR • TPG CAREERS WEBSITE COMPANY FOCUS Sectors: Chemicals Consumer Financial Services Healthcare Industrial Products & Services TMT Financial stages: Large buyout (€150m-300m equity).com/en/contacts/con tacts. Public to private Types of financing: Main: Majority Equity http://www.permira.permira.html 188 .com EUROPEAN LOCATIONS London (HQ) • Frankfurt • Guernsey • Luxembourg • Madrid • Milan • Paris • Stockholm REST OF THE WORLD THE STATS Managing Director: Tom Lister and Kurt Bjorklund (co-managing partners) Employer Type: Private Company Total private equity funds under management: €22bn Employees: 200 (130 professionals) in 2008 No. Mega buyout (>€300m equity).
Vault Career Guide to Private Equity Permia Advisers THE SCOOP Since 1985. Latin for “very surprising. closed at a healthy €3. very different”. Eventually in 2001.3 billion. Permira Europe II. Like many other large 189 . In 2000. Permira has roots in Schroders Plc. Germany. the British investment manager. In the mid-1990s. 35 per cent from North America and the remainder from the Middle East and Asia. the firm launched the Permira Europe I fund. the firm closed its fourth Permira fund at a staggering €11 billion in 2006. with a further 14 per cent coming from other European countries. renaming itself Permira. which closed at €890 million.1bn €3. which explains why some 41 per cent of the firm’s most recent fund was from the UK. making it the largest European buyout fund at the time. In early 2008. to mark the separation. Most important funds FUNDS Permira IV Permira Europe III Permira Europe II VINTAGE YEAR 2006 2003 FUND CAPITAL €11bn €5.5bn 2000 Biggest of the best In 1997. Italy and the UK joined together to form Schroder Ventures Europe. the firm raised its first fund independently from Schroders. the second Permira fund. In 2003. tasked with managing country specific funds sponsored by Schroders. Most recently. which created a series of provincial private equity firms in the 1980s. Permira was ranked as the second largest private equity fund in Europe. allocated for pan-European investments. the business units in France. closing Permira Europe III at over €5 billion. Permira has been an active private equity investor and currently boasts €22 billion in its 19 funds under management. which then began to act with increasing independence from its parent company. the firm was bought out from Schroders by the partners. Doesn’t just grow on trees Permira’s largest investor is a UK-based investment trust called SVG Capital.
against which he has defended the industry and its practices. targeting companies valued above €500 million. but the firm is currently developing new teams with specialisations in Financial Services and Healthcare. and acquisition-driven sector consolidation. the firm does not have a headquarters and is managed by its board and executive committee members located across the various offices. Besides the multiple office structure. In 2002. developing family businesses. and in 2004. Geographically. charities and banks. insurance companies. 45 per cent came from investment managers. with a further 31 per cent from pension funds. he has tried to work in co-operation with Sir David Walker’s guidelines for disclosure and transparency. The remaining funds came from government agencies. the firm opened in Stockholm to manage its Nordic region investments. In 2003. specializing in divestitures of non-core assets. the firm’s investment professionals are also organised along sector lines.private equity firms. is chaired by the co-managing partners Kurt Bjorklund and Tom Lister and comprised of five other senior partners from across the business. Further afield As one of the major international firms. In particular. The executive committee. Permira raised a significant amount from blue chip investors. The core sector teams have historically been Chemicals. opening its New York office. and some see the creation of his chairman position as part of that process. Permira participates in the largest transactions. Give a king his crown Mr Buffini has received a lot of media attention in the wake of several political attacks on the private equity sector. He has made significant efforts to increase transparency throughout Permira. Consumer. opened in Madrid to cover Iberian investments. The firm invests in a variety of transaction types. Industrial Products and TMT. which is responsible for managing the private equity business. which were published in 2007 in response to the media attention. 190 . the firm expanded outside of Europe for the first time. An office in Hong Kong is due to open in the first half of 2008 and in California in the second half. Permira’s board is comprised of a group of senior partners and chaired by Damon Buffini.
it would be the largest luxury goods sector buyout to date. and the 191 . although a notable recent deal was the rollup of seven luxury boat companies globally into what is now known as the Ferretti Group. Notable chemical sector acquisitions include Borsodchem. the German discount clothing retailer. valuing the group at €1. and one of its most outspoken defenders. This valued the company at €2. and although he did not stand out as academically exceptional. were all acquired by various Permira funds. Permira acquired a controlling stake of Valentino. In the consumer sector.6 per cent of the business in 2007. Trends in the industrial sector are less prevalent. and not a lot is known about his personal life. the German leather chemicals firm. and recently financial services and healthcare. the Swiss clothing retailer. after which he joined LEK Consulting and took advantage of their scholarship program to enroll for an MBA at Harvard. the Italian chemicals distributor. which Permira sold a large part of in 2006. This work ethic saw him secure a place at Cambridge to study law. What is known about his past paints the picture of someone who has worked hard to achieve his level of success. TakkoModeMarkt. Plenty of eggs in the basket Permira is a sector focused business. and Vögele Group. The TMT group has made several large investments. to join Schroders Ventures. Cognis. the British women’s fashion retailer. he was raised on a council estate in Leicester by a single mother. industrial products & services and TMT. and Azelis. TFL. Notable deals include the turnaround and subsequent IPO of Premiere. operating in four industries: chemicals. Germany’s leading pay-TV operator. Cortefiel.Vault Career Guide to Private Equity Permira Advisers The most important person you’ve never heard of Although Mr Buffini is seen as the face of the British private equity industry. Permira has made several other acquisitions in the fashion industry. he was referred to as very hard working. paying €782. New Look. the Spanish clothing retailer. head of rival private equity firm Alchemy. from the Marzotto family.6 billion. meaning if Permira secures the remainder of the shares from investors.6 million for 29. in sectors ranging from semiconductors to mobile phone operators. the Hungarian MDI and PVC producer. consumers. Upon returning to the UK he joined Imperial Group as a consultant. where he was recruited by Jon Moulton. the fashion house that owns Hugo Boss. the German natural chemical products supplier. attending the local grammar school. he is also seen as unusually media shy.685 billion.
Stats 2008 Backgrounds: Investment banking: 30 per cent Consulting: 23 per cent PE: 22 per cent Finance: 14 per cent Industry: 6 per cent Legal: 3 per cent Undergraduate: 2 per cent 192 . Permira acquired 20 per cent of the company. of Intelsat. Most staff have a secondary degree. as part of a club deal. the American satellite operator.sonnenschein@permira. GETTING HIRED Contact: Angelika Sonnenschein Director. Human Resources Permira Beteiligungsberatung GmbH Falkstrasse 5 60489 Frankfurt Angelika. The number of MBA graduates recruited every year is extremely small.5 billion capex program. such as an MBA. accounting/audit or in industry.com Permira usually hires professionals with at least four to five years’ prior business experience in either investment banking. the company behind one of only a handful of licensed casino operators in Macau. The firm’s ambitions to move further east could possibly have been behind the 2007 investment in Galaxy Entertainment. management consulting. and only two per cent of investment professionals have been hired with just an undergraduate degree. and announced that the investment would go towards building Galaxy’s second Chinese casino resort.acquisition and $1.
international members of that sector may participate in the recruiting process. The interviews will cover the professional background of the applicant but also include case studies and potentially a modelling exercise. If a candidate is to be hired into a specific industry sector. Permira Advisers 193 .Vault Career Guide to Private Equity The interviews are conducted by the local offices and usually consist of a series of four to six interviews with different Permira professionals.
Higher Diploma PhD/JD/MD (5%) Bachelor’s only (42%) Unknown (5%) MBA (40%) Master’s (8%) Source: Candesic Most significant previous job Strategy consulting (19%) Audit & transaction services (7%) Banks (30%) Other (44%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 12 10 8 6 4 2 0 Cologne (3) Oxford (7) Harvard (9) Boccini (9) INSEAD (11) Source: Candesic Top 5 former employers (# of professionals) 10 8 6 4 2 0 Clifford Chance (3) Goldman Sachs (3) BCG (3) Credit Suisse (4) McKinsey (9) Source: Candesic 194 .
Brooke ment: €11bn Employer Type: in 2008 (70 professionals) Employees: 100 Independent Private Company No.adventinternational. Mid market buyout Financial Services Retail buyout (€150m-€300m equity). Large & Consumer Technology. some venture capital Types of financing: Majority equity Employment Contact In the US: info@adventinternational. Media & Telecoms Mega buyout (>€300m equity) Healthcare & Life Sciences Industrial Financial stages: International buyouts.html Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu Company Focus Sectors: financing: Types of Business Services &(€15m-€150m equity).com 195 .TERRAFIRMA ADVENT INTERNATIONAL 2 More London Riverside UK Regional Headquarters London SE1 2AP Advent International plc United Kingdom 111 Buckingham Palace Road Tel: +44 (0)20 7015 London SW1W 0SR 9500 UK www. of Offices: 15 All sectors Financial stages: Buyout Rest of the World CAREERS WEBSITE: Boston (HQ) www. of Offices: 2 Total private equity funds under management: about €11bn (2008) Employees: 130 investment COMPANY FOCUS professionals.com For other offices.com Tel: +44 20 7333 0800 www. recapitalization and growth equity investments (up to €500m equity).terrafirma.com EUROPEAN LOCATIONS European Locations London (HQ) • Frankfurt Amsterdam • Bucharest •Frankfurt • Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo KEY COMPETITORS (affiliate) Bain Capital • Blackstone • Charterhouse • KKR • Permira THE STATS CEO: Guy Hands Employer The StatsType: Private Company Total private equity funds under manageChairman: Peter A.com/people-contact. see "contact us" at www. of which 65 in Europe (2008) Sectors: No.adventinternational.terrafirma.
mainly in Europe. In 2006. keeping Nomura as a significant investor.1 billion of committed capital. In 2002. The firm’s second fund. Terra Firma Deutsche Annington was established to hold Terra Firma’s German housing assets. the group made 15 acquisitions with total enterprise value over €20 billion. TFCP III closed in May of 2007. the firm was spun-off into its current form of Terra Firma Capital Partners. Guy Hands founded the Principal Finance Group within Nomura. which means solid ground in Latin.1bn €2.4 billion to be invested in line with the firm’s strategy of acquiring controlling stakes in complex or regulated markets. is viewed as the most successful flat privatisation of its kind in Germany.000 flats. closed in 2004 with €2. the group now owns around 230. mainly in European companies. making them Germany’s biggest landlord.4bn €2. The acquisition of the state-owned railway workers’ flats. and especially in companies that are asset backed or government backed. Terra Firma’s first as an independent.6bn 2004 One big bank account The firm’s first fund was created and invested under Nomura ownership. Most important funds FUNDS TFCP III Terra Firma Deutsche Annington TFCP II VINTAGE YEAR 2007 2006 FUND CAPITAL €5. with an aggregate transaction value totalling €42 billion. Since 1994. and has mainly been realised. the Japanese investment bank. This is often credited as the source of the name Terra Firma.1 billion. with a total of €5. 196 . the firm has invested over €11 billion. supplemented with further acquisitions. He subsequently made a name for himself by turning around struggling companies in some of the largest leveraged deals of the time.THE SCOOP In 1994. raised from 65 investors in 21 countries. raising additional capital adding to a fund total of €2.
his track record speaks for itself. unlike most other private equity groups. Although these cuts may not make great press. Hands could not read long investment rationales. which he seems to have a talent for attracting.000 jobs. Another telling indicator of his leadership style is evident in boardroom meetings. Terra Firma recently acquired the business for £2. A friend was quoted as saying that Mr. Hands’ most recent foray into the press. the firm only targets large companies that it feels are underperforming and not living up to their potential. which he could do very well.Vault Career Guide to Private Equity TerraFirma What a Guy Terra Firma’s. the truth is that Mr. whether this is dyslexia. A firm Hands Mr. and changing the way the industry works. Hands has earned respect for his work ethic and blunt management style – the fact that stories of excess at EMI are pouring out of the floodgates only strengthens his case. It is said that he sees things differently to everyone else. Hands’ investment strategy – his severe dyslexia. genius or just the fact that he is a smart and hard working man. or a third of the workforce. until the company is in a healthy state where it can be sold or listed on the public markets. Mr. is regarding the planned cuts at EMI. briefly becoming the UK’s biggest pub landlord. Hands is unmoved in his position and retorts that he needed to remind executives at Odeon. one of his first deals at Nomura was to purchase Angel Trains. so was forced to focus on the key points and make the numbers work. 197 . where no other member of his team speaks during negotiations. selling it on for a £390 million profit. Robbie Williams and the Rolling Stones have all been outward critics of the new management. not Hollywood. and hence Guy Hands’. This notoriously hard work ethic—he starts work at 6 am and doesn’t leave the office until midnight— is expected of all his employees at Terra Firma. once said that if Guy had translated his private equity success to politics he would have been Prime Minister by now. William Hague. There is another rationale for Mr. former leader of the conservative party and Hands’ best man. actively managed and financed by Terra Firma. The target is then acquired.4 billion and subsequently announced it would be cutting 2. He then proceeded to start buying up pubs when no one else would touch them. the cinema business he acquired. the music label. The move has not proved popular and big name acts such as Radiohead. investment strategy can be said to be somewhat contrarian. that they were in the popcorn selling business. where he was the only external bidder.
although prefers complex industries that are highly regulated. Cases tend to be staffed more on industry experience than on regional expertise.2 billion acquisitions of AWAS and Pegasus. Terra Firma also recruits a number of MBAs from the leading business schools each year and provides training programmes to new analysts and associates.5 and $5. Most top universities are represented in the team. this philosophy is evident in the €1. Candidates interested in joining can apply on www. But fame came in 2007 on the front page of the Financial Times with Terra Firma’s combat against rival giant KKR for the control of Alliance Boots.Big spender Terra Firma will invest in any sector. in the biggest private equity transaction in Europe ever. In addition to the experienced hires. and the $2. the UK pharmacy chain. the German motorway services group. the £453 million purchase of East Surrey Holdings. both aircraft leasing companies. together making up about 40 per cent of the UK’s cinema exhibition market. the British water and gas utility.html.1 billion acquisition of Tank & Rast. much to its luck as KKR’s banks still hadn’t managed to syndicate the debt six months after its victory. Other notable deals include the acquisitions and subsequent merger of Odeon and UCI. GETTING HIRED Terra Firma employs 70 professionals. The firm discloses the profiles of the senior members of the team only but is known to attract very talented people. They are organised in two major teams: financial (investment) professionals and business (portfolio) professionals who help improve the operations in the portfolio. 198 . although accounting.terrafirma. industry and advisory backgrounds are welcome too. most of them with an investment banking background. Terra Firma honourably gave up after weeks of strategic moves. two UK cinema chains.com/careers.
with some focus on Financial Company and Business Services Total private equity funds under management: about €11bn (2008) Financial stages: investment professionals.com Amsterdam • Bucharest •Frankfurt • Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) The Stats COMPANY FOCUS Chairman: Peter A. of Offices: 15 Types of financing: Majority equity.adventinternational. Minority equity with contractual rights Rest of the World Boston (HQ) Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu Company Focus Sectors: Business Services & Financial Services Retail & Consumer Technology.com For other offices.com Employees: 19 professionals No.adventinternational. 81 Fulham Road London SW3 6RD United Kingdom Tel: +44 (0)20 7591 4200 www. of Offices: 1 EUROPEAN LOCATIONS Financial stages: London (HQ) International buyouts. recapitalization and growth equity investments (up to €500m equity). Media & Telecoms Healthcare & Life Sciences Industrial Employment Contact In the US: info@adventinternational. Brooke Sectors: Type: Independent Private Employer All sectors.com 199 .com ADVENT INTERNATIO NAL UK Regional Headquarters Advent International plc THE STATS 111 Buckingham Palace Road Head of Management London SW1W 0SR Board: Dominic Shorthouse UK Employer Type: Private Tel: +44 20 7333 0800 Company Total private equity funds under management: €1. see "contact us" at www.ENGLEFIELD CAPITAL Michelin House. Employees: 130 Mid market buyout (€15m-€150m equity) of which 65 in Europe (2008) No.76bn www.englefieldcapital. some venture capital KEY COMPETITORS Types of • Barclays 3i • Apaxfinancing: Private Equity • HgMajority Capital equity European Locations CAREERS CONTACT London (HQ) englefield@engcap.
The firm invests throughout the UK and continental Europe. founding partner. founded Englefield Capital. an IT recruitment company. In January 2007. a mid-market specialist that focuses on European investments between €30-300 million. an overseas provider of outsourced services to public authorities. In July 2006. two of which have already been realised. closing at €706 million in 2003. Englefield sold their financial services group TBIH to the biggest shareholder of the consortium and in January 2007 sold the Equity Insurance Group to Insurance Australia Group for a total of £570 million. which Dominic Shorthouse. explains by saying that Englefield is focused on exploiting changes in European market conditions to select investment opportunities. So far. currently Englefield owns an insurance company. a waste and recycling business. with a similar investment philosophy as the first fund. Most important funds FUNDS Englefield Fund II Englefield Fund I VINTAGE YEAR 2007 2003 FUND CAPITAL €1bn €0. 200 . the investments are from a diverse range of industries. although typically with enterprise values over €75 million. an independent schools business. a property company and a wind farm. although it will only invest in sectors that the partners fundamentally understand from previous experience in the industry. from a single office located in London.7bn Englefield’s first fund. has been invested in ten companies through a range of sectors.THE SCOOP In 2002. the second fund closed at €1 billion. Follow the winds Englefield is not sector specific. Dominic Shorthouse. The investment philosophy is based around “following the winds”. a leading French cosmetic surgery and cosmetic medicine group. previously a board member at Warburg Pincus.
5bn fortune. The rest of the money comes from what is termed an ‘”Affiliates Fund” – basically a group of 150 friends and contacts. and three out of the five are from INSEAD. the Swiss-based holding company of the Brenninkmeijer family. three from leading consultancies and the rest from top investment banks or other private equity houses. with only three other institutional investors allowed to contribute: AXA Private Equity.Vault Career Guide to Private Equity Englefield Capital Always trust your friends Englefield is unique in the way it raises funds. the Dutch Shell Pension Fund and Delta Lloyd. with Oxford and Cambridge being the most common. The majority of Englefield’s investment professionals studied at elite European universities. GETTING HIRED Englefield is very representative of its industry: Three of the 19 investment professionals came from Morgan Stanley. Both funds have been sponsored by Bregal. owners of the C&A retailer who have an estimated €12. most of whom are business leaders in the UK. Western Europe and the United States. 201 . A quarter of the professionals have an MBA.
Public to private 202 .exponentpe.EXPONENT PRIVATE EQUITY 12 Henrietta Street London WC2 8LH United Kingdom Tel: +44 (0)20 7845 8520 www. of Offices: 1 CAREERS CONTACT +44 (0)20 7845 8520 COMPANY FOCUS Sectors: Media Business & Financial Services Healthcare Leisure Consumer Financial stages: Mid market buyout (€15m-€150m equity) Types of financing: Main: Majority Equity Other: Minority Equity.com EUROPEAN LOCATIONS London (HQ) KEY COMPETITORS 3 • Barclays Private Equity • Close Brothers Private Equity • European Capital • Gresham Capital • Hermes Private Equity • Hutton Collins • Isis Equity Partners • LGV THE STATS Co-Founder: Richard Campin Employer Type: Private Company Total private equity funds under management: €400m Employees: 12 in 2007 No.
The newly formed Exponent Private Equity was established to target mid-cap UK companies with enterprise values up to £350 million. but also goes through the same issues surrounding any start-up business. Pantheon Ventures. twice the size of its first fund. In early 2008. Exponent has the flexibility to invest up to £200 million in a single deal. NYL Capital Partners and Bank of Scotland. Richard Campin spun-out a successful team from 3i after fifteen years with the company. 29 per cent from the UK. which have slowed down the mega buyout houses. and the remainder from the rest of the world. Exponent only started raising their second fund in May of 2007. The firm’s strategy to target the upper mid-market is paying off as the big players keep moving up in deal size. as it can be flexible and responsive. the firm has only made one exit from the portfolio created using its first fund.Vault Career Guide to Private Equity Exponent Private Equity THE SCOOP In 2004. in 2005. To date. Major investors include funds managed by Pathway. taking three other high profile directors with him: Tom Sweet-Escott. TSL Education was acquired from News International for £235 million. this oversubscription highlights the growing demand for mid-market PE funds in the face of adverse credit conditions. leaving Exponent to fill the void between the mega buyout houses and typical mid-market firms. Chris Graham and Hugh Richards. In 2004. Richard Campin recalled that after starting the business out of the pockets of the four founders. only to be sold in 2007 to Charterhouse. Interestingly. The firm benefits from its size. with most of the commitments secured by September. which is a surprisingly swift round of fundraising. demonstrating the global appetite for the UK mid-market private equity sector. their first fund closed at £400 million and was around 80 per cent invested in eight transactions by the end of 2007. the firm closed its second fund at £805 million. It is still seen as a relatively young portfolio 203 . which was rumoured to be targeting £750 million. they all eventually had credit cards that didn’t work anymore. 42 per cent of the commitments were from the US. the capital for the most recent fund came predominantly from outside the UK. which is a relatively large amount as it represents a quarter of their most recent fund. 22 per cent from continental Europe. in the early days.
At undergraduate level. the women’s fashion brand. two of which are from Harvard. but it would have been unrealistic to expect more.and Hugh Richards. the world’s largest ship management business. In 2006. backing the founding management team. GETTING HIRED The educational pedigree of Exponent’s professionals is mixed. The background of the twelve Exponent investment professionals is fairly typical of the private equity industry as a whole. and most recently. There doesn’t seem to be a single type of background preferred at Exponent. Radley. a Big Four accounting firm. the online publisher. said of the TSL sale: “All the plans came right with TSL and quicker than expected. was bought from Virgin for £163 million. was acquired. The Trainline. the graduate recruitment publisher. In 2007. although none have a PhD level qualification. was acquired for £13 million. the electronic payment services company. one of the four founding partners. and Magicalia. It was a helpful proof of principle. while other Universities range from Glasgow to Bristol to Manchester.Holdings. the online train ticket company.” The firm has seven active portfolio companies. and candidates are advised to contact the firm directly to discuss potential employment opportunities. was bought from Pheonix Equity Partners in a transaction valuing the company at £130 million. four of the professionals have MBAs. five come from Oxbridge. previous employers include Bain & Co. and a variety of other private equity firms. for US $340 million. acquired using Exponent’s first fund. Exponent invested in GTI. 204 . PricewaterhouseCoopers. a top management consultancy. Cardsave. Durrants Media Monitoring was bought for £82 million from August Equity. Merrill Lynch. a top investment bank. the firm acquired V.
Stefano Miccinelli & Antonio Tazartes Employer Type: Private Company Total private equity funds under management: €1.175bn Employees: 16 in 2007 No. Large buyout (€150m-€300m equity) Types of financing: Main: Majority Equity EUROPEAN LOCATIONS Milan (HQ) 205 .it KEY COMPETITORS 3i • Advent International • Apax • BC Partners • CVC CAREERS CONTACT firstname.lastname@example.org THE STATS Senior partners: Dario Cossutta. of Offices: 1 COMPANY FOCUS Sectors: All sectors Financial stages: Mid market buyout (€15m-€150m equity).INVESTITORI ASSOCIATI ADVENT INTERNATIONAL Via Agnello 8 20121 Milan Italy Tel: +39 02 854 5731 www.
Although Investitori is not in the same league as these international players. co-investment funds and eventually other high yielding asset classes such as hedge funds and mezzanine funds. Investitori Associati IV.4bn Previously. Unsurprisingly. Investitori Associati recently established their first alternative investment subsidiary.7 billion. Investitori teamed up with Permira. Investitori’s first three funds had a total of €475 million between them. Most important funds FUNDS Investitori Associati IV Investitori Associati III VINTAGE YEAR 2004 2000 FUND CAPITAL €0. experience and network for the Italian market. which means they are often called upon to partner with for Italian deals. with the idea that each team is independent under a collective umbrella that dictates overall strategy and offers advice to each fund. 206 .7bn €0. fund of funds. The company creates subsidiaries that individually manage each fund. and their reputation has seen the firm involved in some large club deals.THE SCOOP Milan-based Investitori Associati is one of the leading Italian private equity houses. the directories business unit of Telecom Italia. CVC and BC Partners to acquire Seat Pagine Gialle. was oversubscribed by almost three times and closed with €700 million—over €100 million more than originally intended. in 2003. Investitori Associati has won a variety of awards ranging from “Italian Private Equity Firm of the Year” to “Italian M&A Deal of the Year” for the Seat Pagine Gialle deal. The business unit represents a diversification for Investitori. as one of the leading Italian firms. in a deal valued at €5. making 22 investments in a variety of industrial and services companies. they provide the access. aimed at controlling management companies of several types of funds: private equity funds. mainly in Italy. This investment history is enough to make them one of the leading Italian players. away from typical private equity deals into other sectors near their core business. The most recent fund. particularly active in mid-market transactions with values over €100 million.
Investitori Associati is an Italian company with mainly Italian private equity fund managers. a family business from Tuscany with €150m turnover. This includes market leading blood fractionator Kedrion. 207 . The background of the younger part of the team is mostly in investment banking and strategy consulting.Vault Career Guide to Private Equity Acquisitions using the fourth fund took place throughout 2005 and 2006. which operates a fleet of ten “cruise ferries” and is one of the main operators in the Mediterranean Sea with €265m turnover. Applicants with a strong Italian investment banking background will have an advantage when applying to Investitori Associati. although lately there is an interest for internationally renowned MBA programs like Harvard or Wharton. in sectors ranging from transportation to pharmaceuticals. Employees studied mainly at Italian undergraduate and graduate university programs. developed in particular within the firm. and Grandi Navi Veloci (GNV). Investitori Associati GETTING HIRED The three founding partners and the majority of the management team have extensive experience in the private equity sector.
Mid size market buyout (€15m–€150m equity) Types of financing: Main: Majority Equity Other: Minority Equity EUROPEAN LOCATIONS Madrid (HQ) 208 .MERCAPITAL ADVENT INTERNATIONAL Parque Empresarial "La Finca". of Offices: 1 COMPANY FOCUS Sectors All sectors Financial stages: Small market buyout (<€15m equity). 1 Edificio 14 Madrid 28223 Pozuelo de Alarcón Spain Tel: +34 (0)91 557 8000 www.mercapital. Paseo del Club Deportivo.com THE STATS Chairman: José María Loizaga Viguri Employer Type: Private Company Total private equity funds under management: €1.com KEY COMPETITORS 3i • Apax • Candover • Doughty Hanson • PAI CAREERS CONTACT email@example.com Employees: 20 in 2007 No.
The firm had five investment vehicles before their first traditional private equity fund. the firm failed to make any investments. the firm is one of the most active and experienced mid-market firms dedicated to the Iberian market. were all acquired that year. In contrast. Saprogal.4 billion. making them a fairly typical mid-market PE firm. Mercapital is happy being a niche player and currently has no ambitions to expand geographically throughout Europe. the most recent SPEF III fund closed at €550 million. The firm is allocating all of SPEF III to buyouts. Mercapital acquired 75 per cent of Gasmedi. unlike many other European firms. the firm still only made one investment. with enterprise values in the €100 million to €150 million range. In 2007. a medical gas provider. a fitness centre group. With investments totalling €1.6bn Typically. an animal nutrition company. compared to about two-thirds of the previous fund. 209 . Mercapital has firmly established itself as a reference in the Spanish private equity market. a cinema company. 2005 saw the firm make a record four investments in a variety of sectors. however. SPEF II. In late 2006. With over 20 dedicated professionals. which may be somewhat indicative of the market conditions at the time. Menorquin Yachts. in an MBO that valued the company somewhere around €275 million. Most important funds FUNDS Mercapital Spanish Buyout Fund III Mercapital Spanish Buyout Fund II VINTAGE YEAR 2006 2001 FUND CAPITAL €0. Their second fund. and Grupo Abaco. Holmes Place. meaning they have significantly increased their potential buyout capacity. In 2006. closed in 2000 with a sizeable €600 million from a global investor base. which closed in 1998 at €260 million. slightly above the €500 million target. Mercapital is the largest independent firm dedicated to the region. a boatyard. It is however increasingly threatened by global and pan-European rivals who have been opening offices in Madrid in recent years and are actively hiring well-connected senior advisors.55bn €0. the firm will invest €40 million to €50 million in Iberian companies.Vault Career Guide to Private Equity Mercapital THE SCOOP Since 1986. Spanish Private Equity Fund (SPEF).
Others worked at a Big Four audit firm (15 per cent). Unless Mercapital change their regional focus. while they all pursued their undergraduate studies at local Spanish universities. and both are “exclusively dedicated to the Spanish market”. only candidates with a strong Spanish background and connections stand a chance of joining the team. a strategy consultancy (15 per cent) or an investment bank (15 per cent). one third of the team holds an MBA from INSEAD. 210 . The majority joined after a first professional experience in the industry (25 per cent). as is the wide group of close industry advisors. Prior to that.GETTING HIRED The team of twenty professionals is exclusively Spanish.
ADVENT SAGARD INTERNATIONAL
24/32 rue Jean Goujon 75008 Paris France Tel: +33 (0)1 53 83 3000 www.sagard.com
Barclays Private Equity • Bridgepoint • European Capital • Montagu
Chairman: Didier Pineau-Valencienne Employer Type: Private Company Total private equity funds under management: €1.6bn Employees: 20 in 2007 No. of Offices: 1
Sectors: All sectors Financial stages: Small market buyout (<€15m equity), Mid size market buyout (€15m–€150m equity) Types of financing: Main: Majority Equity Other: Minority Equity, business development capital
Sagard Private Equity Partners, the France-based buyout arm of the Canadian Desmarais family, was formed in 2002 with the support of the Power Corporation of Canada. Sagard was established to unite a group of influential industrial families and financial institutions, allowing them to leverage their industrial expertise and networks to add value to potential acquisitions. Most important funds
Sagard II Sagard I
The fund’s founding partners and investors provided all of the capital for the first fund, Sagard I, which closed in 2003 at €600 million, with 54 per cent coming from industrial families. The second fund, Sagard II, closed in 2006 with over €1 billion from both original and new investors, with the industrial family contribution rising to 65 per cent. Sagard, named after the French missionary who set off for Quebec in the seventeenth century, invests in mid-market companies based in France or French speaking European countries, with enterprise values above €100 million. The Chairman of the advisory board is none other than Paul Desmarais Jr., a role he fits into his spare time while also serving as Chairman and Co-CEO of Power Corporation, the Canadian utilities company with market cap of C$14 billion. The Desmarais are one of the truly powerful and elite Canadian families, controlling the Power Corporation amongst an array of other holdings. Paul Desmarais, the 73year- old patriarch of the family, is counted as being one of the top ten richest people in Canada, with an estimated fortune of around C$4.25 billion. His blackberry has links to the global political elite, including Canadian Prime Ministers, US Presidents and current French leaders. His son is married to the daughter of former Canadian Prime Minister Jean Chretien, and the most recent ex-Prime Minister was his former employee, as President of Power Corporation. In fact, Stephen Harper, the current Canadian leader, is the first Prime Minister in a quarter century to have no real ties to the Desmarais.
Vault Career Guide to Private Equity
The Sagard private equity funds represent a shift in the Desmarais’ focus, moving away from Canada and towards France. This shift can also be seen in their political dealings, as their growing friendship with Nicolas Sarkozy has been well documented. The Desmarais family recently hit the press during the controversial Gaz de France and Suez merger; if the companies successfully merge, the holding company jointly owned by the Desmarais and the Frère family of Belgium would be the largest private shareholder. In fact, Mr. Sarkozy’s outspoken support for the deal has been one of the driving factors in the face of much criticism from the unions. The creation of the Sagard Private Equity funds means that the Desmarais will have an excuse, and a requirement, to be in Paris for a considerable amount of time, as the fund is targeting growing companies that will require a lot of attention. Sagard’s first fund was fully invested by 2006, with twelve investments ranging from a pharmaceuticals wholesaler to a French private hospital company. The second fund, Sagard II, has been used to fund four acquisitions to date; Flakt woods, a manufacturer of clean air systems, SGD, a glass packaging company, Vivarte, a footwear and apparel retailer, and Aliplast, an aluminium products manufacturer, were all acquired in 2007.
Of Sagard’s twenty professionals, the majority received undergraduate degrees in Paris, at top business schools such as ESCP-EAP and HEC. Three of the professionals have MBAs from top American schools: Wharton, Dartmouth and MIT. Only one person on the investment team has a PhD level qualification. Almost half of the professionals come from a banking background, with bulge bracket firms Morgan Stanley and Goldman Sachs being the most popular. One professional has a background in consulting, from Accenture, and none come from an accounting or transaction services background. It is highly unlikely that Sagard would recruit using a traditional application process, but that shouldn’t stop suitable candidates from contacting them to discuss potential career opportunities.
INTERMEDIATE CAPITAL ADVENT INTERNATIONAL GROUP PLC
20 Old Broad Street London EC2N 1DP United Kingdom Tel: +44 (0)20 7628 9898 www.icgplc.co.uk
London (HQ) • Frankfurt • Madrid • Paris • Stockholm
REST OF THE WORLD
New York • Hong Kong • Tokyo • Sydney
Managing Director: Tom Attwood Employer Type: Public listed Company Ticker Symbol: ICP Total funds under management: €4 billion Employees: 68 in 2007 No. of Offices: 9
Capvent • DAM Capital • Park Square • Indigo Capital • EuroMezzanine • Almack Mezzanine
Sectors: All sectors Financial stages: Mezzanine Types of financing: Acquisitions, Public to private transactions with or without private equity backing, Management buyouts/management buy-ins, Development capital, Public quoted company finance, Off-balance-sheet finance, Refinancing and recapitalisations, Pre-IPO financing
+44 (0)20 76 28 9898
Vault Career Guide to Private Equity
Intermediate Capital Group PLC
Founded in 1989, ICG is a UK-based provider of intermediate capital, specialising in mezzanine finance. By 1994, the firm had financed companies in the UK, Germany and France, and had started to manage third party funds for the first time. That year, the firm also listed on the London stock exchange, creating the only public entity specialising in mezzanine finance. The firm has grown rapidly since inception: the Paris office was opened in 1995; by 1998, the firm had made 100 investments; in 2001, the firm opened an office in Hong Kong; in 2004, offices were opened in Madrid and Stockholm; in 2005, the Frankfurt office opened; in 2006, the firm established new offices in Tokyo and Sydney; and finally, in 2007 the firm opened its first US office, with future ambitions to expand its mezzanine finance activities in North America.
Most important funds
ICG European Fund 2006 ICG Mezzanine Fund 2003 ICG Mezzanine Fund 2000
€2.25bn €1.5bn €0.307bn
As of 2007, the firm has invested in transactions worth more than €8 billion, and is one of the leading providers of mezzanine finance in Europe, Asia-Pacific and North America. The firm provides between €15 million and €500 million for a range of situations including acquisitions, buyouts, public to private, development capital, public companies, off balance sheet financing, refinancing and pre-IPO funding. In 2007, ICG saw its outlook improve considerably, as the liquidity squeeze saw investors flock to intermediate finance as a way of deferring interest payments. In January 2008, ICG announced that they were planning to invest a £700 million pool of debt finance, showing that they are finding further ways to capitalise on the credit crunch. In 2007, the firm closed its most recent mezzanine European Fund 2006 at €2.25 billion, representing €1.25 billion of committed equity and €1 billion of leverage. Although ICG specialises in providing mezzanine finance, they regularly make an
equity co-investment alongside the lead investor. In 2007, ICG provided equity in support of TPG and AXA Private Equity’s acquisition of TDF, the leading French television broadcaster. They also provided mezzanine and equity in 3i’s management led buyout of Marken, the British clinical trial logistics firm. In another 3i buyout, of Finland-based Inspecta, ICG provided senior and junior mezzanine finance as well as an equity co-investment. ICG has a broad European reach, with recent transactions spread across several countries; in 2007, ICG sponsored transactions in Denmark, Finland, France, Germany, the Netherlands, Spain, Sweden and the UK. The French office has been particularly active lately, with twelve of the 26 transactions executed in 2007 taking place in France. The firm has also seen a flurry of activity in the healthcare industry, indicative of the increasing presence of private equity players in the sector. ICG provided finance for Industri Kapital’s acquisition of Attendo, the largest nursing home provider in Sweden; they supported EQT’s acquisition of Dako, the Danish cancer diagnostics specialist; and they also provided bonds for LBO France’s acquisition of MédiPartenaires II, the French acute hospital group.
ICG recruits from top tier universities, with London- and Paris-based schools featuring heavily, which makes sense as these are ICG’s two most active offices. Only 11 per cent of ICG’s professionals have MBAs, with the majority holding just a bachelor’s degree. The majority of ICG’s professionals came from a banking or transaction services background, most likely due to the more technical financial aspects involved in arranging mezzanine finance. There are relatively few strategy consultants in comparison to other private equity firms, again probably due to the complex structuring of the securitised products ICG specialises in.
5 1.0 ESCP-EAP (2) HEC (2) LSE (2) Oxford (3) LBS (3) Source: Candesic Top 5 former employers (# of professionals) 5 4 3 2 1 0 Credit Suisse (2) BCG (2) KPMG (4) JPMorgan (4) Calyon (5) Source: Candesic 217 .0 1.5 2.0 2.5 0.0 0.Vault Career Guide to Private Equity Intermediate Capital Group PLC Higher Diploma PhD/JD/MD (5%) Bachelor’s only (61%) Unknown (10%) MBA (11%) Master’s (13%) Source: Candesic Most significant previous job Strategy consulting (6%) Audit & transaction services (13%) Banks (44%) Other (37%) Source: Candesic Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 3.
adventinternational.7bn in 2008 (out management: about €11bn (2008) CHF24bn globally) Employees: 130 investment professionals.ch Tel: +44 20 7333 0800 www. of Offices: 15 2008) planned opening in Rest of the World Boston (HQ) Tokyo • Singapore (affiliate) • Buenos Aires • Sao Paulo • Mexico • Further affiliates in five other countries Key Competitors 3i • Apax • Barclays Private Equity • Cinven • Montagu COMPANY FOCUS Company Focus Sectors: Sectors: All sectors Business Services & Financial Services Retail & Consumer Financial stages: Funds of funds (Primary investments.partnersgroup. real Financial stages: Employment Contact In the US: info@adventinternational. infrastructure) ments.adventinternational.com International buyouts. Steffen Meister Head of Private Equity: Philipp Gysler The Stats Employer Type: Publicly listed company Chairman: Peter A. recapitalization and EUROPEAN LOCATIONS growth equity investments (up to €500m Baar-Zug (HQ) • Guernsey • London • equity). see "contact us" at www. of Offices: 9 (10 inc. direct investsecondary & Life Sciences Industrial estate.PARTNERS GROUP ADVENT INTERNATIONAL Zugerstrasse 57 UK Regional Headquarters 6341 Baar-Zug Advent International plc Switzerland 111 Buckingham Palace Road Tel: +41 (0)41 768 85 London SW1W 0SR 85 UK www. Brooke (SWX) Employer Type:PGHN Ticker Symbol: Independent Private Company equity funds under manageTotal private Total private equity funds underof ment: CHF16. Technology.com REST OF Locations European THE WORLD New York • San London (HQ) Francisco • Singapore • Sydney • • Bucharest •Frankfurt • AmsterdamTokyo Kiev • Madrid • Milan • Paris • Prague • Warsaw • Bratislava (affiliate) • Oslo (affiliate) KEY COMPETITORS Harbourvest • Capital Dynamic • Pantheon Ventures • Adam Street Partners • AIG Private Equity • Horizon 21 THE STATS CEO: Dr. some venture capital Luxembourg Types of financing: Majority equity 218 . additional No.com For other offices. Employees: 100 in 2007 of which 65 in Europe (2008) No. Media & Telecoms Healthcareinvestments.
The firm also plans to open an office in Beijing. real estate funds. was established. Partners Group. using a global team of over a hundred professionals spread across six offices. a Swiss alternative asset management firm. with strong roots in Switzerland. Partners Group splits their private equity investment funds by the stage of the target companies they invest in: the venture capital funds invest in new and emerging companies. The private equity division makes up over two thirds of the €15 billion managed by the group. direct and listed private equity investments. In 2001. Partners Group is not a typical fund of funds. 219 . as they invest in primary. Universities Superannuation Scheme. dubbed Alternative Beta Strategies. secondary. The firm gained accolades in 2004. followed by additions in Singapore and London in 2004. such as the leading UK pension fund. offering a range of investment alternatives. and now has over $1.Vault Career Guide to Private Equity Partners Group THE SCOOP In 1996. was one of the first strategies to clone the methods used by hedge-funds. that tend to have negative cash flow and a longer investment horizon. the firm was deemed the most successful European listing. or leverage. The firm’s direct investments come in the form of coinvestments. the buyouts funds target companies that are well established and typically use debt. and assets are allocated accordingly. typically led by a partnership already in their network. the firm entered the hedge fund industry by acquiring Swiss Alternative Investment Strategies Group. in San Francisco and Tokyo in 2007 and lately Sydney and Luxembourg in 2008. including hedge funds.1 billion invested in it from high profile investors. the special situations fund is set aside for any other investment that doesn’t fall in the first two categories of funds. a firm founded by ex-Credit Suisse hedge fund professionals. private debt and private equity. Offices in Guernsey and New York were established in 1999 and 2000 respectively. Today. Europe and Asia/emerging markets in a matrix against types of investments. The firm’s investment strategy. jumping 133 per cent after becoming available to public investors. to finance the acquisition. Their investment strategy separates North America. winning the “European Fund of Funds” award and achieving second place in the “Secondaries Firm of the Year”. In 2006. the matrix is then overweighted given current market conditions. offering a private equity fund of funds as their first product. Partners Group is a global alternative asset management firm.
a Swiss asset manager or a Swiss insurance company. 220 . In January 2008. and can vary from diversified global funds to targeted funds such as a European buyout fund of funds. as evidenced by the background of its investment professionals. taking total assets under management from €10. and open-ended product. which are regularly established.Products offered by the firm are split into three categories: limited partnerships. or mutual funds. Executive Chairman. St. In 2006. such as investment companies. Alfred Gantner. publicly traded products.6 billion to nearly €15 billion during 2007. and the private debts held by the firm were priced with the intention of holding them to maturity. while most of the rest worked at the Swiss subsidiary of an international firm. which normally aim to offer a diversified portfolio of investments across all financing types and stages. GETTING HIRED Partners Group is a global alternative asset manager with strong Swiss roots. This is also very visible academically. the group as a whole announced their highest ever annual growth. and provide the added level of regulation and liquidity some investors prefer. Not surprisingly. there are very few managers with previous experience in direct or indirect private equity investment. Gallen is the most represented institution. the firm became public. with only 10 per cent of them venturing abroad for an MBA or a PhD. Following the transaction. it is thought that the management team retained a large portion of the equity. Seventy per cent of them joined with previous experience at a Swiss bank. Surprisingly. which have been created for specific investor groups. The firm seems to have avoided any injury from the credit crisis that dominated the rest of the private equity world during 2007. certificates and principal investment vehicles. explained that the slow down in direct investments was complemented by cheaper secondary private equity investments becoming available. listing around 30 per cent of the equity on the SWX Swiss exchange and through select private placements.
They state that they actively recruit new talent from top business schools in the United States and in Europe and look especially for entrepreneurship. they express a preference for investment banking or accounting experience and a particular interest for sectors of high tech. Partners Group The graduate programme Partners Group actively recruits recent business school graduates into their structured Associate program. Candidates can contact the firm at hr@partnersgroup. based around two sixth month modules. Partners Group is growing with the entire PE industry and offers a variety of career opportunities. The full recruiting process is explained on their website in the “About us” menu. For PE investment managers.Vault Career Guide to Private Equity Still.net Higher Diploma PhD/JD/MD (12%) Bachelor’s only (18%) Unknown (15%) MBA (12%) Master’s (43%) Source: Candesic Most significant previous job Audit & transaction services (15%) Banks (46%) Other (39%) Source: Candesic 221 . as is it considered less useful in funds of funds. drive. The firm offers an associate program completed in two six-month modules and also selectively targets experienced hires. telecom and chemicals. outstanding academic and professional performance and desire to learn in all candidates. Strategy consulting doesn’t appear to be a target.
Top 5 universities attended (# of professionals) **double counting allowed for staff with several degrees 8 7 6 5 4 3 2 1 0 Swiss Banking School. Zurich (2) Marriot School of Management (2) Swiss Federal Institute of Technology (3) Zurich University (3) St. Gallen (7) Source: Candesic Top 5 former employers (# of professionals) 6 5 4 3 2 1 0 Goldman Sachs (3) PWC (4) Credit Suisse (4) UBS (6) Source: Candesic 222 .
GROWTH EQUITY AND DIVERSIFIED PRIVATE EQUITY FUNDS MEZZANINE FUNDS DISTRESSED FUNDS SECONDARY FUNDS FUND OF FUNDS .Short Profiles of 200 REPRESENTATIVE PE firms in Europe LBO.
21investimenti.1bn (2007) EUROPEAN LOCATIONS Offices: Treviso • Paris (21 Centrale Partners) EUROPEAN LOCATIONS Offices: Amsterdam • London • Stockholm 226 . Felissent. GROWTH EQUITY AND DIVERSIFIED PRIVATE EQUITY FUNDS 21 Investimenti Via G.aaccapitalpartners.it www.LBO. 90 31100 Treviso Italy Tel +39 0422 316611 www. of employees: 21 AuM: €700m (2007) STATS Chief Executive: Gerben Kuijper Employer Type: Private firm No.com AAC Capital Partners ITO Tower – 22nd floor Gustav Mahlerplein 106 1082 MA Amsterdam The Netherlands Tel +31 (0)20 383 1808 STATS Chief Executive: Alessandro Benetton Employer Type: Private Company No. of employees: 27 professionals AuM: €3.
com 227 .aberdeen-asset. of employees: 6 professionals in Paris EUROPEAN LOCATIONS Offices: Paris • Milan • Madrid EUROPEAN LOCATIONS Offices: London • Aberdeen • Birmingham • Glasgow • Inverness • Leeds • Manchester CAREERS CONTACT private.equity@aberdeen-asset.Vault Career Guide to Private Equity Aberdeen Asset Managers Limited One Bow Churchyard London.fr STATS Head of Investment.abnamrocapital. Private Equity: Francesco Santinon Employer Type: Private equity division of Aberdeen Asset Management PLC Employees: 41 professionals AuM: £267m (2008) STATS Managing Director: Hervé Claquin Employer Type: Currently a subsidiary of ABN Amro (2007) No. UK Tel +44 (0)20 7463 6452 www.com/privateequity ABN Amro Capital France 9 avenue Matignon 75008 Paris France Tel +33 (0)1 53 93 69 00 www. EC4M 9HH.
se Activa Capital 203. of employees: 12 (11 professionals) AuM: €315m EUROPEAN LOCATIONS Offices: Stockholm EUROPEAN LOCATIONS Offices: Paris 228 . of employees: 9 professionals AuM: €700m STATS Chief Executive: Jean-Louis de Bernardy Employer Type: Private Company No. rue du Faubourg Saint-Honoré 75008 Paris France Tel +33 1 43 12 50 12 www.activacapital.Accent Equity Partners Engelbrektsgatan 5 SE-11487 Stockholm Sweden Tel +46 8 545 073 00 www.com STATS CEO and Founding Partner: Jan Ohlsson Employer Type: Private Company No.accentequity.
Alternative Investments Europe: Ion Bogdaneris Employer Type: Subsidiary of AIG Employees: 200 team members AuM: $27. United Kingdom Tel +44 (0) 20 7269 7253 www.com/AIG/Private+Equity STATS Managing director: Antonio Fernandez Lopez Employer Type: Subsidiary of Grupo Ahorro Corporacion Employees: 11 investment professionals AuM: €250m (2007) STATS Managing Director.com AIG Private Equity AIG Global Investment Corp.acdesarollo. LBO.2bn worldwide (expansion. Spain Tel +34 91 586 4242 www.Vault Career Guide to Private Equity Ahorro Corporacion Desarollo Paseo de la Castellana 89 28046 Madrid. funds of funds) EUROPEAN LOCATIONS Offices: Madrid • Sevilla • Malaga • Valencia LOCATIONS Offices: London • New York and 22 more locations 229 . mezzanine. Plantation Place South 60 Great Tower Street London EC3R 5AZ. (Europe) Ltd.aiggig.
alchemypartners. of employees: 18 professionals EUROPEAN LOCATIONS EUROPEAN LOCATIONS Offices: London Offices: Paris • Frankfurt • Milan • Monaco • Saint Helier CAREERS CONTACT firstname.lastname@example.org Alpha 49 Avenue Hoche 75008 Paris France Tel +33 (0) 1 56 60 20 20 www.com STATS Founder and managing partner: Mr.uk 230 .co. Jon Moulton Employer Type: Private Company No.groupealpha. United Kingdom Tel +44 (0)20 7240 9596 www.Alchemy Partners 20 Bedfordbury London WC2N 4BL. of employees: 24 (20 investment professionals) AuM: £2bn STATS Chief Executive: Nicolas ver Hulst Employer Type: Private Company No.
com 231 . Jachthavenweg 118 Amsterdam 1081 KJ The Netherlands Tel +31 20 5407575 www.Vault Career Guide to Private Equity AlpInvest Partners N.V. WC2E 9EZ.com AnaCap Financial Partners Stanford House.anacapfp.alpinvest. of employees: 68 (60 professionals) AuM: €40bn STATS Managing Principal: Joe Giannamore Employer Type: Private Company Employees: 6 professionals (2007) AuM: €300m LOCATIONS Offices: Amsterdam • London (Spring 2008) • New York • Hong Kong EUROPEAN LOCATIONS Offices: London CAREERS CONTACT contact@anacapfp. 27a Floral Street London. United Kingdom Tel +44 (0)20 7070 5250 www.com STATS Chief Executive: Volkert Doeksen Employer Type: Private Company No.
Josh Harris and Marc Rowan (London) Employer Type: Private Company Employees: 175 professionals (2007) AuM: $16bn LOCATIONS Offices: Brussels • Vienna • New York • Shanghai LOCATIONS Offices: Frankfurt • London and Paris • New York • Los Angeles • Singapore CAREERS CONTACT email@example.com Apollo Management 2 Manhattanville Road Purchase.80. NY 10577 United States Tel +1 914 694 8000 STATS STATS CEO: Johan Volckaerts Employer Type: Independent private company Employees: 25 Founders and Managing Partners: Leon Black.andlinger.be 232 .Andlinger & Company Avenue Louise 140 1050 Brussels. Belgium Tel +32 2 647.70 www.
United Kingdom Tel +44 (0)20 7824 5600 www.com Arcapita 15 Sloane Square London SW1W 8ER.com 233 .com STATS STATS Managing Partner: David Porter Employer Type: Private company No.arcapita. of employees: 7 (6 professionals) AuM: ~€200m CEO: Atif A.Vault Career Guide to Private Equity Apposite Capital LLP Bracken House One Friday Street London EC4M 9JA United Kingdom Tel +44 (0)20 7090 6874 www.apposite-capital. Abdulmalik Employer Type: Private company Employees: 43 investment executives (16 in Europe) AuM: ~$4bn (private equity) LOCATIONS EUROPEAN LOCATIONS Offices: London Offices: London • Bahrain • Atlanta • Singapore CAREERS CONTACT enquiry@apposite-capital.
com Argos Soditic 14 rue de Bassano 75783 Paris Cedex 16 France Tel +33 (0)1 53 67 20 50 www. United Kingdom Tel +44 (0)20 7647 6970 www.argancapital. Lloyd Perry Employer Type: Private Company No. 9 South Street London W1K 2XA.com STATS Managing Partner: Mr.Argan Capital Monopolis House. Louis Godron Employer Type: Private Company No. of employees: 14 (10 professionals) AuM: €425m STATS Chief Executive: Mr.argos-soditic. of employees: 25 (17 professionals) AuM: €518m EUROPEAN LOCATIONS Offices: London • Milan • Paris • Warsaw EUROPEAN LOCATIONS Offices: Paris • Geneva • Milan 234 .
com STATS STATS Managing partner: Ali Artunkal Employer Type: Independent private company Employees: 10 investment professionals AuM: €400m Chief Executive: Xavier Moreno Employer Type: Independent private company Employees: 16 (13 professionals) AuM: €500m EUROPEAN LOCATIONS EUROPEAN LOCATIONS Offices: London • Budapest • Prague • Warsaw Offices: Paris 235 . rue du Faubourg Saint-Honoré 75008 Paris France Tel +33 (0)1 53 05 40 50 www.com/en/ Astorg Partners 68.astorg-partners.arguscapitalgroup.Vault Career Guide to Private Equity ARGUS Capital Partners Academy House 36 Poland Street London W1F 7LU United Kingdom Tel +44 20 7439 0088 www.
com STATS STATS Chief Executive: Mr.com August Equity 10 Bedford Street London WC2E 9HE. United Kingdom Tel +44 (0)20 7632 8200 www.augustequity. Dominique Oger Employer Type: Independent private company Employees: 11 AuM: €320m Chief Executive: Richard Green Employer Type: Private Company Employees: 19 AuM: £260m EUROPEAN LOCATIONS EUROPEAN LOCATIONS Offices: Paris Offices: London 236 .atria-partenaires.Atria Capital Partenaires 40 rue de Châteaudun 75009 Paris France Tel +33 (0)1 45 26 60 16 www.
uk Baring Private Equity Partners Espana SA Hermosilla. 77 Mansell Street London. Spain Tel +34 91 781 8870 www.com 237 . For Germany. E1 8AF United Kingdom Tel +44 20 7667 8400 www.4bn worldwide) LOCATIONS LOCATIONS Offices: London (Further presence in the US and China through Baird Private Equity. Inc Employees: 7 senior professionals AuM: €600m Managing partner: José Angel Sarasa Employer Type: Spanish unit of Baring Private Equity Partners AuM: €200m ($3. see Granville Baird Capital Partners Germany. 11-5a Planta 28001Madrid.) Offices: Madrid • Aviles • Barcelona • Murcia • Guernsey • Moscow • San Francisco • Hong Kong • Shanghai • Singapore • Tokyo CAREERS CONTACT firstname.lastname@example.org/spain.bpep.html STATS STATS Chairman: Michael Proudlock Employer Type: European private equity arm of Robert W. Baird & Co.Vault Career Guide to Private Equity Baird Capital Partners Europe Mint House.bcpe.co.
ru 238 .bspeg. Antonio Perricone.9bn ($3.4bn worldwide) EUROPEAN LOCATIONS Offices: Milan LOCATIONS Offices: Moscow • Aviles • Barcelona • Guernsey • Madrid • Murcia • San Francisco • Hong Kong • Shangha • Singapore • Tokyo CAREERS CONTACT info@bvcp. 123056 Russia Tel +7 095 967 13 07 www.com STATS Managing partners: Paolo Baretta.bvcp. bldg 1 Moscow. Russia: Michael Calvey and Alexei Kalinin Employer Type: Russian unit of Baring Private Equity Partners1 Employees: about 50 (25 professionals in Europe) AuM: $1. 8 20121 Milan. Suite 750 Gasheka str. Francesco Sironi Employer Type: Independent private company Employees: 28 professionals AuM: €510m (2007) STATS Co-Managing Partners.Baring Vostok Capital Partners Ducat Place II. Italy Tel +39 02 762 1131 www. 7.ru BS Private Equity BS Investimenti SGR Spa Via dell’Orso.
cajamadrid.Vault Career Guide to Private Equity Caja Madrid.es Capital Alianza Private Equity Investment SA Plaza Marques de Salamanca. Spain Tel +34 91 423 5007 www. Spain Tel +34 91 4 353 088 www. Sociedad de Promocion y Participación Empresarial Paseo de la Castellana 189 28046 Madrid.capitalalianza. José Maria Castane Ortega Employer Type: Private Company Employees: 8 AuM: ~€200m EUROPEAN LOCATIONS Offices: Madrid EUROPEAN LOCATIONS Offices: Madrid 239 . 9 28006 Madrid.com STATS STATS President: Mariano Perez Claver Employer Type: Division of Caja Madrid Employees: 10 investment professionals AuM: €560m (2007) Chief Executive: Mr.
co.com 240 .capvest. Alexander Krebs Employer Type: Independent Private Company Employees: 13 investment professionals EUROPEAN LOCATIONS Offices: London LOCATIONS Offices: Zürich • Kirchheim (Germany) • Vienna • Shanghai Assets under management: €550m CAREERS CONTACT info@capvest.CapVest Limited 100 Pall Mall London SW1Y 5NQ United Kingdom Tel +44 20 7389 7900 www.capvis.uk Capvis Equity Partners Talacker 42 CH-8022 Zürich Tel +41 43 300 58 58 www.uk CAREERS CONTACT email@example.com STATS STATS Founding partner: Seamus FitzPatrick Employer Type: Part of AIG Private Equity AuM: €3bn (last fund: €350m) Chairman and partner: Dr.
United Kingdom Tel +44 (0)20 7389 9100 www.com Change Capital Partners 2nd Floor. 28 King Street London SW1Y 6XA.Vault Career Guide to Private Equity CCMP Capital Almack House. 272 Kings Road London SW3 5AW. of employees: 9 investment professionals AuM: €300m LOCATIONS Offices: London • New York • Honk Kong • Tokyo Assets under management: $10bn (2007) LOCATIONS Offices: London 241 . Luc Vandevelde Employer Type: Private Company No.com STATS Managing partner: Stephen Murray Employer Type: Private Company No. College House.changecapitalpartners.ccmpcapital. of employees: 54 STATS Managing director: Mr. United Kingdom Tel +44 (0)20 7808 9110 www.
uk Chequers Capital 48 bis.com STATS Chief Executive: Mr.4bn STATS President: Denis Metzger Employer Type: Independent private company No.com 242 . Gordon Bonnyman Employer Type: Private Company No. Paternoster Square London EC4M 7DX. avenue Montaigne 75008 Paris France Tel +33 1 53 57 61 00 www.co.Charterhouse 7th Floor.charterhouse.chequerscapital. of employees: 10 investment professionals AuM: €950m (2006) LOCATIONS Offices: London • Paris CAREERS CONTACT mail@chequerscapital. of employees: 20 executives Assets under management: €8. United Kingdom Tel +44 (0)20 7334 5300 www. Warwick Court.
av Franklin-Roosevelt 75008 Paris.ciclad. France Tel +33 (0) 1 56 59 77 33 www. Jean-François Vaury Employer Type: Private Company Employees: 8 AuM: €310m (2007) LOCATIONS Offices: Paris 243 . rue Gaillon 75002 Paris. of employees: 27 professionals AuM: €600m STATS Managing directors: Thierry Thomann. France Tel +33 1 42 66 76 63 Ciclad 8.Vault Career Guide to Private Equity CIC Finance 4.com STATS No.
com STATS Managing director: John R.Citi Private Equity 41 Berkeley Square London W1J 5AN. United Kingdom Tel +44 (0)20 7747 3800 www.citigroupai.cdr-inc. United Kingdom Tel +44 (0)20 7500 9612 www. 33 King Street London SW1Y 6RJ.com 244 .htm Clayton Dubilier & Rice Limited Cleveland House. Barber Employer Type: Subsidiary of Citigroup Employees: 10 senior investment profesionals AuM: $62bn for the whole of Citi Alternative Investments STATS Founder and Chairman: Joseph Rice Employer Type: Independent Private Company Employees: 35 investment executives (12 in the UK) AuM: $4bn (latest fund) LOCATIONS Offices: London • New York LOCATIONS Offices: New York • London CAREERS CONTACT firstname.lastname@example.org/cpe_overview.
it 245 .it Close Brothers Private Equity 10 Throgmorton Avenue London EC2N 2DL.Vault Career Guide to Private Equity Clessidra Capital Partners Via del Lauro 7 20121 Milan Italy Tel +39 02 86 95 22 1 www.cbpel.clessidrasgr.com STATS Founder and CEO: Claudio Sposito Employer Type: Independent private company Employees: 15 (9 investment professionals) AuM: €820m STATS Chief Executive: John Snook Employer Type: Private Company Employees: 15 AuM: €1bn in 2007 LOCATIONS LOCATIONS Offices: Milan Offices: London CAREERS CONTACT info@clessidrasgr. United Kingdom Tel +44 (0) 20 7065 1100 www.
bd Malesherbes 75008 Paris. France Tel +33 (0)1 43 12 91 10 www. 65 St Paul’s Churchyard London EC4M 8AB.cognetas.26bn CAREERS CONTACT Offices: Paris CAREERS CONTACT Offices: London • Frankfurt • Milan • Paris 246 .cobalt-cap.Cobalt Capital 28.com Cognetas Paternoster House.com STATS Managing directors: Christophe Fercocq. Hervé Franc Employer Type: Private Company Employees: 6 investment professionals AuM: €150m STATS Chief Executive: Nigel McConnell Employer Type: Private Company Employees: 30 professionals AuM: €2. United Kingdom Tel +44 (0)20 7214 4800 www.
email@example.com Crédit Agricole Private Equity 100 Boulevard du Montparnasse 75682 PARIS Cedex 14 Tel +33 1 43 23 21 21 www. 3 28006 Madrid Spain Tel +34 91 781 28 00 www.ca-privateequity.fr 247 . of employees: 40 AuM: €1.com CAREERS CONTACT cape.com STATS Chairman: Felipe Oriol Employer Type: Independent private company Employees: 11 investment professionals AuM: €400m STATS CEO: Fabien Prevost Employer Type: Subsidiary of Credit Agricole No.Vault Career Guide to Private Equity Corpfin Capital Marqués de Villamejor.7bn LOCATIONS Offices: Madrid LOCATIONS Offices: Paris CAREERS CONTACT firstname.lastname@example.org.
United Kingdom Tel +44 (0)20 7420 0755 www. Day Principal Investments 15-17 Grosvenor Gardens London SW1W 0BD. Jonathan Kaye & Kevin Street Employer Type: Independent private company Employees: 3 investment executives AuM: £250m (2008 target) STATS Head of private companies: Luke Bridgeman Employer Type: Specialist team of Dawnay.dawnayday.com Dawnay.darwinpe. Day Group Employees: 4 investment executives AuM: €1bn (access) LOCATIONS Offices: London LOCATIONS Offices: London CAREERS CONTACT contact@darwinpe. United Kingdom Tel +44 (0)20 7834 8060 www.Darwin Private Equity LLP 15 Bedford Street London WC2E 9HE.com STATS Founders: Derek Elliott.com 248 .
de DLJ Merchant Banking Partners 17 Columbus Courtyard London E14 4DA.shtml STATS Chief executive: Wilken Freiherr von Hodenberg Employer Type: Public company (Frankfurt Stock Exchange) No. United Kingdom Tel +44 (0)20 7883 1000 www.com/investment_management/private_equity/DLJ_merchant_ban king. Germany Tel +49 69 957 87 0 www.com 249 .Vault Career Guide to Private Equity Deutsche Beteiligungs AG Kleinen Wiesenau 1 60439 Frankfurt am Main.de CAREERS CONTACT dljmb-eu@credit-suisse. of employees: 17 professionals AuM: €520m STATS Chief Executive: Steven Rattner Employer Type: Subsidiary of Credit Suisse Employees: 14 LOCATIONS Offices: Frankfurt LOCATIONS Offices: London • New York • Los Angeles AuM: $6.csfb.8bn CAREERS CONTACT email@example.com.
uk STATS Chief Executive: Ross Marshall Employer Type: Independent private company Employees: 23 (15 investment professionals) AuM: £500m STATS Managing partners: Ken Landsberg and Tim Raffle No.com enquiries@ecipartners. Lancaster Place London WC2E 7EN United Kingdom Tel 020 7606 1000 www.dunedin. of employees: 14 professionals AuM: £500m LOCATIONS LOCATIONS Offices: Edinburgh • London Offices: London • Manchester CAREERS CONTACT CAREERS CONTACT firstname.lastname@example.org 250 .co.com ECI Partners Brettenham House.Dunedin Capital Partners 10 George Street Edinburgh EH2 2DW. United Kingdom Tel +44 (0)131 225 6699 www.
ei. 31st floor 00-113 Warsaw.lcf-rothschild.pl LOCATIONS Offices: Paris 251 . of employees: 53 (30 professionals) AuM: €1bn STATS Employer Type: Subsidiary of La Compagnie Financière Edmond de Rothschild Employees: 18 AuM: €506m (expansion. LBO.fr/fr/edrip/ Enterprise Investors Warsaw Financial Center Emilii Plater 53.com.com STATS Chairman: Robert Faris No. VC) LOCATIONS Offices: Warsaw CAREERS CONTACT info@ei. Poland Tel +48 22 458 85 00 www.Vault Career Guide to Private Equity Edmond de Rothschild Private Equity Partners Edmond de Rothschild Investment Partners 47 rue du Faubourg Saint-Honoré 75401 Paris Cedex 08 France Tel + 33 1 40 17 25 25 www.
n.com STATS Managing director: Ian Gallienne Employer Type: Backed by Groupe Bruxelles Lambert (GBL) and Parcom AuM: €500m STATS Managing director: Rodrigo Guimarães Employer Type: Independent private company Employees: 5 senior investment professionals AuM: €262m (2008) LOCATIONS Offices: Brussels • Milan LOCATIONS Offices: Lisbon CAREERS CONTACT explorer@explorerinvestments. º 26-8 º 1070-110 Lisboa.º Duarte Pacheco.explorerinvestments.Ergon Capital Partners Marnixlaan 24 1000 Brussels Belgium Tel +32 2 213 60 90 Explorer Investments Av. Eng. Portugal Tel +351 21 324 1820 www.com 252 .
expansion. france Tel +33 (0)1 53 93 51 51 www.4bn (VC.it FINAMA Private Equity 148 boulevard Haussmann 75008 Paris.Prudentia Fund Piazza Paolo Ferrari 6 Milano Italy Tel +3x 02 7200 2037 www. mezzanine and funds of funds) LOCATIONS Offices: Paris CAREERS CONTACT email@example.com STATS STATS Employer Type: Fund financed by consortium of 8 Italian banks Managing director: Stefano Scarpis AuM: €250m CEO: Pierre-Michel Deleglise Employer Type: Subsidiary of Groupama AuM: €1.finama-pe.fr 253 .Vault Career Guide to Private Equity Fidia SGR .fidiasgr.
Dublin. Ireland Tel +353 1 663 7630 www.fortis.ie CAREERS CONTACT info@fortisprivateequity.FL Partners Stradbrook House Stradbrook Road.com STATS STATS Managing partners: Peter Crowley and Neill Hughes Employer Type: Private Company Managing director: Luc Weverbergh Employer Type: Subsidiary of Fortis Bank Employees: 62 LOCATIONS Offices: Dublin LOCATIONS Offices: Brussels CAREERS CONTACT firstname.lastname@example.org Fortis Merchant Banking Montagne du Parc 3 1000 Brussels.flpartners. Belgium Tel +32 2 565 11 33 www.merchantbanking. Blackrock Co.com 254 .
gediberian.galacapital.com STATS STATS Managing directors: Jaime Bergel and Carlos Tejera Employer Type: Private equity vehicle for some of Spain’s wealthiest individuals AuM: €165m (2nd fund) with access to more capital Chief Executive: Enriques Centelles Echevarria Employer Type: Private Company Employees: 20 AuM: €300m LOCATIONS Offices: Spain • Bulgaria • Portugal • Romania 255 . Spain Tel +34 91 7022 255 www.Vault Career Guide to Private Equity Gala Capital Serrano 57 28006 Madrid Spain Tel +34 91 426 1900 www.com GED Private Equity Calle Hiedra 17B 28109 Madrid.
gipartners.GI Partners 5th Floor.com GIMV Karel Oomsstraat 37 2018 Antwerp Belgium Tel +32 3 290 21 00 www. of employees: 19 investment professionals AuM: €1.be 256 . United Kingdom Tel +44 (0)20 7034 1120 www. 35 Portman Square London W1H 6LR.gimv. Sticker: GIMB (Euronext) No.2bn LOCATIONS Offices: London • Menlo Park LOCATIONS Offices: Antwerp • Frankfurt • London • The Hague CAREERS CONTACT email@example.com STATS Chief Executive: Rick Magnuson Employer Type: Private Company Employees: 21 professionals (9 in Europe) AuM: $2bn STATS Executive Vice President Corporate Investment: Geert-Jan van Logtestijn Employer Type: Public company.
Greece Tel +30 210 720 8900 www.Vault Career Guide to Private Equity Global Equity Partners Mariahilfer Strasse 19-21 1060 Vienna .gep.at Global Finance 14 Filikis Eterias Square 10673 Athens.globalfinance. Michael Tojner Employer Type: Independent Private Company Employees: 30 AuM: €250m (private equity) STATS Managing Partner: Angelos Plakopitas Employer Type: Independent Private Company Employees: 24 professionals AuM: $300m LOCATIONS LOCATIONS Offices: Vienna • Lausanne • Munich Offices: Athens • Bucharest • Sofia CAREERS CONTACT CAREERS CONTACT office@gep. Austria Tel +43 1 581 83 90 www.gr 257 .gr STATS Founder and Management Board: Dr.at office@globalfinance.
40 Piccadilly.de 258 .gmtpartners. Green and Jeffrey D. Wolfgang Alvano Employer Type: Independent private firm Employees: 14 (8 professionals) AuM: €650m LOCATIONS Offices: London LOCATIONS Offices: Hamburg (For the UK.com Granville Baird Capital Partners Germany Haus am Hafen.GMT Communications Partners Sackville House.de STATS Managing partners: Timothy S.granvillebaird. see Baird Capital Partners Europe) CAREERS CONTACT info@gbcp. +49 40 37 48 02 10 www. of employees: 11 professionals AuM: €700m STATS Managing director: Dr. London W1J 0DR United Kingdom Tel +44 20 7292 9333 www. Montgomery Employer Type: Private company No. Steinhöft 5-7 20459 Hamburg Germany Tel.
greshampe.com Gresham Private Equity One South Place London EC2M 2GT United Kingdom Tel +44 (0) 20 7309 5000 www.2bn Chief Executive: Paul Marson-Smith Employer Type: Independent private company Employees: 22 AuM: £340m (Gresham 4 fund) LOCATIONS Offices: London • Birmingham • Manchester LOCATIONS Offices: London CAREERS CONTACT info@graphitecapital.Vault Career Guide to Private Equity Graphite Capital Berkeley Square House Berkeley Square London W1J 6BQ United Kingdom Tel +44 20 7825 5300 www. of employees: 16 investment professionals AuM: £1.graphitecapital.com STATS STATS Heads of investment team: Simon Ffitch & Andy Gray Employer Type: Independent private company No.com 259 .
no STATS Managing partners: Sami Mnaymneh & Tony Tamer Employer Type: European affiliate of H.ferdpe.I.25bn (~€800m) LOCATIONS LOCATIONS Offices: London • Hamburg • Paris • Atlanta • Boston • Miami • San Francisco Offices: Lysaker (moving to Oslo) CAREERS CONTACT firstname.lastname@example.org 260 .O Box 34 1324 Lysaker.I. Capital Employees: 13 senior professionals in Europe AuM: $4bn (worldwide) STATS Managing Partner: Gert W. Munthe Employer Type: Independent private firm No. European Capital Partners LLP 25 St. Norway Tel +47 67 10 80 00 www.com Herkules Capital (formerly Ferd Private Equity) Strandveien 50 P.G. George Street London W1S 1FS United Kingdom Tel +44 (0) 207 318 5700 www. of employees: 13 professionals AuM: NOK 6.G.higprivateequity.H.
Vault Career Guide to Private Equity Hermes Private Equity (direct investments) Lloyds Chambers 1 Portsoken Street London E1 8HZ United Kingdom Tel +44 (0)20 7680 2235 www. 3 28001 Madrid.co.es 261 .es STATS Founding Partner: Luis Chicharro Employer Type: Private company Employees: 26 (12 investment professionals) AuM: €1bn (2008) STATS Chief Executive: Rod Selkirk Employer Type: Subsidiary of Hermes Pensions Management No.hermes. Spain Tel +34 91 426 43 80 www.uk/hermes_private_equity Ibersuizas Marqués de Villamagna. of employees: 7 professionals AuM: £450m LOCATIONS Offices: Madrid • Barcelona • London • Luxembourg LOCATIONS Offices: London CAREERS CONTACT email@example.com.
4ª Planta 28006 Madrid. of employees: 17 (12 professionals) AuM: £300m LOCATIONS Offices: Madrid LOCATIONS Offices: London • Manchester CAREERS CONTACT firstname.lastname@example.org.Impala Capital Partners Pedro de Valdivia 10.com STATS Chairman: Carlos Guerrero Employer Type: Independent private company Employees: 9 investment professionals AuM: €215m (2007) STATS Managing partners: John Hartz & Simon Turner Employer Type: Private company No.com CAREERS CONTACT info@inflexion. Spain Tel +34 91 411 92 90 www.com 262 .com Inflexion Private Equity 43 Welbeck Street London W1G 8DX United Kingdom Tel: +44 20 7487 9888 www.
com/EN Investcorp Private Equity 48 Grosvenor Street London W1K 3HW United Kingdom Tel +44 20 7629 6600 www.com STATS Managing partners: Steve Buckley & Rob Conn Employer Type: Private company Employees: 8 investment professionals AuM: €500m STATS Head of Private Equity Europe: Steven Puccinelli Employees: 42 professionals (16 in London) AuM: $3. Poland Tel +48-22 583-9400 www.8bn CAREERS CONTACT email@example.com. Waliców 11 00-865 Warsaw. ul.Vault Career Guide to Private Equity Innova Capital Aurum Building.investcorp.com 263 .
ch 264 .ch STATS Chairman: Andrea C.invision. 4 20121 Milan. Postfach 2303 6302 Zug.investindustrial. Bonomi Employer Type: Independent private company Employees: 18 professionals AuM: €1bn (2008) STATS Managing Partner: Frank Becker Employer Type: Independent private company Employees: 8 investment professionals AuM: €300m LOCATIONS Offices: Milan • Barcelona • London • Luxembourg • Madrid CAREERS CONTACT info@invisio. Switzerland Tel +41 41 729 01 01 www.Investindustrial Via dei Bossi. Italy Tel +39 02 802 7761 www.com Invision Private Equity Industriestrasse 24.
uk STATS Managing partner: Wol Kolade Employer Type: Independent private company Employees: 31 (28 investment professionals) STATS Employer Type: Private equity arm of Iceland's Kaupthing Bank AuM: £500m LOCATIONS Offices: London • Birmingham • Leeds • Manchester AuM: £700m (2007) CAREERS CONTACT wol.co.kaupthingsingers. 100 Wood Street London EC2V 7AN United Kingdom Tel +44 (0)20 7506 5600 www.Vault Career Guide to Private Equity ISIS EP 2nd Floor.com 265 .firstname.lastname@example.org Kaupthing Capital Partners c/o Kaupthing Singer & Friedlander One Hanover Street London W1S 1AX United Kingdom Tel +44 20 3205 5000 www.
Belgium Tel +32 (0)2 429 36 45 www. Mrs. Floris Vansina Employer Type: Investment company of KBC Group Employees: 30 AuM: €450m (2008) STATS Managing director: Jean Cailliau Employer Type: Subsidiary of LVMH Employees: 14 (10 professionals) AuM: €590m LOCATIONS LOCATIONS Offices: Brussels • Bucharest • Budapest • Prague • Warsaw Offices: Paris CAREERS CONTACT email@example.com L Capital Management 18.KBC Private Equity NV Havenlaan 12 1080 Brussels.fr 266 . rue François Ier 75008 Paris Tel +33 (0)1 44 13 22 22 www.kbcpe.lvmh.com STATS Managing directors: Mr Philippe de Vicq.
Vault Career Guide to Private Equity Langholm Capital LLP 5th Floor.com LBO France 148 rue de l'Université 75007 Paris. France Tel +33 (0)1 40 62 77 67 www.5bn (2008) LOCATIONS Offices: London LOCATIONS Offices: Paris 267 .lbofrance. Christian Lorenzen Employer Type: Private Company Employees: 10 AuM: €250m STATS Chief Executive: Alain Aubry Employer Type: Independent private company Employees: 17 AuM: €3. UK Tel +44 (0)20 7747 7747 www.com STATS Managing Partners: Bert Wiegman. 16 Charles II Street London SW1Y 4QU.langholm.
c/o Fondsmæglerselskabet af 2004 A/S Vendersgade 28 1363 Copenhagen K Denmark Tel +45 33 36 89 89 www.ldequity.dk
3rd Floor, 45 Old Bond Street London W1S 4QT United Kingdom Tel +44 (0)20 7499 1500 www.ldc.co.uk
Managing partners: Christian Møller, Soren Møller, Lars Tønnesen Employer Type: Independent part of Fondsmæglerselskabet af 2004 A/S (FMS04) Employees: 18 investment professionals AuM: DKK 7.5bn (€1bn) in 2007 CEO: Darryl Eales Employer Type: Subsidiary of the Lloyds TSB Group Employees: 45 investment professionals AuM: £2bn
Offices: London • Birmingham • Bristol • Edinburgh • Leeds • Liverpool • Manchester • Newcastle upon Tyne • Reading • Southampton
Vault Career Guide to Private Equity
Lehman Brothers Merchant Banking
25 Bank Street, London E14 5LE United Kingdom www.lehman.com/im/pe/mb/
5th Floor, Bucklersbury House, 3 Queen Victoria Street London EC4N 8NH, United Kingdom Tel +44 (0) 20 7528 6456 www.legalandgeneralventures.com
Global Head: Charles Ayres No. of employees: 35 professionals AuM: ~€700m for Europe ($3.3bn globally for 4th fund)
Chief Executive: Adrian Johnson Employer Type: Private Company Employees: 3 partners AuM: £200m (5th fund)
Offices: London • New York • Hong Kong
Contact for Analyst Recruiting, Europe: Salonika Mitra
21 Grosvenor Place London SW1X 7HF, United Kingdom Tel +44 (0) 20 7201 2200 www.lioncapital.com
LODH Private Equity
Rue de la Corraterie 11 P.O. Box 5215 1211 Geneva 11 Switzerland Tel +41 (0)22 709 21 11
Managing Partner: Lyndon Lea Employer Type: Independent Private Company Employees: 19 AuM: €2.7bn
Employer Type: Private equity unit of Lombard Odier AuM: €493m (3rd fund)
CAREERS CONTACT LOCATIONS
Offices: London firstname.lastname@example.org
Vault Career Guide to Private Equity
Burleigh House, 357 The Strand London WC2R 0HS UK Tel +44 (20) 7632 2480 www.westpe.com
Bulevardi 1 A 00100 Helsinki, Finland Tel +358 9 131 011 www.mbfunds.fi
CEO: Philip Buscombe No. of employees: 10 investment professionals AuM: €300m Managing Partner: Juhani Suomela Employer Type: Independent private company No. of employees: 10 AuM: €270m (4th fund)
MCH Private Equity
Plaza de Colón 2, Torre I, Planta 15 28046 Madrid, Spain Tel +34 91 426 44 44 www.mch.es/eng/
Merrill Lynch Global Private Equity group
ML Financial Center Two King Edward Street London, EC1A 1HQ United Kingdom Tel +44-207-955-2000 http://gmi.ml.com/private
Managing directors: José María Muñoz & Mr. Jaime Hernández Soto Employer Type: Independent private company Employees: 12 (10 investment professionals) AuM: €250m
President/Group Head: Nathan C. Thorne Employer Type: PE investment arm of Merrill Lynch No. of employees: 19 senior professionals, of which 4 are in London
Offices: London • New York • Bangkok • Hong Kong • Tokyo • Sydney • São Paulo
Vault Career Guide to Private Equity
Mid Europa Partners
161 Brompton Road London SW3 1EX United Kingdom Tel +44 20 7886 3600 www.mideuropa.com
Mid Ocean Partners
Cardinal Place, 80 Victoria Street London SW1E 5JL United Kingdom Tel +44 (0)20 7821 4400 www.midoceanpartners.com
Managing Partner: Thierry Baudon Employer Type: Independent private company Employees: 19 (17 professionals) AuM: €2.7bn
Managing partner: Ted Virtue Employer Type: Independent private company Employees: 22 investment professionals AuM: $3bn
Offices: London •Budapest • Warsaw
Offices: London • New York
Netherlands Tel +31 573 28 98 88 www.com STATS Managing partner: Dr.milestone-capital. M.nl LOCATIONS Offices: London • Paris CAREERS CONTACT email@example.com. Peter H.nl Milestone Capital Partners 14 Floral Street London WC2E 9DH United Kingdom Tel +44 (0)20 7420 8800 www.com 274 .Middle Europe Investments Zwiepseweg 27 7240 GM Lochem. Winkelman Employer Type: Independent private company Employees: 75 STATS Managing partners: Bill Robinson and Erick Rinner Employer Type: Private company Employees: 12 AuM: €400m CAREERS CONTACT info@mei.
morganstanley.com STATS Chief Executive: Jean-Louis Delvaux Employer Type: Private equity arm of Natixis Employees: 250 (115 investment professionals) AuM: €3.Vault Career Guide to Private Equity Morgan Stanley Private Equity Europe 25 Cabot Square.natixis-pe. expansion.1bn (VC. LBO. France Tel +33 (0)1 58 19 20 00 www. fund of funds) STATS Managing directors: Graham KenistonCooper & Michael Hehn Employees: 40 worldwide (target) AuM: $6bn worldwide (target) LOCATIONS Offices: London • New York LOCATIONS Offices: France • Germany • Italy • Poland • Spain • China • India • Brazil 275 .com/privateequity Natixis Private Equity 5-7 rue de Monttessuy 75340 Paris Cedex 07. Canary Wharf London E14 4QA United Kingdom Tel +44 (0)20 7425 8000 www.
3º Dcha 28010 Madrid.nazca. Spain Tel +34 91 7000 501 www. Stellakis Employer Type: Subsidiary of the National Bank of Greece Employees: 26 AuM: €360m LOCATIONS Offices: Madrid LOCATIONS Offices: London • Athens CAREERS CONTACT firstname.lastname@example.org 276 .co. St.es NBGI Private Equity Old Change House.nbgipe.uk STATS Chairman: Miguel Canalejo Employer Type: Member of Fortis Private Equity Group Employees: 6 investment professionals AuM: €250m (2007) STATS Chairman & CEO: Pavlos C.Nazca Calle Fortuny 37. 128 Queen Victoria Street London EC4V 4BJ United Kingdom Tel +44(0)20 7661 5678 www.co.
Vault Career Guide to Private Equity Nikko Principal Investments 100 Pall Mall London SW1Y 5NN United Kingdom Tel +44 (0)20 7799 7700 www.npil.uk Nmas1 Private Equity Padilla.co. an independent Employer Type: Private company Employees: x investment professionals AuM: €850m (plan 2008) STATS CEO: Brian Berry Employer Type: Subsidiary of Nikko Employer Type: Cordial Corporation Employees: 30 professionals LOCATIONS Offices: London LOCATIONS Offices: Madrid • Barcelona CAREERS CONTACT email@example.com STATS Managing director: Federico Pastor Employer Type: Division of N+1.uk 277 . 17 28006 Madrid Tel +34 91 745 8484 www.
nomura.com/europe/services/mer chant_banking/private_equity Nordic Capital NC Advisory AB. 1 St Martins Le Grand London EC1A 4NP United Kingdom Tel +44 (0)20 7521 2000 www.5bn worldwide) Managing directors: Robert Andreen. Morgan Olsson Employer Type: Private Company Employees: 17 investment professionals AuM: €4bn LOCATIONS LOCATIONS Offices: London Offices: Stockholm • Copenhagen • Helsinki 278 . Stureplan 4A 114 35 Stockholm.Nomura Private Equity Nomura House.nordiccapital. Sweden Tel +46 8 440 50 50 www.com STATS STATS Head: Andrew Healey Employer Type: Subsidiary of Nomura Employees: 7 investment professionals (United Kingdom) AuM: £300m ($4.
3bn in private equity only (2008) LOCATIONS Offices: Munich CAREERS CONTACT info@nordwindcapital. Hans Albrecht Employer Type: Private Company Employees: 9 AuM: €300m STATS Managing principal: John Frank Employer Type: Private Company Employees: 174 investment professionals globally (9 in European private equity) AuM: $8.nordwindcapital. Germany Tel +49 89 29 19 58-0 www.Vault Career Guide to Private Equity Nordwind Capital Residenzstraße 18 80333 Munich.oaktreecapital.com 279 .com LOCATIONS Offices: Los Angeles • London • Frankfurt • Luxembourg • New York • Stamford • Beijing • Hong Kong • Seoul • Shanghai • Singapore • Tokyo CAREERS CONTACT firstname.lastname@example.org STATS Managing director: Dr.de Oaktree Capital Management 27 Knightsbridge London SW1X 7LY United Kingdom Tel +44 (0)20 7201 4600 www.
Germany Tel +49 (0) 30 20 17 23-0 www.com 280 .de Olivant 2 Basil Street London SW3 1AA United Kingdom Tel +44 (0) 20 7225 4100 www.Odewald & Compagnie Französische Straße 8 10117 Berlin.com STATS Founder and managing partner: Dr.olivant. Jens Odewald Employer Type: Private Company Employees: 7 senior investment professionals AuM: €1bn STATS Chairman: Luqman Arnold Employees: 16 investment professionals LOCATIONS LOCATIONS Offices: Berlin Offices: London • Singapore CAREERS CONTACT email@example.com.
No.com Orlando Management GmbH Am Platzl 4 80331 Munich Germany Phone: +49 89 29 00 48 .com 281 .com CAREERS CONTACT firstname.lastname@example.org@oneequity.Vault Career Guide to Private Equity One Equity Partners Taunusanlage 21 60325 Frankfurt am Main Germany Tel +49 69 50 60 74 70 www.50 www.orlandofund. Henrik Fastrich and three other partners Employer Type: Private Company Employees: 5 investment professionals AuM: €420m LOCATIONS Offices: Frankfurt • Chicago • New York LOCATIONS Offices: Munich CAREERS CONTACT oep. Jr. of which 10 are in Germany AuM: $5bn STATS Partners: Dr. of employees: 38 professionals.com STATS President: Richard (Dick) M. Employer Type: PE investment arm of JPMorgan Chase & Co.oneequity. Cashin.
Elson Employer Type: Private Company Employees: 14 investment professionals AuM: €1. 33 King Street London SW1Y 6RJ United Kingdom Tel +44 (0)20 7766 2000 www.com Pamplona Capital Management 25 Park Lane London W1K 1RA United Kingdom Tel +44 20 7079 8000 www. of employees: 15 professionals AuM: €1.Palamon Capital Partners Cleveland House.pamplonafunds. Michael Hoffman.1bn STATS Chief executive: Alex Knaster No.com 282 .palamon.3bn (2nd fund) LOCATIONS Offices: London LOCATIONS Offices: London CAREERS CONTACT email@example.com STATS Managing partners: A. Louis G.
com STATS STATS Managing director: Erik Westerink A member of ING Group Employees: 22 (12 professionals) AuM: €750m CEO: Hélène Ploix Employer Type: Independent private company Employees: 5 senior investment professionals AuM: €250m LOCATIONS Offices: Hilversum • Paris (ING Parcom) LOCATIONS Offices: Paris CAREERS CONTACT contact@pechel. rue du Faubourg Saint-Honoré 75008 Paris.parcom.Vault Career Guide to Private Equity Parcom Olympia 4c 1213 NT Hilversum The Netherlands Tel +31 35 646 44 40 www. www.com 283 .parcomventures.pechel.nl.fr Pechel Industries 162. France Tel +33 (1) 5659 7959 www.
com 284 . Torquil Macnaughton.com firstname.lastname@example.org STATS Founding partners: David Calder.pentacapital.phoenix-equity.com Phoenix Equity Partners 33 Glasshouse Street London W1B 5DG United Kingdom Tel +44 (0)20-7434 6999 www.Penta Capital Partners 150 St Vincent Street Glasgow G2 5NE United Kingdom Tel +44 (0)141-572 7300 www. Mark Phillips & Steven Scott Employer Type: Independent private company Employees: 6 investment professionals AuM: £194 million (2007) STATS Managing Partner: Hugh Lenon Employer Type: Independent private company Employees: 18 (16 investment professionals) AuM: £900m LOCATIONS LOCATIONS Offices: Glasgow • London Offices: London CAREERS CONTACT CAREERS CONTACT info@pentacapital.
com STATS STATS Managing partners: Mr. Mr.pm-partners. Andrea Mugnai Employer Type: Private Company Employees: 8 investment professionals AuM: €215m Chief Executive: Mr.ppmcapital.Vault Career Guide to Private Equity PM Partners via San Damiano No. Neil MacDougall Employer Type: Independent Private Company Employees: 50 (27 professionals) AuM: £600m LOCATIONS LOCATIONS Offices: Milano Offices: London • Munich • Paris • Chicago 285 .it PPM Capital 1 New Fetter Lane London EC4A 1HH. United Kingdom Tel +44 (0)20 7822 1000 www. 11 20122 Milano Italy Tel +39 02 76011887 www. Francesco Panfilo.
France Tel +33 (0)1 58 36 49 50 www.pragma-capital.com STATS Chief Executive: Christophe Ramoisy Employer Type: Private Company Employees: 9 investment professionals AuM: €500m STATS Chief executive: Charles Gonszor Employer Type: Independent Private Company Employees: 12 (9 investment professionals) AuM: £361 million LOCATIONS Offices: Paris LOCATIONS Offices: London CAREERS CONTACT email@example.com. Austin Friars London EC2N 2HA United Kingdom Tel +44 (0)20 7920 4800 www.com Primary Capital Augustine House.com 286 .Pragma Capital 13 avenue Hoche 75008 Paris.
com STATS CEO: Jonathan M.com Quadrangle Capital Partners Quadrangle Group Europe Ltd 15 Conduit Street London W1S 2XJ United Kingdom Tel +44 (0)20 7317 3800 www.com 287 .Vault Career Guide to Private Equity Providence Equity 28 St George Street London W1S 2FA United Kingdom Tel +44 (0)20-7514 8800 www. of employees: 40 investment professionals AuM: $6bn (about half in PE) LOCATIONS Offices: London • New York • Providence (HQ) • Hong Kong • New Delhi LOCATIONS Offices: New York • Palo Alto • London CAREERS CONTACT firstname.lastname@example.org. Nelson Employer Type: Independent Private Company Employees: 67 investment professionals (19 in the UK) AuM: $21bn worldwide STATS Managing principal Europe: Gordon Holmes Employer Type: Private company No.uk CAREERS CONTACT email@example.com.
quilvest.com 288 .de Quilvest Private Equity 243. France Tel +33 (0)1 40 62 07 54 www. Michel Abouchalache Employees: 28 investment professionals AuM: $1bn (including funds of funds) STATS Managing partner: Dr. +49 69 795 000-0 www.com STATS CEO: F. Andreas Fendel Employer Type: Private company Employees: 8 investment professionals AuM: €525m (3rd fund) LOCATIONS Offices: Paris • London • Luxembourg • Zurich • New York CAREERS CONTACT firstname.lastname@example.org.Quadriga Capital Services GmbH Hamburger Allee 4 60486 Frankfurt Germany Tel. boulevard Saint-Germain 75007 Paris.de CAREERS CONTACT info-pe@quilweb.
Agostinelli & M.com 289 . 75008 France Tel +1 (212) 218 6770 email@example.com RJD Partners 8/9 Well Court London EC4M 9DN United Kingdom Tel +44 20 7050 6868 www. Steven Langman Employer Type: Independent private company AuM: ~$800m (Rhône Capital Partners III) LOCATIONS Offices: London LOCATIONS Offices: London • Paris • New York CAREERS CONTACT Info: karen.Vault Career Guide to Private Equity Rhone Capital (Rhone Group) 5 Princes Gate London SW7 1QJ United Kingdom 9-11 Rue Montalivet Paris.com STATS Chief Executive: David MacLellan Employer Type: Private company Employees: 9 professionals AuM: £180m (2nd fund) STATS Managing partners and founders: Robert F.rjdpartners.rhonegroup.
com 290 .Royal Bank of Scotland Equity Finance 135 Bishopsgate London EC2M 4RB United Kingdom Tel +44 (0)20 7085 2256 www.com STATS Employees: 25 investment professionals AuM: £2.rutlandpartners.com Rutland Partners Rutland House Rutland Gardens London SW7 1BX United Kingdom Tel +44 20 7556 2600 www.rbs.2bn STATS Chairman: Michael Langdon Employer Type: Private company Employees: 11 professionals AuM: £530m LOCATIONS Offices: London CAREERS CONTACT info@rutlandpartners.
Vault Career Guide to Private Equity Santander Private Equity Paseo de la Castellana.santanderprivateequity. 7 28046 Madrid.35bn (~€300m) LOCATIONS Offices: Madrid LOCATIONS Offices: Stockholm 291 .se STATS Managing director: Luis Abraira de Arana Employer Type: Subsidiary of Santander Employees: 6 professionals AuM: €320m STATS Managing partner: Christian Sievert Employer Type: Private company Employees: 8 professionals AuM: SEK 2. Spain Tel +34 91 342 68 96 www.segulah.com Segulah Styrmansgatan 2 114 84 Stockholm Sweden Tel +46 8 442 8950 www.
com.sigmableyzer.8bn (VC.com STATS Global Heads: Jean Grimaldi.sgam-ai.SGAM Private Equity 170. Place Henri Regnault Paris La Defense 6. Corinne Ferrière Employer Type: Subsidiary of Societe Generale Employees: 55 investment professionals AuM: €1.com SigmaBleyzer 21 Pushkinskaya Street. 01004 Ukraine Tel +380 44 244-94-87/89 www. office 40 Kiev. expansion & LBO. specialised) STATS Recruiting Manager: Alina Martynenko. funds of funds. firstname.lastname@example.org President & CEO: Michael Bleyzer Employees: 16 AuM: €250m (4th fund) LOCATIONS LOCATIONS Offices: Paris • Bucharest • London • Milan • Munich • Warsaw Offices: Kiev • Astana • Bucharest • Kharkov • Sofia 292 . France Tel +33 (0) 56 37 80 00 www.
8bn (2nd fund) STATS Chairman: Peter Smedvig Employer Type: Independent private company Employees: 9 investment professionals AuM: £300m LOCATIONS Offices: Menlo Park (HQ) • London • New York • San Francisco LOCATIONS Offices: London CAREERS CONTACT email@example.com STATS Director Europe: Axel Holtrup Employer Type: Private company Employees: 80 AuM: €2.com 293 .com Smedvig Capital 20 St James's Street London SW1A 1ES United Kingdom Tel +44(0)20 7451 2100 www. 28 King Street London SW1Y 6QW United Kingdom Tel +44 (0)20 70 24 72 00 www.smedvigcapital.silverlake.Vault Career Guide to Private Equity Silver Lake Almack House.
uk STAR Capital Partners 6th Floor.star-capital.Sovereign Capital 25 Buckingham Gate London SW1E 6LD United Kingdom Tel +44 20 7828 6944 www.com 294 .com STATS Managing partners: Andrew Hayden & Ryan Robson Employer Type: Independent private company Employees: 17 investment professionals AuM: £450m STATS CEO: Tony Mallin Employer Type: Independent private company Employees: 15 investment professionals AuM: €1bn LOCATIONS LOCATIONS Offices: London Offices: London CAREERS CONTACT CAREERS CONTACT firstname.lastname@example.org mail@star-capital. 33 Cavendish Square London W1G 0PW United Kingdom Tel +44 (0)20-7016 8500 www.sovereigncapital.
htm Sun European Partners 6 Gracechurch Street. 4th Floor London EC3V 0AT United Kingdom Tel +44 20 7929 5906 www.stirlingsquare. of employees: 19 (130 worldwide) AuM: $10bn (worldwide) STATS Managing partner: 6 partners Employer Type: Private company Employees: 7 professionals AuM: €200m LOCATIONS Offices: London • Boca Raton • Los Angeles • New York • Shenzhen • Tokyo LOCATIONS Offices: London CAREERS CONTACT email@example.com STATS Managing Director: Philip A.Vault Career Guide to Private Equity Stirling Square Capital Partners Liscartan House (4th Floor) 127-131 Sloane Street London SW1X 9AS United Kingdom Tel +44 (0)20 7808 4130 www.suncappart.com/stirlingsquareca pitalpartners. Dougall Employer Type: European arm of Sun Capital No.com 295 .
taroscapital. 21th floor Claude Debussylaan 46 1082 MD Amsterdam Netherlands Tel +31 20 4041221 www. Ajit Nedungadi Employer Type: Private Company Employees: 65 (50 investment professionals) AuM: $10bn STATS Managing partners: Paul Lamers & Alexander van Wassenaer Employer Type: Private company Employees: 6 senior professionals AuM: €550m LOCATIONS Offices: London • Boston • Menlo Park LOCATIONS Offices: Amsterdam • Antwerp • Frankfurt CAREERS CONTACT firstname.lastname@example.org 296 .ta.com Taros Capital Viñoly tower.com STATS Managing partner in London: Mr.TA Associates 25 Knightsbridge London SW1X 7RZ United Kingdom Tel +44 (0)20 7823 0200 www.
tcrcapital.com STATS Managing partner: Marc Demicheli Employer Type: Private Company Employees: 7 senior professionals AuM: €300m STATS Founding partners: Manjit Dale & Stephen Robertson Employer Type: Private Company Employees: 17 professionals AuM: €2. France Tel +33 (0)1 53 81 77 81 www.com TDR Capital One Stanhope Gate London W1K 1AF United Kingdom Tel +44 (0)20 7399 4200 www.tdrcapital.6bn LOCATIONS Offices: Paris LOCATIONS Offices: London 297 .Vault Career Guide to Private Equity TCR Capital 5 rue Paul Cézanne 75008 Paris.
towerbrook. of employees: 28 (16 investment professionals) AuM: $2bn (world) STATS Co-CEOs: Ramez Sousou (London) & Neal Moszkowski (New York) Employer Type: Private Company Employees: 28 investment professionals AuM: $2.com TowerBrook Capital Partners 83 Pall Mall London SW1Y 5ES United Kingdom Tel +44 (0)20 7451 2002 www.com STATS Managing Partner: Antonio Cabral Employer Type: Private company No. Germany Tel +49 89 242 248 90 www. Europe After Hof 5 80331 Munich.5bn LOCATIONS Offices: Munich • Amsterdam • Brussels • Budapest • Madrid • Prague • Stockholm • Warsaw • Atlanta • Chicago • Cleveland • Dallas • Los Angeles • New York • San Francisco • Tokyo LOCATIONS Offices: London • New York 298 .The Riverside Company.riversideeurope.
5th fl.Vault Career Guide to Private Equity Triton Advisors 105 Piccadilly.triton-partners.com Valanza Pº Recoletos.1bn (second fund) General Manager: Francisco Esteve Employer Type: Private equity subsidiary of BBVA AuM: €1. London W1J 7NJ United Kingdom Tel +44 (0)20 7297 6150 www.4bn 299 . 10 ala norte 28001 Madrid Spain Tel +34 91 374 3271 STATS STATS Employer Type: Private Company AuM: €1.
Europe: Robert L.Veronis Suhler Stevenson International Ltd. Rond Point Des Champs Elysees 75008 Paris. Rosner Employer Type: Private company Employees: 56 (13 investment professionals in Europe) AuM: $7bn STATS London Partner: Marco Sodi No. France Tel +33 (0)1 58 56 60 10 www.vss.com Vestar Capital Partners 1.3bn (4th fund) LOCATIONS LOCATIONS Offices: London • New York Offices: Paris • Milan • Munich • Boston • Denver • New York • Tokyo 300 .vestarcapital. James's Square London SW1Y 4JU United Kingdom Tel +44 20 7484 1400 www. Buchanan House 3 St.com STATS President. of employees: 56 (30 professionals) AuM: $1. 8th Floor.
Michael Risman. Toby Wyles Employer Type: Independent private company Employees: 9 senior professionals AuM: €424m (2007) LOCATIONS Offices: London 301 .vitruvianpartners.Vault Career Guide to Private Equity Vista Capital C/ Serrano 67 28006 Madrid Spain Tel +34 914 360 606 Vitruvian Partners 53 Davies Street London W1K 5JH United Kingdom Tel + 44 (0)20 7152 6503 www.com STATS CEO: Ignacio Moreno Employer Type: Private equity subsidiary of Santander and RBS (50/50) AuM: unknown STATS Managing partners: Ian Riley.
694 1680 www.warburgpincus.com Waterland Private Equity Investments Nieuwe 's-Gravelandseweg 17 1405 HK Bussum The Netherlands Tel +31 (0)35 .Warburg Pincus Almack House.waterland.nu/UK STATS Managing partners: Charles R. Landy Employees: Private Company Employees: 160 deal professionals AuM: ~$15bn STATS Managing partner and founder: Rob Thielen Employees: Independent Private Company AuM: €625m LOCATIONS Offices: London • Frankfurt • New York • San Francisco/Menlo Park • Beijing • Hong Kong • Mumbai • Seoul • Shanghai • Tokyo LOCATIONS Offices: Bussum • Antwerpen-Berchem • Dusseldorf CAREERS CONTACT info@waterland. Kaye & Joseph P.nu 302 . 28 King Street London SW1Y 6QW United Kingdom Tel +44 (0)20 7306 0306 www.
rue La Boetie 75008 Paris.wendel-investissement.com STATS STATS Managing Partner: Serge Weinberg Employer Type: Independent private company Employees: 11 investment professionals AuM: €420m Chief Executive: Jean-Bernard Lafonta Employer Type: Public company (Euronext Paris. code MF) Employees: 30 (16 investment professionals) AuM: €6. France Tel +33 (0)1 42 85 30 00 www.Vault Career Guide to Private Equity Weinberg Capital Partners 11.com Wendel Investissement 89.8bn LOCATIONS Offices: Paris LOCATIONS Offices: Paris CAREERS CONTACT contact@weinbergcapital. France Tel +33 1 53 53 55 00 www.com 303 .weinbergcapital. rue Taitbout 75009 Paris.
Varun Sood Employer Type: Independent Private Company Employees: 11 investment professionals AuM: >€1bn STATS Managing directors: David Wilmot & Adam Eifion-Jones Employer Type: Subsidiary of Babson Capital Management LLC Employees: 5 senior investment professionals AuM: €800m (Almack Mezzanine) LOCATIONS Offices: Zurich • Bangalore LOCATIONS Offices: London 304 .com Capvent AG Dufourstrasse 24 8008 Zurich. Switzerland Tel +41 43 500 50 70 www.MEZZANINE FUNDS Babson Capital Europe.babsoncapitaleurope.com STATS Founders and Managing partners: Tom Clausen.capvent. Almack Mezzanine 61 Aldwych London WC2B 4AE United Kingdom Tel +44 20 3206 4500 www.
Vault Career Guide to Private Equity DAM Capital 26-28 rue Edward Steichen.com STATS Co-CEOS: Dirk van Daele & Robert Wardrop Employer Type: Subsidiary of Anschutz Investments AuM: ~€1bn STATS Senior Managing Director – Europe: Robert D. Central Europe Mezzanine Fund Dr. Bâtiment C PO Box 464 L-2014 Luxembourg Tel +352 34 00 29 1 Darby Overseas Investments. Graffam Employer Type: Private equity arm of Franklin Templeton Investments Employees: 9 professionals in Europe AuM: €300m LOCATIONS Offices: Luxembourg • London • Milan CAREERS CONTACT email@example.com. Karl Lueger-Ring 10 1010 Vienna Austria Tel +43 1 53226 5510 www.com LOCATIONS Offices: Vienna • Budapest • Warsaw 305 .
euromezzanine.EuroMezzanine 11 Rue Scribe 75009 Paris. France Tel +33 (0) 1 5330 2330 www.huttoncollins.com Hutton Collins & Company 50 Pall Mall London SW1Y 5JH United Kingdom Tel +44 (0)20 7004 7000 www.com STATS Managing directors: Thierry Raiff & Louis Vaillant Employer Type: Private Company Employees: 10 investment professionals AuM: €660m (6th fund) STATS Founders and Managing partners: Matthew Collins & Graham Hutton Employer Type: Private Company Employees: 12 investment professionals AuM: €550m (2nd fund) LOCATIONS Offices: Paris LOCATIONS Offices: London 306 .
Vault Career Guide to Private Equity IFE Mezzanine 41 avenue George V 75008 Paris France Tel +33 1 56 52 02 40 www.indigo-capital.ifefund.com Indigo Capital 25 Watling Street London EC4M 9BR United Kingdom Tel +44 (0)20 7710 7800 www.com STATS Managing partner: Régis Mitjavile Employees: 7 professionals AuM: €300m STATS Managing director: Martin Stringfellow & three other directors Employer Type: Private Company Employees: 14 AuM: €550m (5th fund) LOCATIONS Offices: Paris LOCATIONS Offices: London • Paris 307 .
mezzmanagement.nordicmezzanine. of employees: about 11 investment professionals (2007) AuM: €376m Managing partners: Pekka Hietaniemi.com Nordic Mezzanine Limited Aleksanterinkatu 15 A 00100 Helsinki.com STATS STATS Founding Partner and Executive Director: Franz Hoerhager No.Mezzanine Management Central Europe Kohlmarkt 5/6 1010 Vienna.com 308 . Finland Tel +358 9 6840 640 www. Austria Tel +43 1 532 89 90 www. of employees: 10 AuM: €363m (2008) LOCATIONS LOCATIONS Offices: Vienna • Bucharest • Budapest • Warsaw Offices: Helsinki • London • Frankfurt CAREERS CONTACT office@mezzmanagement. Pekka Sunila & Vesa Suurmunne Employer Type: Private company No.
Vault Career Guide to Private Equity Novum Capital An der Welle 4 60322 Frankfurt.3bn (mezzanine and credit) LOCATIONS Offices: Frankfurt • London LOCATIONS Offices: London • Guernsey • Luxembourg 309 . Germany Tel +49 (0)69 7593 7995 www.parksquarecapital.novumcapital. W1J 8AJ United Kingdom Tel 020 7529 1800 www.com STATS Founders and Managing partners: Felix Hölzer & Björn Pirrwitz Employer Type: Private Company Employees: 4 investment professionals STATS Managing Partner: Robin Doumar Employees: 14 professionals AuM: €2.co. Devonshire House Mayfair Place London.uk Park Square Capital 6 th Floor.
DISTRESSED FUNDS Butler Capital Partners 30.com www.butlercapitalpartners.epicprivateequity. cours Albert 1er 75008 Paris. France Tel +33 (0)1 45 61 55 80 www.com EPIC Private Equity 22 Billiter Street London EC3M 2RY United Kingdom Tel +44 (0) 20 7553 2340 STATS Founder and managing partner: Walter Butler Employer Type: Private Company Employees: 12 AuM: ~€500m STATS Chief Executive: Giles Brand Employer Type: Subsidiary of Epic Investment Partners AuM: £125m LOCATIONS Offices: Paris LOCATIONS Offices: London 310 .
kelsoplace.com STATS Co-founder: John Drinkwater & Sion Kearsey Employer Type: Private Company Employees: 9 investment professionals AuM: £100m (third fund) LOCATIONS Offices: London 311 . Martin's Lane London WC2N 4BA United Kingdom Tel +44 (0) 20 7836 0000 www.Vault Career Guide to Private Equity Kelso Place 110 St.
Germany Tel +49 (0)89 55 06 96-0 www.SECONDARY FUNDS Cipio Partners Palais am Lenbachplatz.com www.collercapital.5bn LOCATIONS Offices: Munich • San Jose LOCATIONS Offices: London • New York CAREERS CONTACT firstname.lastname@example.org 312 . Ottostrasse 8 80333 Munich.cipiopartners.com CAREERS CONTACT email@example.com Coller Capital 33 Cavendish Square London W1G 0TT United Kingdom Tel +44 (0)20 76 31 8500 STATS Chief executive: Werner Dreesbach Employer Type: Private company Employees:13 investment professionals STATS Founder and managing partner: Jeremy Coller Employees: 102 AuM: $3.
greenparkcapital.com Lexington Partners UK 42 Berkeley Square London W1J 5AW United Kingdom Tel +44 (0)20 73 18 08 88 www.Vault Career Guide to Private Equity Greenpark Capital Limited 57-59 St James's Street London SW1A 1LD United Kingdom Tel +44 (0)20 7647 1400 www.com CAREERS CONTACT ewilde@lexpartners. Parke Employees: 45 AuM: €5bn ($12bn worldwide) LOCATIONS Offices: London LOCATIONS Offices: London • Boston • Menlo Park • New York (HQ) CAREERS CONTACT firstname.lastname@example.org 313 .com STATS CEO and Principal Founder: Marleen Groen Employees: 16 (8 professionals) STATS Managing Partner Europe: Marshall W.
nova-cap. about half in buyout and growth secondaries LOCATIONS Offices: London • Essex (US) LOCATIONS CAREERS CONTACT info@nova-cap. Mellier House 26a Albemarle Street London W1S 4HY United Kingdom Tel +44 (20) 7514 0750 www.com Offices: London • Paris • New York (HQ) • San Francisco • Toronto 314 .com STATS Founder & Managing Director: David Williamson Employees: 18 professionals AuM: €600m STATS Founder: Philip S.com Paul Capital 4th Floor. Paul Employer Type: Independent private company Employees: 60 professionals AuM: $4bn in total.paulcapital.Nova Capital 11 Strand London WC2N 5HR United Kingdom Tel +44 (0)20 7389 1540 www.
Vault Career Guide to Private Equity Pomona Capital 16 Hanover Square London W1S 1HT United Kingdom Tel +44 (0)20 74 08 94 33 www.com Vision Capital 54 Jermyn Street London SW1Y 6LX United Kingdom Tel +44 (0)20 7389 6410 STATS STATS Founder and CEO: Michael Granoff Employer Type: Private company (strategic partnership with ING) Employees: 17 AuM: €850m ($4bn worldwide) Chief Executive: Julian Mash Employer Type: Private company Employees: 18 (13 investment professionals) AuM: €600m LOCATIONS CAREERS CONTACT email@example.com 315 .com Offices: London CAREERS CONTACT firstname.lastname@example.org.
1bn STATS Chief Executive: T.FUND OF FUNDS Access Capital Partners 121. Bondurant French Employer Type: Private Company Employees: 80 AuM: $15bn LOCATIONS LOCATIONS Offices: Paris • Brussels • Munich Offices: Chicago (HQ) • London • Menlo Park • Singapore CAREERS CONTACT acp@accesscp. avenue des Champs-Elysées 75008 Paris France Tel +33 1 56 43 61 00 www.com STATS Chairman & Managing Partner: Dominique Peninon Employer Type: Private company Employees: 27 (12 investment professionals) AuM: €2.7823.com 316 .adamsstreetpartners.com Adam Street Partners 20 Grosvenor Place London SW1X 7HN United Kingdom Tel +44 (0) 20.access-capital-partners.0640 www.
Jaeggi & Bruno E. André P.com 317 .aigprivateequity. Switzerland Tel +41 (0)43 288 32 00 www.com CAREERS CONTACT email@example.com STATS Board of directors: Allan S.com AIG Private Equity Baarerstrasse 8 CH-6300 Zug Switzerland Tel +41 41 710 70 60 www. Raschle Employer Type: Independent private company AuM: $3bn (2007) STATS Chairman: Eduardo Leemann Employer Type: Public company (listed APEN on SWX) AuM: CHF 600m (out of $27bn worldwide) LOCATIONS Offices: Zurich • Frankfurt • New York • Beijing LOCATIONS Offices: Zug CAREERS CONTACT info@adveq. Bufferd.Vault Career Guide to Private Equity Adveq Management AG Affolternstrasse 56 CH-8050 Zurich.adveq.
Switzerland Tel +41 43 244 30 00 www.com STATS Chief Executive: Peter Derendinger Employer Type: Private Company Employees: 16 AuM: ~€500m STATS President: Claudio Aguirre Peman Employer Type: Independent private company Employees: 14 professionals Offices: Madrid AuM: €655m (2007) LOCATIONS Offices: Zurich CAREERS CONTACT firstname.lastname@example.org Altamar Private Equity Paseo de la Castellana 31 28046 Madrid. P.O.altamarcapital.ALPHA Associates Talstrasse 66. Spain Tel +34 91 310 7230 www.alpha-associates.com 318 . Box 2038 8022 Zurich.
Vault Career Guide to Private Equity Amanda Capital Plc Aleksanterinkatu 15 A.fi ATP Private Equity Partners Sjaeleboderne 2 DK-1122 Copenhagen Denmark Tel +45 33 19 30 70 www. PO Box 896 00101 Helsinki Finland Tel +358 9 6829 600 www.6bn STATS Managing partner: Torben Vangstrup No.com STATS Employer Type: Public company (HSE) AuM: €1.atp-pep. of employees: 16 AuM: €3bn LOCATIONS Offices: Helsinki LOCATIONS Offices: Copenhagen • New York CAREERS CONTACT email@example.com 319 .
bregal.com STATS Co-Chairmen: Louis Brenninkmeijer & Yves de Balmann Employees: 11 investment professionals AuM: €3bn STATS Executive Partner: Constantin von Dziembowski Employer Type: Independent private fund of funds No.com CAM Private Equity Consulting & VerwaltungsGmbH Zeppelinstr.com Offices: Cologne • Munich • Zurich CAREERS CONTACT cologne@cam-pe. of employees: 38 AuM: €2.Bregal Investments 2-5 Old Bond Street 4th floor London.com 320 . W1S 4PD United Kingdom Tel + 44 207 408 1663 www.camprivateequity. Germany Tel +49 221-93 70 85-0 www. 4–8 50667 Cologne.7bn LOCATIONS Offices: London • Jersey • New York LOCATIONS CAREERS CONTACT management@bregal.
capitalz.com Capital Z Investments Partners 84 Brook Street London W1K 5EH United Kingdom Tel +44 (0)20 7866 6133 www.25bn LOCATIONS Offices: Zug • Birmingham • London • New York • San Francisco • Hong Kong LOCATIONS Offices: London • New York • Hong Kong 321 .Vault Career Guide to Private Equity Capital Dynamics Bahnhofstrasse 22 6301 Zug Switzerland Tel +41 41 748 84 44 www. of employees: 90 professionals AuM: $20bn STATS Chief Executive: Laurence Cheng Employer Type: Private Company Employees: 15 AuM: $2.com/czip/index.capdyn.html STATS Managing Director: Thomas Kubr Employer Type: Independent private company No.
com Danske Private Equity Partners Ny Kongensgade 10 1472 Copenhagen K.7bn LOCATIONS Offices: Helsinki • Copenhagen • Guernsey • Oslo • Stockholm LOCATIONS Offices: Copenhagen CAREERS CONTACT info@danskeprivateequity. listed on HSE Employees: 80 (28 in buyout team) AuM: >€1.3bn STATS Managing Partner: John Danielsen Employer Type: Part of Danske Bank Group Employees: 19 (11 investment professionals) AuM: €1. Denmark Tel +45 33 44 63 00 www.com STATS CEO: Heikki Westerlund Employer Type: Subsidiary of CapMan Plc.Capman Korkeavuorenkatu 32 00130 Helsinki Finland Tel +358 9 6155 800 www.danskeprivateequity.capman.com 322 .
Finland Tel +358 9 680 36 80 www. Juha Marjosola Employer Type: Government owned Employees: 18 AuM: €360m Chairman & CEO: Charles Soulignac Employer Type: Independent private company Employees: 15 AuM: €1.fondinvest.com STATS STATS Managing director: Mr.com Fondinvest Capital 33 rue de la Baume 75008 Paris.5bn LOCATIONS Offices: Helsinki LOCATIONS Offices: Paris • San Francisco • Tokyo CAREERS CONTACT tesi@teollisuussijoitus. France Tel +33 (0)1 58 36 48 00 www.Vault Career Guide to Private Equity Finnish Industry Investment PO Box 685 00101 Helsinki.industryinvestment.com 323 .fi CAREERS CONTACT mailbox@fondinvest.
com 324 .warren@gartmore. 8 Fenchurch Place London EC3M 4PB United Kingdom Tel +44 (0)20 77 82 21 91 www.9bn (2007) STATS Chief executive: Dr.com info@globalvision-ag. jur. Germany Tel +49 (0) 69 978 400 05 www. Dieter Brender Employer Type: Private Company AuM: €280m LOCATIONS LOCATIONS Offices: London Offices: Frankfurt CAREERS CONTACT CAREERS CONTACT lucy.Gartmore Private Equity Gartmore House.globalvision-ag.com STATS Managing director: Peter Gale Employer Type: Department of Gartmore Investment Management Employees: 14 AuM: €2.gartmore.com/uk/privateequity Global Vision Private Equity Westendstraße 16 – 22 60325 Frankfurt.
com Offices: London • Boston (HQ) • Hong Kong 325 .harbourvest.1bn STATS Managing directors: Edward W.com HarbourVest International Partners Berkeley Square House. Kane & Brooks Zug Employer Type: Independent Private Company Employees: 164 (63 investment professionals) AuM: €2.38bn (latest European fund) LOCATIONS Offices: Munich • Luxembourg • San Francisco LOCATIONS CAREERS CONTACT firstname.lastname@example.org STATS Managing director and founder: Jeremy Golding Employer Type: Independent private fund of funds No. 8th Floor. of employees: 26 AuM: €1. Berkeley Square London W1J 6DB United Kingdom Tel +44 (0)20 7399 9820 www.goldingcapital.Vault Career Guide to Private Equity Golding Capital Partners Möhlstrasse 7 81675 Munich Germany Tel +49 89 419 997-0 www.
Strategic alliance with Swiss Re Employees: 130 AuM: ~CHF10bn (private equity funds of funds) CAREERS CONTACT roger.com LOCATIONS Offices: London • Bratislava • Zurich • Hong Kong • Cayman Islands 326 .email@example.com (UK) STATS Chief Executive: Harold Weiss Employer Type: Private Company. Nations House. Level 6 London W1U 1QS United Kingdom Tel +44 (0)20 7170 9550 www.ch STATS Employer Type: Subsidiary of Henderson Employees: 10 investment executives (UK) AuM: £1.com Horizon21 Private Equity Holding 103 Wigmore Street.Henderson Equity Partners 4 Broadgate London EC2M 2DA United Kingdom Tel +44 (0)20 7818 2963 www.hendersonprivatecapital.horizon21.
ideacapitalfunds.com LOCATIONS Offices: New York • San Francisco • London 327 .com INVESCO Capital 30 Finsbury Square London EC2A 1AG United Kingdom Tel +44 (0)20 7065 4000 www.com STATS Managing Partner: Mario Barozzi AuM: €400m STATS Chief Executive: Greg Stoeckle Employer Type: Private Company Employees: 15 CAREERS CONTACT info@ideacapitalfunds.Vault Career Guide to Private Equity IDeA Capital Funds 3.invescoprivatecapital. Italy Tel +39 02 72 08 03 37 www. via Borgonuovo 20121 Milan.
Switzerland Tel +41 55 415 96 00 www.lgt-capital-partners.com LGT Capital Partners Schützenstrasse 6. P.com STATS STATS Co-founder and managing director: Sasha van de Water Employer Type: Private Company Employees: 6 investment professionals CEO: Dr. Box CH-8808 Pfäffikon.O.com 328 . Roberto Paganoni Employees: 100 (all activities) AuM: $9bn (private equity worldwide) LOCATIONS LOCATIONS Offices: London Offices: Pfäffikon • Dublin • New York CAREERS CONTACT info@keyhavencapital.Keyhaven Capital 1 Richmond Mews London W1D 3DA United Kingdom Tel +44 (0)20 7432 6200 www.keyhavencapital.
com Northgate Capital 1 Jermyn Street London SW1Y 4UH United Kingdom Tel +44 (0)20 7961 6480 www.com LOCATIONS Offices: London • San Francisco Bay Area 329 .Vault Career Guide to Private Equity NORDCAPITAL Emissionshaus GmbH & Cie.com STATS STATS Chief executive: Florian Maack Employer Type: Private Company AuM: €250m (Equitrust funds) Managing partner private equity: Dr. Germany Tel +49 (0)40 3008-0 www. KG Hohe Bleichen 12 20354 Hamburg. Hosein Khajeh-Hosseiny Employer Type: Independent Private Company Employees: 6 professionals AuM: ~$800m CAREERS CONTACT firstname.lastname@example.org.
pantheonventures.robeco. James's Square London SW1Y 4JR United Kingdom Tel +44 (0)20 7484 6200 www.9bn (world) STATS Employer Type: Subsidiary of Robeco (with public fund listed on Euronext Amsterdam) AuM: $2bn LOCATIONS Offices: London • Brussels • San Francisco • Hong Kong • Sydney 330 .com Robeco Private Equity Coolsingel 120 NL-Rotterdam 3011AG The Netherlands Tel +31 10 224 71 36 www. 31 St. Northwestern Mutual Life Employees: 71 AuM: $7.Pantheon Ventures Limited Norfolk House.jsp STATS Chief executive: Rhoddy Swire Employer Type: Subsidiary of Russell Investment Group.com/alternatives/eng/specif ic/rai/private_equity.
scmag.rwb-ag.de SCM Strategic Capital Management Kasernenstrasse 77b 8004 Zurich.com 331 .de scm@scmag.Vault Career Guide to Private Equity RWB RenditeWertBeteiligungen AG Keltenring 5 82041 Oberhaching/Munich. Stefan Hepp Employer Type: Independent Private Company Employees: 15 professionals AuM: $5bn (including real estate) LOCATIONS LOCATIONS Offices: Munich • Innsbruck Offices: Zurich CAREERS CONTACT CAREERS CONTACT info@rwb-ag. Germany Tel +49 (0)89 66 66 94-0 www.com STATS STATS Managing partner: Horst Guedel Employer Type: Private company. Partnership with Capvent Employees: 41 AuM: €825m CEO & Founder: Dr. Switzerland Tel +41 43 499 49 49 www.
2bn Managing Director PE: Dr. Hanspeter Bader Employer Type: Independent Private Company Employees: 20 AuM: €8bn (all asset classes) LOCATIONS LOCATIONS Offices: Edinburgh Offices: Geneva • Guernsey • London • Munich • Paris • New York • Singapore CAREERS CONTACT hpbader@unigestion. United Kingdom Tel +44 131 245 0055 privateequity.com 332 .com Unigestion 8c avenue de Champel.SL Capital Partners 1 George Street Edinburgh EH2 2LL Scotland.unigestion. Switzerland Tel +41 22 704 41 11 www.standardlifeinvestments. PO Box 387 1211 Geneva 12.com STATS STATS Chief Executive: David Currie Employer Type: Subsidiary of the Employer Type: Standard Life Investments group Employees: 12 investment professionals AuM: €5.
vencap.Vault Career Guide to Private Equity VenCap International King Charles House.com 333 . Park End Street Oxford OX1 1JD United Kingdom Tel +44 (0)1865 79 93 00 www.com STATS Chairman & CEO: Michael Ashall Employer Type: Independent Private Company Employees: 18 AuM: $1.5bn worldwide LOCATIONS Offices: Oxford CAREERS CONTACT info@vencap.
APPENDIX Recommended Reading Web Resources Academic Sources Industry Jargon (glossary) About the Authors .
nottingham.Vault Career Guide to Private Equity APPENDIX Appendix RECOMMENDED READING Barbarians at the Gate: The Fall of RJR Nabisco (Collins) by Bryan Burrough & John Helyar Damodaran on Valuation: Security Analysis for Investment and Corporate Finance (Wiley Finance) by Aswath Damodaran WEB RESOURCES www.ac.com (European Venture Capital Association) www.bvca.penews.privateequitywire.iijournals.com www.com (Dow Jones’ Private Equity News Europe) www.candover.com (British Venture Capital Association) www.altassets.html 337 .edu/capideas/may04/privateequity.evca.com/JPE Chicago GSB www.chicagogsb.com/english/media-centre/barometer ACADEMIC SOURCES Centre for Management Buy-Out Research www.uk/business/cmbor/ Journal of Private Equity www.uk www.co.
and the management company draws down these commitments in several stages. 338 . it refers to the uncalled but still available capital commitments. on the basis of which the management company is entitled to a specified share of the carried interest (catch-up). This measure is accurate only if all investments were made at once. In private equity. investors commit themselves to providing a certain amount of capital to a fund. once the investors have regained their original investment plus the hurdle rate. as the fund makes new investments. Usually.INDUSTRY JARGON (GLOSSARY) Average IRR The arithmetic mean of the internal rates of return. After this the assets of the fund will be distributed to the investors and the management company in a proportion that depends on the size of the carried interest. until it has obtained a specified share of the carried interest that exceeds the repayment of the investments (usually corresponding to the carried interest percentage). Capital call The management company asks for capital from the investors in the fund it manages. if it has received more carried interest than was agreed. Typically. Dry powder Cash reserves kept on hand to cover future obligations. Capital weighted average IRR The average IRR weighted by fund size with funds contributing to the average in proportion to their size. Carried interest (“Carry”) The percentage of profits (generally 20-25 per cent) that GPs receive out of the profits of the investments made by the fund. It therefore has characteristics of both a management buyout and a management buy-in. Catch-up Contract clause related to the distribution of a private equity fund’s profit. Distribution of proceeds The order in which the sale proceeds and profits are split between GP and LP. paid only after LPs receive their original investment back Distribution to paid-in (DPI) Cumulative distribution to limited partners as a proportion of the cumulative paid-in capital. Clawback Contract clause that obliges the management company to return capital to the fund. Buy-In Management Buyout (BIMBO) Transaction where existing management and outside managers join forces to buyout the company. Typically 20-25 per cent. which is the discount rate that equates the net present value (NPV) of an investment's cash inflows with its cash outflows. Diversification Maximum proportion of fund that can be invested in any one transaction.
339 . legal. the fund will stop investing. generally paid quarterly from the fund to the general partner or the management company. technological and environmental aspects that are usually outsourced to Limited Partner (LP) specialist firms. The partner in a private equity fund who. It is typically around 2 per cent of the assets under management. It may contain features of both debt financing and equity financing. generally with the financial backing of a priInitial Public Offering (IPO) vate equity investor. It is often reduced when paid on unrealised invested capital after the end of the investment period. Typically an instiEvergreen fund tutional investor who gives a mandate to the A fund with no restriction on the operating general partner. General Partner (GP) Management Buy-Out (MBO) The partner in a private equity fund who is responsible for all the financial liabilities of the fund. First public listing of the shares of a private company on a stock exchange.Vault Career Guide to Private Equity Glossary Due diligence Leveraged Buy-Out (LBO) Audit of the various risks of a targeted investAcquisition of a company with (significant) ment by an investor. Management fees Investment period Period during which the GP can make investments. Mezzanine Financing that is senior to equity but normally subordinated to debt provided on normal terms. A corporate transaction in which a group of the current managers buys the company. commercial. Fund term Life of the fund. unlike the general partner. All commitments not drawn down are cancelled after that. Typically 10 years with two one year extensions possible. Most typically. it can have various indedebt financing. Management Buy-In (MBI) A corporate transaction in which an external group of managers buys the company. is not responsible for the fund’s financial liabilities. generally with the financial backing of a private equity investor. pendent components focusing on financial. Typically five or six years from the date of closing for a 10 year fund. Compensation for the management of a fund's activities. period. Key man clause A clause that restricts the operations of the fund should certain key persons employed by the management company leave the company.
340 . Vintage year Year of fund formation. P2P (Public-to-Private) Acquisition of the majority interest in a publicly-listed company by a public tender offer. Crucial to protect the downside for LPs. Transaction fees Fees paid by the portfolio company to the GP for deal services. Often set-off against future management fees. Preferred return (hurdle rate) Return required by the LP on realised investments (or write-downs) before the GP can share in the profits. net of management fees and carry. Pooled IRR A method of calculating an aggregate IRR by summing cash flows together to create a portfolio cashflow and calculate IRR on it. Often set off in whole or part against future management fees. Secondary fund Fund that acquires all or parts of existing portfolios from other private equity funds. NYSE New York Stock Exchange Overhang Uncalled capital commitments (see “dry powder”). Typically set between 5-10 per cent. Residual value Estimated value of the fund. often followed by a “squeeze out” and subsequent delisting.Monitoring/Director’s fees Fees paid by the portfolio company to the GP for acting as directors or for consultancy services.
He holds an MBA from University of Chicago GSB. 342 .Eng. an investment bank.ABOUT THE AUTHORS Marc Kitten is an affiliate professor of finance at ESCP-EAP and a partner at Candesic Strategy Consultants. while Jonas will complete his consulting training at Bain & Co. Edward Fraser and Jonas Golze just completed their graduate trainee program at Candesic Strategy Consultants in London. Aerospace from Nottingham University and Jonas graduated from the WFI business school at the Catholic University of Eichstaett-Ingolstadt in Germany. Edward holds a M. advising private equity investors in Europe. Edward is joining Jefferies.
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