Vault Guide To Private Equity

Vault Career Guide to
Private Equity
2009 European Edition
2009 Vault.com Ltd
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
ACKNOWLEDGEMENTS
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
1
3 4 4 8 10 10 12
GETTING HIRED
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
25
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
225
226 304 310 312 316
APPENDIX
RECOMMENDED READING WEB RESOURCES ACADEMIC SOURCES INDUSTRY JARGON (glossary) ABOUT THE AUTHORS
335
337 337 337 338 342
Vault Career Guide to Private Equity
PREAMBLE
Preamble
his guide covers late stage private equity funds only, excluding venture capital. Using the Candesic database of private equity firms, 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 list includes LBO, growth capital, distressed, mezzanine funds and, to an extent, funds of funds. The guide excludes sovereign funds, which are state owned pools of money, as well as most of the real estate and infrastructure funds. Together and excluding the funds of funds, the first 200 firms in our sample manage about 400 billion in commitments and invested assets in Europe. (Including the assets outside of Europe and the funds of funds, our sample reaches 900 billion in total commitments and investments in private equity.)
We selected 37 firms that we deemed representative of Europe, not necessarily the largest ones. This includes mostly direct LBO funds and a couple of examples in each of the other categories. Selecting the top firms was not necessarily clear cut considering the variety of situations occurring in an industry undergoing European convergence. All the other firms included in the analysis are listed at the end of the guide with key statistics and contact details.
THE SCOOP
CHAPTER ONE: What is Private Equity? CHAPTER TWO: The Market
CHAPTER ONE: WHAT IS PRIVATE EQUITY?
s its name implies, private equity investing refers to investments in nonpublicly traded assets. This encompasses a wide range of investments, from small equity stakes in new ventures by so-called angel investors to highly leveraged controlling equity investments in multi-nationals.
Who invests?
Most private equity funds are structured as limited partnerships with a life of between five and ten years, with a General Partner and a Manager. The direct investors, or limited partners, are mostly institutional investors who want to diversify into alternative asset classes. This can also include funds of funds that allow smaller investors access to the asset class. 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, as they generally all have a substantial share of the equity.
PRIVATE EQUITY INVESTORS
Smaller Investors Investors/GPs (Institutions, 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, to buy or build a well positioned player in that niche and to give that player the means to
perform better than its peers. In addition, at least in mature markets, they attempt to multiply their return by leveraging their investment, aided in recent years by low interest rates. As a more difficult credit environment evolves and debtor protection increases, it is likely that some poorly performing funds wont be able to survive much longer.
Chapter One: What is Private Equity?
Types of PEsegmentation by stage and product

The wider private equity sector can be divided into four distinct types of investment: leveraged buyouts, venture capital, mezzanine financing and distressed debt. Some firms will specialise in a single type of investment, while larger firms will often provide a range of investment alternatives. A leveraged buyout is the name given to an acquisition that is funded primarily through debt. Public companies are often taken private, using large bank loans or corporate bonds to acquire the firms outstanding equity. The practice was initially pioneered in the 1970s by banking icons such as Henry Kravis, founder of KKR, and has developed into an accepted industry standard. In a leveraged buyout the management team is often given or allowed to purchase a stake in the investment. This is done to incentivise the management team and align their interests with the PE firm, 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, it is known as a management buyout, or MBO. When the management team involved is an external group that replaces the existing management, it is known as a management buy-in, or MBI. Venture capital is a form of alternative investment that provides high risk equity to early stage companies. 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. To compensate, the venture capital firms expect very high returns on their investments. It is sometimes the case that companies seeking venture capital investment may have nothing more than a business plan, and therefore have a high risk of failure. This inherent risk was particularly damaging during the dotcom crash, as many of the tech companies that lost equity were backed by venture capital firms. The mature part of venture capital is called expansion capital, and is often a side activity of LBO funds. Mezzanine finance is the term given to a layer of debt that is typically used to fill a gap when structuring an LBO, which can be either in time, transaction structure or capital structure. This level of debt can have many forms and can offer several advantages over other forms of financing.
Distressed debt is a high risk form of debt given to a company that is financially distressed or bankrupt. Distressed firms are typically very volatile and difficult to value, and therefore present arbitrage opportunities for financial investors such as hedge funds.
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 styledirect investors, co-investors, secondary funds and funds of funds

This book focuses on primary funds that invest directly into companies, either taking a majority stake, so they can influence the management and decide on the strategy of their asset, or investing alongside other funds (co-investors like Parallel in the UK). Another category of private equity investing that is growing fast is the so-called secondary, when a fund buys a portfolio of private equity assets or pre-existing investor commitments to private equity. While this activity is not new, the maturing of the industry and the market downturn of 2000 led many historical private equity investors, often banks or insurance companies, to withdraw from the private equity asset class. This in turn led to the rapid growth of another segment of investors specialising in the acquisition of these existing portfolios. Dedicated secondary funds concentrate on acquiring all or part of the portfolios from other private equity funds. Within
this segment, secondary direct funds buy portfolios of direct investments. Many large diversified funds include it in their activities. Finally, one can distinguish between early and mature secondaries.
TOP 20 DIRECT PRIVATE EQUITY FIRMS BY AuM IN EUROPE* March 2008, bn

(*Doesnt 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
11 9
8.4
5.7
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
We also listed some of the major funds of funds in Europe. They simply invest in a number of direct PE funds to diversify their risk.
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, pan-European funds that grew beyond their country of origin and developed teams in major European cities, and local funds that made the strategic decision to concentrate on their home market or, like Canadian owned Sagard in France, on a geographic area of common language. Most of the US funds, with the exception of Vestar, launched their European operations out of London, and many still conduct them from there.
Segmentation by financing: private vs. listed

We can roughly consider three forms of financing for private equity funds: internal funding, for example through a parent company or a family office, limited partnership with external institutional investors, and access to permanent capital through public funding (3i, Blackstone, Eurazeo).
Other specific cases

A PIPE is a special type of private investment, where accredited investors are privately invited to invest in a public company. The process has similar characteristics to other forms of stock offerings, and is often used when a company is having difficulty finding additional funding after an unconvincing IPO. The securities sold can be common stock, convertible preferred stock or convertible notes, and are normally sold at a discount due to their relative illiquidity. Crossover funds are investment funds that attempt to fill the gap between private and public equity investing. They combine private equity investing with strategic public equity investing typically used by hedge funds, with a market risk somewhere in between the two. There is a trend for hedge funds to allocate a portion of their fund to private equity investments into side pockets, although typically this will only make up around 10% and tends to be the money of the fund managers.
Interval funds are somewhere between open and closed-end funds in that they do not provide daily liquidity, but have specified periods when shareholders are able to redeem and distribute shares with the fund. During this time there will be an offer to buy back a stated portion of shares from investors. 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.
CHAPTER TWO: THE MARKET
rivate equity may well be the oldest form of financing. For a long time, merchant banks or early forms of family offices have been responsible for organised venture capital. The major transformation, beginning in the 70s, has been the adjunction of high yield (junk) debt to the financing of companies with mature cash flows and the widespread use of leverage. In the last 30 years, professional and mostly independent LBO firms have occupied a leading position in the market. In the US as well as in the UK, the direct presence of investment and commercial banks has been eroded as most internal funds have gained their independence, often to reduce the risk of a conflict of interest with the increasingly important clients of the banks. Today, banks are mostly present as General Partners or co-investors and, with the notable exception of Goldman Sachs, the major players are independent firms. The same process is happening now in the rest of Europe.
Industry statistics
In 2007, global private equity assets under management represented about $1.1 trillion, of which 700 billion were LBO funds (these figures, which seem rather conservative, come from the McKinsey Global Institutes The New Power Brokers, which appeared in October 2007) . A year later, following a record fund raising of more than $500 billion, research provider Private Equity Intelligence announced that, with the sum of the undrawn money and portfolio company holdings, the private equity industry had reached assets under management of $2 trillion and had the firepower to acquire up to $2.4 trillion in enterprise value; despite the current difficulties in the LBO segment, [They] are predicting a $5 trillion industry over the next five to seven years. The industry has experienced an average growth rate of 14 per cent since 2000. From a demand perspective, the growth is fuelled by the strong and sustainable performance of the best managers, 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. From a supply perspective, there is more awareness of the possibilities offered by private equity for companies in need of financing, and a growing pool of experienced managers with the skills required to execute these transactions. Of course, as we publish this guide (late 2008), and after a year of depressed markets, culminating in a financial crisis, that have halted the most visible transactions, it is difficult to merely describe the boom of the past seven years. We may be in the midst of a bust, but we dont think the fundamental attractiveness of the private equity model has changed, and would argue for a temporary correction of the recent excess.
10
Chapter Two: The Market
EUROPE-PRIVATE EQUITY FUNDS RAISED AND INVESTED bn, 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 8.4 24 35 28 29 28 40 37
Commitments raised Funds invested

- The recent fast growth of
commitments has led to an overhang with too many investors chasing too few deals - One of the consequences is a rush towards bigger deals - 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, PE remains a niche; the top 50 PE firms worldwide employed less than 4,000 investment professionals in 2007. If we add the smaller firms, the venture capital and the family offices, we may reach 20,000 investment professionals, 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; Perep & Preqin (2007); Candesic
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we estimate 7,000 are based in Europe. According to the Candesic database, the top 240 PE firms operating in Europe currently employ about 4,000 investment professionals. These numbers look particularly low when compared to the millions of people employed at the companies owned by the private equity funds.
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, the private equity industry has come under increased scrutiny from the media, politicians and the general public. Among the major concerns, 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. The public disclosure of the huge compensations that successful partners can achieve (e.g., Blackstone) has raised questions and sometimes fierce critics. Other concerns include the lack of transparency and accountability, as well as a sometimes narrow sense of fiduciary duty. The industry regularly stands accused of profiteering and asset-stripping. This seems to be an unfair accusation, as most studies showedat least until recentlythat private equity backed companies create more jobs than their public equivalents. A meta-review of 12 existing studies by A.T. Kearney claimed that private equity created 600,000 jobs in the United States between 2000 and 2003. But critics point out that the report didnt distinguish buyouts from venture capital. In France, a study made by accounting firm Constantin for the French Association of Private Equity Investors (AFIC) on more than 100 French companies undergoing
12
LBOs showed that their headcount grew by 4.1 per cent per annum (with 78 per cent of it from new jobs and 22 per cent from external growth), whereas the national average was only 0.6 per cent. This growth was partnered with salaries increasing by 3.3 per cent per annum vs. 2.9 per cent on average and other elements of remuneration being on average better developed and more attractive for all LBO employees. Similar studies in Germany (Economic Impact of private Equity in Germany, F.A.Z Institute, 2004) and in the UK (Employment Contribution of Private Equity and Venture Capital in Europe, Centre for Entrepreneurial Studies in London, 2005) led to similar findings. (The 2005 study by the Center for Entrepreneurial and Financial Studies (CEFS) for the EVCA claims that more than 400,000 net jobs were created in Europe by buyout-financed companies between 2000 and 2004. SEIU (Service Employees International Union) warn that the studys claims are based on selfreported information from a small set of portfolio companiesjust 99 out of more than 1,400 companies that underwent a buyout during the period studied.) In January 2008, by commission of the World Economic Forum, Josh Lerner from Harvard and Steven Davis from Chicago published the most extensive study to date regarding the issue. It is also unique in that it is not suspected of having any bias or external influences. Reviewing 5,000 US transactions from 1980 through 2005, they find that companies owned by private equity funds have a net reduction of their workforce of 1 per cent over two years. This differs from the positive result of another study commissioned by the Private Equity Council, a lobbyist group, which showed that employment at privately acquired firms grew by more than 8 per cent, but was later dismissed by many academics as biased. The World Economic Forum study doesnt examine what would have happened to the jobs had the transaction not occurred. They also find that these firms default slightly more often than the average public firm, but only half as much as those with similar leveraging. In order to address the transparency and profiteering concerns, 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. Twenty-three private equity firms operating in the UK issued a statement to support this initiative, including Apax, BC Partners, Barclays Private Equity Ltd., The Blackstone Group, Bridgepoint, Candover, The Carlyle Group, Charterhouse, Cinven, CVC, Doughty Hanson, Exponent Private Equity, Hermes Private Equity, HgCapital, ISIS EP LLP, KKR, Legal & General Ventures Ltd., Lyceum Capital, Montagu Private Equity, Permira, Terra Firma Capital Partners Ltd., TPG and 3i.
13
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. Lee Partners Apollo Warburg Pincus General Atlantic * $60bn in other asset classes 100 50 53 $55bn 1,000,000 430,000 360,000 86,000 390,000 300,000 375,000 180 $65bn 300,000
# of Companies in portfolio
40 45 200
Total turnover
$102bn $72bn $87bn
Employees
560,000 350,000 280,000 660,000
AuM
$86bn $32+60bn* $75bn $50bn $35bn $30bn $30bn $30bn $29bn $22bn $21bn $20bn $16bn $15bn $14bn
Source: press search; SEIU; Candesic analysis
The credit crunch

Leverage in the buyout industry reached an all time high in 2007, which led to an increasingly lenient approach to risk, with a flourishing of so-called covenant-lite debt financing. Debt providers finally started to object and refuse the conditions dictated by the buyout funds. The situation may have arisen in the US but spread immediately to Europe. In June 2007, banks were left sitting on 5bn of debt from the financing of Alliance Boots, the UK pharmaceutical retailer acquired by KKR. This signaled a severe correction of both leverage levels and the conditions associated with the loans. This was further confirmed during the summer of 2007, 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.
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In spite of a record first half year in 2007, the total value of buyouts between August and October 2007 was 60 per cent lower than during the same period in 2006. In the months leading up to the second quarter of 2008, the situation has further deteriorated and many insiders acknowledge that they dont expect to close many transactions during the year. One immediate consequence is the general impact on the investment banking business. Before the credit crisis, investment banks could earn up to 25 per cent of their fee income from advisory related to private equity firms; this number has fallen to around 10 per cent with a direct impact on the banks profitability. For private equity firms involved in major transactions that they cannot easily finance anymore, it is tempting to try and renegotiate terms or simply withdraw their offer. But invoking the material adverse change clause doesnt work well and the break up fee can be heavy. 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. This in turn will contribute to lower returns. According to the McKinsey Global Institute, firms that have relied more on leverage than skill may shut down. This is more the case for mega buyouts which are more likely to rely on financial engineering for value creation.
Regional differences
The private equity industry has historically grown first in Anglo-Saxon countries. In Europe, the UK still represents about a third of the activity. While countries like France or Spain have had substantial growth in the recent years, the economic, regulatory and cultural environment remains more favourable in Northern Europe. This hasnt prevented funds from expanding throughout Europe, but they recognise the strong cultural differences. Even in the UK, supposedly the friendliest place in Europe, public perception about private equity deteriorated in 2007 following widely publicised critics of the attractive tax status General Partners enjoy. The subsequent reform of the tax system is more likely to penalise entrepreneurs, for whom the system was originally designed, than improve public perception. This hostility has resonated elsewhere in Europe. The industrys negative reputation is relatively new and differs from country to country. In Germany, 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, after an activist fund led to his departure. This has tainted the industrys reputation ever
15
since. It is tempting for politicians to use private equity firms as scapegoats, and it is all the more easily done when some players carry out transactions with an approach that is considered too aggressive, in a country where social consensus has dominated for fifty years. In spite of that, Apax still considers Germany a friendlier environment for private equity than France, all of Southern Europe and even Norway.
PRIVATE EQUITY ENVIRONMENT RANKINGS IN EUROPE 2007 grades
5.0
4.8
4.5 4.0
3.8 3.8 3.8
3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 -0.5 -1.0 -1.5
-1.9
3.1
2.6
2.6
1.9
1.8 1.5 1.4 1.1
Italy Slovakia Czech Rep.
Hungary
Spain Portugal Belgium France
Greece
Poland
Ireland
Austria Norway
Finland
Denmark UK
Germany
NL
CH Sweden
-0.3
-1
-2.0 -2.5 -3.0
-2.1
-2.2 -2.5
-2.7
-3.0
Source: Apax
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Costs and performance

"On balance, private equity increases efficiency," says economist Steven Kaplan of the University of Chicago. According to a study he conducted in 2005 with Antoinette Schoare from MIT, large buyouts consistently outperform public stocks. More precisely, they exceed those of the S&P 500 gross of fees and equal them net of fees. However, this depends on the sample and the period considered. There are a couple of limitations in the assessment of the industry performance, starting with the access to sufficient data, the selection bias between good and poor performers and the general accuracy of the valuation of the assets still in the portfolio. 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. They could also have a beneficial impact on the economy with net job creations.
When looking more closely at their results, Kaplan and Schoar find a large degree of heterogeneity among fund returns. Returns persist strongly across funds raised by individual private equity partnerships. The returns also improve with partnership experience. They also find that market entry in the private equity industry is cyclical. Funds [and partnerships] started in boom times are less likely to raise follow-on funds, suggesting that these funds subsequently perform worse. Aggregate industry returns are lower following a boom, but most of this effect is driven by the poor performance of new entrants, while the returns of established funds are much less affected by these industry cycles. (This is from Kaplan and Schoars 2004 Private Equity Performance: Returns, Persistence and Capital Flows.) Nevertheless, a 2008 report by Thomson Financial for the EVCA shows that European private equity firms achieved a 15.9 per cent five-year rolling IRR, against 14.5 per cent for US buyout groups, and expects the short-term performance of private equity funds to remain very strong.
Taxation
General partners in private equity funds have been increasingly criticised for paying a very low amount of taxes on their revenue. Until 2008, 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 an unintended result of the original attempt to support the financing of risky ventures by private equity, by the so-called venture capitalists. Today, when 75% of the capital is invested in buyouts where, by definition, cash flows are relatively stable and predictable, this tax treatment appears generous to
17
many. In October 2007, the UK government announced their decision to raise the rate to 18 per cent, a measure that should be limited enough to prevent a massive exodus of funds. In the US, 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. 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, including those who went public.
The competition
Cooperation and competition with hedge funds Hedge funds are similar to private equity funds in many respects. They have similar organisational and to an extent compensation structures, they are often highly leveraged; they offer high performance and seemingly lower correlation to other asset classes; they need to raise funds from institutional investors, they attract top talent; and they are increasingly accused of being too lightly regulated. They differ mostly from each other in their time horizon and the liquidity of their investments. PE funds invest primarily in very illiquid assets and lock their investors for the entire term of the fund. This leads to differences in the asset valuation, in the timing of performance compensation, in the exit strategies and ultimately in the motivation of the management of the target companies. But, while most hedge funds pursue absolute returns and invest in very liquid assets, their search for new alpha leads them to build their own PE funds where they can hold side-pocket investments. In 2007, PE represented about 10% of hedge funds investments. In the competition with PE, hedge funds tend to benefit from having a variety of people with expertise in different places within the capital markets chain. Activist hedge funds make direct bets when they demand board seats after building a position in a company. Many hedge funds have entered the LBOmarket, first as mezzanine providers. At the same time, distressed hedge funds compete with their PE counterparties, and the shorter investment horizon becomes less obvious a difference. Finally, in general, hedge funds are pushing into less liquid markets such as mid-caps to compensate for the lower returns in their traditional fields. Lately, hedge funds are starting to hire PE managers, and PE funds have to
18
increase the salaries of their mid-ranking managers. 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, while hedge fund managers get their performance every year. While their core businesses remain quite distinct, hedge funds and private equity are now experiencing a melt down in most periphery segments. Other competitors Government-sponsored principal investors (Dubai, China) and large family offices represent a further inflow of liquidity that targets the biggest assets, sometimes competing with the biggest PE funds, sometimes partnering with them in club deals, and lately buying stakes in the funds directly. Sovereign funds can disturb the market as they dont have the same performance requirements or culture. 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. Insiders mention that, on several occasions, 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, mega LBOs remained rather rare. But, since 2005, the major funds have multiplied their acquisitions of assets with an enterprise value above $10bn. There were 27 of them in the period ending August 2007, of which four were in Europe, if we include infrastructure deals. In real dollars, the previous RJR-Nabisco record was finally beaten in 2007 with the $44bn acquisition of TXU by KKR and TPG. Shortly after, the $50bn mark was almost reached with the buyout of BCE, a Canadian company. By June 2007, the major LBO funds had accumulated so many commitments that a $100bn acquisition by a consortium was ready to happen at any time. This is less likely in the medium term, following the financial markets turmoil that started in the summer of 2007. In Europe, after VNU in the Netherlands ($11bn), Wind in Italy ($13bn) and TDC in Denmark ($14bn), the mega deals continued with the first buy-out of a FTSE100 company, when KKR bought Alliance Boots for $24bn in 2007. More mega deals could well happen once the markets have settled, with targets like Sainsburys regularly featuring in the media; in November 2007, Delta Two, which invests on behalf on the Qatar Investment Authority, terminated discussions to buy the retailer for 13.4bn.
19
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)
- Largest Deal in Europe
8.4
Source: Candesic
Private goes public

Ironically, 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 funds activities. In 2007, Blackstone made the headlines when it went public and raised $4 billion through an IPO. They were not the first ones but certainly the most publicised. Several other funds were planning a similar move, starting with KKR, which will most likely IPO on the NYSE. 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
performance of the Blackstone shares have halted most ambitious plans. Like Blackstone, listed PE vehicles in Europe have been slammed by the market: shares of 3i, Altamir (Apax France), Candover Investments, Eurazeo or KKR Amsterdam have lost 25 to 50 per cent of their value in less than a year.
Overhang
In private equity jargon, overhang refers to unused (uncalled) capital commitments. It is somewhat similar to dry powder, which refers more generally to the cash reserves kept on hand to cover future obligations. In March 2008, Goldman Sachs estimated at $400 billion the amount of uninvested capital raised by private equity firms. With the tightening of the credit markets and the temporary death of mega LBOs and club deals, it becomes difficult to invest. Putting the money to work is a condition to charge the management fees on a continuous basis, which may explain some of the recent appetite for buying stakes in public companies. Another issue is the impact on the asset allocation plans of the institutional investors, if the capital remains in cash for too long.
Exits
In their yearly report commissioned by the EVCA, Perep Analytics recognise seven exit categories for private equity investments: trade sale, repayment of shares or loans, secondary buyouts, initial public offerings, sale of quoted equity, write-offs and sales to financial institutions. In 2007, secondary buyouts reached a record 30 per cent of all exits and, for the first time since at least 1992, overtook trade sales by value of total divestiments. According to a fund manager in London, Write-offs are kept artificially low for reputation reasons; 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.
Whats next
So, whats next? Prior to the September 2008 crisis, returns were already mixed, high leverage ratios seemed out of the question, mega LBOs were delayed if not cancelled, and still, the market was expected to continue to grow at a significant pace, albeit slightly slower than previous predictions. In a September 2007 conference, Carlyles David Rubinstein said that the average holding period is likely to rise from four to six years. For a while, targets are going to be smaller as big groups are tempted into
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the middle market. Firms like Blackstone, Cerberus and KKR with its Capstone unit will leverage their strong restructuring experience and target more distressed assets. However, ultimately, 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 $1.4bn by 2012, a doubling in five years. Citigroup expects private equity to soon overtake property and hedge funds as the most popular alternative investment for pension funds. In a keynote address at the 2008 Wharton conference, David Rubinstein, again, reckoned that Private Equity will now spend a year or so in purgatory before entering the platinum age, an even greater period of expansion than the golden age it went through in the last five years. For Rubinstein, 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, including giving management a stake in the companies they run. In the first half of 2008, the mid market showed its resilience.
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GETTING HIRED
CHAPTER THREE: Is it the Right Job For Me? CHAPTER FOUR: The Hiring Process
CHAPTER THREE: IS IT THE RIGHT JOB FOR ME?
rivate equity is a relatively new industry. While the activity has been around for centuries, as long as wealthy investors have been able to acquire stakes in private companies, it is only in the last few decades that it has become an industry, with a typical organization and business model and the recruiting of professionals at undergraduate, graduate and experienced levels. From our interviews, private equity in Europe has clearly become more competitive as teams compete directly within and across countries for the same assets. Because the competition is more global, the recruiting tends to be more competitive and
PROFILES OF 4,000 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
PROFILES OF 4,000 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%
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international candidates with language skills are targeted.The industry has grown very fast, but its attractiveness has grown even faster. Our database shows that more than 60 per cent of the investment professionals have an MBA, a PhD or another advanced degree. Those who only have an undergraduate degree tend to be younger analysts, especially in the UK where it is common to start working after a bachelors degree. The institutions represented areno surprisethe top universities in Europe (typically top 5-10 universities in each country) and top 15 global programs for MBA graduates. Globally, INSEAD, Harvard, Cambridge, HEC and Oxford are the most represented academic institutions across all the professionals, accounting together for about 20 per cent of them. Bocconi is the clear challenger to the group of five and sometimes seems to be the sole local provider of managers in Italy. 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, London School of Economics, St. Gallen, ESCP-EAP, London Business School.
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
ha rto n
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
ES
ES
Co l
um
xf
-E
bia
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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. 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). Out of the other 80 per cent, half of them worked in investment banking or other areas of banking, especially leveraged finance, and 20 per cent worked outside of the finance industry. More than 10 per cent of all fund managers had previous experience in strategy consulting, and the same percentage came from audit and transaction services (note that the numbers dont add up to 100 per cent because many fund managers had several jobs previously). The most frequent previous employers are PWC, McKinsey and the top tier US investment banks.
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
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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
Most fund managers tell us they like their job, the diversity of activities, the team of like minded brilliant professionals, the opportunity to work closely with executives, and the perks. They also tell us that they work harder than they did ten or twenty years ago; low hanging fruits have disappeared in developed countries. New risks appear and limited partners become more and more sophisticated. The industry is also more likely to be hit by global economic downturns. 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. Many mega funds have quickly dispatched their fund managers to work on improving the existing portfolio companies. Part of the stress is also linked to the performance dependant reward model; managers get their share of the profits only after the PE fund sells the company, typically three to seven years after the investment. A prolonged recession with limited exit opportunities can destroy most of the expected remuneration. 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. In addition, 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, and another seven years to gain full access to the carry. For all these reasons, one should expect the staff turnoverso far extremely lowto increase in the private equity industry like in any other maturing industry. English is the common language, but in most European countries, fluency in the local language is necessary to interact with the management team of a local private firm. 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. Finally, private equity doesnt appear to be an equal opportunityarea. Unlike in many other areas of asset management, women represent only 10 per cent of investment professionals and 11 per cent of all professionals (which includes CFOs, COOs and those engaged in business development, fundraising and risk management). In addition they are found proportionally less often in senior positions. Pessimists will question their chances to get promoted against men. Optimists will explain it by an improved access at junior level: women represent 15 per cent of the analysts and associates.
Comparison with other elite jobs

A significant proportion of private equity fund managers got their initial professional experience in investment banking. They appreciate moving into jobs that give them a better lifestyle and often better compensation. As one insider says, now, I am the client of my former colleagues and I feel like I can set the pace. The IB background is essential as fund managers end up developing their own valuation models that they rarely share with their advisors.
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Like management consulting, private equity offers the opportunity to work across industries and geographies on various management issues, in direct contact with the top management and other professionals. Numerous insiders coming from management consulting see their move as a natural career progression, with the advantage of being closer to the real operations of the companies in their portfolio, and the opportunity to participate directly to the implementation or monitoring of implementation of the strategy. Some consultants, especially those who didnt have prior significant line experience, become frustrated after years of advising top executives and feel the need to do things by themselves. The MD of a French mid cap fund states that one of my great joys is to coordinate the various advisors. It can be a lot of work, but they are generally the ones who keep working late a long time after I left the office. While this may be an extreme situation, it is certain that the private equity fund manager doesnt have to report to the limited partners the way top executives in public companies report to their shareholders. The skills required in most hedge funds are somewhat different. This is mainly due to the timeframe of the investment: hedge funds get in and out of an investment within months, weeks, sometimes days. Quantitative skills are often more developed and required. One can say that, on average, private equity roles are more well rounded and come with more variety in the day to day job. There are however many common features: the small team of bright professionals, often with international backgrounds, the exceptional remuneration opportunities and the high flexibility being close to the top of the value chain.
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, with a relatively heavy senior investment team supported by a few juniors, an individual or a small team in charge of fund raising, operating partners who can advise, second or take over the management of the portfolio companies, and a very light support staff (as most noncore activities are outsourced). Senior fund managers are likely to be involved in most steps of the private equity investment process. In new or in smaller funds, they are also likely to participate in fundraising. The only job that varies significantly from one firm to the next is deal origination. Some firms have a dedicated person or team and most will leverage the entire senior team. In certain firms they have to develop their own network to identify early investment opportunities. In any case, this is always encouraged as early identification and exclusive access to deals is one of the main drivers of performance.
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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 - Optimisation of operations - Reorganisation - M&A - Strategic review
Vendor due dilligence Valuation Partial or total divestment through - IPO - Trade sale - Secondary sale - Write-off
Source: Candesic
Deal sourcing. Fund managers will assess the various opportunities brought by investment bankers, brokers and other contacts in their networks. Typically, no more than 25 per cent of the deals are proprietarythe rest comes from the bankers (50 per cent) and from affiliated funds or advisors (25 per cent). 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. Most big firms will have to analyse hundreds of targets. Due diligence. During the due diligence, they will select and monitor their various advisors (investment bankers, lawyers, accountants, management consultants and other specialised advisors), often leaving the investment bankers with the responsibility of coordinating the team. In a fund of funds, the due diligence will be more targeted at the financial performance and investment process of the fund. Managers will conduct most of the diligence themselves. Financial structure. The fund manager will discuss the financial structure and the use of leverage with the debt and mezzanine finance providers. They may have to get approval from the General Partners.
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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.
Lifestyle
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.
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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 skillshard 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.
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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 dont 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.
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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.
Days in the life: Senior investment manager in London for major pan-European LBO fund
7.30 am: Im 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 dont 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.
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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 opportunitytoday we submit our indicative offer.
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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.
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.
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14.00 pm: Conclusion of the meeting, signature of documents. I go back to my IM on logistics. 15.30 pm: I call the initiator of the logistic project to ask for technical details that will be included in the IM. 16.30 pm: I set up the prospective profit & loss and compute returns for the logistic venture. 18.00 pm: Meeting with an Italian entrepreneur looking for financing of a new venture. Entrepreneurs typically want to share a lot of the details of their ideas, because they want to be really really sure we understand. We often run into political aspects (it can be difficult to stop them!) so the meeting is quite long. 20.30 pm: Debriefing with the boss, we share our first impressions and decide if we should carry on discussions further. 21.00 pm: Evaluation of the progress on the logistic IM. 21.20 pm: End of the working day.
Day in the life: Partner at German mezzanine fund (500m AuM)

9.00 am: Arrive at the office. 15-minute daily briefing with the office manager (agenda of the day, overview of the mail) followed by a 15-minute daily briefing with investment team (main tasks for the day). 9.30 am: Marketing calls with business partners: M&A advisors, lawyers, accountants and PE firms regarding marketing plan (6-10 calls). Some fundraising calls too. 10.30 am: Meeting in our office with CEO and CFO of a German mid-size company looking for expansion capital to acquire a competitor. 12.00 pm: Lunch with the two visitors. 14.00 pm: Reading a new information memorandum (IM) describing a fashion retailer for sale. 16.00 pm: Reading the financial due diligence by PWC on our most promising deals (construction industry); summary of the main points. 18.00 pm: Progress review on construction deal with investment manager (Research, financial model, etc) and distribution of tasks for the new deal.
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19.00 pm: Conference call with English lawyers to discuss progress on fundraising for new fund. 20.00 pm: Debriefing with the team. 20.30 pm: Dinner with lawyer.
Career paths
Maybe because it is such a young industry, there doesnt seem to be a lot of life after private equity. Not that there wouldnt be opportunities, but as most of our interviewees observed, Why move if I get everything I want here? While we dont have the most precise statistics, most people leave private equity to go into private equity! This can be moving into a larger fund, creating ones own fund or sometimes moving into an operational or interim management position in the portfolio. There are a few cases of fund managers who transferred to a top executive position in the industry, but a more natural development is to spend increasing time in nonexecutive director positions until full retirement. If not in the portfolio, 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. Only hedge funds have deep enough pockets to buy out private equity fund managers.
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CHAPTER FOUR: THE HIRING PROCESS
ost private equity funds dont have a very formal recruitment process. The firms are small, the turnover is low, and so are the recruitment needs, unless one has an aggressive international expansion. There are however a couple of exceptions, like 3i, Bain Capital, Blackstone, Carlyle or Goldman Sachs PIA. The key success factors for entering the industry are the academic pedigree and the networking skills. For experienced candidates, an excellent track record is of course another requirement. Many firms dont have a recruiting or HR person but a recruiting committee chaired by one of the funds managers. Other HR responsibilities can be outsourced. After an internal or external screening, a couple of candidates will be invited to a set of three or four rounds of interviews. Even for internships, the average seems to be two rounds. While this is based on anecdotal evidence, many interviews are one on one. The fit with the individual fund managers is a key component in a small transaction team.
Campus recruiting
Because most firms don't have a very formal recruitment process, they often don't recruit on campus. In recent years, the big ones like Alpinvest, Blackstone, Alliaz, Axa or Goldman Sachs PIA may have appeared on selected MBA campuses like INSEAD or LBS for graduate recruiting, but this used to be the exception. It is changing fast: according to Sandra Schwarzer, who heads career services at INSEAD, at least nine PE firms participated in 2007 in company presentations or Career Fairs. While in 2006 a record 26 students declared joining a PE/VC firm straight after INSEAD, this has gone up to 39 in 2007. We expect the number of schools visited to grow once the current credit crisis softens. 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). And there are a couple of opportunities for internships at other schools: in France, for example, Axa PE and Barclays PE advertise on the Intranet of top Parisian business schools to recruit interns. Indeed, a growing number of funds now value the opportunity to recruit a couple of young analysts for a gap year. 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.
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Vault Career Guide to Private Equity Chapter Four: The Hiring Process
Networking
All top business schools now offer a private equity elective. This often gives students an opportunity to start networking very early, sometimes with a summer internship or even a gap year working as an analyst. Some of them, like Chicago GSB in London, 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. 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. ESSEC in France launched a private equity chair in 2006, sponsored by Barclays Private Equity. At London Business School, the Private Equity Institute has been established to advance the understanding and practice of private equity. 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
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academically by Goethe Business School in Frankfurt and Technical University Munich. 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. EDHEC in France is the exclusive provider of preparatory courses in Europe for the CAIA exams that cover all alternative asset classes. Their research currently focuses more on hedge funds but could soon extend to private equity.
Search firms
Headhunters are mostly involved in looking for specialist skills. The typical mandate is to replace a senior manager or fill new senior positions following an expansion plan. While the major executive search firms all claim to be involved, our interviewees directed us to local specialist firms.
Website
Firm websites are often disappointing for candidates applying to small or mid-size funds. Most company websites wont even mention the name of a recruiting person or give specific contact details. It is understood that the right candidate is already part of the club or will be personally introduced. But strongly motivated candidates should not hesitate to try their chance through the switchboard.
Preparing for the interview

The type of questions depends a lot on the background of the managers. 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.
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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 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 would you buy in this country?
Behavioural questions
What do you do in your spare time? Tell me about yourself.
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. They are likely to be asked to comment on a simple valuation model that may contain a relatively obvious miscalculation. In some cases, the candidate has to build a simple model on paper. Knowing the definitions and differences between free cash flows to equity and free cash flows to the firm, how to choose the appropriate discount rate and calculate it, and how average EBIT or EBITDA multiples have been doing lately may be a deciding factor. At a major London-based firm, candidates are given a laptop and asked to build an LBO model. 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?
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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.
Case studies
For a given EBITDA in a given industry, how much leverage can you afford? How do you find out? Full case study including analysis of the growth drivers in an industry, major risks and competitive positioning of an asset. 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.
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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
ADVENT INTERNATIONAL
UK Regional Headquarters Advent International plc 111 Buckingham Palace Road London SW1W 0SR UK Tel: +44 20 7333 0800 www.adventinternational.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. Brooke Employer Type: Independent Private Company Total private equity funds under management: about 11bn (2008) Employees: 130 investment professionals, of which 65 are in Europe (2008) No. of Offices: 15
KEY COMPETITORS
3i Apax Barclays Private Equity Cinven Montagu
COMPANY FOCUS
Sectors: Business Services & Financial Services Retail & Consumer Technology, Media & Telecoms Healthcare & Life Sciences Industrial Financial stages: International buyouts, recapitalization and growth equity investments (up to 500m equity), some venture capital Types of financing: Majority equity
EMPLOYMENT CONTACT
In the US: info@adventinternational.com For other offices, see "contact us" at www.adventinternational.com
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Advent international
THE SCOOP
International investment
London and Boston-based Advent International is truly an international private equity firm. While most of the big names in private equity have outposts in Europe and Asia, Advent takes "international" to another level, with 15 offices around the world, from Argentina to Southeast Asia. In the last two years alone, it has opened new offices in Amsterdam, Prague and Kiev. Advent is also responsible for a number of firsts in the global private equity landscape; they put together the first leveraged buyout in Hungary and Poland; the first private equity-backed public-to-private deal in Central Europe and Spain; the first global private equity fund, in 1987; and the largest-ever private equity fund dedicated to Latin America. Founded in 1985 as a spin-off of TA Associates international operations, the firm has backed more than 500 companies in some 35 countries.
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
6.6bn $1.3bn 2.5bn 330m 2.0bn
Middle of the road

Advent invests in middle-market companies in five core sectors: business and financial services, retail and consumer, health care, industrial and technology, media and telecom. In North America and Europe, the typical Advent investment is $20 million to $200 million; in Central Europe and Latin America, the average outlay is on the smaller end of the range, between $20 million and $60 million. Advent also manages venture capital funds focused on start-up to revenue-stage companies in Health Care & Life Sciences, primarily in North America, not to be confused with UK-based Advent Venture Partners. The firm's venture investments usually run from $5 million to $20 million.
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In December 2006, 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, for Moeller in Germany, and the Emerging European Deal of the Year, for Terapia in Romania.
Deal-making
Advent has been on a shopping spree as of late with a clear acceleration in the last three years. In early 2005, the firm brought in the new year with the acquisition of Proservvi, the leading provider of back-office processing services to financial institutions in Brazil. Then in April, Advent bought a stake in Fat Face, the active casual wear market leader in the U.K. One month later, across the Atlantic, the private equity group picked up Making Memories, the Utah-based provider of scrapbook and card-making products. In June, Advent invested in the drilling services and equipment company Boart Longyear and Italian vending machine operator Gruppo Argenta. In August, the global private equity group acquired five different companies, ranging from a Romanian paints business to a technology company in the U.K. In September 2005, Advent bought a majority stake in Casa Reha, a German private nursing home group. It pursued a buildup strategy and, in 2007, doubled the size of the company with the acquisition of competitor SozialKonzept, catapulting Casa Reha into the top five of German private nursing home groups. In December of the same year, Advent announced the sale of the group to HgCapital. Advent had already shown its skills in Germany with the 2006 turnaround and sale for 1.1bn, in an auction to Doughty Hanson, of global electronics manufacturer Moeller Group, which was on the verge of bankruptcy when acquired in December 2003. 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. In 2007, Advent headed again to Germany, this time to buy a 770m majority stake in German fashion discount chain Takko from Permira. The same year in the UK, Advent International acquired Worthing, a share registration business they renamed Equiniti, for 550m from Lloyds TSB Registrars. In December, Advent announced the first fully-financed public-to-private transaction since the summers turbulence in the credit markets with the 524m acquisition of Domestic & General Group plc (D&G), the UKs leading specialist provider of extended warranty plans for domestic electrical goods. In France, it took a majority stake in Stokomani, the French discount retailer, from Alpha Group.
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Advent international
The firm is also active all over Eastern Europe. In April 2007, it opened an office in Prague and, in September, it announced the first members of its Kiev team in Ukraine. In December 2007, within two days, it acquired a 70 per cent stake in KAI Group, Bulgarias largest manufacturer of interior and exterior floor, wall and decorative ceramic tiles, and a 70 per cent stake in Bucharest-listed Ceramica Iasi, one of Romanias leading ceramic bricks and clay roof tiles producers.
GETTING HIRED
Advent International has around 130 investment professionals working out of 15 offices around the world. About half of them are based in Europe. As a firm half headquartered in the US, the firm has its share of American MBAs. But the European team is not different, with almost half of the professionals holding an MBA, and Harvard by far the most represented school in the team.
Higher Diploma
Masters (23%) Bachelors 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
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Top 5 universities attended (# of professionals)

**double counting allowed for staff with several degrees
20
15
Wharton (4)
10
Oxford (5) Cambridge (6)
INSEAD (10) Harvard (18)

Source: Candesic
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, McKinsey, accounts for 12 per cent of the European professional staff, employees have relatively diverse backgrounds. Former bankers represent 35 per cent of the team, slightly below the industry average. Although the firm does not offer employment information on its web site, it does provide contact details for each of its outposts. Candidates interested in working for Advent International should get in touch with the appropriate office (see "contact us" at www.adventinternational.com).
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ADVENT INTERNATIONAL BAIN CAPITAL

111 Huntington Avenue Boston, MA 02199 USA Tel: (617) 516-2000 London Office: Bain Capital LTD Devonshire House 6th flr, Mayfair Place London, W1J 8AJ UK Tel: +44 20 7514 5252 www.baincapital.com; www.baincapital.co.uk Financial stages: Venture, expansion and growth capital for private & public companies; Management buyouts; Industry consolidations Types of financing: Majority equity, participation, mezzanine, high yield debt
EUROPEAN LOCATIONS
London (HQ) Munich
REST OF THE WORLD THE STATS

Managing Director, Bain Capital: Joshua Bekenstein and 25 other partners Managing Director, Bain Capital Europe: Stuart Gent Employer Type: Private Company Total private equity funds under management: $50 bn in 2008 Employees: 650, with 270 investment professionals, 175 in private equity No. of Offices: 7 Boston (HQ) New York Honh Kong Shanghai Tokyo
KEY COMPETITORS
Blackstone KKR TPG
EMPLOYMENT CONTACT
www.baincapital.com/careers
COMPANY FOCUS
Sectors: Information Technology Communications Healthcare Industrial & Manufacturing Retail & Consumer Products Financial Services Investments
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THE SCOOP
Dealmakers
Bain Capital traces its roots back to 1984, when Bain & Company partners Mitt Romney (a former Governor of Massachusetts and presidential candidate), T. Coleman Andrews and Eric Kriss decided to leverage their private equity know-how by forming their own leveraged buyout and venture capital firm. According to Fortune magazine, Bain Capital charges a 30 per cent fee to its limited partners, instead of the standard 20 per cent. It also differs from its peers in that it raises funds mostly from university endowments, instead of pension funds. That doesnt seem to have been much of an issue so far; today the Boston-based private equity firm has invested in more than 240 companies with an aggregate transaction value in excess of $100 billion. The firm raised $13bn in 2006, at least $4bn more than was originally anticipated, adding to a total of over $40bn currently under management. Notable deals include Burger King, Toys R Us, Burlington Coat Factory, Brookstone, Domino's Pizza and Duane Reade. Bain was also part of a consortium of private equity firms led by Silver Lake Partners to acquire SunGard Data Systems. The deal, completed in August 2005, was valued at $11.4 billion, making it the largest technology privatization and the second largest leveraged buyout ever completed a record that lasted for only a few months. Bain Capital would go on to more than double its transaction size the next year, thanks in part to a longstanding habit of joining club deals.

FUNDS
Bain Capital Fund XI Bain Capital Europe III Bain Capital Fund X
VINTAGE YEAR
2008 2008 2006 2005 2004
FUND CAPITAL
$20bn (target) 3.5bn $10bn $6bn $5bn
Bain Capital Fund IX

Bain Capital Fund VIII
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Bain Capital
Another clubber
Between 2000 and 2002 Bain Capital went over a year without completing a deal. This simmering of transactions was not a case of taking it easy, but merely running their companies in tough market conditions instead of buying new ones. In the following years, Bain Capital made four times its 2002 initial investment in Burger King over five years, according to The Deal, and the 2003 acquisition of Warner Music Group made $3.2bn on a $1.25bn investment in just a little over a year, as reported in Forbes. The floodgates truly opened in 2006, when Bain completed an historic twelve transactions with a total value of $85bn (when including the $26.7bn Clear Channel transaction with Thomas Lee, which took another ten months to get shareholder approval). The major transaction of 2006 was the acquisition of HCA hospitals with KKR and Merrill Lynch for $33bn. In 2007, while not matching the 2006 success, Bain Capital has nonetheless been busy, paying $1.9bn for Guitar Center, $1.76bn for American Standard's bath and kitchen unit and $2.2bn for 3Com. In Europe the firm doesnt make the headlines as often as it does in the US. It is however an active investor, in particular in Germany, with current or past investments in companies including ProSiebenSat.1 Media, Jack Wolfskin and Sddekor. In 2004 Bain Capital, whose European deals have been a mix of midmarket and large, was able to buy Brenntag, a global distributor of industrial and specialty chemicals, from Deutsche Bahn for around 1.5bn. It sold the company to BC Partners only two years later for around 3.1bn including debts. In October 2007 Bain Capital accepted an offer by paint and stain maker PPG Industries for coatings producer SigmaKalon at a price of around 2.2bn. Overall, about a third of its last fund, Bain Capital Fund X, was invested in Europe.
The one, the many

Bain Capital has offices in Boston, New York, London and Munich, to which it recently added Hong Kong, Shanghai and Tokyo. It employs 175 deal professionals in the private equity division, of which only 16 are based in Europe. Although the majority of Bain's efforts are geared toward private equity (through Bain Capital Private Equity and its European affiliate Bain Capital Limited), the company also dabbles in venture capital, public equity and leverage debt assets. Absolute Return Capital (ARC) manages $600 million of capital in fixed income, equity and commodity markets; Bain Capital Ventures, the venture capital arm, focuses on seed through late-growth equity investments in technology companies; Brookside Capital is Bain's public equity affiliate, targeting publicly traded companies with long-term growth potential; and Sankaty Advisors invests in high-yield securities.
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Value-added
With its close ties to Bain & Company, it should come as no surprise that Bain Capital's investment approach draws on its partners' consulting expertise. According to the firm, its investment professionals evaluate companies on a "people-intensive, consulting-based due diligence process" that looks at "financial performance, market potential, industry attractiveness and competitive position." Once Bain invests in a company, it takes an active role in improving the business.
GETTING HIRED
According to Dwight Poler, a managing director at Bain Capital in London, Some firms franchised by hiring a local team, which may have lacked the credibility on the investment committee at home. Others only sent people from the US to make sure they had the experience and the trust back home, but found they lacked the reach and experience locally. Bain Capital seeks professionals with a combination of deep local expertise and international credibility. That may explain why half of the London senior team graduated from Harvard Business School, with their first degree often obtained at top French engineering schools. Bain Capital doesnt disclose the profiles of the rest of the team, maybe to protect themselves against competitors, maybe because the names change slightly faster than usual in the industry, but some research shows the same top pedigrees as with the senior team. To complement its investment team, 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. Unlike many private equity groups, Bain Capital has both a web site and a career page ("careers" at www.baincapital.com). Candidates interested in working for the buyout firm can learn more about current job openingsand applyonline. For example, the company offers a two-year associate program in any of its offices, which starts off with a multi-week training program designed to introduce newcomers to Bain's "value-added" investment approach.
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ADVENT INTERNATIONAL THE BLACKSTONE GROUP

345 Park Avenue New York, NY 10154 Phone: +1 (212) 583-5000 London office: The Blackstone Group International Limited 40 Berkeley Square London, W1J 5AL U.K. Phone: +44 (0)20 7451 4000 www.blackstone.com investments, corporate partnerships and industry consolidations Types of financing: Main: Majority equity Other: Minority equity, Debt, Investment in third party fund, Mezzanine, Shareholder loans
EUROPEAN LOCATIONS
London (HQ) Paris
THE STATS
Chairman and CEO: Stephen A. Schwarzman Employer Type: Listed company (NYSE) Ticker Symbol: BX Total private equity funds under management: 32.7bn (As of October 2007) 2007 Revenue: >$3bn Employees: 500+ (of the 400 professionals, 98 work in private equity) No. 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, with a preference for out-of-favour, under-appreciated industries Financial stages: Leveraged buyout acquisitions of seasoned companies but also transactions involving start-up businesses in established industries, turnarounds, minority www.blackstone.com/careers
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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 $400,000. Today, Blackstone controls or has a stake in 45 companies totaling $72 billion in revenue with 350,000 employees, making it one of the four or five biggest private equity funds in the world. While the firm managed a record $92 billion in 2007, a healthy $32 billion came from corporate private equity. The group boasts expertise in a number of areasincluding corporate debt, real estate, hedge funds, other asset management and advisory servicesbut its private equity business has become its bread and butter. Blackstone's first buyout fund closed in 1987 at $950 million, making it the largest first-time fund ever. Twenty years later, in August 2007, Blackstone set another record when it established its $21.7 billion Blackstone Capital Partners V fund.

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) $2.1bn $21.7bn $5.25bn $6.45bn
Blackstone Capital Partners IV
In total, the firm has raised more than $36 billion across six private equity funds, and as Blackstone's funds get larger, so do the deals. The $38.7 billion buyout of US real estate firm Equity Office Properties Trust, completed in February 2007, was the largest private equity transaction until the $45 billion acquisition in October 2007 of TXU by KKR and TPG, itself followed by the announcement of a $51.7 billion acquisition of BCE by Teachers a few months later. In total, Blackstone has invested in over 114 companies worth more than $200 billion. Its sheer size exposes it to the scrutiny of the public and the media. In July 2007, Blackstone publicly denounced a front page article in The New York Times filled
58
The Blackstone Group
with inaccuracies, myths, and misrepresentations that give a false impression of Blackstones tax situation and that of its partners. In May 2007, China's government announced it had agreed to make a $3bn investment in the Blackstone Group in the form of non-voting common units, giving it close to 10 per cent of the shares. It was the first time Beijing has invested its foreign reserve in a commercial transaction. In addition, it is understood that Chinas foreign reserve agency has agreed not to invest in rival private equity groups for 12 months. It is widely believed that by having China as a partner, Blackstone will receive preferential access to China's market. For China, it may be a way to bypass the restrictions that prevent it from making sensitive investments in Western countries. Shortly after, Blackstone raised $4.1bn in one of the largest IPOs in history. However, nine months after being issued to the public, shares in Blackstone languished at 35 per cent below the $31 issuing price. In early 2008, Blackstone announced a $500 million unit repurchase programme, explaining, We believe our common units are undervalued. While the share price didnt recover, Blackstone reportedly sent, in the first quarter of 2008, a fundraising prospectus to some investors for the new Blackstone Capital Partners VI fund, with an unofficial target of $20 billion.
B-list industry investing

Blackstone invests in what it calls "out of favor" industries. Ignoring swings in conventional wisdom about the attractiveness of certain sectors, Blackstone puts its money in "B-list" industries such as cable television, rural cellular, refining and automotive parts. The company's investment approach also includes partnerships with leading corporations, such as AOL Time Warner, AT&T and Sony, rigorous due diligence and an active role in monitoring portfolio companies. The firm has a dedicated senior operating partner who is responsible for overseeing the strategic, operational and financial performance of its investments, and employs former Clevel executives who act as advisors and board members.
Building blocks
In 2005, Blackstone completed the acquisition of Merlin Entertainment, an operator of branded visitor attractions, for 102.5 million. The transaction indicated the firm's seriousness about the leisure sector and, more specifically, European attractions and theme parks. Two years later, the firm announced the deal with the Tussauds Group to create the worlds second biggest visitor attractions operator after Disney. Merlin now employs 13,000 people in 12 countries and across three continents and manages a balanced portfolio of 51 attractions that includes iconic brands LEGOLAND,
59
Madame Tussauds, British Airways London Eye, Sea Life, Dungeons, Gardaland and Alton Towers. In December 2006, Blackstone acquired Tragus Holdings, one of the largest midmarket restaurant chain operators in the UK, from Legal & General Ventures for 267m. In 2007, Tragus grew by acquisitions, first with the MA Potters sites followed by the Strada pizza chain in a 140m deal. Despite missing the La Tasca tapas bar auction, the enlarged Tragus now has over 230 outlets and is the leading player in the French and Italian restaurant sectors. In July 2007, six months after selling the Extended Stay Hotels to the Lightstone Group for $8bn, Blackstone re-entered the hotel sector and took Hilton Hotels private for $26bn in an all-cash transaction. Hilton Hotels Corporation is the leading global hospitality company, with 2,896 properties totaling approximately 490,000 rooms in 76 countries and territories. In Europe, the firm is also active in manufacturing. In December 2006, it paired with PAI to acquire United Biscuits for 2.3bn. In May 2007, it bought Kloeckner Pentaplast, the worlds leading manufacturer of rigid plastic films from Cinven for 1.3bn. It also partnered with the other buyout giants KKR, Goldman Sachs and TPG to acquire Biomet in Poland in September 2007. Another sector of interest to Blackstone is energy. In 2005, the private equity group acquired an 80 percent stake in Sithe Global Power. Previous energy investments include Premcor, Inc., a U.S. refiner of petroleum products (acquired by Valero in 2005); Texas Genco, a Houston-based wholesale electric power generating company; Foundation Coal, a U.S. coal mining company; and Kosmos Energy, an oil exploration company.
Going global
While Blackstone's primary market is North America, the New York-based firm has increased its focus on Europe and Asia in recent years. The group opened an office in London in August 2000, an outpost in Hamburg in September 2003, an office in Mumbai in May 2005 and an outpost in Hong Kong in January 2007. To cover Europe, the group also entered into a strategic alliance with Roland Berger Strategy Consultants in February 2001. The partnership gave Blackstone access to intellectual capital and local knowledge of key European markets. The firm is also expanding into Eastern Europe and in 2007 invested a reported $178 million, as part of a $575 million MBO, for a 51 per cent stake in Lattelecom, the Latvian telecommunications company majority-owned by the Latvian government.
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More than just private equity

Although Blackstone's private equity group has earned the firm an elite status, its other divisions should not be discounted. The firm's M&A group, for example, has had its hands in several high-profile transactions over the years, including two big financial services deals. In 2000, Blackstone advised PaineWebber on its $10.8 billion sale to UBS, and Alliance Capital Management on its $3.5 billion purchase of Sanford C. Bernstein. In 2005, the firm advised Comcast on its $18 billion acquisition of Adelphia Communications. In 2006, they opened an office in London to expand their advisory service offerings beyond their U.S. base. And, in July 2007, Blackstone advised China Development Bank on its plan to invest $14 billion for a stake in Barclays PLC. Mostly active in the U.S., Blackstone's restructuring department has advised companies and creditors in more than 150 situations, involving $350 billion of total liabilities. In an attempt to cut costs to avoid bankruptcy, Delta Air Lines hired Blackstone to assist with its restructuring efforts. RCN Corporation switched from Merrill Lynch to Blackstone for its financial restructuring negotiations with its senior secured lenders. Blackstone also acted as lead advisor in the restructurings of both Enron and Global Crossing. A few years ago, the real estate group, operating out of the New York, London and Paris offices, boasted that it owned more than 13 million square feet of real estate in Boston, New York, San Francisco and Washington, D.C. With the recent inclusion of Hilton, Equity Office and Trizec Properties, this number is now significantly bolstered and the unit may have the largest real estate portfolio on the Street. The total enterprise value of the 223 transactions effected by the real estate operations from 1992 through September 30, 2007, was over $103 billion. The marketable alternative asset management segment manages more than $40 billion as of September 30, 2007. It includes funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and publicly-traded closed-end mutual funds. Blackstone's corporate debt group is actually two businesses: Blackstone Mezzanine Advisors and Blackstone Debt Advisors (BDA). These various vehicles have aggregate capital commitments of over $11 billion. Blackstone's mezzanine funds of $2.1 billion are among the largest of their kind and have investments in firms such as Colt Defense LLC. BDA is a relatively new group (created in 2002) and manages several CDO (Collateralised Debt Obligation) funds for investment predominantly in senior secured loans. They include seven US CDOs ($4.7 billion) and four European CDOs ($2.9 billion). And, to capitalise on the recent dislocations in the credit markets, in December 2007 Blackstone closed a new Credit Liquidity Fund on $1.3 billion to
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invest globally in a broad range of debt and debt-related instruments, including securities issued by CDOs. Last but definitely not least is the Blackstone Alternative Asset Management unit (headed by BAAM president and CEO J. Tomilson Hill), which had a staggering $27 billion of assets under management in funds of hedge funds as of November 2007. In January 2008, Blackstone announced the acquisition of GSO Capital Partners, an alternative asset manager that will bring its $10 billion under management in mezzanine, credit, senior debt and CLO funds, as well as 120 professionals, for $1 billion.
GETTING HIRED
Most senior investment professionals had a career before joining Blackstone. While a third of them went to investment banking, the recruiting is much more diversified, with a significant proportion coming from industrial sectors. The main difference with other players is the absence of accountants. Half of the senior private equity team holds an MBA, predominantly from Harvard and the other top US universities, as most of the team is still located in the US.
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Higher Diploma
Masters (5%) Bachelors only (40%) PhD/JD/MD (2%) MBA (53%)
Source: Candesic
Strategy consulting (7%) Banks (33%) Other (60%)
Source: Candesic

15 12 9 6 3 0
Georgetown (3) Columbia (3) Stanford (4) U-Penn (8) Harvard (13)
Source: Candesic
3.0 2.5 2.0 1.5 1.0 0.5 0.0
Goldman Sachs (2) JP Morgan Chase (2) Citigroup (2) Morgan Stanley (2) Credit Suisse (3)
Source: Candesic
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To learn more about job opportunities with Blackstone, check out the careers section of the company web site. There, the firm provides information on summer internships and campus recruiting, as well as experienced and international hiring. The group hires recent undergraduates as analysts and recent MBAs as associates. Recruiting typically takes place in the fall for full-time programs and in January for internships. US schools on Blackstone's campus schedule include Harvard, University of Michigan, University of Pennsylvania, University of Texas at Austin and University of Virginia. Students whose schools Blackstone does not visit can apply for these programs online. The recruiting process typically involves an on-campus interview followed by one or two rounds at the firm's New York office. Experienced hires can contact the firm via an online application. In Europe, recruitment is handled on a case-by-case basis. However, for those who have relevant experience and local language skills where appropriate, or have significant experience working in the relevant geographic region, they should contact the London Human Resources department at recruitingeurope@blackstone.com or visit the How To Apply section for more information on submitting an application online. While Blackstone currently has nine offices in six countries, its private equity group operates in London, New York, Hong Kong and Mumbai.
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ADVENT INTERNATIONAL THE CARLYLE GROUP

1001 Pennsylvania Avenue, NW Washington, D.C. 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.thecarlylegroup.com Financial stages: Buyouts, venture capital, real estate, infrastructure Types of financing: Majority equity, participation, mezzanine, leveraged finance
EUROPEAN LOCATIONS
Barcelona Frankfurt London Luxembourg Milan Munich Paris Stockholm
THE STATS
Chairman: Louis V. Gerstner Jr. Managing partners: William E. Conway Jr., David M. Rubenstein, Daniel A. D'Aniello Employer Type: Private Company Total private equity funds under management: $58bn in 2007 (9bn in Europe) No. of Employees: 995 (560 investment professionals) No. 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: hreurope@carlyle.com United States: hrusa@carlyle.com Asia: hrasia@carlyle.com Japan: hrjapan@carlyle.com
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THE SCOOP
Carlyle talks baseball
With nearly $58 billion under management before the demise of Carlyle Capital Corp, the Carlyle Group is one of the world's largest private equity firms. It was founded in 1987 by David Rubenstein, William Conway, Jr., Daniel D'Aniello, Stephen Norris and Greg Rosenbaum and named after the New York City hotel. Since then, the group has invested around $20 billion of equity in more than 600 transactions. But the Washington D.C. based company is quick to tell you that it doesn't "swing for the fences"that is, go for home-runs. Instead, the group pursues a conservative investment approach, preferring to hit more singles (and doubles and triples) with fewer strikeouts. Indeed, Carlyle points to its caution as a trait that sets it apart from competitorsthat, and its team of 560 investment professionals, with about 50 per cent holding an MBA, and 15 per cent a JD, MD or PhD. 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) $1.15bn 5.35bn $3.00bn $7.85bn 1.80bn $1.80bn $3.80bn $0.68bn $0.44bn
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. Senior advisors have included former US President George Bush Sr. and former UK Prime Minister John Major. The controversy around its access to funds and government contracts led
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The Carlyle Group
Carlyle to review its portfolio and reduce its exposure to companies too dependent on government contracts. It still boasts renowned advisors like Lou Gerstner, the former CEO of IBM, and Arthur Levitt, the former Chairman of the SEC. Among its investors, Carlyle counts CalPERS, which owns about 5.5 per cent since 2001, and, since 2007, the Abu Dhabi sovereign fund, which took a 7.5 per cent stake that valued the group at $20 billion.
Join the club

Although the group considers investments in a wide range of industries, it focuses on a few key sectors, including telecom and media, real estate, aerospace, information technology, energy and industrial. The firm dabbles in venture capital, leveraged finance and real-estate, but the majority of its deals are management-led buyouts. In the last three years, 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). In September 2005, for example, the private equity group joined forces with Clayton, Dubilier & Rice and Merrill Lynch Global Private Equity to acquire Hertz, the world's largest vehicle rental group, from Ford Motor Company for $15 billionbeating out other private equity groups vying for the investment. Just a month earlier, in August 2005, the firm exited an investment in satellite operator PanAmSat, which was sold to competitor Intelsat. Back in 2004, the Carlyle Group, together with KKR and Providence Equity Partners, acquired PanAmSat for $2.6 billion. The $3.2 billion price tag paid by Intelsat represents a $600 million gain for the private equity consortium. What's more, the investors had already made millions off the investment by taking 42 percent of PanAmSat public in an IPO that raised $2.9 billion. Recently, club deals have increased in size, as evidenced by the acquisitions in 2006 of energy infrastructure provider Kinder Morgan for $22 billion, with Riverstone Holdings LLC, and Freescale Semiconductor with TPG, Blackstone and Permira for $17.6 billion. Carlyle is currently raising its biggest fund ever with a target of $15 billion for U.S. buyouts. In 2007, it already raised a new 5 billion fund for European buyouts as well as its first infrastructure fund. Geographically, the Carlyle Group is a global company with 29 offices in 21 countries, and its European and Asian investments already account for a third of its assets. According to Fortune, the buyout activities boast an average annual return of 34 per cent. While private equity remains its focus, 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-
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Strategy Master Fund, its first hedge fund, with an opening value of $700 million. The timing wasnt ideal and the performance in the second half of 2007 wasnt impressive. In 2008, Carlyle was more deeply hit by the bankruptcy of Carlyle Capital Corporation, its $22bn Euronext-listed credit (i.e., mortgage-backed securities) fund. Carlyles CEO had been one of the first public figures to raise the alarm bell on the exess levels of leverage, and the news came as a shock.
Eastern outlook
In 2005, the Carlyle Group announced a significant expansion of its pan-Asian investment activities, with the opening of new offices in Beijing, Mumbai and Sydney. In total, the Carlyle Asia buyout group has eight offices. In addition, it set up in 2006 the Middle East and North Africa (MENA) group with four offices. 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. In April 2004, KorAm was sold to Citigroup for $2.7 billion, representing a $650 million profit for Carlyle and a 250 percent return on investment for the group's investors. So what is the group's recipe for success? Combine a new CEO and management team with streamlined operations, wait three to five years, then sell.
Old Europe
Carlyle is able to leverage its expertise in the defense & aerospace sector internationally. In February 2003, it acquired a 30 per cent stake in British defence research company QinetiQ for 150m, becoming a strategic partner with the U.K. Ministry of Defence, the main shareholder. In 2006, QinetiQ was successfully floated on the London Stock Exchange. In 2007 Carlyle sold its remaining 10 per cent stake for 140m, contributing to a total profit of at least 240m from its four-year investment in the company. With 125 investment professionals, fifty of them dedicated to buyouts, the European team is one of the largest among all private equity firms. While Carlyles European transactions tend to be smaller than in the US, the group has been involved in several landmark deals in Europe. In particular, in 2006, Carlyle partnered with Blackstone, KKR, Thomas H. Lee Partners, Hellman & Friedman and AlpInvest Partners to acquire Dutch publisher and market research giant VNU Group (Nielsen) for $10bn. That same year Bayer sold H.C. Starck to Advent International and The Carlyle Group for 1.2bn.
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The Carlyle Group
In 2007, Carlyle took a participation of 35 per cent in Numericable and Completel, alongside Cinven. It also acquired Arsys, the Spanish provider of web hosting and domain registration services, with Mercapital for 160m, and the Spanish Certification Group Applus+ for an enterprise value of 1.48bn in the second largest investment undertaken by a Private Equity Fund in Spain to date. In 2007, Carlyles global portfolio included 200 companies across all activities, which in turn employ more than 280,000 workers and have $87 billion in sales.
GETTING HIRED
The Carlyle Group offers opportunities for investment professionals, support professionals, associates and senior associates. Investment professionals are involved in the analysis, execution, monitoring and exit of private equity investments. Support professionals are part of the investor services team, which encompasses accounting, administration, corporate communications, human resources, information technology, investor relations and legal. Associates are typically recent undergraduates with a strong GPA and two years of investment banking or consulting experience. Associates at the Carlyle Group go through a formal twoyear program. Senior associates generally hold an MBA and have three to four years of private equity, investment banking or consulting experience. Typical former employers are McKinsey and BCG in consulting, and JP Morgan and Lazard in investment banking. Candidates interested in applying for a position at the Carlyle Group should send a resume and cover letter to the appropriate region (U.S., Europe, Asia or Japan).
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Higher Diploma
Bachelors only (48%) Unknown (3%) PhD/JD/MD (6%) MBA (23%) Masters (20%)
Source: Candesic
Source: Candesic

8 7 6 5 4 3 2 1 0
ESCP-EAP (4) HEC (5) Cambridge (5) INSEAD (6) Harvard (7)
Source: Candesic
8 7 6 5 4 3 2 1 0
BCG (4) Lazard (5) JPMorgan (5) McKinsey (5) LaSalle Bank (7)
Source: Candesic
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GENERAL ATLANTIC
Head office: 3 Pickwick Plaza Greenwich, CT 06830 Tel: +1 (203) 629-8600 UK office: 83 Pall Mall, Fourth Floor London SW1Y 5ES, UK Tel: +44 20 7484-3200 www.generalatlantic.com Types of financing: Minority to majority equity in private and public firms
EUROPEAN LOCATIONS
London Dsseldorf
OTHER LOCATIONS
Greenwich (HQ) New York Palo Alto Washington, D.C. (Portfolio support office) Hong Kong Mumbai Sao Paulo (Portfolio support office)
THE STATS
Chairman: Steve A. Denning Employer Type: Private Company 2007 Revenue: $6.9bn 2008 Assets under management: $17bn No. of Employees: 150 No. of Offices: 9

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, expansions, buyouts, consolidations and build-ups
MOST IMPORTANT FUNDS

GA operates with an evergreen fund structure in which its partners make staggered long-term commitments.
EMPLOYMENT CONTACT
Phone: +1 (203) 629-8600 For additional contact information, check the company website at www.generalatlantic.com
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THE SCOOP
The Atlantic and beyond
Connecticut-based General Atlantic is a global private equity group with an exclusive focus on information technology, 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. Founded in 1980, the firm first began to seek investments outside the U.S. in the 1990s. Since then, it has established offices in London, Dusseldorf, Hong Kong, Mumbai, Sao Paulo and Singapore and has invested in more than 160 companies. Today, nearly half of the firm's portfolio investments are foreign companies. General Atlantic generally invests in eight to 12 companies per year, for an annual investment target of $1 billion, and currently boasts over 50 companies in its portfolio. Its portfolio includes holdings in Hewitt Associates, NYSE Euronext and Lenovo. All in, the tech private equity group has around $15 billion in capital under management. The firm distinguishes itself with its evergreen funding structure and its long-term investment horizon. They only make investments where they believe that they can help the management team build a market leader over five to 10 years.
Succession plans
In February 2005, co-founder and chairman of the firm's executive committee Steven A. Denning was named chairman, and William E. Ford, a managing director and chairman of the firm's investment committee, was named president. The two newlycreated positions reflect the company's succession plansDenning continues to oversee strategy and capital raising, while Ford assumes responsibility for the group's operations, continuing to manage its investment activities. Before joining General Atlantic in 1991, Denning was a consultant with McKinsey & Co and Ford was an investment banker with Morgan Stanley. They both received their MBAs from Stanford.In the same month, General Atlantic announced a name change. The company, previously known as General Atlantic Partners, dropped the "partners" to reflect the fact that it is a limited liability company, not a partnership.
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General Atlantic
In the pits
In February 2007, General Atlantic invested a rumored $800 million for Network Solutions, the original domain name registrar that was part of Verisign before being spun off in 2003. Since that time, theyve lost significant market share to discount operations like eNom or GoDaddy. They now have about 6.6 million domain names under management. In May 2007, General Atlantic took a minority equity share in GETCO, a leading electronic liquidity provider and trading firm. Two months later, it acquired Dutch company GlobalCollect, the worlds premier full-service international e-payment service provider, from Waterland Private Equity Investments and Prime Technology Ventures. In Germany, in December 2005, the firm took a minority stake in Navigon, one of Europe's leading suppliers of mobile navigation systems. It had also invested in CompuGroup AG, LHS AG and TDS AG. General Atlantic, which had been a strategic TDS partner since its 1998 IPO, increased its equity holding from 27 per cent to 71 per cent in 2003 at 2.35 per share. In December 2006, it sold its stake to Fujitsu Services, the European IT services arm of the Fujitsu Group, for a price of 2.80 per share. The firm has also been active in the UK; they acquired a third of Torex Retail Holdings Limited, the worlds leading provider of retail systems solutions with 2,100 staff across 19 countries, from Cerberus in August 2007. Torex provides software, hardware and services to major UK retailers like Tesco, Selfridges and Argos. While the terms of the transaction were not disclosed, Cerberus had bought it out of administration in June for 204.4 million. In 2006, the media reported that UK-based Northgate Information Solutions had received several acquisition offers, one of which was believed to be a 600m offer from General Atlantic, a minority shareholder. Shortly after, Northgate formally terminated any discussions with a third party that may have led to its acquisition. In December 2007, GA agreed to sell its stake to KKR, who paid 593m for the whole of Northgate, a 40 per cent premium to the companys share price even after it announced it was in bid talks again. Altogether, in 2007 General Atlantic acquired twelve new companies for total capital of $2.1 billion.
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GETTING HIRED
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.
Higher Diploma
PhD/JD/MD (1%) Bachelors only (34%) Unknown (7%) MBA (46%) Masters (12%)
Source: Candesic
Source: Candesic
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General Atlantic

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)
Source: Candesic
15 12 9 6 3 0
Deloitte (5) Citigroup (5) Goldman Sachs (5) McKinsey (8) Morgan Stanley (15)
Source: Candesic
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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: info@adventinternational.com Bain Capital Blackstone Carlyle For Permira see KKR other offices, TPG"contact us" at www.adventinternational.com
CAREERS CONTACT AND WEBSITE

peg@gs.com (Private Equity Group) http://www2.goldmansachs.com/careers/
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Goldman Sachs Principal Investment Area
THE SCOOP
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 firms 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
FUNDS
GS Capital Partners VI GS Mezzanine Partners 2006 GS Infrastructure Partners I GS Capital Partners V
VINTAGE YEAR
2007 2006 2006 2005 2003
FUND CAPITAL
$20.3bn
$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 Goldmans 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
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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 Portugals 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 consortiums offer, they appealed directly to shareholders. At one point, Goldmans 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.
Members only
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
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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 doesnt 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 Lindes 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 companys 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.
Universal soldier
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
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committed capital, making it the largest mezzanine fund in the world. The fund will target the Americas and Europe, making large mezzanine investments from $40 million to $500 million. The firm invests in leading companies with enterprise values ranging from $500 million to $10 billion, aimed at partnering with sizeable equity investors to structure complex transactions. Goldman Sachs Private Equity Group (PEG) is a leading investor in private equity funds, while also retaining the capacity to act as a co-investor for particular direct investments. The PEG manages over 16 billion, with over 85 professionals, and primarily invests in PE funds from the US, Europe, Latin America and Asia, with a variety of strategies and sector focuses. The PEG is subdivided into three separate programmes: GS Private Equity Partners is the global primary fund of funds; GS Vintage funds participate in secondary market transactions and portfolios of direct investments; GS Distressed Opportunities focuses on distressed debt and equity investments in private equity partnerships.
GETTING HIRED
The Merchant Bank division offers 10-week summer analyst and associate internships in its locations worldwide. This represents a couple of positions in the London PIA. Interns get an opportunity to learn about principal investing activities and increase their chances to get invited to interview upon graduation. The division recruits undergraduates as analysts, graduates as associates and some experienced hires. Their background and previous academic and professional achievements tend to be stellar. Analysts go through a two- 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. Analysts and associates are assigned a mentor to assist in their professional development. Goldman Sachs is universally famous for the quality of its recruiting services. Its no different in merchant banking. They hire the best of the best, after a long process where candidates meet a number of employees proportional to their prior experience. Strong achievers from any background have their chance but somehow, they tend to be Oxbridge or Harvard graduates with a stint at Bain or McKinsey. Candidates interested in joining the private equity area will find all information at www.goldman-sachs.ro/careers/our-firm/divisions/mbd/index.html
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ADVENT INTERNATIONAL KOHLBERG KRAVIS ROBERTS & CO. (KKR)

Head office: 9 West 57th Street Suite 4200 New York, 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.com Consumer Products Energy & Natural Resources Financial Services Health Care Industrial Media & Communications Retail Technology. Financial stages: Leveraged buyouts Types of financing: Majority equity, co-investment in majority equity, debt
EUROPEAN LOCATIONS
London Paris
THE STATS
Founding Partners: Henry Kravis & George Roberts (Jerome Kohlberg left in 1987 and founded Kohlberg & Co.) Chief executive: Johannes Huth Employer Type: Private Company Total equity assets: 86bn (As of October 2007) No. of Employees: 400 No. of Offices: 6
REST OF THE WORLD

New York Menlo Park Hong Kong Tokyo

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
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THE SCOOP
Head honcho
Kohlberg Kravis Roberts & Co., commonly known as KKR, is a recognised leader in the private equity world. Founded in 1976, the firm quickly built a reputation for itself as both innovator and head honcho. Its achievements include the first billiondollar buyout transaction, the largest buyout transaction over two decades and still the largest ever in real dollars (RJR Nabisco for $31.4 billion in 1987), the largest buyout in Europe and two of the largest Canadian buyouts. All in, KKR has completed more than 160 transactions worth $410bn. The private equity guru employs 100 professionals based in New York, Menlo Park, London, Paris, Hong Kong and Tokyo. Of these, 26 are what the firm calls "members," who have an average of 16 years with the firm. In 2007, the firm owned 40 companies that generated more then $100 billion revenue with 560,000 employees. The firm is very strong in Europe where it controls or owns stakes in 18 companies with about $50 billion in total revenue. Most important funds
FUNDS
KKR European fund III KKR Millennium II KKR PE Investors (Euronext Amst.: KPE) KKR European Fund II KKR Financial (NYSE: KFN)
VINTAGE YEAR
2008 2007 2006 2005 2004
FUND CAPITAL
8 (target)bn $16.6bn $5.3 (NAV)bn 4.5bn $18 (NAV)bn
The KKR way

So what's the secret behind KKR's success? For one, the firm has a long-standing reputation that works to its advantage when going after deals. KKR also boasts a network of key relationships in "Main Street" industries, as well as throughout Wall Street. Diversification is another key factor for the private equity group, which has invested in both fledgling start-ups and established corporations, traditional industries and less conventional sectors. The firm's industry experience includes chemicals, communications, consumer products, energy, financial services, health care, homebuilding, hospitality and leisure, industrial and manufacturing, media
82
Kohlberg Kravis Roberts & Co. (KKR)
and retail. KKR dealmakers are divided into these 11 industry groups, which focus on 100-day plans. Yet another reason for KKR's success is its long-term view: the firm's average investment period is seven years, although the firm has held a handful of companies for more than 10 years. Finally, KKR brings a certain level of expertise to the table in terms of managing its portfolio companies. This know-how includes the ability to attract strong management, "incentivise" management and employees, pursue acquisitions and divestitures, arrange financings, provide effective oversight and maximise value when exiting investments. Most importantly, the firm boasts an annual rate of return of roughly 27 per cent according to Fortune. In 2000, KKR launched Capstone, a consulting firm that works exclusively for them and helps with improving operations and measuring company performance.
The next frontier

The private equity firm's European division has been busy in recent years. The London-based team led by Johannes Huth added a new record with the biggest private equity transaction ever in Europe, an 11 bn ($22bn) acquisition of AllianceBoots in 2007, the leading pharmacy network in the UK. However, the majority of KKRs eighteen European acquisitions have been outside of the UK, with current portfolio companies in several countries: Legrand, an electrical device manufacturer, Tarkett, a flooring products company, and PagesJaunes, the French directory provider, were all acquired through the Paris office, which was only established in 2005; in the Netherlands, KKR owns five companies including NXP, Maxeda and Nielsen; in Germany, KKR owns another five companies including Kion Group and the ProSeibenSat1 media company; in addition, the firm owns TDC, the Danish telecom operator. One of the group's earliest acquisitions, banking information systems specialist Wincor Nixdorf, has staged a remarkable turnaround. Wincor more than doubled its worker force after KKR took over in 1999, and the company recently ranked No. 8 in German job creation between 2000 and 2005. Since going public in 2004, Wincor posted an annualised return above 50 per cent. Still, KKR would do well to proceed with caution in Germany, as the current attitude toward foreign buyout firms is none too friendly. Franz Muntefering, chairman of the Social Democrats, likened private equity firms such as KKR to "swarms of locusts sucking the substance" from German companies. Asia is one arena in which KKR is not a top dog. While competitors like the Carlyle Group have been in Asia since the late 1990s, KKR has been late to get into the mix. That has changed in the last two years with the opening of offices in Hong Kong and Tokyo, and several recent investments in Asia.
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On the selling block

Specialty publishing and targeted media company Primedia is one of KKR's longest running investments. The private equity group has made a number of investments, dating back to 1989 when Primedia was first getting its feet on the ground. In fact, the media company was originally known as K-III Communications, reflecting the start-up's financial backers (KKR). As of late, Primedia has been engaged in a fair amount of buying and selling, beefing up its portfolio of magazines while selling off key assets. A major sale came in 2005, when Primedia sold its About.com web site to The New York Times Company. Other transactions that year include the sale of Bankers Training & Consulting Company to BAI, the acquisition of the Auto Interiors Exposition & Conference from VNU, and the purchase of NHU Publishing. The next year, it sold Gems Group to Aspire Media's Interweave Press. 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), the No. 1 special interest magazine publisher in the U.S. In 2007, it had already sold its hunting, shooting and fishing titles to InterMedia Partners and Films Media Group (FMG) to Infobase Publishing Co. In August, PEM was finally sold to Source Interlink Companies for close to $1.2bn.
Toy story
KKR may not have competitors. Lately, it has been partnering with the other buyout giants, for example the joint acquisition with Blackstone, Goldman Sachs and TPG of Biomet in Poland in September 2007, or with Permira in December 2006 to acquire ProSiebenSat1 in Germany. KKR is not new to partnering: in 2005 for example, the private equity group teamed up with Silver Lake Partners to acquire Agilent's semiconductor business for $2.65 billion and with Permira to buy SBS Broadcasting S.A. for approximately $2.55 billion. That year also marked the completion of the $6.6 billion acquisition of Toys R Us. Originally, KKR had planned to go it alone, targeting the retailers toy business by itself, but later joined forces with Bain Capital Partners and Vornado Realty Trust to buy the whole company (including its babyproducts stores). Experts say part of the retailer's appeal was its real estate, which includes 1,500 stores around the world, with 681 in the U.S. 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), others remain skeptical about the investors' ability to turn things around. For one, Toys R Us faces increasing competition from the likes of Wal-Mart and Target. Furthermore, the bricks and mortar retailer has yet to find an online strategy that works. A new issue came in 2007 as the company, as well as the rest of the U.S. toy industry, faced
84
Kohlberg Kravis Roberts & Co. (KKR)
intense scrutiny after global recalls of millions of toys made in China over excessive lead paint levels that sparked safety concerns.
The year of the mega deals

In 2007, KKR partnered with Clayton, Dubilier & Rice to complete the acquisition of U.S. Foodservice from Ahold in a $7.1bn transaction, and with Goldman Sachs and Citigroup to acquire Dollar General for $7.3bn. It also partnered with TPG for a new record with the acquisition of Dallas-based energy company TXU Corp. in a transaction valued at $45bn. The company, previously listed on the New York Stock Exchange and the Chicago Stock Exchange, was renamed Energy Future Holdings Corp., a holding company with three separate and distinct business units with separate boards, management teams and headquarters: TXU Energy, a competitive electricity retailer; Luminant, a competitive power generation business; and Oncor, a regulated electric distribution and transmission business. With this operation, 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 $51.7 billion acquisition of Canadian Telco BCE by Teachers (the Ontario Teachers' Pension Plan).
Gate closed
After the credit crunch of 2007, business had to slow down. 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, but firms like KKR are forced to pursue smaller targets or focus on their existing portfolio. The day before Christmas, KKR announced the acquisition of Northgate Information Solutions, a provider of specialist software, outsourcing and information technology services, and a market leader in human resource and payroll processing, for approximately 593 million. This ends a long saga that commenced a year earlier with the termination of takeover discussions with its largest shareholder, General Atlantic, for a rumoured 600 million. Northgate works on one in three UK workers' salaries and fields most 999 calls made to the police; its long-term contracts, recurring revenue and high levels of cash flow were particularly attractive to private equity companies.
Defectors at the gate

KKR prides itself on a low turnover rate among its employees, which is why the firm was not very happy to lose many of its original partners, including Saul Fox, Ted Ammon, Ned Gilhuly, Mike Tokarz and Scott Stuart who were instrumental in establishing KKR's reputation and track record in the 1980s. Scott Stuart and Edward Gilhuly left the firm in September 2005 in order to start their own investment fund.
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Insiders suspect that the move may have been triggered by the founding generation's reluctance to give up the reins. KKR is run by Henry Kravis and George Roberts, both 63 with no plans to retire, and is considered one of the most closely controlled private equity firms in the business. Stuart and Gilhuly, roommates at Stanford Business School, told The Wall Street Journal that their departure had nothing to do with the founding partners, describing Kravis and Roberts as "fully engaged and the right guys to run KKR". Two years later, some people still wonder if KKR has spent sufficient time dealing directly with succession. What next? Over the years, KKR has expanded beyond equity financing for buyouts and has launched several credit vehicles, including KKR Financial, listed on the NYSE. In 2006, it successfully raised more than 4 billion with the public listing of a fund on Euronext Amsterdam. In June 2007, KKR filed a registration statement with the SEC for a proposed $1.25bn IPO of its common units representing limited partner interests in its partnership. The firm intended to apply to list its common units on the NYSE under the symbol KKR. While the firm filed an amended prospectus six months later in November, following the bad performance of Blackstones IPO, the credit crunch and the losses in the mortgage holdings of KKR Financial, KKR's publicly traded affiliate, it is still yet to happen.
GETTING HIRED
KKR does not provide employment information on its web site. Its staff in Europe are typically former employees from the likes of Goldman Sachs and McKinsey (the latter at Capstone in particular), most with an INSEAD or Harvard MBA. Candidates interested in working for the private equity firm in Europe should contact the firm directly at its offices in London and Paris.
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TPG
301 Commerce Street, Suite 3300 Fort Worth, TX 76102 United States Tel +1 (817) 871-4000 London office: 2nd Floor, Stirling Square 5-7 Carlton Gardens London, SW1Y 5AD United Kingdom Tel +44 (0) 20 7544 6500 www.tpg.com Growth and TPG Biotechnology add value to companies in their early and growth stages. Types of financing: Private equity, venture capital, public equity and debt investing
EUROPEAN LOCATIONS
London Luxembourg Paris Moscow
THE STATS
Managing Partners: David Bonderman, Jim Coulter & Bill Price Employer Type: Private Company Private equity assets under management: $50bn No. of Employees: 150+ investment professionals No. of Offices: 17
REST OF THE WORLD

Fort Worth (HQ) Menlo Park Minneapolis New York San Francisco Washington, D.C. Beijing Hong Kong Mumbai Shanghai Singapore Tokyo Melbourne

Bain Capital Blackstone Goldman Sachs KKR Permira Apax
COMPANY FOCUS
Sectors: Industries undergoing change created by industry trends, economic cycles or specific company circumstances Financial stages: Through TPG Capital, global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. The firms growth platforms, TPG
EMPLOYMENT CONTACT
Phone: +44 (0) 20 7544 6500
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THE SCOOP
On a roll
Founded in 1993, TPG is a leading private equity firm with some $50 billion in assets under management and more than 120 transactions under its belt. The companies in its portfolio represent a total of about 500,000 employees. These days, say insiders, the firm is bigger and busier than ever. Of late, TPG has partnered with other firms to buy luxury retailer Neiman Marcus; a stake in Lenovo Group, Chinas largest computer maker; SunGard Data Systems and, together with KKR, TXU, which was shortly the largest LBO since the RJR Nabisco buyout in 1989. The firm also invested in Washington Mutual, purchased Midwest Airlines and Canadian pharmaceutical company Axcan. In 2006, the company closed its fifth fund at $15 billion of capital commitments, a significant landmark for TPG considering it launched its first fund in 1993 with $720 million. It was also the most active private equity player in 2006 as it struck deals worth about $101 billion. Buyout funds
FUNDS
TPG Partners V TPG Partners IV
VINTAGE YEAR
2006 2003
FUND CAPITAL
$15bn
$5.8bn
In the past, TPG has pursued distressed companies, the ones other investors wouldn't get anywhere nearthink Burger King. These days TPG is also focusing on distressed investing now that take private transactions are very difficult in the current credit environment. Up until recently, more than half of the group's capital had gone toward high-quality, low-risk investments such as SunGard, Neiman Marcus and Petco Animal Supplies. Investments have included technology (Seagate Technology), consumer products (Ducati), retail (J. Crew), airlines (Continental), media (Univision), entertainment (Harrahs) and energy (Energy Future Holdings formerly TXU, Texas Genco Holdings). 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.
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TPG
Evolution
From the very beginning, TPG showed a distinctive ability to identify lucrative investment opportunities, which started with Continental Airlines in 1993. With a new management team focusing on lucrative business and a better aircraft utilization, TPG generated an 81 per cent gross IRR. TPG's total return on its $64 million investment was nearly $700 million. TPGs interest in airlines has been a constant feature over the last 15 years. The firm also invested in America West Airlines and Singapore airline Tiger Airways Pte and, in 2007, TPG acquired Midwest Air Group in a $451 million transaction backed financially by Northwest Airlines. Outside of the US, airlines have been more difficult to acquire. In 2007, TPG was unable to get the necessary shareholder approval and failed to acquire Australian airline Qantas. In May 2007, it was said to be bidding for at least 39.9 per cent of Italys state-controlled airline Alitalia along with MatlinPatterson and Mediobanca for a reported 5bn. It has finally thrown in the towel in November, after failing to put together a consortium with a majority of Italian investors. In 2007, TPG led another consortium including British Airways to acquire Spanish airline Iberia for a reported 3.4bn, but officially withdrew in December.
Go Europe
TPG is based in the Lone Star State, although the private equity group is no ingnue when it comes to the rest of the world. Out of its 17 offices, four are in Europe and seven in Australasia, most of them opened in the last three years. In fact, TPG was one of the first major U.S. private equity firms to establish a European business; past transactions include Ducati Motor, Punch Taverns, Scottish & Newcastle Retail and Findexa. In 2003 and 2005, TPG won Thomson's European buyout deal of the year for its acquisitions of UK retailer Debenhams for 1.7 billion, and the first buyout in Greece with the acquisition of 81 per cent of TIM Hellas for 1.1 billion. Debenhams was floated on the London Stock Exchange in June 2006 and TPG remains the companys largest shareholder. TPG realised strong gains on its investment in TIM Hellas when the company was sold to Weather Investments in February 2007. Finally, in October 2006, TPG took a 42 per cent stake in French television firm TDF. And that was it. According to FinancialNews, TPG has failed to win the 40bn worth of European deals it bid for in 2007. Still, 2007 was a good year for TPG. In spite of all the turmoil in the market, the company managed to close the largest buyout ever at the timeTXU (now called Energy Future Holdings). It also finalised several billion plus in other deals: the acquisition of Sabre Holdings with Silver Lake for $5.4 billion; the acquisition of Harrah's Entertainment with Apollo for $31 billion; the
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acquisition of business communications specialist Avaya, again with Silver Lake, for about $8.3 billion; and finally, the privatization of Alltel for $27 billion, together with GS Capital Partners.
More hits than misses

When you take a gamble on down-and-out companies, you're bound to have some misses from time to time. Some of TPGs lower-returning investments include Gate Gourmet Group, Bally and Ducati Motor, but these have still proven to be quite profitable for the firm. In 2004, 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. And Burger King, bought in 2002, looks like a success story. By mid-2005, the franchise had already earned more money than it had in all of 2004. In May 2006, the IPO was a success and in February 2007 TPG recovered its initial investment by selling some shares. TPGs third fund is one of its most successful. Rumor has it that, like other major private equity firms, 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. In a December 2007 interview with Reuters, managing partner David Bonderman stated that, while he has no immediate plans to take his firm public, he expects that most major private equity firms will probably be public companies within five years. "Being public is not my favorite thing," Bonderman said, and I hope that TPG will be one of the last ones. In the meantime, as of April 2008, TPG is nearing a deal to buy a $5 billion stake in a public company: troubled mortgage lender Washington Mutual.
GETTING HIRED
TPG doesnt disclose the profiles of its team. Insiders tell us that the London team is diverse, 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.com/contact.
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3I GROUPINTERNATIONAL ADVENT
16 Palace Street London SW1E 5JD United Kingdom Tel: +44 (0)20 79 28 3131 www.3i.com Types of financing: Main: Majority Equity Other: Minority Equity, Debt, Investment in third party fund, Mezzanine, Shareholders loans
EUROPEAN LOCATIONS THE STATS

CEO: Philip Yea Employer Type: Public listed company (LSE) Ticker Symbol: III Total private equity funds under management: 10.7bn (As of March 2007) 2006 Revenue: 4.15bn 2005 Revenue: 4.18bn Employees: 750 investment professionals in 2008 No. 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, with specialist global teams in Oil Gas & Power Technology Media Business Services Financial Services Healthcare and Consumer. Financial stages: Mid-market buyout up to 1 bn equity), Growth Capital, Infrastructure and Quoted Private Equity. Advent International Apax Barclays Private Equity Bridgepoint Montagu
EMPLOYMENT CONTACT
www.3i.com/careers/current-opportunities.html
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THE SCOOP
With 750 professionals, 3i is one of the largest European private equity companies by assets under management and the largest by number of transactions. In 2006, the company had 10.7 billion under management and in the last five years has completed 400 trade sales and 46 public offerings. The firm is a true generalist and along with being one of the oldest British firms, it is probably the most diversified.

FUNDS
3i eurofund V 3i eurofund IV 3i eurofund II
VINTAGE YEAR
2006 2004
FUND CAPITAL
5bn 3.3bn 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. Back then, William Piercy was the first to lead the 3i Group in England. In 1967, the firm made its first venture capital investment by buying a share of Oxford Industries for 90,000, which it went on to sell for 4.7 million. In the following years, 3i invested mainly in Europe, the US and Japan and was listed on the London Stock Exchange in 1991 with a market capitalisation of 1.5 billion. Shortly after, the company was listed on the New York Stock Exchange, and at its current value of 6.5 billion is the only private equity firm included in the FTSE 100. In 1999 the company raised 2 billion for its second European fund. 3i was badly hit by the technology bubble burst of 2000 and in 2001 restructured its organisation towards a three sector strategy, in order to efficiently develop each business unit: Buyouts, Growth Capital and Venture Capital. In 2005, 3i sold the worlds largest foreign exchange specialist Travelex for 1 billion to Apax, generating a 10 times return on investment. It had bought the company on 30 December 1998just days from the formal introduction of the Euro that many thought would destroy the business. Recently, 3i launched its fifth and largest European fund, with 5 billion of committed capital.
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3i Group
Presence in all stages of private equity

The venture capital unit operates in Europe and the United States, investing between 1 million and 75 million per transaction. Its main focus is on start-up and earlystage operations. Today, the rest of the private equity business is divided into Growth Capital and Buyouts, with the newly formed Infrastructure and QPE groups completing the picture. Growth Capital focuses on minority holdings in emerging markets such as Asia. The team normally invests between 10 million and 150 million per transaction and is currently the fastest growing division of 3i. 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. The Infrastructure team invests amounts of 70 to 400 millions in infrastructure assets, defined as asset-intensive businesses that provide essential services over the long term, 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.
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While growing in size and reach, the company remains committed to the mid-markets and won the Private Equity News mid-market firm of the year award in 2006. There is also an SMI team of 17 professionals that manages minority holdings, with a combined market value of 600m, in more than 250 British and German small companies. Thanks to its long existence and to the diversity of its geographic, sector and financing experience, 3i offers a rare access to the widest range of local business communities, entrepreneurs, experts and multinationals.
Expansion plans
3i expanded early throughout Europe, and for the last 10 years, the focus has been on developing their presence in Asian and Nordic markets. The company expanded its target acquisition regions to Finland, Sweden and Denmark as well as Greater China. In addition, 3i opened a new office for its Growth Capital unit in New York. In 2007, 3i sold its shares in Nordic Modular to Kungsleden AB, a Stockholm-listed real estate company, for about 100 million, making ten times its initial investment of 2005. Eastern Europe is another area that private equity firms, 3i in particular, are trying to break into. In 2007, 3i formed a CEE team and acquired EDS, the leading web-offset printer in the Czech Republic, Poland and Hungary. A few months later, the team was reinforced with a first appointment in Warsaw. In 2007, 3i has conducted business in 20 regions and various growth sectors. Since its creation in the United Kingdom in 1945, it has expanded to 14 countries across the world. 3i understands the potential of growing markets around the world but still remains strong in its traditional European regions.
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3i Group
Infrastructure fund
In 2007, 3i established an infrastructure fund which made its first public investment of 305 million, when it bought three oil tanking businesses, one being Oil Tanking, a German business in which 3i acquired a 45 per cent stake. The 3i Infrastructure fund has been listed on the London Stock Exchange since March 2007, and has so far raised 1 billion.
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. Candidates are expected to demonstrate an ability to work together across business lines and national boundaries. 3i has a varied European culture which makes flexibility and cultural openness particularly important. Compared to other global players, its employees tended to study predominantly in Europe rather than in the US. Due to the strong UK presence, over 10 per cent of all employees studied at Cambridge or Oxford. In France most employees studied business at HEC, and in the Nordic region, at the Helsinki University and the Stockholm School of Economics. 3is percentage of graduate degrees is relatively high compared to other private equity companies. INSEAD and London Business School account for more than 25 per cent of all MBAs at the firm.
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Higher Diploma
Bachelors only 32% Unknown 7% PhD/JD/MD 6% MBA 28% Masters 27%

Source: Candesic
Strategy consulting 11%
Audit & transaction services 17% Banks 21% Other 51%

Source: Candesic

20
15
HEC (9)
10
LBS (10) Cambridge (16) Oxford (17) INSEAD (18)
Source: Candesic
20
15
JPMorgan (6)
10
Deloitte (9) McKinsey (11) Anderson (16) PWC (17)

Source: Candesic
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3i Group
3i is composed of a diverse group of 250 professionals. Only half of them had their previous jobs in professional services (mostly consulting and transactions services) or investment banking. Almost a quarter come from the industry. The main previous employers are the Big Five and McKinsey. The largest team is based in London, where it recently moved to new premises next to Buckingham Palace, closer to the traditional private equity establishment in St James. The new office is designed to favour the interaction between managers and entrepreneurs and has achieved the desired mix of startup and professional environment. Candidates will find that 3i provides plenty of information on recruitment and careers on their website.
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ALLIANZ CAPITAL PARTNERS/ ADVENT INTERNATIONAL ALLIANZ PRIVATE EQUITY PARTNERS/ ALLIANZ AGF PRIVATE EQUITY
Kniginstrae 19 80539 Munich Germany Tel: +49 (0)89 38 00 19900 www.acp.allianz.com www.apep.allianz.com www.agfpe.com Types of financing: Majority equity, co-investment, mezzanine
EUROPEAN LOCATIONS
Munich (HQ) Paris (Allianz AGF Private Equity) London
THE STATS
Managing directors: Mr. Stefan Sanne (ACP), Mr. Jonny Maxwell (APEP) Employer Type: Subsidaries of Allianz AG Total private equity funds under management: 2bn (direct), 7bn (funds of funds) and 2bn (AGF PE) Employees: 200 in 2004 (Allianz Private Equity Holding) No. 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, expansion, financial restructuring) APEP: Funds of funds AGF PE: Funds of funds and VC
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Allianz Capital Partners/ Allianz Private Equity Partners/ Allianz AGF Private Equity
THE SCOOP
In 2002, Allianz Private Equity Holding was formed to integrate the various private equity activities of the Allianz Group and of its banking arm Dresdner. It included Allianz Capital Partners (ACP) for direct investments, Allianz Private Equity Partners (APEP), the funds of funds and some venture capital activities.
Allianz Capital Partners

ACP manages only its parents own funds, with 2bn spread across 20 investments in the last 10 years. 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. ACP was established in 1998 and has since grown to include 40 professionals based in Munich, who occasionally partner with colleagues in London on select investments. The team invests in European assets in the realm of 30 million-350 million, but only in certain asset classes. While it presents itself as generalist, the team typically does not make direct equity investments in real estate, insurance, banking or content media. They will consider conglomerate restructuring, developing German middle-market companies, privatizations and public-to-private MBOs relying on equity or mezzanine financing; however, they shy away from start-up financing and operational restructuring.
Thomas Pueter
As Germanys most senior private equity investor, Thomas Pueter is seen as a charming and eloquent spokesman of the industry. Along with running ACP he is also head of Allianz Alernative Asset Holding, a business unit created in 2005 to tie together the groups alternative assets ranging from private equity to real estate to alternative energy. In the debate that is currenlty shaping the German economic outlook, he is seen as a calm voice that carries a measure of influence.
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Team power
ACP conducts only a few key transactions every year. In 2004, together with Lufthansa and Apax, ACP sold Tank and Rast, the German motorway service operator that had been privatised in 1998, to Terra Firma. In 2006, it sold Four Seasons Healthcare, a leading UK nursing homes operator, for 1.4bn to Three Delta, representing 14 times EBITDA, having bought it for 1.15bn from Alchemy in 2004. In May 2007, ACP bought Selecta, the European vending business of Compass Group, for a consideration of 772.5m. Selecta operates as many as 150,000 vending machines. Like most other major buyout players, ACP is increasingly teaming up to win transactions; in 2007, it partnered with ABN AMRO Capital to acquire Sdu, a leading publishing and security identification group, from the Dutch State for 415m, and with 3i and a strategic investor, Deutsche Seereederei, to purchase ferryshipping company Scandlines Group. To convince the previous state owners, the consortium has agreed not to lay-off any employees for operational reasons until December 31, 2010.
Allianz Private Equity Partners

Allianz Group investors who wish to invest indirectly into the private equity sector are channelled through Allianz Private Equity Partners. As a fund of funds their main responsibility is to efficiently invest a pool of funds in various PE firms; this involves conducting due diligence of PE partnerships, valuations of unrealised PE portfolios, research on the private equity market and presenting their ideas to an investment committee.
A little bit of history

APEP was formed in 1996 when Allianz started its private equity program, with the expansion of a New York office and an acquisition of Dresdners private equity funds portfolio following in 2002 and 2003, respectively. With 48 professionals spread across offices in Munich, New York, Singapore and AGF Private Equity in Paris, the team has a truly global investor base. In July 2007 Allianz announced that they were forming an indirect PE investment business group in London, headed by the controversial former head of Standard Life PE Jonny Maxwell. The then CEO Wanching Ang was appointed to the management team, and subsequently resigned from Allianz in November to pursue personal interests, leaving Mr. Maxwell to take over her duties.
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Top of the Deutsche league

The current assets under management are in the region of c. 7 billion with an annual commitment rate around c. 1.3 billion, which is spread across 10-20 investments per year. In February 2007 APEP announced it was closing its first fund of funds to investors at 823 million, making it the most successful German fund of funds to date. Allianz Group companies invested about 200 million, with the remainder coming from institutional and private investors.
Allianz Capital Partners/ Allianz Private Equity Partners/ Allianz AGF Private Equity
Allianz AGF Private Equity

Since Allianz bought French Insurance company AGF, French operations had kept their name while being slowly integrated. In 2008, AGF Private Equity becomes officially Allianz AGF Private Equity and brings its private equity activities in funds of funds, secondaries, co-investments and venture capital to the group.
GETTING IN
Allianz Capital Partners investment team consists of specialists from seven countries who provide extensive knowledge of local markets. The firm doesnt disclose the profiles of the team. However, out of 40 ACP employees in Munich, there are five INSEAD graduates (with another five in the other PE divisions of the group). APEP is divided into four teams: Management Team, Investment Team, Clients and Products team, and Business Operations team. They are located in Munich, New York and Singapore, with a diversified sector experience in private equity, industrial corporations, investment banking, and professional services. There is a large proportion of employees who joined with prior private equity experience. The same applies to the smaller French team of eight in the funds of funds and secondary investments of AGF Private Equity. Allianzs top graduate university is Munich University, which is to be expected since their only true office in Europe so far is in Munich. 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, Allianz could soon become a true pan-European player and catch up with its dynamic archrival Axa Private Equity.
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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.apax.com Tel: +44 20 7333 0800 www.adventinternational.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. Martin Halusa Employee The StatsType: Independent Private Company Chairman: Peter A. 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. of Offices: 10 Employees: 130 investment professionals, of which 65 in Europe (2008) No. 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, Media & Telecoms Financial stages: Healthcare & (>300m equity), Large Mega buyout Life Sciences Industrial buyout (150m-300m equity), Mid market buyout (15m-150m), PrivatisaFinancial stages: tion, Public to private, Small buyout International buyouts, recapitalization and (<15m equity) growth equity investments (up to 500m equity), some venture capital Types of financing: Main: Majority Equity Types of financing: Others: Minority Equity, 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.com
Employment Contact
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THE SCOOP
Apax Partners is one of the few European private equity firms that has global ambitions. Based in the UK with European offices in Munich, Milan, Stockholm and Madrid, the firm also has a large presence in the U.S. as well as offices in Hong Kong and Mumbai. The firm was co-founded in 1972 by Sir Ronald Cohen, the father of British venture capital and high profile Labour supporter, Maurice Tchenio, currently the French office Chairman and CEO, and Alan Patricof, an early investor in Apple and AOL.

FUNDS
Apax Europe VII Apax US VII Apax Europe VI Apax Europe V
VINTAGE YEAR
2007 2007 2005 2002
FUND CAPITAL
11.2bn $0.8bn 4.3bn 4.4bn
Over the last three decades the firm has raised in excess of $35bn and has invested in almost 400 companies, 275 of which are currently in their portfolio, including well known names like Tommy Hilfiger, Somerfield and Travelex. After closing the most recent Europe VII fund at 11.2bn Apax overtook Permira as the largest European PE firm, leaving CVC in third. Until the acquisition of Alliance Boots by KKR in 2007, Apax also had the distinction of leading the consortium that pulled off the largest LBO in Europe: a $15.3 billion deal in 2006 for Denmarks incumbent telecom operator TDC. In the last twelve years Apax has listed over 65 companies on global stock markets, with a total value of $35bn at initial offering.
Still kicking
Apax Partners is a veteran in the private equity biz, tracing its roots back to 1969 when the investment firm was known as Alan Patricof Associates. In 1977 the French/British venture known as Multinational Management Group merged with Alan Patricofs American Investment Company, forming the basis of Apax Partners
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as we know it. As with many international mergers the offices initially operated as relatively separate entities until the late 1990s. In 2002 the global assimilation was made official when the firm changed its name to Apax Partners Worldwide LLP. In 2005 the company looked to enhance its expertise in fast buyouts, and acquired the specialist firm Saunders, Karp & Megrue.
Apax Partners
French exception
Under the leadership of Maurice Tchenio the French office has always had a large degree of independence, and, in its current form of Apax Partners SA, is fully owned by its 10 French partners and 28 investment professionals. The decision making is completely centralised in Paris, and their focus is shifted towards growth companies and mid-market buyouts. Funds managed by the French office exceed 2bn, with over 40 companies currently under management. The firm has always been one of Frances pioneering private equity firms, creating the first Fonds Commun de Placement a Risque (FCPR) and co-founding the French Private Equity Association (AFIC). In 2007 it merged two of its investment vehicles, Altamir & Cie and Amboise Investissement, to create a Euronext-listed vehicle with a market capitalisation of about 250m. The French office can invest alongside the other funds of the firm, but insiders claim that the lack of integration can be an issue when competing on panEuropean transactions against more thoroughly integrated competitors.
Global powerhouse
If you ask John Megrue, co-CEO of Apax Partners' U.S. operations, the private equity industry is undergoing a polarization of sorts. On the one hand, there are firms that want to become global leaders; on the other, there are those that want to become niche specialists. Apax Partners, says Megrue, wants to be in the first group. With 10 offices spread across the U.S., Europe and Asia and a strong history to build on, the private equity group is well-positioned. Funds advised by Apax Partners invest globally in large businesses with an enterprise value of between $1 billion and $5 billion. As a whole, Apax targets deals in five sectors: tech and telecom, consumer and retail, media, healthcare and financial services.
The times they are a-changin'

Although many private equity firms have struggled with the transition from one generation to the next, Apax Partners is an exception. Sir Ronald and other partners were already discussing succession back in the late 1990s, ultimately agreeing to a retirement age ceiling of 60. So in January 2004, less than two years from his 60th
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birthday, co-founder Sir Ronald Cohen stepped down as chief executive, naming Martin Halusa as his successor. Sir Ronald stayed on as chairman, maintaining a leadership position but giving Halusa significant breathing room, and retired from that office in August 2005. While some wondered how the firm would fare with Sir Ronald gone, Halusa wasn't exactly a newbie; he had been with Apax Partners for 15 years and described the management changes at Apax as "organic, rather than revolutionary. The private equity group's merger with SKM in the US is another sign of changing times. In the past, the firm's US division has been focused on smaller venture-capital style investingthink first/second-stage and mezzanine financing to high-tech, retail and communications companies such as America Online, Apple Computers and Office Depot. The combination with Connecticut-based SKM allows Apax to handle bigger buyout deals in the U.S. In June 2005, Halusa told Real Deals, "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. In 2007 however, after raising its new fund, Halusa shut Apax's Silicon Valley office in California, resigned from the National Venture Capital Association and announced, as reported by Bloomberg, Our next fund will be 100 per cent buyouts. Our venture results have been very volatile, and our focus is on the more stable end of the business''. Now the company employs the same investment strategy across its global platform: investing in large stable businesses with the capacity to expand. Apax keeps an interest in VC though. In 2005, it set up the Apax Foundation to support entrepreneurial, social investment and educational initiatives that work towards the alleviation of poverty in deprived communities worldwide. One of the foundations key investments is in Bridges Community Ventures, a venture capital company with a social mission co-founded by Apax Partners in 2002 and chaired by Sir Ronald Cohen.
Killer deals
Apax history has its count of killer deals. Alan Patricof was involved in the very early financing of Apple Computers and extracted significant value when the company expanded. In 1998, Apax turned a $3 million investment in Autonomy Corporation into a $900 million payout, one of the largest returns in European Venture Capital history. In 2007, the firm made 40 times its investment on the sale of UK Healthcare at Home to mezzanine provider Hutton Collins. In the same year it also realised a profit on Swedish medical product company Mlnlycke Health Care Group, when it was sold
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to Investor AB and Morgan Stanley Principal Investments for 2.85bn, raising about ten times the initial investment.
Apax Partners
Compulsive shopper
Apax is organised along five sector areas and closes 12-15 acquisitions a year, many of them being take-privates. Its main sector of activity is technology and telecom with more than 70 companies in the portfolio. Lately it has been particularly busy in the media and healthcare sectors. In August 2006 Apax joined the private equity consortium headed by KKR to acquire an 80.1 per cent stake in the Semiconductor Division of Royal Philips Electronics, now known as NXP Semiconductors. It was also a co-investor in Greek mobile telecom group TIM Hellas, which sold to Weather Investments for 3.4bn. Apax has recently increased its focus on media assets in Europe. It took UK toy and media firm HIT Entertainment private in June 2006. In December 2006 it completed the de-listing of British specialist business information provider Incisive Media alongside management. In March 2007 it acquired a 49.9 per cent stake in Trader Media Group from Guardian Media Group and, in December, partnered with Guardian Media Group to acquire publisher Emap for 2bn. After acquiring Swedish healthcare operator Capio in 2006 and delisting it from the Stockholm Stock Exchange, it took control of Unilabs of Switzerland and intends to delist it from the SWX Swiss Exchange. The combined group is a European leader in medical diagnostic and several other areas of healthcare services. Because it already owned GHG, the largest private hospitals operator in the UK, Apax had to divest the Capio hospitals in the UK. In November 2007 it completed the acquisition of Qualitest and Vintage Pharmaceuticals, a leading distributor and manufacturer of generic pharmaceuticals in the US.
Looking East
Surprisingly for a firm this size, Apax doesnt have a strong track record in Eastern Europe. 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. The report reviews the private equity operating environment for 33 countries and underlines the difficulty of operating in the region. In 2006, though, Apax invested $190m to acquire an interest in CME, a TV broadcasting company traded on the NASDAQ and the Prague Stock Exchange with
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leading television stations located in Croatia, Czech Republic, Romania, Slovakia, Slovenia and Ukraine and reaching an estimated 82 million people Eastern and Central Europe. In 2005, the company opened an office in Hong Kong, headed up by senior partner Max Burger-Calderon. The next year, it opened its second Asian office in Mumbai, headed by Neeraj Bharadwaj. In 2007, it teamed up with Prathap Reddy, one of India's most prominent entrepreneurs, to give it a stake in Indias fast-growing healthcare industry. Newspaper reports also announced a plan to take a stake in India's Patni Computer Systems, together with TPG.
GETTING HIRED
Apax staff is organised in in-house knowledge centres and fund managers organised in sector teams. Unlike many competitors, managers dont get to work across industries. This organisation shows Apaxs focus on knowledge-based business, and allows the private equity firm access to exclusive information. Apax investment professionals were educated at the very best universities, mostly in the US, the UK and France. MBAs from Harvard Business School alone represent a striking 22 per cent of this workforce. In Paris, HEC is the most frequent graduate diploma, often complemented with an MBA. However they tend to join Apax after several years of experience, mostly in investment banking, strategy consulting or both. Strategy consulting has an unusually high presence, with McKinsey the largest previous employer (15 per cent of the professionals) and pretty much every top 10 strategy consultancy represented.
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Apax Partners
Higher Diploma
Source: Candesic
Audit & transaction services (4%) Banks (32%) Other (28%) Strategy consulting (36%)
Source: Candesic

30 25 20 15 10 5 0
Oxford (9) Wharton (13) Cambridge (13) INSEAD (14) Harvard (29)
Source: Candesic
20
15
Deutsche Bank (5)

10
Morgan Stanley (5) Goldman Sachs (8)
BCG (8) McKinsey (29)

Source: Candesic
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Candidates can contact the Apax human resource department to read their HR inside report on the private equity industry. Apax warns however that due to volumes of emails [they] are only able to respond to those invited for interview.
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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.AXAprivateequity.fr Tel: +44 20 7333 0800 www.adventinternational.com

Paris (HQ) London (HQ)Frankfurt Milan London (infrastructure, 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. Brooke ment: 15.7bn (2008) of which 5bn is Employer Type: Independent Private in direct funds Company almost 200 Employees: Total private equity funds under No. of Offices: 6 management: about 11bn (2008) Employees: 130 investment professionals, of which 65 in Europe (2008) COMPANY FOCUS No. 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, Head of Human Key Competitors Resources rh-AXApe@AXA-im.com Equity 3i Apax Barclays Private Tel. +33 (1) 44 45 93 10 Cinven Montagu
Mega buyout (>300m equity), large Sectors:(150m-300m equity), mid buyout market buyout (15m-150m equity), Business Services & Financial Services Retail & Consumer public to private, infrastructure. Expansion capital, Media & Telecoms Technology,small buyout (<15m equity), seed & Life Sciences Healthcareand other early stage. Primary, Industrial early secondary and secondary funds of funds. Financial stages: Types of financing: International buyouts, recapitalization and growth equity investments (up mezzanine Majority equity, co-investments, to 500m equity), some venture capital Types of financing: Majority equity
Employment Contact
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THE SCOOP
AXA Private Equity is a subsidiary of AXA, one of the major global insurance companies. It was founded in 1996 after Claude Bebear, then powerful CEO of AXA, handpicked Dominique Senequier to build a private equity arm. She had started her career in the civil service and quickly rose to become one of the most powerful women in the industry. She grew the business into one of the major buyout firms in continental Europe. In 2007, the firm raised $7 billion in all its business activities, up 45 per cent since December 2006. The bulk of it is for direct investments and the firm now manages $22 billion out of its main office, a magnificent hotel particulier on the Place Vendome in the centre of Paris.

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
~1.60 (estimate)bn ~1.50 (estimate)bn 0.35bn 2.10 ($2.9)bn 0.72bn 2.10 ($2.9)bn 0.72bn 0.55bn 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, AXA PE has six relatively independent offices across the globe. The majority of the business is conducted through the French office in Paris, but the firm is trying hard to expand internationally and break into the top ten buyout firms globally. Over the last ten years, AXA has been one of the most active continental European players, with 40 buyout transactions mostly in France; however, 30 per cent of the previous fund was allocated to Germany, where the firm opened an office in 2001. The firm is now building up its Italian team to allow for a more pan-European approach to
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opportunities on the basis that private equity has an important role to play in making European business more competitive. In 2004, AXA PE decided to enhance its global reach by opening an office in Singapore. The Asian office has three functions: providing a platform for the Funds of Funds activity in Asia, growing the Venture activity in Asia by backing innovative companies already in the firms portfolio, 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. The internationalisation of the business is on the right track with 42 per cent of direct investments in 2007 coming from outside France. AXA PEs funds span all financial stages, from VC to relatively large buyouts (upper middle), through mezzanine and funds of funds. The firm also focuses on large secondary fund transactions and has become one of the major players in that segment. AXA PE is committed to achieving an excellent return on investment for all investors. According to internal AXA information, the funds achieve top quartile performance, 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. Its strategy, which consistently produces sustainable returns and a confidential loyalty towards the investors, has won AXA PE some of the worlds most important investors for its various funds. It is said to have successfully developed a fine tuned valuation measurement system based on its pool of experts and its experience, in order to allocate and evaluate the right investments. AXA was one of the five nominated firms for the 2007 Financial News award of French Private Equity Firm of the Year, but lost to PAI Partners.
AXA Private Equity
Strong firm values

Much of the success of the firm may be traced to Senequiers forthrightness that is said to often make men uncomfortable. She is a tough and no-nonsense manager, afraid of no-one and nothing, and she doesnt hesitate to refuse to sign off on investments when in doubt. She traces part of her success to her previous experience, saying: whoever understands the balance sheet of an insurance company can quickly understand the balance sheet of any company.
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She has also championed the four company values: performance, expertise, international experience and transparency. These values are part of the internal structures, but are also reflected in the way the firm relates to investors, portfolio companies and funds. The firm benefits from its diversified activities; the small caps team may have historical knowledge of a target analysed by the mid cap team, the large cap team can leverage the infrastructure one, 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, AXA Group, has always been very strong; AXA Group insurance companies are the lead investors in AXA PEs funds, with an average stake between 20 per cent and 33 per cent of each fund. AXA PE benefits from this strong relationship, gaining access to a wider range of deals and improved fundraising opportunities. This link means that AXA Group is exposed to the reputational risks associated with large private equity firms, which means a particular emphasis is placed on transparency at AXA PE. In their public presentations, they emphasise that they differentiate themselves via a policy of ethical and responsible investments. AXA PE gained recognition for this transparent approach, being the first French capital investment company to conform to the Global Investment Performance Standards (GIPS). The standards represent international ethical norms for an objective presentation of performances, with a particular focus placed on transparency within the investment industry.
Playing with the big guys

The firm is now an established player and doesnt hesitate to partner with the major international private equity firms, taking part in the biggest auctions. In 2006, AXA PE initially teamed up with KKR, who later joined the rival consortium formed by Eurazeo and Goldman Sachs, in an effort to acquire a 52 per cent stake in France Telecom directories subsidiary PagesJaunes. It subsequently withdrew from the deal. However, in the autumn of 2006 the firm made the headlines with its 4.9 billion acquisition, together with TPG, of TDF (formerly Tldiffusion de France), the largest owner of broadcast and telecoms infrastructure in continental Europe. Recently, the firm has been particularly active in the chemical and related industries. The final acquisition of CABB GmbH, one of the world's leading suppliers of chemical building blocks and specialty intermediates, kicked off 2007. Later in the year, CABB acquired the Swiss specialty chemicals firm SF-Chem AG. Since 2006,
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AXA PE has owned Eliokem, a specialty chemical company it bought for 130m. Eliokem followed through the next year with the acquisition of the Polymer Division of Indian-based Apar Industries. The same year, AXA PE completed the acquisitions of Diana Ingredients, a major natural ingredients producer for 710m, and Synerlab, one of the leading French pharmaceutical sub-contractors. Construction is another industry of particular expertise with recent transactions including Champeau/Gau (divested in 2004, reinvestment in 2006), Gerflor (bought in 2006) and Larivieres (sold for 300m in 2007). Today, AXA PE offers its international expertise to help European companies develop realistic expansion strategies to Asian or American markets, bringing international market knowledge into management board decisions to create stability and security in portfolio companies.
AXA Private Equity
GETTING HIRED
AXA PE has about 200 employees with a diverse range of backgrounds and regional expertise. Support functions account for half of the headcount of the company. The recruitment seems to be more diverse than at most competitors. Among the employees, one can find a medical doctor and a jetfighter pilot and there is no strong majority of investment bankers, strategy consultants or transaction services advisors. Insiders confirm that all profiles are likely to be considered as long as they can demonstrate strong achievements. Women represent almost half of the workforce, a much higher proportion than the industry average.
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Higher Diploma
Source: Candesic
Insurance (8%) Audit & transaction services (5%) Banks (33%) Other (54%)
Source: Candesic

8 7 6 5 4 3 2 1 0
Bocconi (4) ESCP-EAP (4) Dauphine (6) HEC (6) ESSEC (8)
Source: Candesic
6 5 4 3 2 1 0
ABN Amro (2) HSBC (2) Axa Group (3) Credit Agricole (4) BNP Paribas (6)
Source: Candesic
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AXA PE regularly employs interns for periods of up to one year. They tend to be masters students from the top business schools in Paris, with a preference for international backgrounds, and are often recruited after their internship. In 2007, interns represented over 13 per cent of the total workforce. The international factor is rated highly within AXA PEs application measurements. Because of their various foreign offices and the international strategy, the company focuses on employees that are able to build on specific geographical market knowledge from the very beginning. Because AXA PE has many separate activities, it is possible for a candidate to end up being interviewed by a completely different product team depending on the current recruiting needs.
AXA Private Equity
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BARCLAYS PRIVATE EQUITY ADVENT INTERNATIONAL

5 North Colonnade, 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.barclays-private-equity.com Tel: +44 20 7333 0800 www.adventinternational.com

London (HQ) Birmingham Manchester Milan Bucharest Frankfurt AmsterdamMunich 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, Gonzague De Blignires and The Stats Peter Hammermann Employer Type: Subsidiary of Barclays Bank Chairman: Peter A. 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. of Offices: investment professionals, Employees: 130 8 of which 65 in Europe (2008) No. of Offices: 15
Key Competitors
COMPANY FOCUS Company Focus

Financial Sectors: stages: Mid market buyout Financial Services Business Services & (15m-150m equity), & Consumer Retail expansion capital, privatisation, replacement, Media & Telecoms Technology,infrastructure Healthcare & Life Sciences Types of Industrial financing: Majority equity, equity co-investment Financial stages: International buyouts, recapitalization and growth equity investments (up to 500m equity), some venture capital Types of financing: Majority equity Sectors: All sectors
Employment Contact
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Barclays Private Equity
THE SCOOP
Barclays Private Equity, a subsidiary of Barclays bank, is a leading pan-European firm that focuses on lower mid-market transactions. With offices spread throughout the UK, France, Germany, Italy and Switzerland, investments are typically from these local markets. The firm is headquartered in the UK but has a strong presence in France and is technically run by co-heads from the UK, French and German offices. 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
2.4bn $0.417bn 1.65bn 1.25bn
The investment strategy is mid-market (under 500 million). Since their first investment in 1982 the firms 45 professionals have invested in over 350 transactions, with an average of 10-15 per year. The firm also has an Infrastructure team of 12 investment professionals based in London and, in addition to its own UK and European infrastructure funds, has established a 450 million Infrastructure Investors (I2) Fund in partnership with Societe Generale and 3i.
Third time lucky

BPEs most recent fund, the Europe III fund, raised its target 2.4bn (of which 1.7 billion comes from blue chip investors) earlier than anticipated, possibly reflecting the shift towards mid-market deals in the ongoing credit crisis. But insiders reckon that BPEs excellent track record made it very easy to reach its target. The fund is structured in a semi-captive way, meaning the remaining 650 million investment came from the parent company, Barclays plc. In line with previous funds, Barclays PE will invest Europe III predominantly in the UK, France, Germany, Italy and Switzerland. The UK investments focus on core strengths that have been developed in the Financial Services, Healthcare, Support Services and Consumer & Travel; whereas the continental offices take a more generalist approach when evaluating potential investments.
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Nottingham leads the way

In a pioneering move back in 1986 Barclays, along with Deloitte, set up the first European MBO think-tank at Nottingham University. The Centre for Management Buy-Out Research, or CMBOR for short, is a data collection and analysis pool to track the proliferation of Management Buy-Outs throughout Europe, with records covering over 25,000 companies. The centre is a leading commentator on private equity activity throughout Europe, and recently released statistics highlighting the detrimental effect of the credit crisis on private equity deal flow.
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, since 2005, it has owned Mdi-Partenaires, the third largest player in the French private hospital market with 18 clinics and 2,370 beds. Four clinics were already acquired in 2005/2006, and four in the first half of 2007. In September 2006, the firm acquired a majority stake of Euro Fiditalia, a market leader in the provision of secured personal loans in Italy. Since then the company has made six acquisitions in the same sector. In February 2007, it acquired Belgo-Italian company Desmet Ballestra, the world leader in the fields of engineering and supply of plant and machinery to the edible oil, chemical and biodiesel industries, with a turnover of 430m. A first post-deal acquisition was completed in France in June 2007 and a second one is expected abroad in the coming months. In Germany, it sold HR services firm TUJA Group to Adecco in June 2007 for 800 million after only 15 months. 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 12,000 in 12 months. At the time of the sale, TUJA was one of Germany's leading temporary employment agencies and operated a network of 127 branches in Germany, Switzerland and Austria. A smaller but typical transaction is the sale in December 2007 of UK retailer The Original Factory Shop via a 68.5 million secondary MBO led by Duke Street Capital. Barclays Private Equity had invested 18.42 million in the BIMBO of the business in
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November 2004 and doubled the warehousing capacity of the retailer in three years. In October 2007, BPE announced an acquisition in Switzerland, its fourth country of operation. PREMIUM communications is a provider of multilingual services for technical support, user helpdesks & services for SMEs. BPE sees the investment as a base on which to build significant growth through acquisitions in Switzerland and other German speaking countries. Other highlights include the buyout of Converteam from ALSTOM in November 2005Converteam is a world leader in power conversion engineering, developing systems and equipment which convert electrical energy into mechanical energy, including drives, controls, motors and generators. The acquisition was performed in a post recovery situation and has been followed by a successful phase of both organic and external growth. Another landmark deal is the successful listing of LSL Property Services plc (UK) on the London Stock Exchange in November 2006. The market capitalisation at listing was 211 million. LSL is one of the UKs leading estate agency/surveying companies. Barclays Private Equity arranged the 60 million MBO in July 2004, and its managed funds retained a 29 per cent stake at the time of listing.
Awards
One of Barclays Private Equity's most publicised exits is that of Admiralthe direct motor insurer. The company went public on the LSE in a 1 billion flotation in September 2004. Barclays Private Equity achieved a total return of 15 times its original investment and an IRR of 87 per cent over nearly five years. In recognition of this and other divestments, such as Hobbs, Salter Houswares, Edotech and GLS Educational Supplies, the firm was named UK Private Equity Firm of the Year, and European Private Equity Firm of the Year at the Financial News Awards for Excellence in Private Equity, Europe 2005 where it also claimed a third awardEuropean Disposal of the Yearfor Admiral. 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, the M&A and buyouts publication. In 2006 Barclays Private Equity was voted Fund of the Year by the Real Deals/BVCA Private Equity Awards.
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GETTING HIRED
While Barclays PE managers were educated at top schools in Europe (Cambridge and ESSEC are the most represented, with the MBA as rather an exception), they generally join the firm with significant experience. There is some diversity in the team, with four PhDs and one lawyer in a buyout team of 47 professionals. In line with other private equity firms Barclays recruits primarily from Investment Banking and Big 4 accountancies (PWC, the late Arthur Andersen and KPMG are the most prominent former employers). The team is very stable, which limits opportunities for experienced hires. However there are opportunities for analysts: in Paris for example, there is a rolling 6-month intern position that allows business students to get a serious introduction to the sector at a renowned firm, and may lead to a full time position.
Higher Diploma
Bachelors only (25%) PhD/JD/MD (10%) Unknown (23%) MBA (8%) Masters (34%)
Source: Candesic
Audit and transaction services (21%) Strategy consulting (11%) Other (26%) Banks (42%)
Source: Candesic
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3.0 2.5 2.0 1.5 1.0 0.5 0.0
Oxford (2) EM Lyon (2) St.Gallen (2) ESSEC (3) Cambridge (3)
Source: Candesic
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
BNP Paribas (2) Barclays (3) KPMG (3) Arthur Anderson (3) PWC (4)
Source: Candesic
Being a subsidiary of a UK firm, Barclays PE obviously has more staff in the UK, with growing teams in continental Europe. The Paris and Munich offices have their own websites with contact details for potential candidates.
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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.bcpartners.com Tel: +44 20 7333 0800 www.adventinternational.com
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. Brooke Employer Type: Independent Private Employees: 45 investment professionals Company in 2008 Total private equity funds under No. of Offices: 6 management: about 11bn (2008) Employees: 130 investment professionals, of which 65 in Europe (2008) COMPANY FOCUS No. of Offices: 15 Sectors: All sectors Financial stages: Company Focus
Rest of the World EMPLOYMENT CONTACT

Boston (HQ) london@bcpartners.com Tokyo Singapore (affiliate) Buenos Aires Sao Paulo Mexico Further affiliates in five other countries
Key Competitors
Large buy-out, Secondary purchase/reSectors: capital, MBO, MBI, Instituplacement Business Services & Financial Services to tional BO, Leveraged build up, Public Retail & Purchase of quoted shares private, Consumer Technology, Media & Telecoms Healthcare & Life Sciences Types of financing: Industrial Main: Majority equity Financial stages:
Employment Contact
International buyouts, recapitalization and EUROPEAN LOCATIONS growth equity investments (up to 500m London some venture capital equity), (HQ) Geneva Hamburg Milan Paris Milan Types of financing: Majority equity
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BC Partners
THE SCOOP
The firm was founded as Baring Capital Investors in 1986. In 1995, at about the time of the collapse of Barings Bank that was famously documented in the movie Rogue Trader, it became independent through its own MBO and renamed itself BC Partners. It is worth noting that BC Partners has no link with Baring Private Equity Partners (BPEP), which finalised its MBO from parent company and Barings owner ING Group in 2004 and invests via four regional fund groups in Russia, Asia, India and Spain. Funds
FUNDS
BC European Capital VIII BC European Capital VII
VINTAGE YEAR
2005 2000
FUND CAPITAL
5.9bn
4.3bn
Since 1986, BC Partners has invested in 66 companies with a total enterprise value of over 54bn. While they target only two or three acquisitions every year, they can commit over 2bn of equity to any given one and are ready to contribute significant additional capital to grow it. Over the next five years, they plan to acquire fifteen to twenty businesses, with enterprise values typically in the range of 300m to 4bn.
NHS gold
In 2000, BC Partners recognised the opportunity for the private sector to become more involved in the treatment of NHS patients in the UK. Attractive changes in healthcare policy further underlined potential growth prospects. To take advantage of this opportunity, it bought General Healthcare Group from Cinven for 2.2 billion. GHG was the largest acute care hospital provider and leading independent provider of specialist psychiatric care services in the UK. Over the next six years, the new owner supported considerable organic growth and made two significant hospital acquisitions to optimise national coverage. In 2005, it sold separately the health screening and occupational health operation BMI Healthcare services to The Capita Group Plc, and the Partnerships in Care psychiatric operation back to Cinven for about 560m, allowing management to focus
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on its core business. In 2006, it sold the acute care hospitals for 2.35 billion to a consortium led by Netcare, a leading South African hospitals group. At that time, the transaction was the largest ever deal in the European healthcare services sector.
Contrarian outlook
In 2007, BC Partners acquired two corporate companies: Bureau van Dijk Electronic Publishing from Candover for a rumoured 700m, and a combination of leading London estate agency Foxtons, also comprising mortgage broker Alexander Hall, for an estimated 390m. Amid fears of a slowdown in the UK real estate market, the decision to acquire the business may show BC Partners bet that the long-term fundamentals of the market remain good. It may also be a sign that there will be opportunities to streamline and consolidate a sector built on a 15 year growth wave. One thing is for certain though, everyone will be scrutinising how the new owner will adapt to a fast changing environment.
Well established on the continent

BC Partners has a strong foothold in Germany, where they are invested in Brenntag, which at 3bn was the second largest LBO in Germany to date. They also hold a 38 per cent stake in Unity Media, which acquired exclusive pay-TV broadcasting rights for Bundesliga football. Another landmark transaction was the joint acquisition with Cinven of Amadeus in 2005 for 4.3bn, the largest LBO in Spain to date. Amadeus is a leading global distribution system and technology provider for the travel and tourism industries. In France, the firm operates Medica, the third largest operator of nursing homes and rehabilitation clinics, and Picard, the leading frozen food distributor and a former success story in the French PE landscape, bought from Candover in 2004 for 1.3bn. In Greece, it owns Regency Entertainment, the leading casino operator in Southeastern Europewhich was the largest public to private LBO in Greece. In Turkey, it recently announced the acquisition of a majority interest in Migros, the countrys largest food retailer. In 2008, funds advised by BC Partners completed the acquisition of Intelsat, a world leader in fixed satellite services, for US$16.5bn despite the turmoil in the credit markets.
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BC Partners
GETTING HIRED
BC Partners investment managers work as one team across its six country offices. Teamwork skills, international exposure and the ability to operate in several languages are therefore highly valued. Investment managers are not recruited straight from school. They must accumulate significant experience before joining, mostly in strategy consulting and investment banking. BC Partners doesnt advertise for recruiting.
Higher Diploma
Bachelors only (49%) PhD/JD/MD (2%) MBA (40%) Masters (9%)
Source: Candesic
Source: Candesic
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6 5 4 3 2 1 0
Bocconi (4) HEC (4) Cambridge (5) INSEAD (5) Harvard (6)
Source: Candesic
8 7 6 5 4 3 2 1 0
Merrill Lynch (3) McKinsey (3) Morgan Stanley (4) BCG (4) Bain (8)
Source: Candesic
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BRIDGEPOINT CAPITAL LTD. 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.bridgepoint.eu Tel: +44 20 7333 0800 www.adventinternational.com

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. Brooke Employees: 60 Independent Private Employer Type:professionals in 2007 No. of Offices: 8 Company Total private equity funds under management: about 11bn (2008) Employees: 130FOCUS professionals, COMPANY investment of which 65 in Europe (2008) Sectors: No. of Offices: 15 Consumer Financial services Healthcare Media Company Focus Support Services Transport Sectors: Business Services & Financial Services Financial stages: Retail & Consumer Expansion development, Large Technology, Media & Telecoms buy-out (150m-300m equity), Mid-market buyHealthcare & Life Sciences out (15m-150m equity), Replacement Industrial Types of financing: Financial stages: International buyouts, recapitalization and Main: Majority Equity growth equity investments (up to 500m equity), some venture capital Types of financing: Majority equity
Boston (HQ) Tokyo SingaporeCONTACT EMPLOYMENT (affiliate) Buenos Aires Sao Paulo Mexico Further info@bridgepoint.eu affiliates in five other countries
Key Competitors
Employment Contact
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Bridgepoint Capital Ltd.
THE SCOOP
Bridgepoint is a UK-based mid-market specialist headquartered in London, with offices spread throughout seven other major European cities. The firm has a strong 25-year track record of investing mainly in Western and Northern European markets, having invested over 8bn in 150 transactions. Bridgepoint is seen as a premium brand with consistently solid returns, and has handed back over 5 billion to its investors in the last five years. The 2001 vintage fund alone is said to have returned over two times investors money at a 37 per cent annual return rate, as of June 2007. Most important funds
FUNDS
Bridgepoint Europe IV Bridgepoint Europe III Bridgepoint Europe II
VINTAGE YEAR
2008 2005
FUND CAPITAL
4 (target)bn 2.5bn 2bn
2002
Outside looking in
One of Bridgepoints unique selling points is their reliance on impartial external advice; they have an advisory committee made up of external industry experts who are present at every investment evaluation. The firm tends to emphasise this transparency and accountability between investors and management, and is said to encourage an open minded outlook amongst employees. The advisory committee, who recently recruited the dean of INSEAD among their ranks, acts as an overarching advisory panel to the local teams who do the work on the ground.
In the land of the blind

Although global credit conditions have all but put the brakes on large-cap private equity deals, triggering predictions of a PE market crash, Bridgepoint has announced the closure of its fourth fund ahead of even the most optimistic expectations. The fund is set to close in early 2008, having over-subscribed the 5bn hard cap, even though it has yet to make any exits from its 2005 vintage fund.
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A proper European mid-market firm

A few years ago, Bridgepoint was already recognised as the exemplar European midmarket firm: it was named European Mid-Market Firm of the Year in Private Equity Internationals Global Private Equity Awards for 2004, as well as European MidMarket Buyout Firm of the Year in Financial News' annual awards for excellence in private equity in 2003 and 2004. It also won the award for Best Middle Market Buyout at the 2003 European Private Equity Summit & Awards in Paris. Lately, Bridgepoint has lived up to its reputation. In 2006, the firm invested 885 million and returned 2 billion to investors. Acquisitions include German lens-maker Rodenstock (660m enterprise value), Italian perfumery chain Limoni for 480 million, French optical Alain Afflelou for 470 million and UK clothing retailer Fat Face for 540 million. That year, Bridgepoint tripled their investment in the UK storage group Safestore and made 4.5 times their money on Swedish care services provider Attendo. Furthermore Bridgepoint made a 760 per cent return on the sale of Nordic car park operator CarPark. It also sold French nursing home operator Medica to BC Partners for 750 million. Less than three years earlier Bridgepoint had acquired the company together with Alpinvest for 330 million. In 2007, Bridgepoint did even better with a record number of acquisitions, including Dutch educational publisher Infinitas Learning (formerly Wolters Kluwer Education) for 774 million, Leeds Bradford International Airport in the UK for 214 million and Global Design Technologies, a Franco-American Aerospace component supplier for 254 million. In May, it acquired Gambro Healthcare, Europe's No. 2 dialysis care services group from Swedish firm Gambro, pre-empting other bidders in an accelerated process. Another major event of 2007 was the sale of UK-based diagnostic imaging services provider Alliance Medical to Dubai International Capital for 600m. Bridgepoint bought the company in an 86m buy-out transaction in January and has made a four times return on the sale.
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. 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 2,500 employees and 2006 revenues of 249 million.
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Bridgepoint Capital Ltd.
GETTING HIRED
Bridgepoint consists of small investment teams with experience in local markets. They have a strong investment background and the top former employer is the former Natwest Bank, now part of RBS. Bridgepoint also supplements their teams with a few strategy consultants and transaction service professionals, predominantly from Ernst & Young and PWC.
Higher Diploma
Bachelors only (27%) Unknown (17%) Masters (24%) MBA (32%)
Source: Candesic
Source: Candesic
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Higher Diploma

8 7 6 5 4 3 2 1 0
Harvard (3) INSEAD (3) Bocconi (4) Manchester (4) Cambridge (7)
Source: Candesic

5
GE (3)
3
PWC (3)
2
Ernst and Young (4) UBS (4) RBS (Natwest) (5)

Source: Candesic
Cambridge and Manchester dominate in the pedigree of the UK team, while Bocconi no surprise is the most frequent alma mater in the Italian team. MBAs now account for a third of the managers, with INSEAD and Harvard leading the pack. If you are interested in joining the firm, Bridgepoint invites you to contact their human resources team at gill.neaster@bridgepoint.eu.
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CANDOVER
20 Old Bailey London EC4M 7LN United Kingdom Tel: +44 (0)20 74 89 9848 www.candover.com Types of financing: Main: Majority Equity Other: Debt, Mezzanine, 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: 3.5bn (of which 2.9bn from third parties) Employees: 39 professionals in 2007 No. 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.com
COMPANY FOCUS
Sectors: Media Financial Services Support Services Leisure Healthcare Technology Industrial Other sectors Financial stages: Large buy-out (150m-300m equity), Mid market buyout (15m-150m equity)
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THE SCOOP
Candover is a London based firm specialising in large-cap, and often high profile, buyouts. In 1980 Roger Brooke, a former diplomat turned CEO, met Henry Kravis, co-founder of KKR, to learn about a new kind of transaction that was gaining popularity in the US: leveraged buyouts. A few months later, he got together 100,000 from Electra, 3i and various UK pension funds to set up Candover, the first buyout firm in Europe. In one of its earliest transactions, the confectionary unit Famous Names, it made a return of ten times its investment, making people take notice.

FUNDS
The Candover 2005 Fund The Candover 2001 Fund The Candover 1997 Fund
VINTAGE YEAR
2005 2002
FUND CAPITAL
3.5bn 2.7bn 1.4bn
1998
While Candover began life as a niche investment firm focusing on UK deals, it has since grown to be a truly Western European player. The expansion outside of the UK was slightly behind other firms, although each new office was established with a key partner in charge. In 2002, Candover hired Cyrille Chevrillon, its longstanding French partner who had contributed to the successful buyout of Picard, to head the Paris office. That same year, the firm appointed Kurt Kinzuis to head up the German team. But Germany would prove to be more difficult, and shortly after, Candover appointed Jens Tonn to the role. After nine years, in November 2007, following his decision to leave the company and head Vestars new German office, Candover appointed Boris Hentze as Head of Germany. Currently, the firm doesnt have a German office anymore and the German team works out of London. Also in 2002, Alejandro von der Pahlen joined the firm as an adviser to originate deals in Spain and Portugal. Candover formally opened an office in Madrid shortly after, and in 2006 relocated Aldo Maccari from London to Milan to open the Italian office. The firm also named Humphrey Cobbold, a former McKinsey partner, in the newly created position of Origination Director with responsibility for coordinating Candover's deal sourcing activities across Europe.
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Candover
Evaluating investments
Over the last 27 years Candover has closed nine funds with almost 9bn worth of investor money raised; the firm has taken these funds and completed 134 buyouts to date, valued at 40bn, creating an average rate of return of 34 per cent. Candovers managing directors, Colin Buffin and Marek Gumienny, have been with the firm for close to 20 years. They are unique in that the structure of the company, Candover Investments plc and wholly owned subsidiary Candover Partners Limited, allows for a very transparent investment process. Some initial conclusions about the PE slow down were actually founded on publicly available Candover investment research, which Gumienny has referred to as a healthy correction of the market. For many years, Candover has been publishing a quarterly barometer of private equity in Europe. The latest Candover 2005 Fund focused on investments in the European markets, with eight transactions made before 2008. Candover particularly looks for companies in Benelux and the UK with solid management, good growth opportunities and company values between 150 million and 1 billion. For example, the investment in Capital Safety Group, a UK based designer and manufacturer of height safety and fall protection equipment, was evaluated in May 2007. The deal value was set at 415 million and funded by debt, mezzanine and private equity funding, where Candover provided the private equity and partnered with other firms to enlarge the equity commitment. Capital Safety Group has a high quality management team, a strong market position and real growth potential. The transaction has an estimated IRR (Internal Return Rate) of 23 per cent over the next 9 years.
An excellent and consistent track record

Candover generally acquires three to five companies in a year. They tend to have pan-European activities. While the amounts are often undisclosed, its typical investment has an enterprise value of around 500 million. In 2007, Candover acquired Capital Safety Group from Electra Private Equity, PLC; Alma Consulting Group, the European leader in cost reduction and tax recovery services, from Apax Partners; and Parques Reunidos, a European operator of attraction parks, from Advent International. It is currently awaiting the result of its public offer for Stork N.V. which represents a total value of 1.5 billion. In 2007, the firm was particularly active with several key exits taking place, which they expect to continue into 2008. Candover realised the majority of its investment in Wellstream, a leading global manufacturer of flexible pipeline, through an IPO on the
137
London Stock Exchange, with a return of four times its original investment. It also sold Bureau van Dijk Electronic Publishing to BC Partners with a return of 2.3 times its original investment, and sold Get, the Norwegian cable TV operator, to Quadrangle and GS Capital Partners for 745m, realising an IRR of 50 per cent. In July 2004, Candover, 3i and JP Morgan Partners acquired Vetco International from ABB Oil & Gas for $925 million. In 2007 the consortium sold it in two parts: Vetco Gray to GE Oil and Gas for $1.9 billion and Aibel to Ferd Private Equity (now Herkules Capital) for $0.9 billion. In December 2004, Candover led the 465m management buyout of the Thule Group, a Swedish company and the world leader in sports utility transportation. It sold it in 2007 to Nordic Capital, realising an IRR of more than 40 per cent.
GETTING HIRED
Candover has built a team of 35 to 40 professionals hired from various industries. Cambridge and Oxford feature prominently among employees degrees and 40 per cent of them hold an MBA from a prestigious university, mostly Harvard, INSEAD or LBS. But as usual investment managers join with significant previous experience in banking, accounting, consulting or the industry. Candidates interested to apply should contact the office of their choice on Candovers website under Contact us.
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Candover
Higher Diploma
Masters (54%) Unknown (3%) MBA (40%)
Source: Candesic
Source: Candesic

8 7 6 5 4 3 2 1 0
LBS (3) Oxford (3) Harvard (4) INSEAD (4) Cambridge (7)
Source: Candesic

3.0 2.5 2.0 1.5 1.0 0.5 0.0
BCG (2) McKinsey (2) Arthur Andersen (3) 3i (3) PWC (3)
Source: Candesic
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CINVEN INTERNATIONAL ADVENT

Warwick Court, Paternoster Square City, Country London EC4M 7AG United Kingdom Tel: +44 (0)20 76 61 3333 www.cinven.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. of Offices: 4
KEY COMPETITORS
Apax Bridgepoint Candover BC Partners CVC PAI Permira
EMPLOYMENT CONTACT
None. Cinven does not recruit graduates nor does it offer internship programmes. It is currently not recruiting at any level.
COMPANY FOCUS
Sectors: Business & Financial Services Healthcare Industrials TMT Retail Leisure Consumer Financial stages: Large MBO/MBI (EV>500m with at least 100m equity), Public to private Types of financing: Majority Equity
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Cinven
THE SCOOP
Since 1977 Cinven has been one of the largest private investment funds dedicated solely to the European market, and lays claim to having executed more large, complex European buyouts than any other firm. In July 2006 they announced the closure of the Fourth Cinven Fund, which exceeded its target of 5 billion; at 6.5 billion it is one of the largest funds dedicated solely to European buyouts, enabling the firm to build on the 60 billion worth of transactions it has led so far. Each year, Cinven invests in only a handful of companies of significant size, sometimes with an entreprise value of several billion, and seeks to bring a pan-European dimension to the businesses future opportunities. Since their founding, Cinven has invested in 23 transactions with more than 1 billion total consideration.

FUNDS
Fourth Cinven Fund Third Cinven Fund
VINTAGE YEAR
2006 2002
FUND CAPITAL
6.5bn
4.4bn
Its all in the name

Cinven originated as the in-house private investment arm of the British Coal Pension Funds (Coal INvestments VENture), which was one of the largest pension schemes in the late 70s. 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. The management then decided to buy themselves out from the pension fund owners, and gained their independence in 1995 following the Thatcher legislation that privatised British Coal. Cinven has a prescence in the major European financial centres, with offices in London, Paris, Frankfurt and Milan. France and Germany opened in 1999, while the Italian office was opened in 2006. The next European opening could be in Spain or in the Netherlands, with two investments having been executed in each country. However, in early 2008, Cinven announced that it was going to open offices in New York and Hong Kong ahead of its next fundraising.
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A diversified portfolio of companies

After an initial focus on TMT and Healthcare, Cinven diversified their portfolio by investing in the Industrial and Leisure sectors from 1999. In addition to those sectors, they own companies who operate in financial services as well as in retail and consumer industries. In 2006 Cinven gained their largest acquisition, a TMT company called Dutch Cable, at 5.4 billion. Dutch Cable became the second European cable operator in their portfolio, behind Numricable, which they acquired in 2005. The second largest deal was in 2006, with the acquisition of the Amadeus travel distribution services for 4.4 billion.
Recent focus on healthcare

2007 was the year of healthcare, with three out of five acquisitions in the sector. At the beginning of the year, Cinven acquired Phadia, the global leader in in-vitro allergy diagnostics and the European leader in autoimmunity diagnostics, for close to 1.3 billion. In the summer of 2007, Cinven acquired BUPAs 25 hospitals in the UK for a total consideration of 1.44 billion as well as Spanish hospitals USP Hospitales for a total consideration of 675 million, with a view to consolidate the fragmented Iberian healthcare market. Altogether, this represents a significant strategic exposure to the healthcare sector. The other two investments of 2007 were both in retail. Camaeu is a leading womens fashion retail chain with 557 stores, 421 of which are in France. Cinven acquired a 67 per cent stake with the strategy to support and accelerate the roll out of new stores across its core markets. Cinven also took private Gondola Holdings in a 1,335m transaction. With about 400m in revenue, Gondola is the largest group in the UK casual dining sector and operates the 525 of famous brands like PizzaExpress, ASK and Zizzi. Cinven will support further growth through the roll-out of existing formats, the acquisition of additional brands with growth potential and the pursuit of other consolidation opportunities through selective acquisitions. Although Cinven recently lost against BC Partners in the auction on data provider Bureau van Dijk, it is likely that Cinven will be back in the fundraising market in the next two years.
142
Cinven
GETTING HIRED
There are 51 professionals working at Cinven. While Bain & Company tops the list of their previous employers, investment banks account for 40 per cent of them. Cinven has a diverse European team but the core group is definitely English, educated at Cambridge, Oxford, LSE and Edinburgh.
Higher Diploma
Source: Candesic
Source: Candesic
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10 8 6 4 2 0
ESCP-EAP (3) LSE (3) HEC (4) Oxford (4) Cambridge (10)
Source: Candesic
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. Their strategy is to retain employees for as long as possible in order to preserve their knowledge and expertise. Many of their partners have been involved since the very beginning in 1988. Maybe for that reason, it is clearly not the policy of the firm to advertise positions. Candidates will have to rely on their personal networks and their good fortune to fill a potential vacancy.
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CVC CAPITAL PARTNERS LTD

111 Strand London WC2R 0AG United Kingdom Tel: +44 (0)20 74 20 4200 www.cvc.com
EUROPEAN LOCATIONS
Luxembourg (HQ) Amsterdam Brussels Copenhagen Frankfurt London Madrid Milan Paris St. Helier Stockholm Zurich
THE STATS
CEO: Fred Watts Employer Type: Private Company Total private equity funds under management: 20.9bn in 2007 Employees: 135 (of which 100 investment professionals) in 2007 No. 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), Large buy-out (150m-300m equity), Public to private Types of financing: Main: Majority equity Other: Debt, CLOs (second lien and mezzanine instruments), Infrastructure
EMPLOYMENT CONTACT
humanresources@cvc.com
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THE SCOOP
CVC Capital Partners was founded in 1981 as Citicorps European private equity arm, and was subsequently bought out by the firms partners in 1993. CVC boasts 135 employees with 16 nationalities. They operate a network of 18 offices on four continents, one of the largest and most extensive in the private equity industry. Although still focused on European assets, they have aggressively expanded into Australasia and recently opened their first office in the US.

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, the firm has made around 260 investments with a total value of 65bn, and currently holds a portfolio of 53 firms mainly in the retail, manufacturing and service sectors. Together these companies have combined annual sales of 55.3 billion and employ approximately 431,000 people. Their third European fund achieved annual returns of over 40 per cent after fees, making it one of the most successful pan-European houses.
The virtue of patience

CVC has a slightly longer than average investment horizon, looking to hold companies for more than 5 years. This helps keep partners around longer; currently, the average partner tenure is 12 years. 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. CVC are major players on the European scene, with high profile takeovers such as Formula One, the motorsport management company, and the AA roadside assistance
146
firm. Their latest fundraising effort is rumoured to be targeting 11bn, although in current market conditions this looks ambitious, and the growing infrastructure team is thinking about doing the rounds for 2bn of their own. The trend towards lower risk infrastructure funds is driven by worsening market conditions, as the relatively steady cash flows are less reliant on things like consumer spending.
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. They opened their fifth office in the region in Singapore in 2007. The same year, they faced their first major conflict in Asia as unions at Coca-Cola Korea Bottling Company plants opposed their acquisition of the business. In 2007 too, CVC appointed Christopher Stadler, previously head of InvestCorp's private equity business in North America, to open and run their first American office in New York. CVCs portfolio covers a wide variety of industries, geographies and economic environments. In 2006, their nine investments were already regionally diversified four in Europe, four in Asia and one in Australia. In 2007, they have had 12 deals, of which eight were in Europe, two in the U.S., one in Asia and one in Australia. The list includes a diverse group of companies such as Belgium specialty chemicals firm Taminco for 0.8bn; CementBouw and Koninklijke Volker Wessels Stevin in the Netherlands; Danish retailer Matas; German firms Ista and DYWIDAG-Systems International; AA, the UK roadside and insurance business, now merged with Saga; Samsonite, the luggage company, for $1.7bn; global chemical distributor Univar for 1.5bn; Amtek Engineering from Singapore; and 75 per cent of PBL Media in Australia. In December 2007, CVC announced the appointment of Stephen Vineburg as Chief Executive of a newly established infrastructure investment business. A new $2 billion fund will be launched in 2008, to make investments globally.
147
GETTING HIRED
CVC Partners boasts a true pan-European team with professionals educated at a wide range of top universities across Europe, like Stockholm, WHU or ESCP-EAP.
Higher Diploma
Source: Candesic
Source: Candesic
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CVC Capital Partners Ltd

6 5 4 3 2 1 0
ESCP-EAP (4) Stockholm (4) INSEAD (4) WHU Koblenz (5) Cambridge (6)
Source: Candesic
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. Their previous backgrounds include investment banking primarily, with a range of experiences in consulting, accounting, private equity and other areas of asset management, law, property development and general management in various industries. To learn more about employment opportunities at CVC you can email humanresources@cvc.com.
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DOUGHTY HANSON
45 Pall Mall London SW1Y 5JG United Kingdom Tel: +44 (0)20 76 63 9300 www.doughtyhanson.com
EUROPEAN LOCATIONS
London (HQ) Frankfurt Luxembourg Madrid Milan Munich Paris Stockholm
KEY COMPETITORS THE STATS

Executive Director: Nigel E. Doughty Employer Type: Private Company Total private equity funds under management: 5bn (estimate) Employees: 123 staff (56 professionals), 15 nationalities in 2008 No. of Offices: 8 Apax Bridgepoint Candover
EMPLOYMENT CONTACT
info@doughtyhanson.com
COMPANY FOCUS
Sectors: All sectors Financial stages: Expansion development, Mega buyout (>300m equity), Large buy-out (150m-300m equity), Mid market buyout (15m-150m equity), Technology venture, Real estate Types of financing: Main: Majority Equity Other: Minority Equity, Shareholders loans
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THE SCOOP
Founded in 1985, Doughty Hanson is a leading UK private equity company that splits its efforts between three investment activities; early stage technology investments, 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, with a strictly European portfolio. Although the majority of Doughty Hansons investment professionals are based in London, they have regional offices in Frankfurt, Luxembourg, Madrid, Milan, Munich, Paris and Stockholm. Most important funds
FUNDS
Doughty Hanson & Co. Fund V Doughty Hanson & Co. Fund IV
VINTAGE YEAR
2007 2005
FUND CAPITAL
3bn
1.5bn
The firm is not particularly sector focused; their current portfolio includes companies from sectors as diverse as luxury goods, media, retail, mobile phones, engineering, manufacturing and building materials. 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. The technology venture capital investments can be as little as 0.1 million for seed investments and 10 million for later stage investments.
Show me the money

In May of 2007, Doughty Hanson closed their fifth fund, aptly named Fund V, with 3 billion of investors money earmarked for European leveraged buyouts. The firm had already announced two acquisitions using Fund V: Norit, a Dutch purification technology company, and Avanza, the largest independent bus operator in Spain. In December, CTSA, the third largest bus operator in Spain, was added to the portfolio for an enterprise value of around 90 million.
Cashing out
In early 2008, the firm is closing its sale of the Moeller Group, a global manufacturer of systems for building applications, to the Eaton Corporation for 1.55 billion,
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representing a three times return on equity and a gross IRR of 54 per cent. The firm was acquired by the Munich team using the 1.5bn Fund IV, which closed in early 2005, with a price tag of 1.1bn including pension liabilities. The sale is the second exit from Fund IV, the first being Saft, a French high-end battery maker, meaning a total of 1 billion has been returned to investors with nine Fund IV investments yet to be realised. Companies still in the portfolio include Tumi, the luxury luggage maker, Hellermann Tyton, a cable company, and TV3, the Irish TV company.
Doughty Hanson
The crystal ball of valuations

In 2007, PricewaterhouseCoopers was recruited to value the business, enabling Nigel Doughty and Richard Hanson to buy out the other remaining co-founder, Bruce Roe, who had retired the previous summer. PwC came up with a figure of 9.4 million for Mr. Roes 12,440 shares; since valuing companies is Mr. Roes profession he put together his own model, and came up with a value of 104 million, or 11 times the PwC valuation, for the same shares. The impending lawsuit will undoubtedly scrutinise the underlying assumptions, but when it comes to valuing businesses one thing is certain there is always room for interpretation.
GETTING HIRED
In April 2008, Doughty Hanson increased tremendously their transparency when they unveiled their 2007 annual report. Still they remain one of the few established private equity firms that do not disclose any information about their team members. While investment professionals are expected to bring significant industrial experience to the team, the firm occasionally hires juniors from Stockholm School of Economics, London School of Economics, Oxford, Cambridge or HEC. INSEAD graduates represent more than 10 per cent of the investment team.
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DUKE STREET CAPITAL

Almack House, 28 King Street, London SW1Y 6XA United Kingdom Tel: +44 (0)20 74 51 6600 www.dukestreetcapital.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. of Offices: 2
KEY COMPETITORS
Apax European Capital Montagu Quilvest
EMPLOYMENT CONTACT
mail@dukestreetcapital.com
COMPANY FOCUS
Sectors: Business Services & Outsourcing Retail & Consumer Healthcare Leisure Financial Services Financial stages: Expansion/development, Refinancing bank debt, Secondary purchase/replacement capital, Rescue/turnaround, MBO, MBI, Institutional BO, Leveraged Build Up, Public to private Large buy-out (150m-300m equity), Mid market buyout (15m-150m equity)
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THE SCOOP
Since 1980, Duke Street Capital has been involved in mid-market private equity investments in the UK and France, from their offices in London and Paris. Duke Street uses an operational improvement strategy to add value, and retains the services of industry experts as operational partners. The firm specialises in management buy-ins and actively advertises for experienced managers to approach them with potential investment opportunities. Most important funds
FUNDS
DSC VI
Duke Street Capital
VINTAGE YEAR
2006
FUND CAPITAL
0.85bn
In 2004, the firm sold its 1.5bn leveraged loan CDO management business to Babson, a subsidiary of MassMutual, to concentrate on its private equity business. By the end of 2007, Duke Street had closed 49 transactions in the business services, retail and consumer, healthcare, leisure and financial services sectors. The firm points out that they will consider any opportunity, but their expertise and experience is currently focused around these sectors. The firm is currently in the process of investing its sixth fund, DSC VI, with approximately 2 billion under management. In 2007, the DSC V fund went through the build stage of a buy and build strategy, with acquisitions and organic growth bulking up the portfolio companies. In April, Food Partners, the leading supplier of pre-packaged sandwiches in the UK, acquired a major competitor, Brambles Food, for an estimated 210 million. In June of 2007, Duke Street acquired Oasis Healthcare, a leading corporate dentist, for 76.9 million plus debt, adding to the flurry of activity in the preceding year; Hutton Collins had recently bought into James Hull Associates and Legal & General Ventures had acquired a controlling stake in Integrated Dental Holdings. The sector is very fragmentedcorporate dentists account for less than 5 per centand many industry observers are predicting further consolidation. In December of 2007, the firm acquired The Original Factory Shop, a value retailer headquartered in Burnley, UK. The deal, valued at 68.5 million, will see a nationwide growth strategy roll out new shops throughout the UK, adding to the 84 outlets currently owned by OFS.
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GETTING HIRED
Staffing
The firms 21 investment professionals are split between London and Paris, with about three quarters of them in the UK. Although it is hard to draw conclusions from such a small number of professionals, the majority came from top investment banks and from other private equity firms. Management consultants are absent and only one Big Four accounting firm, PricewaterhouseCoopers, is represented.
Recruiting
The educational background of Duke Street professionals is very diverse, with Durham, Cambridge, Dauphine and ESCP-EAP being the most popular undergraduate universities. While two thirds of the investment professionals have a Masters degree, the MBA is the exception. Insiders point out that there is no specific recruiting policy; the team is relatively small and hiring needs are filled ad hoc.
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ADVENT INTERNATIONAL EQT PARTNERS

PO Box 16409, Linngatan 6 103 27 Stockholm Sweden Tel: +46 8 50 655 300 www.eqt.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. 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, Mega buyout (>300m equity), Large buy-out (150m300m equity), Mid market buyout (15m-150m equity), Other early stage, Privatisation, Public to private, Replacement, Seed, Small buyout (<15m equity), Start-up, Turnaroundrestructuring Types of financing: Main: Majority Equity Other: Mezzanine
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THE SCOOP
Founded in 1994 by Investor AB, EQT Partners (an abbreviation of equity) is a leading private equity house, based in Sweden. The firm has over 11 billion under management, and has invested 5 billion in 60 companies, with a particular focus on Northern Europe and China. In particular, the firm is active in Scandinavia, Benelux, Finland, Austria, Switzerland and Germany. The firm targets leading medium-sized companies, specializing in buyouts, mezzanine financing and special situation investments. The opportunity fund invests in turnarounds, insolvencies, restructurings and special situations where revenues exceed 50 million. Currently, the European portfolio is invested mostly in Sweden, Denmark and Germany, and to a lesser extent in Finland. The rest of the portfolio companies are in Greater China.

FUNDS
EQT V EQT Expansion Capital II (mezzanine) EQT Opportunity (distressed) EQT IV
VINTAGE YEAR
2007 2007 2005 2004
FUND CAPITAL
4.2bn 0.5bn 0.4bn 2.5bn
Growing older, leaving the nest

In 2007, the firms partners agreed to buy an additional 36 per cent of EQT Partners for 31.2 million from Investor AB, taking their total ownership to 69 per cent. This separation away from Investor AB is also noted in the fundraising; in the European based funds, Investor ABs contributions have fallen from a high of 32 per cent in EQT III to 12 per cent of the latest EQT V. This drop could be somewhat explained by the increasing total value of the funds, as the EQT V fund is more than twice as large as EQT III, although this still represents a reduced investment by Investor AB in real terms. The remaining investment comes from the Nordic area (30 per cent), Europe (30 per cent), North America (25 per cent) and other parts of the world (15 per cent).
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Royal connections
EQT has a little more clout than their fund size would suggest, as they are backed by the Wallenberg family, who own a controlling stake in Investor AB and are one of Swedens wealthiest families. The Wallenbergs were famously nicknamed the Royal family of Swedish business for their heritage and success as bankers and industrialists. The family currently owns the majority of the preferred stock in Investor AB, which holds superior voting rights over regular shares, meaning that they have ultimate control over the company even though it is publicly listed. Recently, activist investors have tried to initiate a break-up of the group, which has been trading below the value of its assets for years, to no avail. EQT prefers to list their portfolio companies when exiting investments, having been involved in several successful public offerings in the past. In 2006, EQT listed Symrise, the German flavours and fragrances firm, at the top end of its price range, making it the biggest German IPO that year at 1.4 billion. Tognum, a diesel engine manufacturer, was listed on the German mid-cap index in 2007, with a significant oversubscription resulting in a total offering volume of around 2 billion. Since listing, Tognum has outperformed the German mid-cap index by around 3 per cent, with EQT still owning around a fifth of the shares. In 2008, EQT plans to partner with Goldman Sachs Capital Partners to list ISS, the Danish cleaning company, which they took private in 2005 for 4 billion. EQTs other future ambitions include opening an office in Hong Kong, and further investments in Eastern Europe.
EQT Partners
GETTING HIRED
EQT Partners has 67 investment professionals with a broad range of industrial and financial backgrounds. The majority are based in Europe, the Nordic countries and Germany. Teams are staffed based on their regional and industrial experience. EQT focuses primarily on professionals with investment banking experience (half of the professionals), while former strategy consultants represent a distant second. The local industry is also well represented with former employees from Volvo, ABB, Radisson SAS, Bertelsmann or VIAG. The most represented universities among staff are Stockholm, Copenhagen and Helsinki, a further sign of EQTs strong Nordic roots. Candidates can register their application and CV on EQTs website. The firm is currently looking for outstanding candidates with relevant experience to join its Greater China team
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Higher Diploma
Bachelors only (9%) Unknown (4%) MBA (21%) Masters (66%)
Source: Candesic
Source: Candesic

12 10 8 6 4 2 0
NYU (3) INSEAD (3) Helsinki (7) Copenhagen (7) Stockholm (12)
Source: Candesic
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
UBS (3) JPMorgan (3) Morgan Stanley (4) Goldman Sachs (4) McKinsey (4)
Source: Candesic
160
ADVENT INTERNATIONAL EURAZEO

32 rue de Monceau 75008 Paris France Tel: +33 1 44 15 0111 www.eurazeo.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: 2.7bn (value of PE portfolio on 31/12/07) Employees: about 20 investment professionals No. of Offices: 2
CAREERS CONTACT
+33 1 44 15 0111
COMPANY FOCUS
Sectors: All sectors Financial stages: Mid market buyout (15m-150m equity), public equity, real estate Types of financing: Main: Majority Equity; Minority Equity
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THE SCOOP
In April 2001, Eurazeo was formed through the merger of two renowned French investment companies, Eurafrance and Azeo, formerly known as Gaz et Eaux, the gas and water distributor dating back to 1881. The firm currently has an enterprise portfolio value of 6 billion, almost half of it in private equity, with a heavy focus on French companies requiring an investment of over 200 million. From 2003 to 2006, the 3 billion invested boasted an annual IRR of 53 per cent, well above the market average. Though listed on the Euronext, Eurazeo is effectively owned by institutional investors, with the public owning only 12 per cent of the shares. Since 2002, Eurazeo has balanced its private equity investments by allocating 10-15 per cent of its portfolio to real estate assets, while maintaining its significant positions in major listed corporations. In 2006, the firm sold off its portfolio of funds and liquidated its Asian assets, shedding any non-strategic investments.
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. It has invested in a wide range of industries, from satellite operations to vehicle rentals, although each investment must adhere to the four underlying principles refined over the firms 150 year history: quality of management, high barriers to entry, profitability and recurring cash flow.
Keeping busy
In 2003, Eurazeo was ranked as the number one French PE firm, having made several substantial investments that year; Friklin, a European rental truck company with over 52,000 vehicles, Eutelsat, a division of France Telecom, and Terreal, a French brick producer, were all acquired that year. The following year, Rexel was acquired in the largest European LBO at the time, only to be released the following year through a public offering. In 2005, Eurazeo kept the deal flow going strong by recapitalizing Eutelsat, acquiring B&B, a hotel chain, and exiting Terreal, which reached an astonishing IRR of 105 per cent. In 2006, Eurazeo sold more than 2.1 billion worth of French companies, while moving away from their home market by launching an Italian office, and acquiring Eurocar. In 2007, Eutelsat and Fraikin were sold, realising IRRs of 59 per cent and
162
Eurazeo
37.5 per cent respectively. The same year, they acquired Apcoa, the German car park operator, for 885 million, and Vanguard, the US car rental group. To further develop the non-French European business, Eurazeo invested in Gruppo Banca Leonardo in Italy and APCOA in Germany. In 2007, Eurazeo launched Euraleo in Italy, 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.
GETTING HIRED
Eurazeos investment team currently consists of about 20 professionals, half of whom previously worked for an investment bank. 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, a significant advantage when trying to get access to deals in France. Eurazeo is a very French company but its European ambitions may create opportunities for strong candidates from other European countries. Candidates can upload their CV and submit their application on the company website at www.eurazeo.fr/uk/emploi/form.php.
163
EUROPEAN CAPITAL ADVENT INTERNATIONAL

25 Bedford Street London WC2E 9ES United Kingdom Tel: +44 (0)20 7539 7000 www.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. of Offices: 3
CAREERS WEBSITE
info@EuropeanCapital.com
COMPANY FOCUS
Sectors of focus: All sectors Financial stages: Buyouts (50 - 500 million), Mezzanine (up to 250 million) Types of financing: Main: Majority Equity Other: Minority Equity
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European Capital
THE SCOOP
American Capital, parent company of European Capital, is the largest publicly traded private equity company in the world and the only alternative asset management firm in the S&P 500. With over $20 billion under management, the firm allows shareholders the opportunity to invest in mid-market private companies in all sectors throughout North America and Europe. European Capital manages 1.6 billion of funds, targeting middle-market European firms worth between 5 million and 500 million. The first European offices, in Paris and London, were only established in 2005, with the further two offices in Madrid and Frankfurt opening in 2007. Being an affiliate firm to American Capital has several advantagesthe fund uses American Capitals back office functions, including the operations, legal and compliance teams, and benefits from the same access to cheap and available credit. The European Capital team alone were extended a 900 million credit facility in 2006, a significant advantage to a relatively new private equity house which would never have happened if they had been a standalone firm. The group is also in the process of developing a new fund, European Capital Equity I. The majority of the firms investments have come from the French and British offices, with the Frankfurt office making its first investment in July 2007; 10 million was invested in Euro-Druckservice, a leading commercial printer in Central and Eastern Europe. In 2007, the Paris office made several investments in the manufacturing sector and related industries; 22 million was invested in Global Design Technologies, a provider of specialised fittings for the aerospace industry; 29 million was invested in Soflog Telis, a provider of logistics to major industrial consumers; 12.5 million was invested in Tiama, a manufacturer of in-line inspection devices; and finally, undisclosed investments were made in Groupe Sud Robinetterie, a valve manufacturer, and DEVGLASS, a window pane manufacturer and distributor. That same year, the London office made key investments in the retail sector; 30 million was invested in Camaieu, a womens clothing retailer; 18.5 million was invested in Fat Face, an active lifestyle clothing brand; and 8 million was invested
165
in Vivarte, a French retailer of footwear and clothing. Other well known acquisitions around that time include Gondola Holdings, the food group that owns casual dinning chains such as Pizza Express and ASK, iglo Birds Eye, the well known frozen food group, and Selecta, the largest vending services company in Europe.
GETTING HIRED
The investment professionals at European Capital studied at a mixture of American and European undergraduate universities, representing locally hired staff and professionals hired from within American Capital to European locations. The universities are varied, but include top universities such as Dauphine University, MIT and Durham University. Six out of the 21 professionals have an MBA, from institutions such as HEC, ENPC and Wisconsin University. Around 40 per cent of the professionals come from other private equity companies and 30 per cent from banks. Two of the 21 professionals came from Credit Suisse and two came from Socit Gnrale, making them the most popular former employers. European Capital does not run a formal recruitment process, although potential candidates can contact the firm at info@europeancapital.com to discuss potential opportunities.
166
ADVENT INTERNATIONAL GILDE INVESTMENT MANAGEMENT

Newtonlaan 91 BP Utrecht 3584 Netherlands Tel: +31 (0)30 21 92 535 www.gilde.nl www.gildepartners.com
EUROPEAN LOCATIONS
Utrecht (HQ) Paris Zurich
KEY COMPETITORS
3i AAC Capital Partners Advent International Barclays Private Equity
THE STATS
General Partner: Mr. Boudewijn T. Molenaar Employer Type: Private Company Total private equity funds under management: 2bn (1.3bn Buyout Partners) Employees: 40 in 2007 No. of Offices: 3
CAREERS CONTACT
info@gilde.nl
COMPANY FOCUS
Sectors: General Industries, Consumer Goods, Basic Industries, Services, Other Financial stages: Mid market buyout (15m-150m) Types of financing: Main: Majority Equity Other: Minority Equity, Shareholders loans
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THE SCOOP
Founded in 1982, Gilde Investment Management is a Dutch private equity and venture capital firm, currently boasting around 2 billion under management. In 1996, the firm became an independent subsidiary of Rabobank, the Dutch cooperative bank, only to be released through a management buyout in 2005. Rabobank still has close ties to Gilde and continues to act as a key investor in their funds, although the management team thought independence would help attract new institutional investors.

FUNDS
Gilde Buy Out Fund III Gilde IT Fund (Fund I and II)
VINTAGE YEAR
2006 1996
FUND CAPITAL
0.6bn
0.43bn
Gilde Investment Management is divided into three business units: Gilde Equity Management (GEM) Benelux Partners invests in Benelux headquartered mid-market firms, with a transaction size of 15-75 million; Gilde Buy Out Partners focuses on mid-market companies based in continental Western Europe, with a transaction size of 75-600 million; Gilde Healthcare Partners is a venture capital company that invests in European or US emerging healthcare companies in the therapeutic, diagnostic and medical device sectors.
Gilde Equity Management

Based in The Netherlands, Gilde Equity Management (GEM) is one of the few private equity houses focusing exclusively on small to mid-market Benelux companies. In 2006, they closed their new institutional fund at its 150 million hard cap, drawing on institutional investors outside of Rabobank for the first time. Gerhard Nordemann, co-managing partner, commented on the fundraising, saying that it closed ahead of schedule with high quality blue chip investors. Rabobank continued to support the fund, contributing 20 per cent of the total, with thirteen other institutional investors including Allianz Private Equity Partners, the European Investment Fund, Rho and Proventure.
168
The firm received the regional 2007 M&A award for Best Private Equity House Mid Market, and is regarded as one of the key players focusing on the Benelux region. GEM is not sector focused, but has been particularly successful in the food and manufacturing industries; investments such as All Crump, Ad van Geloven, Bakker Bart, Hamal Signature and Royal Peijnenburg in the food industry and Axxicon, Codi, CurTec, Hevea/Dunlop and De Oliebron/Kroon-Oil in manufacturing being examples.
Gilde Investment Management
Gilde Buyout Partners

Gilde Buyout Partners is the most substantial of the three divisions, focusing on the upper end of the mid-market, meaning they are able to contribute up to 120 million in a single transaction. In September 2006, Gilde Buy Out Partners closed its most recent Buy Out Fund III, which at 600 million is one of the larger funds targeting mid-cap companies in the region. The firms 1.3 billion under management exclusively targets companies in Benelux, France, Germany, Switzerland and Austria. In January 2008, the firm made its most recent exit, selling Dutch coffee roasting company Drie Mollen International to CapVest Equity Partners. Boudewijn Molenaar, a managing director at Gilde, commented on how successful the investment had been, allowing the company to go through a buy and build growth strategy to become a pan-European player; while under Gilde ownership, the firm acquired Ginger, the Swiss coffee roaster, Merkur, another Swiss coffee roaster, and First Choice Coffee, a UK-based rival. The firm is not sector specific and has seen recent transactions come from a variety of industries. In 2007, Glide acquired Nedschroef, a Dutch manufacturing firm, Novagraff, a Dutch IP services provider, Novasep, a French chemicals company, and Royal Swets & Zeitlinger, a Dutch subscription service.
And the other one

Since 2000, Gilde Healthcare Partners has been investing in emerging healthcare companies mainly from Europe and in some cases the US. Gilde has been providing seed money to entrepreneurs since its inception in 1982, although the first healthcare fund wasnt initiated until 2000, with the second fund closing in 2007 at 150 million. The firm has made four exits from its first fund, mostly through Euronext, and made the first exit from the second healthcare fund in 2007, listing AMT, a gene therapy company, on Euronext in Amsterdam.
169
GETTING HIRED
With offices in The Netherlands, Switzerland and France, Gildes staff of 40 professionals is highly multinational. Their employees have previous backgrounds in finance, investment banking, consulting, industry and private equity, with a large variety of former employers. Since Gilde is a Dutch firm, many of the professionals were educated in Dutch Universities, including the State University of Groningen, University of Rotterdam, Free University of Amsterdam, Groningen Rijks University and Leiden University. Only six out of the 33 professionals have an MBA, which they obtained at top institutions including INSEAD and Wharton.
170
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.hgcapital.com www.adventinternational.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, InThe Stats vestment Trust Chairman: Peter A. HGT.L Ticket Symbol: LSE: Brooke Employer Type: Independent Private Total private equity funds under manageCompany ment: 2.5bn Total private equity funds Employees: 70 in 2007 under management: about 11bn (2008) No. of Offices: 3 Employees: 130 investment professionals, of which 65 in Europe (2008) No. of Offices: 15 COMPANY FOCUS Sectors: Consumer & Leisure Healthcare Focus Company Industrials Sectors: Services Business Services & Financial Services TMT Retail & Consumer Technology, Media & Telecoms Financial stages: Healthcare Life Sciences Expansion &development, Large buyout Industrial (150m-300m equity), Mid market buyout (15m-150m), Privatisation, Public Financial stages: to private, Replacement, Turnaround International restructuring buyouts, recapitalization and growth equity investments (up to 500m equity), financing: Types ofsome venture capital Main: Majority Equity Types of financing: Majority equity
Rest of the World CAREERS CONTACT
Boston (HQ) info@hgcapital.com (affiliate) Buenos Tokyo Singapore Aires Sao Paulo Mexico Further affiliates in five other countries
Key Competitors
Employment Contact
171
THE SCOOP
Founded in 1985, Mercury Private Equity was one of the original private equity players in the European mid-cap market. In 1997, the firm was acquired by Merrill Lynch and integrated into the ML Investment Management division of the bulgebracket bank. Three years later, the firm was spun off as an independent unit, rebranding itself HgCapital the chemical symbol for mercury and also an acronym for High Growth. The firm currently has around 2.5 billion under management, and typically invests in mid-market companies with enterprise values between 75 million and 500 million. The firm has worked with a broad range of companies, requiring different investment types such as leveraged buyouts, management buy-ins, turnarounds, operational improvement initiatives, public-to-private and scaling up for fast growth. The firms offices in London, Amsterdam and Frankfurt represent their focus on Western Europe, and past investments have focused on the UK, Ireland, Germany and Benelux. HgCapital is sector specific, acting as a general private equity investor in the following sectors: consumer & leisure, healthcare, industrials, services & technology, media and telecommunication (TMT).
Blowin in the wind

In addition, the firm manages the largest European fund for renewable power projects, with approximately 1.3 billion of committed capital. The firm invests in a range of technologies including wind farms, biomass, geothermal, solar, waste and hydro energy, with capital provided at various stages of the businesses. Current investments include wind farm projects in Germany, Italy, France, Ireland and the UK, with investments in a biomass fuel company and a wind turbine manufacturer completing their portfolio. In 2007, the Hg Renewable Power Partners fund completed its most recent acquisition, an Oxford-based wind energy developer called Ridgewind. The company is developing over 200MW of UK wind project across 12 sites, bringing HgCapitals European wind portfolio to over 120MW in operation or construction and 700MW in development, meaning they are one of the leading investors in the European renewable energy sector.
172
Hg Capital
Trust yourself
The firm also manages an investment trust, known as HgCapital Investment Trust, which takes a minority interest in all of HgCapitals private equity investments, allowing investors the chance to invest in a diversified range of private equity activities with some liquidity. In 2007, the firm won the Private Equity Investment Trust of the Year award at the Investment Week Awards for the third year running, making them the only company to have ever completed the hat-trick. The award was given in recognition of consistent returns and sector-leading performance; in the decade spanning 1997 to 2007, the Trust delivered a share price total return of 19 per cent per annum against 7.3 per cent for the FTSE index, and a share price growth of 21.8 per cent over the final year. In early 2008, the firm sold The Sanctuary, a UK spa and beauty products business, to PZ Cussons for 75 million, which was their seventh transaction in the preceding five months. All in all it was a very successful period for HgCapitalthe joint disposal of CS Group and IRIS Software, combined with the sale of Hirschmann Electronics, cummulated in an annual rate of return above 75 per cent. In addition, the sale of Schenck realised proceeds of 34 million, at an impressive 85 per cent annual rate of return. In the same period, the firm invested in several new opportunities; Schleich, the plastic toy manufacturer, Americana, the clothing brand responsible for Bench and Hooch brands, SLV, a lighting systems company, Mondo, the talc mining group, and Fabory, the industrial fastener distributor, were all acquired by HgCapital. The 2007 acquisition of Fabory represents the firms fifth investment in the Benelux region since opening an office in Amsterdam two years earlier. In late 2007, the firm added to its healthcare portfolio by acquiring Casa Reha, the German care homes business.
Handing over the reins

In 2007, Leonard Licht retired as Chairman, after seven years in charge, leaving Ian Armitage to move from Chief Executive to Chairman. Several other promotions signify a change in leadership, with a new cast ready to leave their mark on the firm; Nic Humphries will be taking over day to day running as Chief Exec, with eleven other partners helping him run the fund and its investments.
173
GETTING HIRED
HgCapitals investment team studied at the typical elite universities including Oxbridge, Harvard, INSEAD and London Business School. Almost a third of the professionals hold an MBA. In terms of employment, HgCapitals professionals have a variety of backgrounds; top previous employers are leading consulting firms, Big Four accounting firms and top tier investment banks. Interestingly, almost a fifth of HgCapitals professionals have a background in strategy consulting, which is roughly the same as the number of professionals who came from investment banks. HgCapital does not run a formal recruitment process, but can be contacted at info@hgcapital.com to discuss potential employment opportunities.
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Hg Capital
Higher Diploma
PhD/JD/MD (2%) Bachelors only (38%) Unknown (7%)

MBA (30%)
Masters (23%)
Source: Candesic
Source: Candesic

8 7 6 5 4 3 2 1 0
LBS (2) INSEAD (2) Harvard (5) Oxford (5) Cambridge (7)
Source: Candesic
3.0 2.5 2.0 1.5 1.0 0.5 0.0
Merrill Lynch (2) Goldman Sachs (2) KPMG (2) Deloitte (3) Bain (3)
Source: Candesic
175
INDUSTRI KAPITAL ADVENT INTERNATIONAL

Brettenham Headquarters UK Regional House, 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.industrikapital.com Tel: +44 20 7333 0800 www.adventinternational.com

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: Bjrn Savn The Stats Employer Type: Private Company Chairman: Peter A. 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. of Offices: 5 Employees: 130 investment professionals, of which 65 in Europe (2008) No. 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, 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, recapitalization and growthof financing: Types equity investments (up to 500m equity), 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
Employment Contact
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Industri Kapital
THE SCOOP
In 1989, Enskilda Ventures Ltd, a subsidiary of Skandinaviska Enskilda Banken, sponsored Bjrn Savn in raising the Scandinavian Acquisition Capital Fund. The firm set up shop with an office in London and closed its fund at 108 million, mainly from Scandinavian investors. Over the next four years, the fund made eight investments, five in Sweden, two in Denmark and one in Norway. In 1993, the fund sought independence and went through a buyout from its parent bank, renaming itself Industri Kapital 1989 Fund in the process.

FUNDS
The Industri Kapital 2007 Fund The Industri Kapital 2004 Fund The Industri Kapital 2000 Fund
VINTAGE YEAR
2007 2004
FUND CAPITAL
1.7bn 0.825bn 2.1bn
2000
In 1993, after gaining independence, the firm branched out from its London base and opened regional offices in Stockholm and Oslo. By 1995, the firm had closed its second fund, with 250 million of capital from investors in Europe and North America. Two years later, the firm closed its third fund at 750 million while also opening an office in Hamburg, indicating their ambitions to begin investing in Germany. The firms further fundraising ambitions peaked in 2000, when their fourth fund closed at 2.1 billion, after which their fifth and sixth funds closed at 825 million and 1.7 billion, respectively. The Paris office was a late addition, opening in 2006, after the firm had already purchased several French companies. As of early 2008, Industri Kapital was managing four active funds, with 5.7 billion under management targeting Scandinavia, Benelux, France and Germany. Their current portfolio has 20 European companies, with a total combined turnover of over 7 billion. Overall, the firm has acquired 64 companies from a range of industries; the largest transaction was the acquisition of Magotteaux, a global grinding media and casting supplier, which had a final price tag of 373 million.
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GETTING HIRED
Industri Kapital has investments teams in Sweden, Norway, Denmark, Finland, Germany, Switzerland, Austria, France and the Benelux. Their regional investment teams enable the private equity company to establish local networks and knowledge bases, a key driver of successful transactions. Together the teams speak twelve languages. About half of Industri Kapital employees have a previous experience in investment banking. Top former employers are Morgan Stanley, JP Morgan, ABN Amro and of course Enskilda, the former mother company. Several were trained at strategy consultancies like Bain & Company. The team is European but with a majority of Scandinavians, and a significant proportion graduated from the well reputed Stockholm School of Economics. Candidates should contact directly the office they would like to apply to. For Industri Kapital it is very important to recruit professionals who fit into their regional teams. Their decisions are mainly dependent on the language skills and local experience of applicants, so be sure to point out any regional knowledge.
178
Industri Kapital
Higher Diploma
Source: Candesic
Source: Candesic

8 7 6 5 4 3 2 1 0
IEP Paris (2) INSEAD (2) HEC (3) Harvard (3) Stockholm SE (8)
Source: Candesic
4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
PWC (2) JPMorgan (2) Bain (2) Enskilda (2) Morgan Stanley (4)
Source: Candesic
179
MONTAGU PRIVATE EQUITY

2 More London Riverside London SE1 2AP United Kingdom Tel: +44 (0)20 73 36 9955 www.montagu.com Types of financing: Main: Majority Equity
EUROPEAN LOCATIONS
London (HQ) Dsseldorf 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. 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), Mega buyout (>300m equity) enquiries@montagu.com
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THE SCOOP
In 2003, HSBC spun off its European private equity unit in a management buyout, in a deal that valued the business somewhere in the region of 60 million. The firm was re-branded as Montagu Private Equity, which is derived from the well known 19th century London stockbroker Montagu & Samuel. HSBC retained a 19.9 per cent stake in the business and still uses the firm as their primary vehicle for private equity investments in Europe. Montagu got to keep the network of European offices in London, Manchester, Stockholm, Dsseldorf and Paris, retaining Chris Masterson, the former MD of HSBC Private Equity, to head the firm as CEO. Most important funds
FUNDS
Montagu III HSBC Private Equity Partnership & HSBC Private Equity European LP
VINTAGE YEAR
2005 2002
FUND CAPITAL
2.26bn
1bn
Since 1968, the firm has invested in over 400 companies, with an impressive historic rate of return and a current total of 3 billion under management. The firm typically invests between 100 million to 1 billion in a given deal, but pursues larger deals through co-investments with other firms. Unlike at most other private equity firms, investment professionals at Montagu do not have a sector specialisation.The firm is not sector oriented, and instead prefers to believe that a strong investment opportunity, even in a weak market, can still succeed. The firm looks as a priority for niches that are easy to defend. Montagus investment philosophy can be described as no-nonsense; they have an underlying principle that capital providers often have too much belief in their own ability to add value, and instead emphasise how important it is to back the right management team. Chris Masterson, Chief Exec of Montagu, points out that Montagus strategy doesnt include Management Buy-Ins (MBI), so its crucial they are happy with the target companys current CEO and management team. In fact, 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.
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In 2007, the firm only made two acquisitions: UK-based Jamella Group, the hair styling group trading under GHD, was bought for 160 million, and Unifeeder, the Danish transport and logistics company, was acquired. In 2006, the firm made another four acquisitions in a variety of sectors, continuing the trend of pursuing an opportunity as opposed to an industry; British Car Auctions, the British vehicle auction business, Sebia, the French pharmaceuticals business, Logstor, the Danish pipe manufacturer, and Open International, the British software business, were all acquired by Montagu in 2006. The two most notable, and most expensive, Montagu acquisitions were BSN Medical, the German pharmaceuticals group, acquired for 1.03 billion in 2005 and Linpac, the UK industrial company, which they bought for 860 million in 2003. In 2007, the firm made one of their more successful realisations by selling Cory Environmental, the waste management group, for five times their original investment after only two years. The firm also made a tidy return on the 2006 management buyout of Misys General Insurance, which they subsequently named Open International Limited, buying it for 182 million and selling it for 276 million a year and a half later.
Montagu Private Equity
GETTING HIRED
Sixty per cent of the Montagu professionals are based in the UK, with a fifth in Paris, twelve per cent in Germany and a handful in Sweden. The undergraduate qualifications of Montagus professionals are unusually mixed; Oxford, Cambridge and ESSEC all have three alumni at Montagu, and universities like Reading, Birmingham, Sheffield Hallam, Heriot-Watt, Bristol, Newcastle and HEC all make an appearance as well. Around a third of Montagu professionals came from an investment banking background, with almost a fifth coming from transaction services firms such as PricewaterhouseCoopers. Only two of the 43 professionals came from strategy consulting, one from Booz Allen and one from McKinsey.
183
PAI PARTNERS
43 avenue de l'Opra 75002 Paris France Tel: +33 (0)1 55 77 9101 www.paipartners.com
LOCATIONS
Paris (HQ) London Madrid Milan Munich
KEY COMPETITORS
BC Partners Blackstone Cinven CVC Eurazeo LBO France Wendel
THE STATS
Chief Executive: Dominique Mgret Employer Type: Independent private company since 2002 buyout from BNP Paribas Total private equity funds under management: 7bn Employees: 49 professionals in 2007 No. of Offices: 5
EMPLOYMENT CONTACT
www.paipartners.com
COMPANY FOCUS
Sectors: Consumer Goods (including Healthcare Services Capital Goods Financial stages: Large buyout (150m-300m equity), Mid market buyout (15m-150m equity), Public to private Types of financing: Majority equity and shareholders loans
184
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 49 professionals split across five European offices in Paris, London, Madrid, Milan and Munich, the company is exclusively European; the last decade has seen investment activity in ten countries, all of them in Western Europe.

FUNDS
PAI Europe V PAI Europe IV PAI Europe III
VINTAGE YEAR
2008 2005
FUND CAPITAL
5.4bn 2.7bn 0.21bn
2001
The firm has around 7bn under management and typically invests in medium to large size public or private companies, with investments in the range of 500m 3bn. PAI operates in three sectors that are just being redefined: The Consumer Goods group covers the food industry, other consumer goods and healthcare The Services group includes the consumer retail industry, distribution, building, infrastructure and media The Capital Goods group focuses on the packaging, automotive, aeronautics, 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. In 1931, 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 Frre years ago.
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Expensive taste
During the summer of 2007, PAI built an 80 per cent stake in the public company Kaufman & Broad, one of Frances leading developers and builders of homes with a turnover of about 1.3bn. Earlier that year, PAI led the 2.4bn acquisition of Lafarge Roofing, a 12,000 employee company headquartered in Luxembourg and the worldwide leader in tiles for pitched roofs, roofing components and chimney systems. The year 2005 was key, with 9 acquisitions including: Danish company Chr. Hansen, the worldwide leader in natural ingredients to the food industry (1.1bn); Cortefiel, the market leading apparel retailer in Spain (1.5bn); Kwik-Fit, Europes largest automotive fast-fit services provider (800m); and Saur, a leader in the water distribution, sanitation and waste management in France (1bn, exited). Previous important acquisitions have included many other leading European companies; UK-based United Biscuits, a leading European manufacturer of biscuits and snacks with 9,000 employees and a turnover of 1.3bn; Elis, the European leader in the textile rental and well-being services industry (1.5bn, exited); Italian firm Saeco, the leading European coffee machine manufacturer (825m); Vivarte, the leading specialist retailer of footwear and clothing in France (1.5bn, exited); and Yoplait, the No. 2 worldwide producer of fresh dairy products, were all significant acquisitions for PAI.
Historical legacy
PAI partners is one of the most experienced private equity firms in Europe, with historical links tracing back to Paribas Affaires Industrielles in 1872, the merchant bank now part of BNP Paribas. The firm was spun off from BNP Paribas in 2002, into its current form PAI Partners. The scale of its ambitious fundraising has taken the industry by surprise, and they have emerged as one of the key players in the European market. Although they have been around for centuries, Dominique Megret, current Chief Exec, points out that they have only been truly independent for a few years and have the capacity and desire to grow.
Playing in the major league

After two years of rumours, PAI recently announced the closing of their Europe V acquisition fund at 5.4 billion, shrugging off concerns about the state of the global credit markets. This brings it within reach of the largest fund in the region, Permiras 11.1 billion pool, meaning we can expect to see PAI bidding in the largest European
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auctions. The funds predecessor, Europe IV, was also one of the largest continental European funds when it stopped raising new money in 2005.
PAI Partners
The continental approach

As one of the few large funds based in continental Europe, PAI have benefited from a surge in takeover activity there, although they admittedly adopt an Anglo-Saxon mindset to investing. Dominique Mgret qualifies that mindset and investment philosophy regularly in interviews, describing PAIs investment strategy as professional and organised, [trying] to add from time to time the flavour of genius. PAI will only invest in companies that are number one or two in the sector, can be sold to trade buyers, and are found in sectors where they have experience and an extensive network of contacts.
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. Many PAI employees formerly worked for investment bank Paribas before it merged with BNP in 1999. That underscores the strong Investment Banking background of PAI employees. Because of its French roots, PAIs recruiting is significantly biased toward French Grandes Ecoles, with about half its investment professionals being graduates from Polytechnique, HEC, ESSEC, ESCP-EAP or Sciences Po. Only 15 per cent of them hold an MBA. PAI generally employs five or six graduate trainees for a gap year during their studies. A couple of them receive an offer once they graduate from school. Insiders tell us that there is no real opportunity for summer internships as it takes at least three months to train interns.
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PERMIRA INTERNATIONAL ADVENT ADVISERS

20 Southampton Street London WC2E 7QH United Kingdom Tel: +44 (0)20 7632 1000 www.permira.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. 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), Mega buyout (>300m equity), Public to private Types of financing: Main: Majority Equity http://www.permira.com/en/contacts/con tacts.html
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Permia Advisers
THE SCOOP
Since 1985, Permira has been an active private equity investor and currently boasts 22 billion in its 19 funds under management. Permira has roots in Schroders Plc, the British investment manager, which created a series of provincial private equity firms in the 1980s, tasked with managing country specific funds sponsored by Schroders. In the mid-1990s, the business units in France, Germany, Italy and the UK joined together to form Schroder Ventures Europe, which then began to act with increasing independence from its parent company. Most important funds
FUNDS
Permira IV Permira Europe III Permira Europe II
VINTAGE YEAR
2006 2003
FUND CAPITAL
11bn 5.1bn 3.5bn
2000
Biggest of the best

In 1997, the firm launched the Permira Europe I fund, which closed at 890 million. In 2000, the second Permira fund, Permira Europe II, closed at a healthy 3.3 billion, allocated for pan-European investments. Eventually in 2001, the firm was bought out from Schroders by the partners, renaming itself Permira, Latin for very surprising, very different, to mark the separation. In 2003, the firm raised its first fund independently from Schroders, closing Permira Europe III at over 5 billion. Most recently, the firm closed its fourth Permira fund at a staggering 11 billion in 2006, making it the largest European buyout fund at the time. In early 2008, Permira was ranked as the second largest private equity fund in Europe.
Doesnt just grow on trees

Permiras largest investor is a UK-based investment trust called SVG Capital, which explains why some 41 per cent of the firms most recent fund was from the UK, with a further 14 per cent coming from other European countries, 35 per cent from North America and the remainder from the Middle East and Asia. Like many other large
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private equity firms, Permira raised a significant amount from blue chip investors; 45 per cent came from investment managers, with a further 31 per cent from pension funds. The remaining funds came from government agencies, insurance companies, charities and banks. Geographically, the firm does not have a headquarters and is managed by its board and executive committee members located across the various offices. In 2002, the firm expanded outside of Europe for the first time, opening its New York office. In 2003, the firm opened in Stockholm to manage its Nordic region investments, and in 2004, opened in Madrid to cover Iberian investments. An office in Hong Kong is due to open in the first half of 2008 and in California in the second half.
Further afield
As one of the major international firms, Permira participates in the largest transactions, targeting companies valued above 500 million. The firm invests in a variety of transaction types, specializing in divestitures of non-core assets, developing family businesses, and acquisition-driven sector consolidation. Besides the multiple office structure, the firms investment professionals are also organised along sector lines. The core sector teams have historically been Chemicals, Consumer, Industrial Products and TMT, but the firm is currently developing new teams with specialisations in Financial Services and Healthcare. Permiras board is comprised of a group of senior partners and chaired by Damon Buffini. The executive committee, which is responsible for managing the private equity business, is chaired by the co-managing partners Kurt Bjorklund and Tom Lister and comprised of five other senior partners from across the business.
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, against which he has defended the industry and its practices. In particular, he has tried to work in co-operation with Sir David Walkers guidelines for disclosure and transparency, which were published in 2007 in response to the media attention. He has made significant efforts to increase transparency throughout Permira, and some see the creation of his chairman position as part of that process.
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Permira Advisers
The most important person youve never heard of

Although Mr Buffini is seen as the face of the British private equity industry, and one of its most outspoken defenders, he is also seen as unusually media shy, and not a lot is known about his personal life. What is known about his past paints the picture of someone who has worked hard to achieve his level of success; he was raised on a council estate in Leicester by a single mother, attending the local grammar school, and although he did not stand out as academically exceptional, he was referred to as very hard working. This work ethic saw him secure a place at Cambridge to study law, after which he joined LEK Consulting and took advantage of their scholarship program to enroll for an MBA at Harvard. Upon returning to the UK he joined Imperial Group as a consultant, where he was recruited by Jon Moulton, head of rival private equity firm Alchemy, to join Schroders Ventures.
Plenty of eggs in the basket

Permira is a sector focused business, operating in four industries: chemicals, consumers, industrial products & services and TMT, and recently financial services and healthcare. Notable chemical sector acquisitions include Borsodchem, the Hungarian MDI and PVC producer, Cognis, the German natural chemical products supplier, TFL, the German leather chemicals firm, and Azelis, the Italian chemicals distributor. In the consumer sector, Permira acquired a controlling stake of Valentino, the fashion house that owns Hugo Boss, from the Marzotto family, paying 782.6 million for 29.6 per cent of the business in 2007. This valued the company at 2.6 billion, meaning if Permira secures the remainder of the shares from investors, it would be the largest luxury goods sector buyout to date. Permira has made several other acquisitions in the fashion industry; Cortefiel, the Spanish clothing retailer, New Look, the British womens fashion retailer, TakkoModeMarkt, the German discount clothing retailer, and Vgele Group, the Swiss clothing retailer, were all acquired by various Permira funds. Trends in the industrial sector are less prevalent, although a notable recent deal was the rollup of seven luxury boat companies globally into what is now known as the Ferretti Group, which Permira sold a large part of in 2006, valuing the group at 1.685 billion. The TMT group has made several large investments, in sectors ranging from semiconductors to mobile phone operators. Notable deals include the turnaround and subsequent IPO of Premiere, Germanys leading pay-TV operator, and the
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acquisition and $1.5 billion capex program, as part of a club deal, of Intelsat, the American satellite operator. The firms ambitions to move further east could possibly have been behind the 2007 investment in Galaxy Entertainment, the company behind one of only a handful of licensed casino operators in Macau, Permira acquired 20 per cent of the company, and announced that the investment would go towards building Galaxys second Chinese casino resort.
GETTING HIRED
Contact: Angelika Sonnenschein Director, Human Resources Permira Beteiligungsberatung GmbH Falkstrasse 5 60489 Frankfurt Angelika.sonnenschein@permira.com Permira usually hires professionals with at least four to five years prior business experience in either investment banking, management consulting, accounting/audit or in industry. Most staff have a secondary degree, such as an MBA. The number of MBA graduates recruited every year is extremely small, and only two per cent of investment professionals have been hired with just an undergraduate degree. 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
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The interviews are conducted by the local offices and usually consist of a series of four to six interviews with different Permira professionals. 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, international members of that sector may participate in the recruiting process.
Permira Advisers
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Higher Diploma
Source: Candesic
Source: Candesic

12 10 8 6 4 2 0
Cologne (3) Oxford (7) Harvard (9) Boccini (9) INSEAD (11)
Source: Candesic
10 8 6 4 2 0
Clifford Chance (3) Goldman Sachs (3) BCG (3) Credit Suisse (4) McKinsey (9)
Source: Candesic
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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.terrafirma.com Tel: +44 20 7333 0800 www.adventinternational.com

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. Brooke ment: 11bn Employer Type: in 2008 (70 professionals) Employees: 100 Independent Private Company No. of Offices: 2 Total private equity funds under management: about 11bn (2008) Employees: 130 investment COMPANY FOCUS professionals, of which 65 in Europe (2008) Sectors: No. of Offices: 15 All sectors Financial stages: Buyout
Rest of the World CAREERS WEBSITE:

Boston (HQ) www.terrafirma.com/people-contact.html Tokyo Singapore (affiliate) Buenos Aires Sao Paulo Mexico Further affiliates in five other countries
Key Competitors
Company Focus
Sectors: financing: Types of Business Services &(15m-150m equity), Mid market buyout Financial Services Retail buyout (150m-300m equity), Large & Consumer Technology, Media & Telecoms Mega buyout (>300m equity) Healthcare & Life Sciences Industrial Financial stages: International buyouts, recapitalization and growth equity investments (up to 500m equity), some venture capital Types of financing: Majority equity
Employment Contact
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THE SCOOP
In 1994, Guy Hands founded the Principal Finance Group within Nomura, the Japanese investment bank. He subsequently made a name for himself by turning around struggling companies in some of the largest leveraged deals of the time; the group made 15 acquisitions with total enterprise value over 20 billion. In 2002, the firm was spun-off into its current form of Terra Firma Capital Partners, keeping Nomura as a significant investor. Since 1994, the firm has invested over 11 billion, mainly in European companies, with an aggregate transaction value totalling 42 billion. Most important funds
FUNDS
TFCP III Terra Firma Deutsche Annington TFCP II
VINTAGE YEAR
2007 2006
FUND CAPITAL
5.4bn 2.1bn 2.6bn
2004
One big bank account

The firms first fund was created and invested under Nomura ownership, and has mainly been realised. The firms second fund, Terra Firmas first as an independent, closed in 2004 with 2.1 billion of committed capital, raised from 65 investors in 21 countries. TFCP III closed in May of 2007, with a total of 5.4 billion to be invested in line with the firms strategy of acquiring controlling stakes in complex or regulated markets, mainly in Europe, and especially in companies that are asset backed or government backed. This is often credited as the source of the name Terra Firma, which means solid ground in Latin. In 2006, Terra Firma Deutsche Annington was established to hold Terra Firmas German housing assets, raising additional capital adding to a fund total of 2.1 billion. The acquisition of the state-owned railway workers flats, supplemented with further acquisitions, is viewed as the most successful flat privatisation of its kind in Germany; the group now owns around 230,000 flats, making them Germanys biggest landlord.
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TerraFirma
What a Guy
Terra Firmas, and hence Guy Hands, investment strategy can be said to be somewhat contrarian; the firm only targets large companies that it feels are underperforming and not living up to their potential. The target is then acquired, actively managed and financed by Terra Firma, until the company is in a healthy state where it can be sold or listed on the public markets. There is another rationale for Mr. Hands investment strategy his severe dyslexia. A friend was quoted as saying that Mr. Hands could not read long investment rationales, so was forced to focus on the key points and make the numbers work, which he could do very well. It is said that he sees things differently to everyone else, whether this is dyslexia, genius or just the fact that he is a smart and hard working man, his track record speaks for itself; one of his first deals at Nomura was to purchase Angel Trains, where he was the only external bidder, selling it on for a 390 million profit. He then proceeded to start buying up pubs when no one else would touch them, briefly becoming the UKs biggest pub landlord, and changing the way the industry works. William Hague, former leader of the conservative party and Hands best man, once said that if Guy had translated his private equity success to politics he would have been Prime Minister by now.
A firm Hands
Mr. Hands most recent foray into the press, which he seems to have a talent for attracting, is regarding the planned cuts at EMI, the music label. Terra Firma recently acquired the business for 2.4 billion and subsequently announced it would be cutting 2,000 jobs, or a third of the workforce. The move has not proved popular and big name acts such as Radiohead, Robbie Williams and the Rolling Stones have all been outward critics of the new management; Mr. Hands is unmoved in his position and retorts that he needed to remind executives at Odeon, the cinema business he acquired, that they were in the popcorn selling business, not Hollywood. Although these cuts may not make great press, the truth is that Mr. 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. This notoriously hard work ethiche starts work at 6 am and doesnt leave the office until midnight is expected of all his employees at Terra Firma. Another telling indicator of his leadership style is evident in boardroom meetings, where no other member of his team speaks during negotiations, unlike most other private equity groups.
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Big spender
Terra Firma will invest in any sector, although prefers complex industries that are highly regulated; this philosophy is evident in the 1.1 billion acquisition of Tank & Rast, the German motorway services group, the 453 million purchase of East Surrey Holdings, the British water and gas utility, and the $2.5 and $5.2 billion acquisitions of AWAS and Pegasus, both aircraft leasing companies. Other notable deals include the acquisitions and subsequent merger of Odeon and UCI, two UK cinema chains, together making up about 40 per cent of the UKs cinema exhibition market. But fame came in 2007 on the front page of the Financial Times with Terra Firmas combat against rival giant KKR for the control of Alliance Boots, the UK pharmacy chain, in the biggest private equity transaction in Europe ever. Terra Firma honourably gave up after weeks of strategic moves, much to its luck as KKRs banks still hadnt managed to syndicate the debt six months after its victory.
GETTING HIRED
Terra Firma employs 70 professionals, most of them with an investment banking background, although accounting, industry and advisory backgrounds are welcome too. They are organised in two major teams: financial (investment) professionals and business (portfolio) professionals who help improve the operations in the portfolio. Cases tend to be staffed more on industry experience than on regional expertise. The firm discloses the profiles of the senior members of the team only but is known to attract very talented people. Most top universities are represented in the team. In addition to the experienced hires, Terra Firma also recruits a number of MBAs from the leading business schools each year and provides training programmes to new analysts and associates. Candidates interested in joining can apply on www.terrafirma.com/careers.html.
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ENGLEFIELD CAPITAL
Michelin House, 81 Fulham Road London SW3 6RD United Kingdom Tel: +44 (0)20 7591 4200 www.englefieldcapital.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: 1.76bn www.adventinternational.com Employees: 19 professionals No. of Offices: 1
EUROPEAN LOCATIONS
Financial stages: London (HQ) International buyouts, recapitalization and growth equity investments (up to 500m equity), some venture capital
KEY COMPETITORS
Types of Barclays 3i Apaxfinancing: Private Equity HgMajority Capital equity
European Locations CAREERS CONTACT

London (HQ) englefield@engcap.com Amsterdam Bucharest Frankfurt Kiev Madrid Milan Paris Prague Warsaw Bratislava (affiliate) Oslo (affiliate)
The Stats COMPANY FOCUS

Chairman: Peter A. Brooke Sectors: Type: Independent Private Employer All sectors, with some focus on Financial Company and Business Services Total private equity funds under management: about 11bn (2008) Financial stages: investment professionals, Employees: 130 Mid market buyout (15m-150m equity) of which 65 in Europe (2008) No. of Offices: 15 Types of financing: Majority equity, Minority equity with contractual rights
Rest of the World

Key Competitors
Company Focus
Sectors: Business Services & Financial Services Retail & Consumer Technology, Media & Telecoms Healthcare & Life Sciences Industrial
Employment Contact
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THE SCOOP
In 2002, Dominic Shorthouse, previously a board member at Warburg Pincus, founded Englefield Capital, a mid-market specialist that focuses on European investments between 30-300 million, although typically with enterprise values over 75 million. The firm invests throughout the UK and continental Europe, from a single office located in London.

FUNDS
Englefield Fund II Englefield Fund I
VINTAGE YEAR
2007 2003
FUND CAPITAL
1bn
0.7bn
Englefields first fund, closing at 706 million in 2003, has been invested in ten companies through a range of sectors, two of which have already been realised. In January 2007, the second fund closed at 1 billion, with a similar investment philosophy as the first fund.
Follow the winds

Englefield is not sector specific, although it will only invest in sectors that the partners fundamentally understand from previous experience in the industry. The investment philosophy is based around following the winds, which Dominic Shorthouse, founding partner, explains by saying that Englefield is focused on exploiting changes in European market conditions to select investment opportunities. So far, the investments are from a diverse range of industries; currently Englefield owns an insurance company, an independent schools business, a leading French cosmetic surgery and cosmetic medicine group, an overseas provider of outsourced services to public authorities, an IT recruitment company, a waste and recycling business, a property company and a wind farm. In July 2006, 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.
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Englefield Capital
Always trust your friends

Englefield is unique in the way it raises funds. Both funds have been sponsored by Bregal, the Swiss-based holding company of the Brenninkmeijer family, owners of the C&A retailer who have an estimated 12.5bn fortune, with only three other institutional investors allowed to contribute: AXA Private Equity, the Dutch Shell Pension Fund and Delta Lloyd. The rest of the money comes from what is termed an Affiliates Fund basically a group of 150 friends and contacts, most of whom are business leaders in the UK, Western Europe and the United States.
GETTING HIRED
Englefield is very representative of its industry: Three of the 19 investment professionals came from Morgan Stanley, three from leading consultancies and the rest from top investment banks or other private equity houses. The majority of Englefields investment professionals studied at elite European universities, with Oxford and Cambridge being the most common. A quarter of the professionals have an MBA, and three out of the five are from INSEAD.
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EXPONENT PRIVATE EQUITY

12 Henrietta Street London WC2 8LH United Kingdom Tel: +44 (0)20 7845 8520 www.exponentpe.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. 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, Public to private
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Exponent Private Equity
THE SCOOP
In 2004, Richard Campin spun-out a successful team from 3i after fifteen years with the company, taking three other high profile directors with him: Tom Sweet-Escott, Chris Graham and Hugh Richards. The newly formed Exponent Private Equity was established to target mid-cap UK companies with enterprise values up to 350 million. In 2004, their first fund closed at 400 million and was around 80 per cent invested in eight transactions by the end of 2007. In early 2008, the firm closed its second fund at 805 million, twice the size of its first fund, which was rumoured to be targeting 750 million; this oversubscription highlights the growing demand for mid-market PE funds in the face of adverse credit conditions, which have slowed down the mega buyout houses. Exponent only started raising their second fund in May of 2007, with most of the commitments secured by September, which is a surprisingly swift round of fundraising. Interestingly, the capital for the most recent fund came predominantly from outside the UK, demonstrating the global appetite for the UK mid-market private equity sector; 42 per cent of the commitments were from the US, 29 per cent from the UK, 22 per cent from continental Europe, and the remainder from the rest of the world. Major investors include funds managed by Pathway, Pantheon Ventures, NYL Capital Partners and Bank of Scotland. The firm benefits from its size, as it can be flexible and responsive, but also goes through the same issues surrounding any start-up business; in the early days, Richard Campin recalled that after starting the business out of the pockets of the four founders, they all eventually had credit cards that didnt work anymore. The firms strategy to target the upper mid-market is paying off as the big players keep moving up in deal size, leaving Exponent to fill the void between the mega buyout houses and typical mid-market firms. Exponent has the flexibility to invest up to 200 million in a single deal, which is a relatively large amount as it represents a quarter of their most recent fund. To date, the firm has only made one exit from the portfolio created using its first fund; in 2005, TSL Education was acquired from News International for 235 million, only to be sold in 2007 to Charterhouse. It is still seen as a relatively young portfolio
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and Hugh Richards, one of the four founding partners, said of the TSL sale: All the plans came right with TSL and quicker than expected. It was a helpful proof of principle, but it would have been unrealistic to expect more. The firm has seven active portfolio companies, acquired using Exponents first fund. In 2006, Durrants Media Monitoring was bought for 82 million from August Equity; The Trainline, the online train ticket company, was bought from Virgin for 163 million; Exponent invested in GTI, the graduate recruitment publisher, backing the founding management team; and Magicalia, the online publisher, was acquired for 13 million. In 2007, the firm acquired V.Holdings, the worlds largest ship management business, for US $340 million; Cardsave, the electronic payment services company, was acquired; and most recently, Radley, the womens fashion brand, was bought from Pheonix Equity Partners in a transaction valuing the company at 130 million.
GETTING HIRED
The educational pedigree of Exponents professionals is mixed; four of the professionals have MBAs, two of which are from Harvard, although none have a PhD level qualification. At undergraduate level, five come from Oxbridge, while other Universities range from Glasgow to Bristol to Manchester. The background of the twelve Exponent investment professionals is fairly typical of the private equity industry as a whole; previous employers include Bain & Co, a top management consultancy, PricewaterhouseCoopers, a Big Four accounting firm, Merrill Lynch, a top investment bank, and a variety of other private equity firms. There doesnt seem to be a single type of background preferred at Exponent, and candidates are advised to contact the firm directly to discuss potential employment opportunities.
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INVESTITORI ASSOCIATI ADVENT INTERNATIONAL

Via Agnello 8 20121 Milan Italy Tel: +39 02 854 5731 www.investitoriassociati.it
KEY COMPETITORS
3i Advent International Apax BC Partners CVC
CAREERS CONTACT
info@investitoriassociati.com
THE STATS
Senior partners: Dario Cossutta, Stefano Miccinelli & Antonio Tazartes Employer Type: Private Company Total private equity funds under management: 1.175bn Employees: 16 in 2007 No. of Offices: 1
COMPANY FOCUS
Sectors: All sectors Financial stages: Mid market buyout (15m-150m equity), Large buyout (150m-300m equity) Types of financing: Main: Majority Equity
EUROPEAN LOCATIONS
Milan (HQ)
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THE SCOOP
Milan-based Investitori Associati is one of the leading Italian private equity houses, particularly active in mid-market transactions with values over 100 million. The company creates subsidiaries that individually manage each fund, with the idea that each team is independent under a collective umbrella that dictates overall strategy and offers advice to each fund. The most recent fund, Investitori Associati IV, was oversubscribed by almost three times and closed with 700 millionover 100 million more than originally intended. Most important funds
FUNDS
Investitori Associati IV Investitori Associati III
VINTAGE YEAR
2004 2000
FUND CAPITAL
0.7bn
0.4bn
Previously, Investitoris first three funds had a total of 475 million between them, making 22 investments in a variety of industrial and services companies, mainly in Italy. This investment history is enough to make them one of the leading Italian players, and their reputation has seen the firm involved in some large club deals; in 2003, Investitori teamed up with Permira, CVC and BC Partners to acquire Seat Pagine Gialle, the directories business unit of Telecom Italia, in a deal valued at 5.7 billion. Although Investitori is not in the same league as these international players, they provide the access, experience and network for the Italian market, which means they are often called upon to partner with for Italian deals. Unsurprisingly, as one of the leading Italian firms, 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. Investitori Associati recently established their first alternative investment subsidiary, aimed at controlling management companies of several types of funds: private equity funds, fund of funds, co-investment funds and eventually other high yielding asset classes such as hedge funds and mezzanine funds. The business unit represents a diversification for Investitori, away from typical private equity deals into other sectors near their core business.
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Acquisitions using the fourth fund took place throughout 2005 and 2006, in sectors ranging from transportation to pharmaceuticals. This includes market leading blood fractionator Kedrion, a family business from Tuscany with 150m turnover, and Grandi Navi Veloci (GNV), which operates a fleet of ten cruise ferries and is one of the main operators in the Mediterranean Sea with 265m turnover.
Investitori Associati
GETTING HIRED
The three founding partners and the majority of the management team have extensive experience in the private equity sector, developed in particular within the firm. Investitori Associati is an Italian company with mainly Italian private equity fund managers. The background of the younger part of the team is mostly in investment banking and strategy consulting. Employees studied mainly at Italian undergraduate and graduate university programs, although lately there is an interest for internationally renowned MBA programs like Harvard or Wharton. Applicants with a strong Italian investment banking background will have an advantage when applying to Investitori Associati.
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MERCAPITAL ADVENT INTERNATIONAL

Parque Empresarial "La Finca", Paseo del Club Deportivo, 1 Edificio 14 Madrid 28223 Pozuelo de Alarcn Spain Tel: +34 (0)91 557 8000 www.mercapital.com
KEY COMPETITORS
3i Apax Candover Doughty Hanson PAI
CAREERS CONTACT
mercapital@mercapital.com
THE STATS
Chairman: Jos Mara Loizaga Viguri Employer Type: Private Company Total private equity funds under management: 1.4bn Employees: 20 in 2007 No. of Offices: 1
COMPANY FOCUS
Sectors All sectors Financial stages: Small market buyout (<15m equity), Mid size market buyout (15m150m equity) Types of financing: Main: Majority Equity Other: Minority Equity
EUROPEAN LOCATIONS
Madrid (HQ)
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Mercapital
THE SCOOP
Since 1986, Mercapital has firmly established itself as a reference in the Spanish private equity market. With investments totalling 1.4 billion, the firm is one of the most active and experienced mid-market firms dedicated to the Iberian market; unlike many other European firms, Mercapital is happy being a niche player and currently has no ambitions to expand geographically throughout Europe. Most important funds
FUNDS
Mercapital Spanish Buyout Fund III Mercapital Spanish Buyout Fund II
VINTAGE YEAR
2006 2001
FUND CAPITAL
0.55bn
0.6bn
Typically, the firm will invest 40 million to 50 million in Iberian companies, with enterprise values in the 100 million to 150 million range, making them a fairly typical mid-market PE firm. With over 20 dedicated professionals, Mercapital is the largest independent firm dedicated to the region. 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. The firm had five investment vehicles before their first traditional private equity fund, Spanish Private Equity Fund (SPEF), which closed in 1998 at 260 million. Their second fund, SPEF II, closed in 2000 with a sizeable 600 million from a global investor base. In late 2006, the most recent SPEF III fund closed at 550 million, slightly above the 500 million target. The firm is allocating all of SPEF III to buyouts, compared to about two-thirds of the previous fund, meaning they have significantly increased their potential buyout capacity. In 2007, the firm failed to make any investments, which may be somewhat indicative of the market conditions at the time. In 2006, however, the firm still only made one investment; Mercapital acquired 75 per cent of Gasmedi, a medical gas provider, in an MBO that valued the company somewhere around 275 million. In contrast, 2005 saw the firm make a record four investments in a variety of sectors; Saprogal, an animal nutrition company, Holmes Place, a fitness centre group, Menorquin Yachts, a boatyard, and Grupo Abaco, a cinema company, were all acquired that year.
209
GETTING HIRED
The team of twenty professionals is exclusively Spanish, as is the wide group of close industry advisors, and both are exclusively dedicated to the Spanish market. The majority joined after a first professional experience in the industry (25 per cent). Others worked at a Big Four audit firm (15 per cent), a strategy consultancy (15 per cent) or an investment bank (15 per cent). Prior to that, while they all pursued their undergraduate studies at local Spanish universities, one third of the team holds an MBA from INSEAD. Unless Mercapital change their regional focus, only candidates with a strong Spanish background and connections stand a chance of joining the team.
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ADVENT SAGARD INTERNATIONAL

24/32 rue Jean Goujon 75008 Paris France Tel: +33 (0)1 53 83 3000 www.sagard.com
KEY COMPETITORS
Barclays Private Equity Bridgepoint European Capital Montagu
CAREERS CONTACT
contact@sagard.com
THE STATS
Chairman: Didier Pineau-Valencienne Employer Type: Private Company Total private equity funds under management: 1.6bn Employees: 20 in 2007 No. of Offices: 1
COMPANY FOCUS
Sectors: All sectors Financial stages: Small market buyout (<15m equity), Mid size market buyout (15m150m equity) Types of financing: Main: Majority Equity Other: Minority Equity, business development capital
EUROPEAN LOCATIONS
Paris (HQ)
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THE SCOOP
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
FUNDS
Sagard II Sagard I
VINTAGE YEAR
2006 2003
FUND CAPITAL
1bn
0.6bn
The funds 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.
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Sagard
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 Frre family of Belgium would be the largest private shareholder. In fact, Mr. Sarkozys 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. Sagards 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.
GETTING HIRED
Of Sagards 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 shouldnt stop suitable candidates from contacting them to discuss potential career opportunities.
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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
EUROPEAN LOCATIONS
London (HQ) Frankfurt Madrid Paris Stockholm
REST OF THE WORLD

New York Hong Kong Tokyo Sydney
THE STATS
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
KEY COMPETITORS
Capvent DAM Capital Park Square Indigo Capital EuroMezzanine Almack Mezzanine
COMPANY FOCUS
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
CAREERS CONTACT
+44 (0)20 76 28 9898
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Intermediate Capital Group PLC
THE SCOOP
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.

FUNDS
ICG European Fund 2006 ICG Mezzanine Fund 2003 ICG Mezzanine Fund 2000
VINTAGE YEAR
2006 2003
FUND CAPITAL
2.25bn 1.5bn 0.307bn
2000
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
215
equity co-investment alongside the lead investor. In 2007, ICG provided equity in support of TPG and AXA Private Equitys acquisition of TDF, the leading French television broadcaster. They also provided mezzanine and equity in 3is 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 Kapitals acquisition of Attendo, the largest nursing home provider in Sweden; they supported EQTs acquisition of Dako, the Danish cancer diagnostics specialist; and they also provided bonds for LBO Frances acquisition of MdiPartenaires II, the French acute hospital group.
GETTING HIRED
ICG recruits from top tier universities, with London- and Paris-based schools featuring heavily, which makes sense as these are ICGs two most active offices. Only 11 per cent of ICGs professionals have MBAs, with the majority holding just a bachelors degree. The majority of ICGs 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.
216
Intermediate Capital Group PLC
Higher Diploma
Source: Candesic
Source: Candesic

3.0 2.5 2.0 1.5 1.0 0.5 0.0
ESCP-EAP (2) HEC (2) LSE (2) Oxford (3) LBS (3)
Source: Candesic
5 4 3 2 1 0
Credit Suisse (2) BCG (2) KPMG (4) JPMorgan (4) Calyon (5)
Source: Candesic
217
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.partnersgroup.ch Tel: +44 20 7333 0800 www.adventinternational.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. Steffen Meister Head of Private Equity: Philipp Gysler The Stats Employer Type: Publicly listed company Chairman: Peter A. Brooke (SWX) Employer Type:PGHN Ticker Symbol: Independent Private Company equity funds under manageTotal private Total private equity funds underof ment: CHF16.7bn in 2008 (out management: about 11bn (2008) CHF24bn globally) Employees: 130 investment professionals, Employees: 100 in 2007 of which 65 in Europe (2008) No. of Offices: 9 (10 inc. additional No. of Offices: 15 2008) planned opening in
Rest of the World
Key Competitors
COMPANY FOCUS Company Focus
Sectors: Sectors: All sectors Business Services & Financial Services Retail & Consumer Financial stages: Funds of funds (Primary investments, Technology, Media & Telecoms Healthcareinvestments, direct investsecondary & Life Sciences Industrial estate, infrastructure) ments, real Financial stages:
Employment Contact
International buyouts, recapitalization and EUROPEAN LOCATIONS growth equity investments (up to 500m Baar-Zug (HQ) Guernsey London equity), some venture capital Luxembourg Types of financing: Majority equity
218
Partners Group
THE SCOOP
In 1996, Partners Group, a Swiss alternative asset management firm, was established, offering a private equity fund of funds as their first product. Offices in Guernsey and New York were established in 1999 and 2000 respectively, followed by additions in Singapore and London in 2004, in San Francisco and Tokyo in 2007 and lately Sydney and Luxembourg in 2008. The firm also plans to open an office in Beijing. In 2001, the firm entered the hedge fund industry by acquiring Swiss Alternative Investment Strategies Group, a firm founded by ex-Credit Suisse hedge fund professionals. Today, Partners Group is a global alternative asset management firm, with strong roots in Switzerland, offering a range of investment alternatives, including hedge funds, real estate funds, private debt and private equity. The private equity division makes up over two thirds of the 15 billion managed by the group, using a global team of over a hundred professionals spread across six offices. 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, that tend to have negative cash flow and a longer investment horizon; the buyouts funds target companies that are well established and typically use debt, or leverage, to finance the acquisition; the special situations fund is set aside for any other investment that doesnt fall in the first two categories of funds. Partners Group is not a typical fund of funds, as they invest in primary, secondary, direct and listed private equity investments. Their investment strategy separates North America, Europe and Asia/emerging markets in a matrix against types of investments; the matrix is then overweighted given current market conditions, and assets are allocated accordingly. The firms direct investments come in the form of coinvestments, typically led by a partnership already in their network. The firms investment strategy, dubbed Alternative Beta Strategies, was one of the first strategies to clone the methods used by hedge-funds, and now has over $1.1 billion invested in it from high profile investors, such as the leading UK pension fund, Universities Superannuation Scheme. The firm gained accolades in 2004, winning the European Fund of Funds award and achieving second place in the Secondaries Firm of the Year. In 2006, the firm was deemed the most successful European listing, jumping 133 per cent after becoming available to public investors.
219
Products offered by the firm are split into three categories: limited partnerships, which are regularly established, and can vary from diversified global funds to targeted funds such as a European buyout fund of funds; publicly traded products, such as investment companies, certificates and principal investment vehicles, which normally aim to offer a diversified portfolio of investments across all financing types and stages; and open-ended product, or mutual funds, which have been created for specific investor groups, and provide the added level of regulation and liquidity some investors prefer. In 2006, the firm became public, listing around 30 per cent of the equity on the SWX Swiss exchange and through select private placements. Following the transaction, it is thought that the management team retained a large portion of the equity. In January 2008, the group as a whole announced their highest ever annual growth, taking total assets under management from 10.6 billion to nearly 15 billion during 2007. The firm seems to have avoided any injury from the credit crisis that dominated the rest of the private equity world during 2007; Alfred Gantner, Executive Chairman, explained that the slow down in direct investments was complemented by cheaper secondary private equity investments becoming available, and the private debts held by the firm were priced with the intention of holding them to maturity.
GETTING HIRED
Partners Group is a global alternative asset manager with strong Swiss roots, as evidenced by the background of its investment professionals. Seventy per cent of them joined with previous experience at a Swiss bank, a Swiss asset manager or a Swiss insurance company, while most of the rest worked at the Swiss subsidiary of an international firm. This is also very visible academically, with only 10 per cent of them venturing abroad for an MBA or a PhD. Not surprisingly, St. Gallen is the most represented institution. Surprisingly, there are very few managers with previous experience in direct or indirect private equity investment.
220
Still, Partners Group is growing with the entire PE industry and offers a variety of career opportunities. They state that they actively recruit new talent from top business schools in the United States and in Europe and look especially for entrepreneurship, drive, outstanding academic and professional performance and desire to learn in all candidates. The firm offers an associate program completed in two six-month modules and also selectively targets experienced hires. The full recruiting process is explained on their website in the About us menu. For PE investment managers, they express a preference for investment banking or accounting experience and a particular interest for sectors of high tech, telecom and chemicals. Strategy consulting doesnt appear to be a target, as is it considered less useful in funds of funds.
Partners Group
The graduate programme

Partners Group actively recruits recent business school graduates into their structured Associate program, based around two sixth month modules. Candidates can contact the firm at hr@partnersgroup.net
Higher Diploma
Source: Candesic
Audit & transaction services (15%) Banks (46%) Other (39%)
Source: Candesic
221

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
6 5 4 3 2 1 0
Goldman Sachs (3) PWC (4) Credit Suisse (4) UBS (6)
Source: Candesic
222
Short Profiles of
200 REPRESENTATIVE
PE firms in Europe
LBO, GROWTH EQUITY AND DIVERSIFIED PRIVATE EQUITY FUNDS MEZZANINE FUNDS DISTRESSED FUNDS SECONDARY FUNDS FUND OF FUNDS
LBO, GROWTH EQUITY AND DIVERSIFIED PRIVATE EQUITY FUNDS 21 Investimenti

Via G. Felissent, 90 31100 Treviso Italy Tel +39 0422 316611 www.21investimenti.it www.aaccapitalpartners.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: 21 AuM: 700m (2007)
STATS
Chief Executive: Gerben Kuijper Employer Type: Private firm No. of employees: 27 professionals AuM: 3.1bn (2007)
EUROPEAN LOCATIONS
Offices: Treviso Paris (21 Centrale Partners)
EUROPEAN LOCATIONS
Offices: Amsterdam London Stockholm
226
Aberdeen Asset Managers Limited

One Bow Churchyard London, EC4M 9HH, UK Tel +44 (0)20 7463 6452 www.aberdeen-asset.com/privateequity
ABN Amro Capital France

9 avenue Matignon 75008 Paris France Tel +33 (0)1 53 93 69 00 www.abnamrocapital.fr
STATS
Head of Investment, Private Equity: Francesco Santinon Employer Type: Private equity division of Aberdeen Asset Management PLC Employees: 41 professionals AuM: 267m (2008)
STATS
Managing Director: Herv Claquin Employer Type: Currently a subsidiary of ABN Amro (2007) No. 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.com
227
Accent Equity Partners

Engelbrektsgatan 5 SE-11487 Stockholm Sweden Tel +46 8 545 073 00 www.accentequity.se
Activa Capital
203, rue du Faubourg Saint-Honor 75008 Paris France Tel +33 1 43 12 50 12 www.activacapital.com
STATS
CEO and Founding Partner: Jan Ohlsson Employer Type: Private Company No. of employees: 9 professionals AuM: 700m
STATS
Chief Executive: Jean-Louis de Bernardy Employer Type: Private Company No. of employees: 12 (11 professionals) AuM: 315m
EUROPEAN LOCATIONS
Offices: Stockholm
EUROPEAN LOCATIONS
Offices: Paris
228
Ahorro Corporacion Desarollo

Paseo de la Castellana 89 28046 Madrid, Spain Tel +34 91 586 4242 www.acdesarollo.com
AIG Private Equity

AIG Global Investment Corp. (Europe) Ltd. Plantation Place South 60 Great Tower Street London EC3R 5AZ, United Kingdom Tel +44 (0) 20 7269 7253 www.aiggig.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, Alternative Investments Europe: Ion Bogdaneris Employer Type: Subsidiary of AIG Employees: 200 team members AuM: $27.2bn worldwide (expansion, LBO, mezzanine, funds of funds)
EUROPEAN LOCATIONS
Offices: Madrid Sevilla Malaga Valencia
LOCATIONS
Offices: London New York and 22 more locations
229
Alchemy Partners
20 Bedfordbury London WC2N 4BL, United Kingdom Tel +44 (0)20 7240 9596 www.alchemypartners.com
Alpha
49 Avenue Hoche 75008 Paris France Tel +33 (0) 1 56 60 20 20 www.groupealpha.com
STATS
Founder and managing partner: Mr. Jon Moulton Employer Type: Private Company No. of employees: 24 (20 investment professionals) AuM: 2bn
STATS
Chief Executive: Nicolas ver Hulst Employer Type: Private Company No. of employees: 18 professionals
EUROPEAN LOCATIONS EUROPEAN LOCATIONS

Offices: London Offices: Paris Frankfurt Milan Monaco Saint Helier
CAREERS CONTACT
jmoulton@alchemypartners.co.uk
230
AlpInvest Partners N.V.

Jachthavenweg 118 Amsterdam 1081 KJ The Netherlands Tel +31 20 5407575 www.alpinvest.com
AnaCap Financial Partners

Stanford House, 27a Floral Street London, WC2E 9EZ, United Kingdom Tel +44 (0)20 7070 5250 www.anacapfp.com
STATS
Chief Executive: Volkert Doeksen Employer Type: Private Company No. 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.com
231
Andlinger & Company

Avenue Louise 140 1050 Brussels, Belgium Tel +32 2 647.80.70 www.andlinger.com
Apollo Management
2 Manhattanville Road Purchase, 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, 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
demulder@andlinger.be
232
Apposite Capital LLP

Bracken House One Friday Street London EC4M 9JA United Kingdom Tel +44 (0)20 7090 6874 www.apposite-capital.com
Arcapita
15 Sloane Square London SW1W 8ER, United Kingdom Tel +44 (0)20 7824 5600 www.arcapita.com
STATS STATS
Managing Partner: David Porter Employer Type: Private company No. of employees: 7 (6 professionals) AuM: ~200m CEO: Atif A. 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
233
Argan Capital
Monopolis House, 9 South Street London W1K 2XA, United Kingdom Tel +44 (0)20 7647 6970 www.argancapital.com
Argos Soditic
14 rue de Bassano 75783 Paris Cedex 16 France Tel +33 (0)1 53 67 20 50 www.argos-soditic.com
STATS
Managing Partner: Mr. Lloyd Perry Employer Type: Private Company No. of employees: 14 (10 professionals) AuM: 425m
STATS
Chief Executive: Mr. Louis Godron Employer Type: Private Company No. of employees: 25 (17 professionals) AuM: 518m
EUROPEAN LOCATIONS
Offices: London Milan Paris Warsaw
EUROPEAN LOCATIONS
Offices: Paris Geneva Milan
234
ARGUS Capital Partners

Academy House 36 Poland Street London W1F 7LU United Kingdom Tel +44 20 7439 0088 www.arguscapitalgroup.com/en/
Astorg Partners
68, rue du Faubourg Saint-Honor 75008 Paris France Tel +33 (0)1 53 05 40 50 www.astorg-partners.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

Offices: London Budapest Prague Warsaw Offices: Paris
235
Atria Capital Partenaires

40 rue de Chteaudun 75009 Paris France Tel +33 (0)1 45 26 60 16 www.atria-partenaires.com
August Equity
10 Bedford Street London WC2E 9HE, United Kingdom Tel +44 (0)20 7632 8200 www.augustequity.com
STATS STATS
Chief Executive: Mr. Dominique Oger Employer Type: Independent private company Employees: 11 AuM: 320m Chief Executive: Richard Green Employer Type: Private Company Employees: 19 AuM: 260m

Offices: Paris Offices: London
236
Baird Capital Partners Europe

Mint House, 77 Mansell Street London, E1 8AF United Kingdom Tel +44 20 7667 8400 www.bcpe.co.uk
Baring Private Equity Partners Espana SA

Hermosilla, 11-5a Planta 28001Madrid, Spain Tel +34 91 781 8870 www.bpep.com/spain.html
STATS STATS
Chairman: Michael Proudlock Employer Type: European private equity arm of Robert W. Baird & Co. Inc Employees: 7 senior professionals AuM: 600m Managing partner: Jos Angel Sarasa Employer Type: Spanish unit of Baring Private Equity Partners AuM: 200m ($3.4bn worldwide)
LOCATIONS LOCATIONS
Offices: London (Further presence in the US and China through Baird Private Equity. For Germany, see Granville Baird Capital Partners Germany.) Offices: Madrid Aviles Barcelona Murcia Guernsey Moscow San Francisco Hong Kong Shanghai Singapore Tokyo
CAREERS CONTACT
ibrecruitinguk@rwbaird.com
237
Baring Vostok Capital Partners

Ducat Place II, Suite 750 Gasheka str. 7, bldg 1 Moscow, 123056 Russia Tel +7 095 967 13 07 www.bvcp.ru
BS Private Equity
BS Investimenti SGR Spa Via dellOrso, 8 20121 Milan, Italy Tel +39 02 762 1131 www.bspeg.com
STATS
Managing partners: Paolo Baretta, Antonio Perricone, Francesco Sironi Employer Type: Independent private company Employees: 28 professionals AuM: 510m (2007)
STATS
Co-Managing Partners, Russia: Michael Calvey and Alexei Kalinin Employer Type: Russian unit of Baring Private Equity Partners1 Employees: about 50 (25 professionals in Europe) AuM: $1.9bn ($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.ru
238
Caja Madrid, Sociedad de Promocion y Participacin Empresarial

Paseo de la Castellana 189 28046 Madrid, Spain Tel +34 91 423 5007 www.cajamadrid.es
Capital Alianza Private Equity Investment SA

Plaza Marques de Salamanca, 9 28006 Madrid, Spain Tel +34 91 4 353 088 www.capitalalianza.com
STATS STATS
President: Mariano Perez Claver Employer Type: Division of Caja Madrid Employees: 10 investment professionals AuM: 560m (2007) Chief Executive: Mr. Jos Maria Castane Ortega Employer Type: Private Company Employees: 8 AuM: ~200m
EUROPEAN LOCATIONS
Offices: Madrid
EUROPEAN LOCATIONS
Offices: Madrid
239
CapVest Limited
100 Pall Mall London SW1Y 5NQ United Kingdom Tel +44 20 7389 7900 www.capvest.co.uk
Capvis Equity Partners

Talacker 42 CH-8022 Zrich Tel +41 43 300 58 58 www.capvis.com
STATS STATS
Founding partner: Seamus FitzPatrick Employer Type: Part of AIG Private Equity AuM: 3bn (last fund: 350m) Chairman and partner: Dr. Alexander Krebs Employer Type: Independent Private Company Employees: 13 investment professionals
EUROPEAN LOCATIONS
Offices: London
LOCATIONS
Offices: Zrich Kirchheim (Germany) Vienna Shanghai Assets under management: 550m
CAREERS CONTACT
info@capvest.co.uk
CAREERS CONTACT
info@capvis.com
240
CCMP Capital
Almack House, 28 King Street London SW1Y 6XA, United Kingdom Tel +44 (0)20 7389 9100 www.ccmpcapital.com
Change Capital Partners

2nd Floor, College House, 272 Kings Road London SW3 5AW, United Kingdom Tel +44 (0)20 7808 9110 www.changecapitalpartners.com
STATS
Managing partner: Stephen Murray Employer Type: Private Company No. of employees: 54
STATS
Managing director: Mr. Luc Vandevelde Employer Type: Private Company No. of employees: 9 investment professionals AuM: 300m
LOCATIONS
Offices: London New York Honk Kong Tokyo Assets under management: $10bn (2007)
LOCATIONS
Offices: London
241
Charterhouse
7th Floor, Warwick Court, Paternoster Square London EC4M 7DX, United Kingdom Tel +44 (0)20 7334 5300 www.charterhouse.co.uk
Chequers Capital
48 bis, avenue Montaigne 75008 Paris France Tel +33 1 53 57 61 00 www.chequerscapital.com
STATS
Chief Executive: Mr. Gordon Bonnyman Employer Type: Private Company No. of employees: 20 executives Assets under management: 8.4bn
STATS
President: Denis Metzger Employer Type: Independent private company No. of employees: 10 investment professionals AuM: 950m (2006)
LOCATIONS
Offices: London Paris
CAREERS CONTACT
mail@chequerscapital.com
242
CIC Finance
4, rue Gaillon 75002 Paris, France Tel +33 1 42 66 76 63
Ciclad
8, av Franklin-Roosevelt 75008 Paris, France Tel +33 (0) 1 56 59 77 33 www.ciclad.com
STATS
No. of employees: 27 professionals AuM: 600m
STATS
Managing directors: Thierry Thomann, Jean-Franois Vaury Employer Type: Private Company Employees: 8 AuM: 310m (2007)
LOCATIONS
Offices: Paris
243
Citi Private Equity

41 Berkeley Square London W1J 5AN, United Kingdom Tel +44 (0)20 7500 9612 www.citigroupai.com/cpe_overview.htm
Clayton Dubilier & Rice Limited

Cleveland House, 33 King Street London SW1Y 6RJ, United Kingdom Tel +44 (0)20 7747 3800 www.cdr-inc.com
STATS
Managing director: John R. 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
info@cdr-ltd.com
244
Clessidra Capital Partners

Via del Lauro 7 20121 Milan Italy Tel +39 02 86 95 22 1 www.clessidrasgr.it
Close Brothers Private Equity

10 Throgmorton Avenue London EC2N 2DL, United Kingdom Tel +44 (0) 20 7065 1100 www.cbpel.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.it
245
Cobalt Capital
28, bd Malesherbes 75008 Paris, France Tel +33 (0)1 43 12 91 10 www.cobalt-cap.com
Cognetas
Paternoster House, 65 St Pauls Churchyard London EC4M 8AB, United Kingdom Tel +44 (0)20 7214 4800 www.cognetas.com
STATS
Managing directors: Christophe Fercocq, Herv Franc Employer Type: Private Company Employees: 6 investment professionals AuM: 150m
STATS
Chief Executive: Nigel McConnell Employer Type: Private Company Employees: 30 professionals AuM: 2.26bn
CAREERS CONTACT
Offices: Paris
CAREERS CONTACT
Offices: London Frankfurt Milan Paris
246
Corpfin Capital
Marqus de Villamejor, 3 28006 Madrid Spain Tel +34 91 781 28 00 www.corpfincapital.com
Crdit Agricole Private Equity

100 Boulevard du Montparnasse 75682 PARIS Cedex 14 Tel +33 1 43 23 21 21 www.ca-privateequity.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. of employees: 40 AuM: 1.7bn
LOCATIONS
Offices: Madrid
LOCATIONS
Offices: Paris
CAREERS CONTACT
contacto@corpfincapital.com
CAREERS CONTACT
cape.contact@ca-privateequity.fr
247
Darwin Private Equity LLP

15 Bedford Street London WC2E 9HE, United Kingdom Tel +44 (0)20 7420 0755 www.darwinpe.com
Dawnay, Day Principal Investments

15-17 Grosvenor Gardens London SW1W 0BD, United Kingdom Tel +44 (0)20 7834 8060 www.dawnayday.com
STATS
Founders: Derek Elliott, 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, Day Group Employees: 4 investment executives AuM: 1bn (access)
LOCATIONS
Offices: London
LOCATIONS
Offices: London
CAREERS CONTACT
contact@darwinpe.com
248
Deutsche Beteiligungs AG
Kleinen Wiesenau 1 60439 Frankfurt am Main, Germany Tel +49 69 957 87 0 www.deutsche-beteiligung.de
DLJ Merchant Banking Partners

17 Columbus Courtyard London E14 4DA, United Kingdom Tel +44 (0)20 7883 1000 www.csfb.com/investment_management/private_equity/DLJ_merchant_ban king.shtml
STATS
Chief executive: Wilken Freiherr von Hodenberg Employer Type: Public company (Frankfurt Stock Exchange) No. 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: $6.8bn
CAREERS CONTACT
welcome@deutsche-beteiligung.de
CAREERS CONTACT
dljmb-eu@credit-suisse.com
249
Dunedin Capital Partners

10 George Street Edinburgh EH2 2DW, United Kingdom Tel +44 (0)131 225 6699 www.dunedin.com
ECI Partners
Brettenham House, Lancaster Place London WC2E 7EN United Kingdom Tel 020 7606 1000 www.eciv.co.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. of employees: 14 professionals AuM: 500m
LOCATIONS LOCATIONS
Offices: Edinburgh London Offices: London Manchester
CAREERS CONTACT CAREERS CONTACT

info@dunedin.com enquiries@ecipartners.com
250
Edmond de Rothschild Private Equity Partners Edmond de Rothschild Investment Partners

47 rue du Faubourg Saint-Honor 75401 Paris Cedex 08 France Tel + 33 1 40 17 25 25 www.lcf-rothschild.fr/fr/edrip/
Enterprise Investors
Warsaw Financial Center Emilii Plater 53, 31st floor 00-113 Warsaw, Poland Tel +48 22 458 85 00 www.ei.com
STATS
Chairman: Robert Faris No. of employees: 53 (30 professionals) AuM: 1bn
STATS
Employer Type: Subsidiary of La Compagnie Financire Edmond de Rothschild Employees: 18 AuM: 506m (expansion, LBO, VC)
LOCATIONS
Offices: Warsaw
CAREERS CONTACT
info@ei.com.pl
LOCATIONS
Offices: Paris
251
Ergon Capital Partners

Marnixlaan 24 1000 Brussels Belgium Tel +32 2 213 60 90
Explorer Investments
Av. Eng. Duarte Pacheco, n. 26-8 1070-110 Lisboa, Portugal Tel +351 21 324 1820 www.explorerinvestments.com
STATS
Managing director: Ian Gallienne Employer Type: Backed by Groupe Bruxelles Lambert (GBL) and Parcom AuM: 500m
STATS
Managing director: Rodrigo Guimares Employer Type: Independent private company Employees: 5 senior investment professionals AuM: 262m (2008)
LOCATIONS
Offices: Brussels Milan
LOCATIONS
Offices: Lisbon
CAREERS CONTACT
explorer@explorerinvestments.com
252
Fidia SGR - Prudentia Fund

Piazza Paolo Ferrari 6 Milano Italy Tel +3x 02 7200 2037 www.fidiasgr.it
FINAMA Private Equity

148 boulevard Haussmann 75008 Paris, france Tel +33 (0)1 53 93 51 51 www.finama-pe.fr
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: 1.4bn (VC, expansion, mezzanine and funds of funds)
LOCATIONS
Offices: Paris
CAREERS CONTACT
info@finama-pe.fr
253
FL Partners
Stradbrook House Stradbrook Road, Blackrock Co. Dublin, Ireland Tel +353 1 663 7630 www.flpartners.ie
Fortis Merchant Banking

Montagne du Parc 3 1000 Brussels, Belgium Tel +32 2 565 11 33 www.merchantbanking.fortis.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
info@flpartners.ie
CAREERS CONTACT
info@fortisprivateequity.com
254
Gala Capital
Serrano 57 28006 Madrid Spain Tel +34 91 426 1900 www.galacapital.com
GED Private Equity

Calle Hiedra 17B 28109 Madrid, Spain Tel +34 91 7022 255 www.gediberian.com
STATS STATS
Managing directors: Jaime Bergel and Carlos Tejera Employer Type: Private equity vehicle for some of Spains 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
GI Partners
5th Floor, 35 Portman Square London W1H 6LR, United Kingdom Tel +44 (0)20 7034 1120 www.gipartners.com
GIMV
Karel Oomsstraat 37 2018 Antwerp Belgium Tel +32 3 290 21 00 www.gimv.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. Sticker: GIMB (Euronext) No. of employees: 19 investment professionals AuM: 1.2bn
LOCATIONS
Offices: London Menlo Park
LOCATIONS
Offices: Antwerp Frankfurt London The Hague
CAREERS CONTACT
info@gimv.be
256
Global Equity Partners

Mariahilfer Strasse 19-21 1060 Vienna , Austria Tel +43 1 581 83 90 www.gep.at
Global Finance
14 Filikis Eterias Square 10673 Athens, Greece Tel +30 210 720 8900 www.globalfinance.gr
STATS
Founder and Management Board: Dr. 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

office@gep.at office@globalfinance.gr
257
GMT Communications Partners

Sackville House, 40 Piccadilly, London W1J 0DR United Kingdom Tel +44 20 7292 9333 www.gmtpartners.com
Granville Baird Capital Partners Germany

Haus am Hafen, Steinhft 5-7 20459 Hamburg Germany Tel. +49 40 37 48 02 10 www.granvillebaird.de
STATS
Managing partners: Timothy S. Green and Jeffrey D. Montgomery Employer Type: Private company No. of employees: 11 professionals AuM: 700m
STATS
Managing director: Dr. Wolfgang Alvano Employer Type: Independent private firm Employees: 14 (8 professionals) AuM: 650m
LOCATIONS
Offices: London
LOCATIONS
Offices: Hamburg (For the UK, see Baird Capital Partners Europe)
CAREERS CONTACT
info@gbcp.de
258
Graphite Capital
Berkeley Square House Berkeley Square London W1J 6BQ United Kingdom Tel +44 20 7825 5300 www.graphitecapital.com
Gresham Private Equity

One South Place London EC2M 2GT United Kingdom Tel +44 (0) 20 7309 5000 www.greshampe.com
STATS STATS
Heads of investment team: Simon Ffitch & Andy Gray Employer Type: Independent private company No. of employees: 16 investment professionals AuM: 1.2bn 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.com
259
H.I.G. European Capital Partners LLP

25 St. George Street London W1S 1FS United Kingdom Tel +44 (0) 207 318 5700 www.higprivateequity.com
Herkules Capital (formerly Ferd Private Equity)

Strandveien 50 P.O Box 34 1324 Lysaker, Norway Tel +47 67 10 80 00 www.ferdpe.no
STATS
Managing partners: Sami Mnaymneh & Tony Tamer Employer Type: European affiliate of H.I.G. Capital Employees: 13 senior professionals in Europe AuM: $4bn (worldwide)
STATS
Managing Partner: Gert W. Munthe Employer Type: Independent private firm No. of employees: 13 professionals AuM: NOK 6.25bn (~800m)
LOCATIONS LOCATIONS
Offices: London Hamburg Paris Atlanta Boston Miami San Francisco Offices: Lysaker (moving to Oslo)
CAREERS CONTACT
post@ferdpe.no
260
Hermes Private Equity (direct investments)

Lloyds Chambers 1 Portsoken Street London E1 8HZ United Kingdom Tel +44 (0)20 7680 2235 www.hermes.co.uk/hermes_private_equity
Ibersuizas
Marqus de Villamagna, 3 28001 Madrid, Spain Tel +34 91 426 43 80 www.ibersuizas.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. of employees: 7 professionals AuM: 450m
LOCATIONS
Offices: Madrid Barcelona London Luxembourg
LOCATIONS
Offices: London
CAREERS CONTACT
info@ibersuizas.es
261
Impala Capital Partners

Pedro de Valdivia 10, 4 Planta 28006 Madrid, Spain Tel +34 91 411 92 90 www.impalacapital.com
Inflexion Private Equity

43 Welbeck Street London W1G 8DX United Kingdom Tel: +44 20 7487 9888 www.inflexion.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. of employees: 17 (12 professionals) AuM: 300m
LOCATIONS
Offices: Madrid
LOCATIONS
Offices: London Manchester
CAREERS CONTACT
info@impalacapital.com
CAREERS CONTACT
info@inflexion.com
262
Innova Capital
Aurum Building, ul. Walicw 11 00-865 Warsaw, Poland Tel +48-22 583-9400 www.innovacap.com/EN
Investcorp Private Equity

48 Grosvenor Street London W1K 3HW United Kingdom Tel +44 20 7629 6600 www.investcorp.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: $3.8bn
CAREERS CONTACT
mail@innovacap.com
263
Investindustrial
Via dei Bossi, 4 20121 Milan, Italy Tel +39 02 802 7761 www.investindustrial.com
Invision Private Equity

Industriestrasse 24, Postfach 2303 6302 Zug, Switzerland Tel +41 41 729 01 01 www.invision.ch
STATS
Chairman: Andrea C. 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.ch
264
ISIS EP
2nd Floor, 100 Wood Street London EC2V 7AN United Kingdom Tel +44 (0)20 7506 5600 www.isisep.com
Kaupthing Capital Partners

c/o Kaupthing Singer & Friedlander One Hanover Street London W1S 1AX United Kingdom Tel +44 20 3205 5000 www.kaupthingsingers.co.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.kolade@isisep.com
265
KBC Private Equity NV

Havenlaan 12 1080 Brussels, Belgium Tel +32 (0)2 429 36 45 www.kbcpe.be
L Capital Management
18, rue Franois Ier 75008 Paris Tel +33 (0)1 44 13 22 22 www.lvmh.com
STATS
Managing directors: Mr Philippe de Vicq, 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
lcapital@lvmh.fr
266
Langholm Capital LLP

5th Floor, 16 Charles II Street London SW1Y 4QU, UK Tel +44 (0)20 7747 7747 www.langholm.com
LBO France
148 rue de l'Universit 75007 Paris, France Tel +33 (0)1 40 62 77 67 www.lbofrance.com
STATS
Managing Partners: Bert Wiegman, Christian Lorenzen Employer Type: Private Company Employees: 10 AuM: 250m
STATS
Chief Executive: Alain Aubry Employer Type: Independent private company Employees: 17 AuM: 3.5bn (2008)
LOCATIONS
Offices: London
LOCATIONS
Offices: Paris
267
LD Equity
c/o Fondsmglerselskabet af 2004 A/S Vendersgade 28 1363 Copenhagen K Denmark Tel +45 33 36 89 89 www.ldequity.dk
LDC
3rd Floor, 45 Old Bond Street London W1S 4QT United Kingdom Tel +44 (0)20 7499 1500 www.ldc.co.uk
STATS STATS
Managing partners: Christian Mller, Soren Mller, Lars Tnnesen Employer Type: Independent part of Fondsmglerselskabet 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
LOCATIONS
Offices: London Birmingham Bristol Edinburgh Leeds Liverpool Manchester Newcastle upon Tyne Reading Southampton
LOCATIONS
Offices: Copenhagen
CAREERS CONTACT
info@ldequity.dk
CAREERS CONTACT
tfarazmand@ldc.co.uk
268
Lehman Brothers Merchant Banking

25 Bank Street, London E14 5LE United Kingdom www.lehman.com/im/pe/mb/
LGV
5th Floor, Bucklersbury House, 3 Queen Victoria Street London EC4N 8NH, United Kingdom Tel +44 (0) 20 7528 6456 www.legalandgeneralventures.com
STATS
Global Head: Charles Ayres No. of employees: 35 professionals AuM: ~700m for Europe ($3.3bn globally for 4th fund)
STATS
Chief Executive: Adrian Johnson Employer Type: Private Company Employees: 3 partners AuM: 200m (5th fund)
LOCATIONS
Offices: London New York Hong Kong
LOCATIONS
Offices: London
CAREERS CONTACT
Contact for Analyst Recruiting, Europe: Salonika Mitra
269
Lion Capital
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
STATS
Managing Partner: Lyndon Lea Employer Type: Independent Private Company Employees: 19 AuM: 2.7bn
STATS
Employer Type: Private equity unit of Lombard Odier AuM: 493m (3rd fund)
CAREERS CONTACT LOCATIONS

Offices: London contact@lodh.com
270
Lyceum Capital
Burleigh House, 357 The Strand London WC2R 0HS UK Tel +44 (20) 7632 2480 www.westpe.com
MB Funds
Bulevardi 1 A 00100 Helsinki, Finland Tel +358 9 131 011 www.mbfunds.fi
STATS STATS
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)
LOCATIONS
Offices: London
LOCATIONS
Offices: Helsinki
CAREERS CONTACT
info@lyceumcapital.co.uk
271
MCH Private Equity

Plaza de Coln 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
STATS
Managing directors: Jos Mara Muoz & Mr. Jaime Hernndez Soto Employer Type: Independent private company Employees: 12 (10 investment professionals) AuM: 250m
STATS
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
LOCATIONS
Offices: Madrid
LOCATIONS
Offices: London New York Bangkok Hong Kong Tokyo Sydney So Paulo
272
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
STATS
Managing Partner: Thierry Baudon Employer Type: Independent private company Employees: 19 (17 professionals) AuM: 2.7bn
STATS
Managing partner: Ted Virtue Employer Type: Independent private company Employees: 22 investment professionals AuM: $3bn
LOCATIONS
Offices: London Budapest Warsaw
LOCATIONS
273
Middle Europe Investments

Zwiepseweg 27 7240 GM Lochem, Netherlands Tel +31 573 28 98 88 www.mei.nl
Milestone Capital Partners

14 Floral Street London WC2E 9DH United Kingdom Tel +44 (0)20 7420 8800 www.milestone-capital.com
STATS
Managing partner: Dr. Peter H. M. 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.nl
LOCATIONS
CAREERS CONTACT
info@milestone-capital.com
274
Morgan Stanley Private Equity Europe

25 Cabot Square, Canary Wharf London E14 4QA United Kingdom Tel +44 (0)20 7425 8000 www.morganstanley.com/privateequity
Natixis Private Equity

5-7 rue de Monttessuy 75340 Paris Cedex 07, France Tel +33 (0)1 58 19 20 00 www.natixis-pe.com
STATS
Chief Executive: Jean-Louis Delvaux Employer Type: Private equity arm of Natixis Employees: 250 (115 investment professionals) AuM: 3.1bn (VC, expansion, LBO, fund of funds)
STATS
Managing directors: Graham KenistonCooper & Michael Hehn Employees: 40 worldwide (target) AuM: $6bn worldwide (target)
LOCATIONS
LOCATIONS
Offices: France Germany Italy Poland Spain China India Brazil
275
Nazca
Calle Fortuny 37, 3 Dcha 28010 Madrid, Spain Tel +34 91 7000 501 www.nazca.es
NBGI Private Equity

Old Change House, 128 Queen Victoria Street London EC4V 4BJ United Kingdom Tel +44(0)20 7661 5678 www.nbgipe.co.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. St. Stellakis Employer Type: Subsidiary of the National Bank of Greece Employees: 26 AuM: 360m
LOCATIONS
Offices: Madrid
LOCATIONS
Offices: London Athens
CAREERS CONTACT
info@nbgipe.co.uk
276
Nikko Principal Investments

100 Pall Mall London SW1Y 5NN United Kingdom Tel +44 (0)20 7799 7700 www.npil.co.uk
Nmas1 Private Equity

Padilla, 17 28006 Madrid Tel +34 91 745 8484 www.nmas1.com
STATS
Managing director: Federico Pastor Employer Type: Division of N+1, 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
firstcontact@nikko.co.uk
277
Nomura Private Equity

Nomura House, 1 St Martins Le Grand London EC1A 4NP United Kingdom Tel +44 (0)20 7521 2000 www.nomura.com/europe/services/mer chant_banking/private_equity
Nordic Capital
NC Advisory AB, Stureplan 4A 114 35 Stockholm, Sweden Tel +46 8 440 50 50 www.nordiccapital.com
STATS STATS
Head: Andrew Healey Employer Type: Subsidiary of Nomura Employees: 7 investment professionals (United Kingdom) AuM: 300m ($4.5bn 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
Nordwind Capital
Residenzstrae 18 80333 Munich, Germany Tel +49 89 29 19 58-0 www.nordwindcapital.de
Oaktree Capital Management

27 Knightsbridge London SW1X 7LY United Kingdom Tel +44 (0)20 7201 4600 www.oaktreecapital.com
STATS
Managing director: Dr. 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: $8.3bn in private equity only (2008)
LOCATIONS
Offices: Munich
CAREERS CONTACT
info@nordwindcapital.com
LOCATIONS
Offices: Los Angeles London Frankfurt Luxembourg New York Stamford Beijing Hong Kong Seoul Shanghai Singapore Tokyo
CAREERS CONTACT
careers@oaktreecapital.com
279
Odewald & Compagnie

Franzsische Strae 8 10117 Berlin, Germany Tel +49 (0) 30 20 17 23-0 www.ocie.de
Olivant
2 Basil Street London SW3 1AA United Kingdom Tel +44 (0) 20 7225 4100 www.olivant.com
STATS
Founder and managing partner: Dr. 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
info@olivant.com
280
One Equity Partners

Taunusanlage 21 60325 Frankfurt am Main Germany Tel +49 69 50 60 74 70 www.oneequity.com
Orlando Management GmbH

Am Platzl 4 80331 Munich Germany Phone: +49 89 29 00 48 - 50 www.orlandofund.com
STATS
President: Richard (Dick) M. Cashin, Jr. Employer Type: PE investment arm of JPMorgan Chase & Co. No. of employees: 38 professionals, of which 10 are in Germany AuM: $5bn
STATS
Partners: Dr. 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.info@oneequity.com
CAREERS CONTACT
info@orlandofund.com
281
Palamon Capital Partners

Cleveland House, 33 King Street London SW1Y 6RJ United Kingdom Tel +44 (0)20 7766 2000 www.palamon.com
Pamplona Capital Management

25 Park Lane London W1K 1RA United Kingdom Tel +44 20 7079 8000 www.pamplonafunds.com
STATS
Managing partners: A. Michael Hoffman, Louis G. Elson Employer Type: Private Company Employees: 14 investment professionals AuM: 1.1bn
STATS
Chief executive: Alex Knaster No. of employees: 15 professionals AuM: 1.3bn (2nd fund)
LOCATIONS
Offices: London
LOCATIONS
Offices: London
CAREERS CONTACT
info@pamplonafunds.com
282
Parcom
Olympia 4c 1213 NT Hilversum The Netherlands Tel +31 35 646 44 40 www.parcomventures.nl, www.parcom.fr
Pechel Industries
162, rue du Faubourg Saint-Honor 75008 Paris, France Tel +33 (1) 5659 7959 www.pechel.com
STATS STATS
Managing director: Erik Westerink A member of ING Group Employees: 22 (12 professionals) AuM: 750m CEO: Hlne 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.com
283
Penta Capital Partners

150 St Vincent Street Glasgow G2 5NE United Kingdom Tel +44 (0)141-572 7300 www.pentacapital.com
Phoenix Equity Partners

33 Glasshouse Street London W1B 5DG United Kingdom Tel +44 (0)20-7434 6999 www.phoenix-equity.com
STATS
Founding partners: David Calder, Torquil Macnaughton, 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

info@pentacapital.com enquiries@phoenix-equity.com
284
PM Partners
via San Damiano No. 11 20122 Milano Italy Tel +39 02 76011887 www.pm-partners.it
PPM Capital
1 New Fetter Lane London EC4A 1HH, United Kingdom Tel +44 (0)20 7822 1000 www.ppmcapital.com
STATS STATS
Managing partners: Mr. Francesco Panfilo, Mr. Andrea Mugnai Employer Type: Private Company Employees: 8 investment professionals AuM: 215m Chief Executive: Mr. Neil MacDougall Employer Type: Independent Private Company Employees: 50 (27 professionals) AuM: 600m
LOCATIONS LOCATIONS
Offices: Milano Offices: London Munich Paris Chicago
285
Pragma Capital
13 avenue Hoche 75008 Paris, France Tel +33 (0)1 58 36 49 50 www.pragma-capital.com
Primary Capital
Augustine House, Austin Friars London EC2N 2HA United Kingdom Tel +44 (0)20 7920 4800 www.primaryeurope.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
primary@primaryeurope.com
286
Providence Equity
28 St George Street London W1S 2FA United Kingdom Tel +44 (0)20-7514 8800 www.provequity.com
Quadrangle Capital Partners

Quadrangle Group Europe Ltd 15 Conduit Street London W1S 2XJ United Kingdom Tel +44 (0)20 7317 3800 www.quadranglegroup.com
STATS
CEO: Jonathan M. 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. 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
info@provequity.co.uk
CAREERS CONTACT
hr@quadranglegroup.com
287
Quadriga Capital Services GmbH

Hamburger Allee 4 60486 Frankfurt Germany Tel. +49 69 795 000-0 www.quadriga-capital.de
Quilvest Private Equity

243, boulevard Saint-Germain 75007 Paris, France Tel +33 (0)1 40 62 07 54 www.quilvest.com
STATS
CEO: F. Michel Abouchalache Employees: 28 investment professionals AuM: $1bn (including funds of funds)
STATS
Managing partner: Dr. Andreas Fendel Employer Type: Private company Employees: 8 investment professionals AuM: 525m (3rd fund)
LOCATIONS
Offices: Paris London Luxembourg Zurich New York
CAREERS CONTACT
contact@quadriga-capital.de
CAREERS CONTACT
info-pe@quilweb.com
288
Rhone Capital (Rhone Group)

5 Princes Gate London SW7 1QJ United Kingdom 9-11 Rue Montalivet Paris, 75008 France Tel +1 (212) 218 6770 www.rhonegroup.com
RJD Partners
8/9 Well Court London EC4M 9DN United Kingdom Tel +44 20 7050 6868 www.rjdpartners.com
STATS
Chief Executive: David MacLellan Employer Type: Private company Employees: 9 professionals AuM: 180m (2nd fund)
STATS
Managing partners and founders: Robert F. Agostinelli & M. Steven Langman Employer Type: Independent private company AuM: ~$800m (Rhne Capital Partners III)
LOCATIONS
Offices: London
LOCATIONS
Offices: London Paris New York
CAREERS CONTACT
Info: karen.poole@rjdpartners.com
289
Royal Bank of Scotland Equity Finance

135 Bishopsgate London EC2M 4RB United Kingdom Tel +44 (0)20 7085 2256 www.rbs.com
Rutland Partners
Rutland House Rutland Gardens London SW7 1BX United Kingdom Tel +44 20 7556 2600 www.rutlandpartners.com
STATS
Employees: 25 investment professionals AuM: 2.2bn
STATS
Chairman: Michael Langdon Employer Type: Private company Employees: 11 professionals AuM: 530m
LOCATIONS
Offices: London
CAREERS CONTACT
info@rutlandpartners.com
290
Santander Private Equity

Paseo de la Castellana, 7 28046 Madrid, Spain Tel +34 91 342 68 96 www.santanderprivateequity.com
Segulah
Styrmansgatan 2 114 84 Stockholm Sweden Tel +46 8 442 8950 www.segulah.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 2.35bn (~300m)
LOCATIONS
Offices: Madrid
LOCATIONS
Offices: Stockholm
291
SGAM Private Equity

170, Place Henri Regnault Paris La Defense 6, France Tel +33 (0) 56 37 80 00 www.sgam-ai.com
SigmaBleyzer
21 Pushkinskaya Street, office 40 Kiev, 01004 Ukraine Tel +380 44 244-94-87/89 www.sigmableyzer.com
STATS
Global Heads: Jean Grimaldi, Corinne Ferrire Employer Type: Subsidiary of Societe Generale Employees: 55 investment professionals AuM: 1.8bn (VC, expansion & LBO, funds of funds, specialised)
STATS
Recruiting Manager: Alina Martynenko, amartynenko@sigmableyzer.com.ua 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
Silver Lake
Almack House, 28 King Street London SW1Y 6QW United Kingdom Tel +44 (0)20 70 24 72 00 www.silverlake.com
Smedvig Capital
20 St James's Street London SW1A 1ES United Kingdom Tel +44(0)20 7451 2100 www.smedvigcapital.com
STATS
Director Europe: Axel Holtrup Employer Type: Private company Employees: 80 AuM: 2.8bn (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
enquiries@smedvigcapital.com
293
Sovereign Capital
25 Buckingham Gate London SW1E 6LD United Kingdom Tel +44 20 7828 6944 www.sovereigncapital.co.uk
STAR Capital Partners

6th Floor, 33 Cavendish Square London W1G 0PW United Kingdom Tel +44 (0)20-7016 8500 www.star-capital.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

info@sovereigncapital.co.uk mail@star-capital.com
294
Stirling Square Capital Partners

Liscartan House (4th Floor) 127-131 Sloane Street London SW1X 9AS United Kingdom Tel +44 (0)20 7808 4130 www.stirlingsquare.com/stirlingsquareca pitalpartners.htm
Sun European Partners

6 Gracechurch Street, 4th Floor London EC3V 0AT United Kingdom Tel +44 20 7929 5906 www.suncappart.com
STATS
Managing Director: Philip A. Dougall Employer Type: European arm of Sun Capital No. 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
info@stirlingsquare.com
295
TA Associates
25 Knightsbridge London SW1X 7RZ United Kingdom Tel +44 (0)20 7823 0200 www.ta.com
Taros Capital
Violy tower, 21th floor Claude Debussylaan 46 1082 MD Amsterdam Netherlands Tel +31 20 4041221 www.taroscapital.com
STATS
Managing partner in London: Mr. 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
amsterdam@taroscapital.com
296
TCR Capital
5 rue Paul Czanne 75008 Paris, France Tel +33 (0)1 53 81 77 81 www.tcrcapital.com
TDR Capital
One Stanhope Gate London W1K 1AF United Kingdom Tel +44 (0)20 7399 4200 www.tdrcapital.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: 2.6bn
LOCATIONS
Offices: Paris
LOCATIONS
Offices: London
297
The Riverside Company, Europe

After Hof 5 80331 Munich, Germany Tel +49 89 242 248 90 www.riversideeurope.com
TowerBrook Capital Partners

83 Pall Mall London SW1Y 5ES United Kingdom Tel +44 (0)20 7451 2002 www.towerbrook.com
STATS
Managing Partner: Antonio Cabral Employer Type: Private company No. 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: $2.5bn
LOCATIONS
Offices: Munich Amsterdam Brussels Budapest Madrid Prague Stockholm Warsaw Atlanta Chicago Cleveland Dallas Los Angeles New York San Francisco Tokyo
LOCATIONS
298
Triton Advisors
105 Piccadilly, 5th fl. London W1J 7NJ United Kingdom Tel +44 (0)20 7297 6150 www.triton-partners.com
Valanza
P Recoletos, 10 ala norte 28001 Madrid Spain Tel +34 91 374 3271
STATS STATS
Employer Type: Private Company AuM: 1.1bn (second fund) General Manager: Francisco Esteve Employer Type: Private equity subsidiary of BBVA AuM: 1.4bn
299
Veronis Suhler Stevenson International Ltd.

8th Floor, Buchanan House 3 St. James's Square London SW1Y 4JU United Kingdom Tel +44 20 7484 1400 www.vss.com
Vestar Capital Partners

1, Rond Point Des Champs Elysees 75008 Paris, France Tel +33 (0)1 58 56 60 10 www.vestarcapital.com
STATS
President, Europe: Robert L. Rosner Employer Type: Private company Employees: 56 (13 investment professionals in Europe) AuM: $7bn
STATS
London Partner: Marco Sodi No. of employees: 56 (30 professionals) AuM: $1.3bn (4th fund)
LOCATIONS LOCATIONS
Offices: London New York Offices: Paris Milan Munich Boston Denver New York Tokyo
300
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.vitruvianpartners.com
STATS
CEO: Ignacio Moreno Employer Type: Private equity subsidiary of Santander and RBS (50/50) AuM: unknown
STATS
Managing partners: Ian Riley, Michael Risman, Toby Wyles Employer Type: Independent private company Employees: 9 senior professionals AuM: 424m (2007)
LOCATIONS
Offices: London
301
Warburg Pincus
Almack House, 28 King Street London SW1Y 6QW United Kingdom Tel +44 (0)20 7306 0306 www.warburgpincus.com
Waterland Private Equity Investments

Nieuwe 's-Gravelandseweg 17 1405 HK Bussum The Netherlands Tel +31 (0)35 - 694 1680 www.waterland.nu/UK
STATS
Managing partners: Charles R. Kaye & Joseph P. 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.nu
302
Weinberg Capital Partners

11, rue La Boetie 75008 Paris, France Tel +33 1 53 53 55 00 www.weinbergcapital.com
Wendel Investissement
89, rue Taitbout 75009 Paris, France Tel +33 (0)1 42 85 30 00 www.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: 6.8bn
LOCATIONS
Offices: Paris
LOCATIONS
Offices: Paris
CAREERS CONTACT
contact@weinbergcapital.com
303
MEZZANINE FUNDS Babson Capital Europe, Almack Mezzanine

61 Aldwych London WC2B 4AE United Kingdom Tel +44 20 3206 4500 www.babsoncapitaleurope.com
Capvent AG
Dufourstrasse 24 8008 Zurich, Switzerland Tel +41 43 500 50 70 www.capvent.com
STATS
Founders and Managing partners: Tom Clausen, 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
DAM Capital
26-28 rue Edward Steichen, Btiment C PO Box 464 L-2014 Luxembourg Tel +352 34 00 29 1
Darby Overseas Investments, Central Europe Mezzanine Fund

Dr. Karl Lueger-Ring 10 1010 Vienna Austria Tel +43 1 53226 5510 www.darbyoverseas.com
STATS
Co-CEOS: Dirk van Daele & Robert Wardrop Employer Type: Subsidiary of Anschutz Investments AuM: ~1bn
STATS
Senior Managing Director Europe: Robert D. Graffam Employer Type: Private equity arm of Franklin Templeton Investments Employees: 9 professionals in Europe AuM: 300m
LOCATIONS
Offices: Luxembourg London Milan
CAREERS CONTACT
info@damgroup.com
LOCATIONS
Offices: Vienna Budapest Warsaw
305
EuroMezzanine
11 Rue Scribe 75009 Paris, France Tel +33 (0) 1 5330 2330 www.euromezzanine.com
Hutton Collins & Company

50 Pall Mall London SW1Y 5JH United Kingdom Tel +44 (0)20 7004 7000 www.huttoncollins.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
IFE Mezzanine
41 avenue George V 75008 Paris France Tel +33 1 56 52 02 40 www.ifefund.com
Indigo Capital
25 Watling Street London EC4M 9BR United Kingdom Tel +44 (0)20 7710 7800 www.indigo-capital.com
STATS
Managing partner: Rgis 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
307
Mezzanine Management Central Europe

Kohlmarkt 5/6 1010 Vienna, Austria Tel +43 1 532 89 90 www.mezzmanagement.com
Nordic Mezzanine Limited

Aleksanterinkatu 15 A 00100 Helsinki, Finland Tel +358 9 6840 640 www.nordicmezzanine.com
STATS STATS
Founding Partner and Executive Director: Franz Hoerhager No. of employees: about 11 investment professionals (2007) AuM: 376m Managing partners: Pekka Hietaniemi, Pekka Sunila & Vesa Suurmunne Employer Type: Private company No. of employees: 10 AuM: 363m (2008)
LOCATIONS LOCATIONS
Offices: Vienna Bucharest Budapest Warsaw Offices: Helsinki London Frankfurt
CAREERS CONTACT
office@mezzmanagement.com
308
Novum Capital
An der Welle 4 60322 Frankfurt, Germany Tel +49 (0)69 7593 7995 www.novumcapital.co.uk
Park Square Capital

6 th Floor, Devonshire House Mayfair Place London, W1J 8AJ United Kingdom Tel 020 7529 1800 www.parksquarecapital.com
STATS
Founders and Managing partners: Felix Hlzer & Bjrn Pirrwitz Employer Type: Private Company Employees: 4 investment professionals
STATS
Managing Partner: Robin Doumar Employees: 14 professionals AuM: 2.3bn (mezzanine and credit)
LOCATIONS
Offices: Frankfurt London
LOCATIONS
Offices: London Guernsey Luxembourg
309
DISTRESSED FUNDS Butler Capital Partners

30, cours Albert 1er 75008 Paris, France Tel +33 (0)1 45 61 55 80 www.butlercapitalpartners.com www.epicprivateequity.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
Kelso Place
110 St. Martin's Lane London WC2N 4BA United Kingdom Tel +44 (0) 20 7836 0000 www.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
SECONDARY FUNDS Cipio Partners

Palais am Lenbachplatz, Ottostrasse 8 80333 Munich, Germany Tel +49 (0)89 55 06 96-0 www.cipiopartners.com www.collercapital.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: $3.5bn
LOCATIONS
Offices: Munich San Jose
LOCATIONS
CAREERS CONTACT
wdreesbach@cipiopartners.com
CAREERS CONTACT
mail@collercapital.com
312
Greenpark Capital Limited

57-59 St James's Street London SW1A 1LD United Kingdom Tel +44 (0)20 7647 1400 www.greenparkcapital.com
Lexington Partners UK
42 Berkeley Square London W1J 5AW United Kingdom Tel +44 (0)20 73 18 08 88 www.lexingtonpartners.com
STATS
CEO and Principal Founder: Marleen Groen Employees: 16 (8 professionals)
STATS
Managing Partner Europe: Marshall W. Parke Employees: 45 AuM: 5bn ($12bn worldwide)
LOCATIONS
Offices: London
LOCATIONS
Offices: London Boston Menlo Park New York (HQ)
CAREERS CONTACT
mail@greenparkcapital.com
CAREERS CONTACT
ewilde@lexpartners.com
313
Nova Capital
11 Strand London WC2N 5HR United Kingdom Tel +44 (0)20 7389 1540 www.nova-cap.com
Paul Capital
4th Floor, Mellier House 26a Albemarle Street London W1S 4HY United Kingdom Tel +44 (20) 7514 0750 www.paulcapital.com
STATS
Founder & Managing Director: David Williamson Employees: 18 professionals AuM: 600m
STATS
Founder: Philip S. Paul Employer Type: Independent private company Employees: 60 professionals AuM: $4bn in total, about half in buyout and growth secondaries
LOCATIONS
Offices: London Essex (US)
LOCATIONS CAREERS CONTACT

info@nova-cap.com Offices: London Paris New York (HQ) San Francisco Toronto
314
Pomona Capital
16 Hanover Square London W1S 1HT United Kingdom Tel +44 (0)20 74 08 94 33 www.pomonacapital.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

info@pomonacapital.com Offices: London
CAREERS CONTACT
info@visioncapital.com
315
FUND OF FUNDS Access Capital Partners

121, avenue des Champs-Elyses 75008 Paris France Tel +33 1 56 43 61 00 www.access-capital-partners.com
Adam Street Partners

20 Grosvenor Place London SW1X 7HN United Kingdom Tel +44 (0) 20.7823.0640 www.adamsstreetpartners.com
STATS
Chairman & Managing Partner: Dominique Peninon Employer Type: Private company Employees: 27 (12 investment professionals) AuM: 2.1bn
STATS
Chief Executive: T. 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.com
316
Adveq Management AG
Affolternstrasse 56 CH-8050 Zurich, Switzerland Tel +41 (0)43 288 32 00 www.adveq.com
AIG Private Equity

Baarerstrasse 8 CH-6300 Zug Switzerland Tel +41 41 710 70 60 www.aigprivateequity.com
STATS
Board of directors: Allan S. Bufferd, Andr P. Jaeggi & Bruno E. 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.com
CAREERS CONTACT
info@aigprivateequity.com
317
ALPHA Associates
Talstrasse 66, P.O. Box 2038 8022 Zurich, Switzerland Tel +41 43 244 30 00 www.alpha-associates.ch
Altamar Private Equity

Paseo de la Castellana 31 28046 Madrid, Spain Tel +34 91 310 7230 www.altamarcapital.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
altamar@altamarcapital.com
318
Amanda Capital Plc

Aleksanterinkatu 15 A, PO Box 896 00101 Helsinki Finland Tel +358 9 6829 600 www.amandacapital.fi
ATP Private Equity Partners

Sjaeleboderne 2 DK-1122 Copenhagen Denmark Tel +45 33 19 30 70 www.atp-pep.com
STATS
Employer Type: Public company (HSE) AuM: 1.6bn
STATS
Managing partner: Torben Vangstrup No. of employees: 16 AuM: 3bn
LOCATIONS
Offices: Helsinki
LOCATIONS
Offices: Copenhagen New York
CAREERS CONTACT
info@atp-pep.com
319
Bregal Investments
2-5 Old Bond Street 4th floor London, W1S 4PD United Kingdom Tel + 44 207 408 1663 www.bregal.com
CAM Private Equity Consulting & VerwaltungsGmbH

Zeppelinstr. 48 50667 Cologne, Germany Tel +49 221-93 70 85-0 www.camprivateequity.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. of employees: 38 AuM: 2.7bn
LOCATIONS
Offices: London Jersey New York

management@bregal.com Offices: Cologne Munich Zurich
CAREERS CONTACT
cologne@cam-pe.com
320
Capital Dynamics
Bahnhofstrasse 22 6301 Zug Switzerland Tel +41 41 748 84 44 www.capdyn.com
Capital Z Investments Partners

84 Brook Street London W1K 5EH United Kingdom Tel +44 (0)20 7866 6133 www.capitalz.com/czip/index.html
STATS
Managing Director: Thomas Kubr Employer Type: Independent private company No. of employees: 90 professionals AuM: $20bn
STATS
Chief Executive: Laurence Cheng Employer Type: Private Company Employees: 15 AuM: $2.25bn
LOCATIONS
Offices: Zug Birmingham London New York San Francisco Hong Kong
LOCATIONS
Offices: London New York Hong Kong
321
Capman
Korkeavuorenkatu 32 00130 Helsinki Finland Tel +358 9 6155 800 www.capman.com
Danske Private Equity Partners

Ny Kongensgade 10 1472 Copenhagen K, Denmark Tel +45 33 44 63 00 www.danskeprivateequity.com
STATS
CEO: Heikki Westerlund Employer Type: Subsidiary of CapMan Plc, 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: 1.7bn
LOCATIONS
Offices: Helsinki Copenhagen Guernsey Oslo Stockholm
LOCATIONS
Offices: Copenhagen
CAREERS CONTACT
info@danskeprivateequity.com
322
Finnish Industry Investment

PO Box 685 00101 Helsinki, Finland Tel +358 9 680 36 80 www.industryinvestment.com
Fondinvest Capital
33 rue de la Baume 75008 Paris, France Tel +33 (0)1 58 36 48 00 www.fondinvest.com
STATS STATS
Managing director: Mr. Juha Marjosola Employer Type: Government owned Employees: 18 AuM: 360m Chairman & CEO: Charles Soulignac Employer Type: Independent private company Employees: 15 AuM: 1.5bn
LOCATIONS
Offices: Helsinki
LOCATIONS
Offices: Paris San Francisco Tokyo
CAREERS CONTACT
tesi@teollisuussijoitus.fi
CAREERS CONTACT
mailbox@fondinvest.com
323
Gartmore Private Equity

Gartmore House, 8 Fenchurch Place London EC3M 4PB United Kingdom Tel +44 (0)20 77 82 21 91 www.gartmore.com/uk/privateequity
Global Vision Private Equity

Westendstrae 16 22 60325 Frankfurt, Germany Tel +49 (0) 69 978 400 05 www.globalvision-ag.com
STATS
Managing director: Peter Gale Employer Type: Department of Gartmore Investment Management Employees: 14 AuM: 2.9bn (2007)
STATS
Chief executive: Dr. jur. Dieter Brender Employer Type: Private Company AuM: 280m
LOCATIONS LOCATIONS
Offices: London Offices: Frankfurt

lucy.warren@gartmore.com info@globalvision-ag.com
324
Golding Capital Partners

Mhlstrasse 7 81675 Munich Germany Tel +49 89 419 997-0 www.goldingcapital.com
HarbourVest International Partners

Berkeley Square House, 8th Floor, Berkeley Square London W1J 6DB United Kingdom Tel +44 (0)20 7399 9820 www.harbourvest.com
STATS
Managing director and founder: Jeremy Golding Employer Type: Independent private fund of funds No. of employees: 26 AuM: 1.1bn
STATS
Managing directors: Edward W. 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

info@goldingcapital.com Offices: London Boston (HQ) Hong Kong
325
Henderson Equity Partners

4 Broadgate London EC2M 2DA United Kingdom Tel +44 (0)20 7818 2963 www.hendersonprivatecapital.com
Horizon21 Private Equity Holding

103 Wigmore Street, Nations House, Level 6 London W1U 1QS United Kingdom Tel +44 (0)20 7170 9550 www.horizon21.ch
STATS
Employer Type: Subsidiary of Henderson Employees: 10 investment executives (UK) AuM: 1.2bn (UK)
STATS
Chief Executive: Harold Weiss Employer Type: Private Company. Strategic alliance with Swiss Re Employees: 130 AuM: ~CHF10bn (private equity funds of funds)
CAREERS CONTACT
roger.greville@henderson.com
LOCATIONS
Offices: London Bratislava Zurich Hong Kong Cayman Islands
326
IDeA Capital Funds

3, via Borgonuovo 20121 Milan, Italy Tel +39 02 72 08 03 37 www.ideacapitalfunds.com
INVESCO Capital
30 Finsbury Square London EC2A 1AG United Kingdom Tel +44 (0)20 7065 4000 www.invescoprivatecapital.com
STATS
Managing Partner: Mario Barozzi AuM: 400m
STATS
Chief Executive: Greg Stoeckle Employer Type: Private Company Employees: 15
CAREERS CONTACT
info@ideacapitalfunds.com
LOCATIONS
Offices: New York San Francisco London
327
Keyhaven Capital
1 Richmond Mews London W1D 3DA United Kingdom Tel +44 (0)20 7432 6200 www.keyhavencapital.com
LGT Capital Partners

Schtzenstrasse 6, P.O. Box CH-8808 Pfffikon, Switzerland Tel +41 55 415 96 00 www.lgt-capital-partners.com
STATS STATS
Co-founder and managing director: Sasha van de Water Employer Type: Private Company Employees: 6 investment professionals CEO: Dr. Roberto Paganoni Employees: 100 (all activities) AuM: $9bn (private equity worldwide)
LOCATIONS LOCATIONS
Offices: London Offices: Pfffikon Dublin New York
CAREERS CONTACT
info@keyhavencapital.com
328
NORDCAPITAL Emissionshaus GmbH & Cie. KG

Hohe Bleichen 12 20354 Hamburg, Germany Tel +49 (0)40 3008-0 www.nordcapital.com
Northgate Capital
1 Jermyn Street London SW1Y 4UH United Kingdom Tel +44 (0)20 7961 6480 www.northgatecapital.com
STATS STATS
Chief executive: Florian Maack Employer Type: Private Company AuM: 250m (Equitrust funds) Managing partner private equity: Dr. Hosein Khajeh-Hosseiny Employer Type: Independent Private Company Employees: 6 professionals AuM: ~$800m
CAREERS CONTACT
vertrieb@nordcapital.com
LOCATIONS
Offices: London San Francisco Bay Area
329
Pantheon Ventures Limited

Norfolk House, 31 St. James's Square London SW1Y 4JR United Kingdom Tel +44 (0)20 7484 6200 www.pantheonventures.com
Robeco Private Equity

Coolsingel 120 NL-Rotterdam 3011AG The Netherlands Tel +31 10 224 71 36 www.robeco.com/alternatives/eng/specif ic/rai/private_equity.jsp
STATS
Chief executive: Rhoddy Swire Employer Type: Subsidiary of Russell Investment Group, Northwestern Mutual Life Employees: 71 AuM: $7.9bn (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
RWB RenditeWertBeteiligungen AG
Keltenring 5 82041 Oberhaching/Munich, Germany Tel +49 (0)89 66 66 94-0 www.rwb-ag.de
SCM Strategic Capital Management

Kasernenstrasse 77b 8004 Zurich, Switzerland Tel +41 43 499 49 49 www.scmag.com
STATS STATS
Managing partner: Horst Guedel Employer Type: Private company. Partnership with Capvent Employees: 41 AuM: 825m CEO & Founder: Dr. Stefan Hepp Employer Type: Independent Private Company Employees: 15 professionals AuM: $5bn (including real estate)
LOCATIONS LOCATIONS
Offices: Munich Innsbruck Offices: Zurich

info@rwb-ag.de scm@scmag.com
331
SL Capital Partners
1 George Street Edinburgh EH2 2LL Scotland, United Kingdom Tel +44 131 245 0055 privateequity.standardlifeinvestments.com
Unigestion
8c avenue de Champel, PO Box 387 1211 Geneva 12, Switzerland Tel +41 22 704 41 11 www.unigestion.com
STATS STATS
Chief Executive: David Currie Employer Type: Subsidiary of the Employer Type: Standard Life Investments group Employees: 12 investment professionals AuM: 5.2bn 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.com
332
VenCap International
King Charles House, Park End Street Oxford OX1 1JD United Kingdom Tel +44 (0)1865 79 93 00 www.vencap.com
STATS
Chairman & CEO: Michael Ashall Employer Type: Independent Private Company Employees: 18 AuM: $1.5bn worldwide
LOCATIONS
Offices: Oxford
CAREERS CONTACT
info@vencap.com
333
APPENDIX
Recommended Reading Web Resources Academic Sources Industry Jargon (glossary) About the Authors
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.evca.com (European Venture Capital Association) www.bvca.com (British Venture Capital Association) www.altassets.com www.penews.com (Dow Jones Private Equity News Europe) www.privateequitywire.co.uk www.candover.com/english/media-centre/barometer ACADEMIC SOURCES Centre for Management Buy-Out Research www.nottingham.ac.uk/business/cmbor/ Journal of Private Equity www.iijournals.com/JPE Chicago GSB www.chicagogsb.edu/capideas/may04/privateequity.html
337
INDUSTRY JARGON (GLOSSARY)

Average IRR
The arithmetic mean of the internal rates of return, which is the discount rate that equates the net present value (NPV) of an investment's cash inflows with its cash outflows.
Catch-up
Contract clause related to the distribution of a private equity funds profit, on the basis of which the management company is entitled to a specified share of the carried interest (catch-up), once the investors have regained their original investment plus the hurdle rate, 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). 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.
Buy-In Management Buyout (BIMBO)

Transaction where existing management and outside managers join forces to buyout the company. It therefore has characteristics of both a management buyout and a management buy-in.
Capital call
The management company asks for capital from the investors in the fund it manages. Usually, investors commit themselves to providing a certain amount of capital to a fund, and the management company draws down these commitments in several stages, as the fund makes new investments.
Clawback
Contract clause that obliges the management company to return capital to the fund, if it has received more carried interest than was agreed.
Diversification
Maximum proportion of fund that can be invested in any one transaction. Typically 20-25 per cent.
Capital weighted average IRR

The average IRR weighted by fund size with funds contributing to the average in proportion to their size. This measure is accurate only if all investments were made at once.
Distribution of proceeds
The order in which the sale proceeds and profits are split between GP and LP.
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. Typically, 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.
Dry powder
Cash reserves kept on hand to cover future obligations. In private equity, it refers to the uncalled but still available capital commitments.
338
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; it can have various indedebt financing. pendent components focusing on financial, legal, commercial, technological and environmental aspects that are usually outsourced to Limited Partner (LP) specialist firms. The partner in a private equity fund who, unlike the general partner, is not responsible for the funds financial liabilities. Typically an instiEvergreen fund tutional investor who gives a mandate to the A fund with no restriction on the operating general partner. period.
Fund term
Life of the fund. Typically 10 years with two one year extensions possible.
Management Buy-In (MBI)

A corporate transaction in which an external group of managers buys the company, generally with the financial backing of a private equity investor.
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. A corporate transaction in which a group of the current managers buys the company, generally with the financial backing of a priInitial Public Offering (IPO) vate equity investor. First public listing of the shares of a private company on a stock exchange. Management fees Investment period
Period during which the GP can make investments. Typically five or six years from the date of closing for a 10 year fund. All commitments not drawn down are cancelled after that. Compensation for the management of a fund's activities, generally paid quarterly from the fund to the general partner or the management company. It is typically around 2 per cent of the assets under management. It is often reduced when paid on unrealised invested capital after the end of the investment 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. Most typically, the fund will stop investing.
Mezzanine
Financing that is senior to equity but normally subordinated to debt provided on normal terms. It may contain features of both debt financing and equity financing.
339
Monitoring/Directors fees
Fees paid by the portfolio company to the GP for acting as directors or for consultancy services. 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.
Transaction fees
Fees paid by the portfolio company to the GP for deal services. Often set-off against future management fees.
NYSE
New York Stock Exchange
Overhang
Uncalled capital commitments (see dry powder).
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, often followed by a squeeze out and subsequent delisting.
Pooled IRR
A method of calculating an aggregate IRR by summing cash flows together to create a portfolio cashflow and calculate IRR on it.
Preferred return (hurdle rate)

Return required by the LP on realised investments (or write-downs) before the GP can share in the profits. Crucial to protect the downside for LPs. Typically set between 5-10 per cent.
Residual value
Estimated value of the fund, net of management fees and carry.
340
ABOUT THE AUTHORS

Marc Kitten is an affiliate professor of finance at ESCP-EAP and a partner at Candesic Strategy Consultants, advising private equity investors in Europe. He holds an MBA from University of Chicago GSB. Edward Fraser and Jonas Golze just completed their graduate trainee program at Candesic Strategy Consultants in London. Edward holds a M.Eng. Aerospace from Nottingham University and Jonas graduated from the WFI business school at the Catholic University of Eichstaett-Ingolstadt in Germany. Edward is joining Jefferies, an investment bank, while Jonas will complete his consulting training at Bain & Co.
342
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The Vault Europe Team
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2009 European Edition

2009 Vault.com Ltd

Vault Career Guide to Private Equity Table of Contents

PROFILES OF 37 REPRESENTATIVE PRIVATE EQUITY FIRMS IN EUROPE

Vault Career Guide to Private Equity Table of Contents

SHORT PROFILES OF 200 OTHER PRIVATE EQUITY FIRMS IN EUROPE

Vault Career Guide to Private Equity

CHAPTER ONE: WHAT IS PRIVATE EQUITY?

PRIVATE EQUITY INVESTORS

Smaller Investors Investors/GPs (Institutions, HNWI) Investment Managers

PRIVATE EQUITY FUND

How they make money

Vault Career Guide to Private Equity

Chapter One: What is Private Equity?

Types of PEsegmentation by stage and product

TYPICAL BIG LBO FINANCING STRUCTURE (PRE-CRISIS)

Equity Mezzanine High yield

30% 10% 10%

Segmentation by styledirect investors, co-investors, secondary funds and funds of funds

Vault Career Guide to Private Equity

Chapter One: What is Private Equity?

TOP 20 DIRECT PRIVATE EQUITY FIRMS BY AuM IN EUROPE* March 2008, bn

Source: Candesic PE database

Geographic segmentation: global, pan-European or regional players in Europe

Segmentation by financing: private vs. listed

Other specific cases

Vault Career Guide to Private Equity

Chapter One: What is Private Equity?

CHAPTER TWO: THE MARKET

Vault Career Guide to Private Equity

Chapter Two: The Market

Commitments raised Funds invested

Source: EVCA; Perep & Preqin (2007); Candesic

EUROPEAN PRIVATE EQUITY FUND MANAGERS BY COUNTRY OR REGION

Source: Candesic PE Database

Current trends and issues

Vault Career Guide to Private Equity

Chapter Two: The Market

Main Private Equity Firms Are Giant Conglomerates

Source: press search; SEIU; Candesic analysis

The credit crunch

Vault Career Guide to Private Equity

Chapter Two: The Market

PRIVATE EQUITY ENVIRONMENT RANKINGS IN EUROPE 2007 grades

1.8 1.5 1.4 1.1

Italy Slovakia Czech Rep.

Spain Portugal Belgium France

-2.0 -2.5 -3.0

Vault Career Guide to Private Equity

Costs and performance

Chapter Two: The Market

Vault Career Guide to Private Equity

Chapter Two: The Market

The $100bn ticket

LBOs WITH EV>$10bn

HCA (Bain + KKR + ML)

Hilton(Blackstone) Alltel (TPG+GS) Alliance Boots (KKR)

- Largest Deal in Europe

Private goes public

Vault Career Guide to Private Equity

Chapter Two: The Market