Private Equity Council & Arthur D. Little Report – ‘Demystifying the Credit Crunch: A Primer and Glossary’

The Private Equity Council which lobbies on behalf of the large, global buyout shops, and consultancy firm Arthur D. Little have issued a report entitled “Demystifying the Credit Crunch: A Primer and a Glossary” in an effort to contribute to a better understanding of the issues, the terms and the trends that gave rise to the credit crunch. It includes both a background paper and a glossary of terms:

• Private Equity Council & Arthur D. Little Report – Demystifying the Credit Crunch: A Primer and a Glossary

Duke Street Names Garbois Operating Partner

In alumni news, Duke Street has just named Jean Garbois (H.63) as a new operating partner in France. Garbois joins from Banque OBC, a private bank belonging to ABN AMRO, where he was vice-president and director general.

Guide to Channel Islands Private Equity Services in 2008

Private Equity Wire has just released their special report concerning Private Equity services in the Channel Islands for 2008. Off-shore administrative sites are extremely important for alternative investment vehicles thanks to favorable tax regulations, etc. and the islands off the coast of Normandy are a leading location for such activity. It’s also worth noting that Jersey has been doing an admirable job of catching up to Guernsey in terms of regulatory innovation towards PE. It’s all covered in the article I’ve attached:

• Private Equity Wire Special Report on Channel Islands Private Equity Services – December 2008

Apax Co-Founder Maurice Tchenio Reportedly Sues Apax for Withholding Profits

HEC alum Maurice Tchenio (H.65), has sued Apax Partners, the firm he co-founded along with Sir Ronald Cohen and Alan Patricof, claiming that profits have not been distributed the right way since 2001, according to reports.

Tchenio filed a lawsuit in London in which he is believed to claim that the UK-based arm of Apax owes him an undisclosed sum in profits and management fees relating to five European investments in the Netherlands, Italy and Sweden.

Apax merged its US, UK, Swiss, German and Spanish operations into a single group in 1999, with Apax in France remaining separate.

Buyouts West: Where’s the Debt?

Here’s a video of a panel discussion on the current state of the debt markets from the recent Buyouts West Conference. I would embed it, but Brightcove has issues with wordpress, or maybe it’s the other way around. Either way I wish it would get straightened out. Regardless, the discussion is worth watching!

‘Bailout’ is 2008 Word of the Year!!!

According to Merriam-Webster, the dictionary publisher, the word “bailout”, which has shot to prominence amid the ongoing financial meltdown, was looked up so often on it’s online dictionary site that it was was an easy choice for its 2008 Word of the Year. I’m sure the parents of the word are so proud.

bailout (noun)

a rescue from financial distress

Gary Parr and H. Rodgin Cohen on Challenges to New U.S. Administration

Yet another video from The Deal Video (excellent source for quick concise clips) here’s Gary Parr, deputy chairman of Lazard, and H. Rodgin Cohen, chairman of Sullivan & Cromwell, speaking about the challenges that face President-elect Barack Obama’s incoming administration:

Q3 2008 Venture Capital Investing Up 22% in China

According to Dow Jones VentureSource, Venture Capitalists invested $964m in China during the third quarter of this year, 22% increase from the $790m invested in during the same period last year. However, the actual number of deals saw a marked decline as just 59 investments were made in Q3 2008 compared to the 73 deals VC’s made in Q3 2007. Through the first three quarters of this year $3.29bn of Venture Capital money has been invested in China, beating the previous annual record of $2.88bn set in 2001.

China’s consumer services industry accounted for $267m in investment with nine deals completed in the third quarter, up 57 per cent from the $170m put into 15 deals during the same period last year. Through the first nine months of 2008, the industry has seen a record $731m invested in 37 deals. Within consumer services, $143m was invested in four deals for retail companies in the third quarter.

The business and financial services industry saw 13 deals completed in the third quarter, garnering $254m, a 38% increase over the $184m put into the same number of deals during the same period last year. The industry as a whole has seen a record $712m invested in 44 deals so far in 2008, with the business support services sector producing the vast majority of deal activity and investment.

Dow Jones VentureSource also found that the IT industry saw investment decline 17% to $230m in the most recent quarter from $277m in Q3 2007 and the industry’s deal count dropped to 18 from 29.

Stephen Schwarzman’s Guest Lecture at Yale

Here’s Stephen Schwarzman, the oft mentioned Co-Founder of the Blackstone Group, as the guest lecturer of Yale University’s ECON 252: Financial Markets class:

Sarkozy Fund to Raise €6 Billion for Investments

Birth of the “official” French Sovereign Wealth Fund: French President Nicolas Sarkozy said the government and a state-owned lender will raise €6 billion ($7.6 billion) to create a sovereign fund aimed at protecting and developing the country’s “strategic companies.” (Not sure what the French consider their previous bail outs investments in France-based companies then).

The state will also endow the fund with €7 billion in minority stakes it already owns, including 15% in carmaker Renault SA and its holding in Air France-KLM Group. State-owned bank Caisse des Depots & Consignations (a true pioneer in SWFs) will also add about €7 billion in assets to the fund.

In its first purchase, the fund will invest in Daher, a family held maker of equipment for the airplane, nuclear, defense and auto industries. The fund, together with an aerospace investment group called Aerofond will put 85 million euros into Daher. The capital will help it invest 200 million euros more in the next five years to build parts for Airbus SAS, Dassault Aviation SA and other aerospace companies.

The fund will invest in companies for about 2 to 10 years, taking majority stakes in companies only in very rare cases.