June 2010 Issue


    Month: June
    Year: 2010

    Back to Print Editions

    Reed targets PE in Senate amendment

    Reed’s amendment to the Senate’s financial regulatory reform bill would require private equity and venture capital fund managers with more than $100 million adviser to register with the SEC. The amendment would also ensure that the new advisor registration threshold does not weaken existing oversight.

    Villalobos ‘refusing’ to talk in CalPERS probe

    The placement agent has denied he 'gave, accepted and failed to disclose gifts' to senior pension executives.

    Freshening ‘stale’ commitments

    In a capital-starved market, communicating the status of ‘stale unfunded’ commitments to LPs is a winning way to forge strong relationships and free up new commitments.

    KKR: Green initiative saves $160m

    The firm’s Green Portfolio Programme helps portfolio companies save money through reducing greenhouse gas emissions, waste, water, forest resources, and priority chemicals.

    Market pans CalPERS online PPM idea

    In an effort to curb the use of placement agents, the US' largest public pension has set up an automated PPM system for managers, an idea that has been greeted with skepticism from private equity veterans.

    Selling stakes to cost more?

    The bill that would hike taxes on carried interest has a provision that would make it more expensive for GPs to sell stakes in their firms.

    New Senate tax idea favours long-term carry

    The latest twist in the Capitol Hill carried interest drama would treat 65% of carried interest as ordinary income, but that would drop to 55% for investments held for seven years or more.

    ATO defers private equity tax ruling again

    Uncertainty for foreign firms eyeing Australia's private equity industry continues.

    No easy solution

    PEM spoke to three private equity finance professionals about how advances in fund administration technology are creating just as many questions as answers.

    GPs warned that bad PR breeds regulation

    The private equity industry in developed countries has done a poor job of selling its story, as GPs in emerging economies have carefully noted.

    BC Partners wins fund extensions from LPs

    The London-based firm is extending the investment period on its current Fund VIII to June 2011 and the hold period on Fund VII for two years.

    State ‘lobbying’ bill stalls, placement ban looms

    A California bill that would require placement agents to take flat fees for fundraising services failed to pass a committee Wednesday, prompting key state officials to threaten a push for a full ban on placement agents.

    EVCA LPs to launch industry guidelines

    The European association – via its recently created LP platform – is working on its own version of the ILPA guidelines, which will tread more of a 'middle road' between the interests of LPs and GPs.

    EVCA begins search for secretary general

    After 11 years’ at the helm of Europe’s private equity and venture capital association, Javier Echarri is stepping down.

    NEWS ANALYSIS: The EU’s road to hell

    The crafters of the AIFM have good intentions, but they must be shown that key proposals of this directive benefit no one and may create a Kafkaesque business environment, writes David Snow.

    Honouring your commitments

    Will more capital calls mean more LP defaults this year?

    Firms form healthcare investing trade association

    TPG, KKR, Apax and Bain are just some of the 40 private equity firms that make up the Chicago-based association that will hold networking events and work with the government on building up the reputation of private equity in healthcare.

    Break-up fees skyrocket for private equity firms

    Sellers are demanding much higher break fees when working with private equity buyers these days – sometimes up to 100% of the deal’s value.

    SPACs become more LP friendly

    A new special purpose acquisition company boasts 10 percent carry, an easy opt-out structure for investors, and a shortened investment period. This could be what the future looks like for SPACs.

    ACG launches Washington monitoring initiative

    The Association for Corporate Growth has begun to monitor regulatory developments in the US, at the request of its members, many of whom are mid-market private firms.

    AIFM moves two votes closer to law

    The Council of Ministers and the ECON Committee have both approved versions of the directive, but crucial differences remain in regards to the ‘third country’ rules.

    UK coalition government proposes capital gains tax hike

    It’s still unclear whether carried interest would be affected by a proposal to raise the tax rate on capital gains from “non-business assets” to 40%.

    Q&A: AIFM Directive

    Elizabeth Ward of law firm Linklaters discusses issues pertaining to the AIFM Directive including additional disclosure requirements, leverage restrictions, and the status of ‘third country’ regulations