English evolution

For many of the countless private equity firms around the world that have used the English limited partnership, it may come as something of a surprise to learn that it is governed by laws dating back 100 years. However, thanks to a recent government announcement, this is about to change.

The English LP, noted for being the first vehicle of its kind to offer the benefits of tax transparency and limited liability, derives from the Limited Partnerships Act of 1907. This has resulted in certain anomalies, including the fact that such partnerships are only allowed a maximum of 20 members – a ruling which has to be circumvented by the construction of parallel partnerships.

Such dated nuances are now set to be swept away following a statement issued by Ian McCartney, UK minister for trade, investment and foreign affairs, that the government would be taking forward Law Commission proposals for the reform of limited partnership law. The Commission originally submitted its proposals in November 2003 in the form of a draft Bill to replace both the 1907 Limited Partnerships Act and the Partnerships Act 1890.

Among areas covered by the Bill are:

The updating of partnership law is being greeted as a victory by the British Venture Capital Association (BVCA), which had thrown its weight behind the efforts to bring about change. Peter Linthwaite: ?The proposed changes will mean that private equity funds structured as English limited partnerships can be established more quickly and efficiently than at present, with a minimum of legal complexity, and should ensure that these vehicles remain attractive to fund managers and investors worldwide.?

Linthwaite also betrayed in his response just a hint of national pride that might also lie behind the jubilant reaction: ?This will help keep London the capital of European private equity,? he enthused.

Accel-KKR opens in Atlanta
Accel-KKR, a joint venture between venture firm Accel Partners and buyout firm Kohlberg Kravis Roberts, has opened a new office in Atlanta, Georgia. The firm already has offices in Menlo Park, California. The new office will be led by managing director Rob Palumbo. In a statement, Palumbo said: ?Atlanta and the southeast are increasingly attractive technology markets that can also serve as a mumping-off point for the firm's other activities in the eastern half of the country.? The joint venture was launched in 2000 initially as a vehicle for helping old economy companies transition into Internet businesses. It is now a private equity firm that pursues more mature technology businesses.

Apollo moves London office
Apollo Management, the New York-based private investment giant, has moved offices in London. As of last month, the firm's new European headquarters will be at 25 St. George Street in London.

RBS press pro moves on
Murray Parker, a media relations manager for The Royal Bank of Scotland in London, has left the position be join the media relations office at Dresdner Kleinwort in London. Dresdner Kleinwort is a financial services conglomerate that includes an alternative investment arm.

Equifin hires head of IR
Equifin Capital Partners, a New York private equity firm, has hired Renwich Paige as a managing director in charge of investor relations. Paige will also be responsible for managing co-investments among limited partners. Paige joins Equifin from Preston Gates & Ellis, where he was chief marketing officer. Before that he was with JP Morgan, where he assisted in the raising of funds including JP MorganPartners. He began his career at Lehman Brothers. Equifin has made more than $1.3 billion in investments in startups, turnaround situations, buyouts and growth equity financings. The firm is led by Mani Sadeghi and Joseph Tomei, who this year left New York private equity firm Capital Z.

Evercore raises $83m in IPO
Evercore Partners, a financial services boutique that includes a private equity investment program, went public last month in an $83 million (€65 million) IPO on the New York Stock Exchange. Since its founding in 1996, Evercore has become the eightlargest investment bank in the US, based on its $136 billion in mergers on which it advised. Through its private equity arm, the firm has completed transactions worth $4 billion. Its portfolio includes New York-based American Media, the publisher of the National Enquirer. The firm is led by Roger Altman, who started his career at Lehman Brothers and eventually became Assistant Treasury Secretary during the Carter administration. He left the White House to become vice chairman at The Blackstone Group.

Survey: VCs eye global role
According to a recent survey, slightly more than half of US venture capital firms intend to pursue global expansion within the next five years. The survey was conducted by Deloitte & Touche in conjunction with the National Venture Capital Association, but it surveyed 505 venture capitalists around the world. Roughly 53 percent of US firms said they would expand, while roughly 58 percent of non-US venture capitalists predicted international expansion. Not surprisingly, China and India were identified as the top geographies for expansion. In addition, the survey found that 70 percent of US VC firms see legal action as an added threat going forward. Only 36 percent of non-US firms saw such a threat. Roughly 55 percent of US firms described the costs of compliance and corporate governance as too high, while only 28 percent of non-US firms had this complaint.