Finance & Accounting

PEM examines three cutting-edge forms of due diligence that are being used in a changing risk environment.

Washington DC-based Allied Capital is a $4 billion publicly traded business development company that makes debt and equity investments in middle-market, private companies. With thousands of public shareholders to answer to, the firm sticks to a highly regimented investment process that moves through multiple stages from initial investment screening to sealing the deal. A key hurdle in the middle of this process is due diligence. After being given initial approval by the investment committee, the deal team on a potential transaction seeks to validate historical and projected financials, assess the competitive business environment as well as market trends, and performs background checks on management, among other forms of due diligence. Private Equity Manager spoke recently with Allied managing director John Fruehwirth about his firm's carefully considered approach to due diligence.

Many private equity firms buy insurance policies to guard against the surprise expenses of lawsuits and seller misrepresentations. Most of these are glad they did. By Judy Kuan and David Snow

As it prepares to go public, Evercore Partners has nabbed an in-house attorney from a railroad company.

John Haag, having recently joined San Francisco venture capital firm CMEA Ventures as CFO and COO, has the enviable opportunity to build from scratch a fund administration and finance function based on the lessons he has drawn from years of experience at other investment firms. Haag was most recently the CFO and COO of San Francisco biotech venture capital and merchant banking firm Burrill & Company. PEM recently spoke with Haag about his preferences in building a system to serve his chief clients - LPs and GPs.

Private equity GPs are under increasing heat from their auditors to be more proactive on fair value. GP reaction has ranged from full cooperation to passive-aggressiveness to open rebellion. By David Snow

Five tips for addressing risk management at your private equity firm.

The UK's Legal Services Bill could pave the way for private equity investments in law firms.

FRONTLINE 2006-07-01 Staff Writer Stomber quits Cerberus for Carlyle debt teamGlobal private equity firm The Carlyle Group has appointed John Stomber as managing director in its leveraged finance group. Stomber, who joins from Cerberus, will help develop new investment products

A recent survey shows institutional investors are high on corporate governance. By David Snow