News & Analysis

A departure, an administrative leave of absence and an investigation in China have brought uncertainty to the giant investment firm. PERE Magazine March 2009 issue
President Obama included language in his budget released yesterday that would tax carried interest as income at 39.6 percent. In other regulatory news, a bill in Congress would also require all advisors to private equity funds to register with the SEC.
Europe’s private equity industry has submitted a 300-page document to the European Parliament to begin a debate on industry regulation without ‘political colour’. An enforced code of conduct has become a necessary step, according to EVCA secretary general Javier Echarri.
None of the sale's proceeds have been used to cash out Apax GPs, but rather will be re-invested in a permanent capital vehicle that will invest in Apax funds.
Guy Hands’ firm has avoided shrinking its €5.4bn third fund by buying out three cash-strapped LPs at ‘a small premium’.
The US mega-firm, which has recently pledged to adopt socially responsible investment strategies, says three of its portfolio companies have saved more than $16m through green policies, with other portfolios set to follow.
The firm is revising its investment strategy for the fund as well as allowing investors to slash their commitments. Before any reductions the fund stands at €3bn.
A study released today has found private equity-controlled firms are 2% more productive and have 72% more effective management than their government, family or privately owned equivalents. Harvard Business School professor Josh Lerner also said that private equity-backed firms ‘come out on top’ during recessions.
Shake-up as Morgan Stanley’s New York-based global head of real estate investments is placed on ‘administrative leave’ with no date to return to his post. Owen Thomas, head of Morgan Stanley Asia, has taken over the role in the meantime, according to reports.
Some of the world’s biggest private equity firms – including KKR, Blackstone, Carlyle, Permira, Providence, Apax and Apollo – have committed to consider environmental, social and corporate governance issues when making investments.
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