November 2007 Issue


    Month: November
    Year: 2007

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    Kicking the tires

    In conducting legal due diligence, throwing more people at the problem is rarely cost effective and can adversely affect the quality of the report desired. To the extent possible, plan the diligence exercise in advance, be clear about the desired results and monitor the diligence team throughout the process. 

    Pursuing permanent capital

    While the long term prospects of the publicly listed private equity vehicle remain open to debate, several firms are experimenting with the model. Conversus Capital, a fund of funds vehicle, recently listed on Euronext. Here’s how this listed fund of funds differs from its classic unlisted counterparts. 

    Flying feeless

    How do you budget for dealmaking without management fees? For pledge funds and firms awaiting their fund’s first close, the process requires relationships, creativity and no small amount of risk. 

    Sell it forward

    Large profits are being generated through monetizations of private equity firms, but who benefits? Of the founders looking to cash out of the firms they have built, many want to leave enough to ensure the longevity of the firm and to incentivize younger generations of investment leaders. 

    Beyond borders

    European M&A heavyweight Freshfields Bruckhaus Deringer is bulking up in New York. 

    German by way of Jersey

    Since its founding in 1991, Wellington Partners has split its funds and firm. The firm now raises separate technology and life sciences funds, which are based out of Jersey. Now the venture capital firm with German roots plans to establish an office in London as part of its pan-European push. 

    Bolstering their defenses

    Blackstone and Carlyle have hired former lawyers Peter Rose and David Marchick to strengthen ties with regulators. 

    Picking the drapes

    Planning the design or upgrade of your office requires the right blend of consensus and outside expertise to avoid eyesores and miffed partners. 

    Axelrad, Fore jump ship

    Venture capital fund formation luminaries Jonathan Axelrad and Robert Fore have left Wilson Sonsini Goodrich & Rosati for Goodwin Procter. 

    Honey, I shrunk the regime

    Channel Island Jersey has relaxed rules regime for domiciling funds. 

    Beating back the MAC

    A recent survey reveals that sellers secure better MAC terms in larger deals.

    ETB or not ETB?

    US mezzanine firms fear being labeled as lenders, which can mean a tax of as much as 35 percent. 

    UK carry tax 18 percent

    Tax on carried interest in the UK will change from 10 percent to 18 percent, leaving many with mixed feelings.