Privcap Audio: Private Capital Talk

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Required viewing for investors serious about better understanding the energy and emerging market opportunities in private equity. Two Latin American energy investors offer a behind-the-scenes look at two recent deals. Scott Swensen, Managing Partner of Conduit Capital Partners, describes an investment in a Peruvian solar project and why his firm already is getting exit offers; Russell Deakin, Managing Director of Rio Bravo Investimentos, gives a detailed account of how his firm won a government energy auction and why building wind-turbine assets is now so price- and energy-efficient. Topics also discussed: Why exit options are proliferating for Latin American energy assets, and why after once being a “dirty word,” among investors, Latin America is now viewed so favorably among emerging markets. This is the second in a two-part series on energy investing in Latin American private equity. The first program is called “LatAm Energy Investing.” This thought leadership series is sponsored by Ernst 8 Young. Swensen is a board member of the Latin America Private Equity 8 Venture Capital Association(LAVCA). Don't miss the Nov 7 LAVCA Colombia Forum in Bogota. Registered users of Privcap may access this 14-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: The consumer and retail sectors are being revolutionized by the internet, and private equity investors that can bring the capital and cultural required to internet-enable their consumer-facing portfolio companies will win big. In this program - the last in a four-part Privcap series on private equity success in the consumer sector - Michael J. Grossman, Principal at McGladrey, Joan McCabe, Managing Partner ofBrynwood Partners and Timothy Mayhew, Managing Director at Fenway Partners, explain the importance of an internet strategy in the consmer sector and why, as Mayhew puts it, "If you're not focused on it you're dead." Topics include: how brands are being shaped entirely by social media activity, winning over customers by “reducing the friction” of their online shopping experiences, mining data to improve operations, why bricks-and-mortar sales still matter, and how GPs perform due diligence into internet strategy. The first segment in this series is "Investing in Consumer Success." The second segement is "How Fenway Saw Success With 1-800 CONTACTS." The third is "Brynwood's Zestfully Good Deal." The program also includes an expert Q8A with Michael J. Grossman of McGladrey, the sponsor of this video series. Registered users of Privcap may access this 20-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Zest soap and VO5 shampoo were orphaned brands before they were acquired and given new life by private equity firm Brynwood Partners. As told by Brynwood's Joan McCabe, the revitalization of these brands included a focused WalMart strategy as well as a NASCAR sponsorship (with a winning racer). In this program - the third in a four-part Privcap series on private equity success in the consumer sector – McCabe is joined by Michael J. Grossman, Principal at McGladrey, and Timothy Mayhew, Managing Director at Fenway Partners, for a broad ranging discussing on extracting value, no matter where a product is in its lifecycle. This is the third segment in a four part series.  The first segment is "Investing in Consumer Success." The second segement in the series is "How Fenway Saw Success With 1-800 CONTACTS." The program also includes an expert Q8A with Michael J. Grossman of McGladrey, the sponsor of this video series. Registered users of Privcap may access this 11-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Demand for energy across Latin America is set to surge over the next decade and the most conservative estimates of required investment to meet this demand are around $130 billion. Clearly there is an opportunity for private equity firms to make money, but what expertise is required? Scott Swensen, Managing Partner of Conduit Capital Partners and Russell Deakin, Managing Director of Rio Bravo Investimentos describe their firms' respective energy investment strategies in a fascinating Privcap conversation. Swensen, whose firm invests in power plants across Latin America, details the advantage of never having to disclose profitability to local regulators, why the smaller end of the power plant market is less competitive, and how Conduit measures risk by modeling out plant competitiveness 15 years into the future. Deakin, whose firm invests in renewable projects across Brazil, describes the competitive energy investment landscape, the “very sophisticated” government Dutch auctions for power projects, and how having 64 Brazilian pension funds as investors gives Rio Bravo an edge in deal flow. This thought leadership series is sponsored by Ernst 8 Young. Swensen is a board member of the Latin America Private Equity 8 Venture Capital Association(LAVCA). Don't miss the upcoming Nov 7 LAVCA Colombia Forum in Bogota. Registered users of Privcap may access this 12-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Prior to its IPO, the senior management of Face book were somewhat annoyed to see that “already some young employees who had left the company. . . wanted to get some cash for their [private] stock.” It was a challenge that many venture-backed companies face – how to deal with liquidity issues prior to an exit. Daniel Burstein, Managing Partner of Millennium Technology Value Partners, describes how his firm established a liquidity program for Facebook employees and became a pre-IPO investor in Facebook. Burstein also discusses the changing attitudes among venture capitalists toward liquidity programs, why he is skeptical about certain provisions of the JOBS Act that will change the early stage landscape, and what LPs are saying about liquidity programs that allow their GPs to exit rump-end investments and deal with the challenges of in-kind distributions. Registered users of Privcap may access this 11-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Hong Kong is known as a hub for many great things, but early stage innovation is not among these.Allen Yeung, with the full backing of Hong Kong’s government, is trying to change this image. As the Founding Chairman of Hong Kong Business Angel Network, Yeung discusses his efforts to make local investors aware that backing startups is a way to grow wealth, in addition to real estate and other alternatives. Yeung is also Vice President, Business Development 8 Technology Support atHong Kong Science 8 Technology Parks Corp., and he shares with Privcap details of that organization’s incubation program, which will provide a “slew of services” to help Hong Kong startups make it through the “valley of death.” Also discussed: the differences between building early stage businesses in Hong Kong versus Mainland China. Registered users of Privcap may access this 7-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Take a tour de force through today’s venture capital opportunity with Kate Mitchell, Co-Founder and Managing Director of Scale Venture Partners, as well as the former Chairman of the National Venture Capital Association (NVCA) and a key shaper of the JOBS Act. In a fascinating interview with Privcap, Mitchell recommends that the private equity industry do what the venture capital industry has been doing for years in order to maintain its positive image with the public – tell the stories of portfolio companies and tell them “again and again and again.” Topics discussed also include why the JOBS Act will not lead to a “completely undisciplined market” but instead to a better public on-ramp for smaller companies, the effects that certain “bubblettes” are having in a post-Facebook market, why so many interesting opportunities to invest are coming from places like Provo and Indianapolis as well as Silicon Valley, and why her firm is seeing great success helping companies scale up sales and marketing efforts. Registered users of Privcap may access this 12-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Dr. Bernd Pfister, Managing Director, Paros Capital, describes the strategy of his firm, based in Zurich.

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Private equity is increasingly being seen as an “accelerator of institutionalization” and avenue for wealth creation among entrepreneurs in Latin America. This and other observations are shared in an expert conversation featuring Philip Bass, Global Private Equity Markets Leader of Ernst 8 Young,Arturo Saval, Co-Chairman and Senior Managing Partner of Nexxus Capital and Scott Voss, Managing Director at HarbourVest Partners. While many owners of Latin American businesses are “very good salesmen,” according to Mexico City-based Saval, many of their companies lack enough organization, rigor and transparency to make them “market ready” for an IPO of other similarly transformative transaction. Topics discussed include how private equity firms work hand in hand with entrepreneurs to create value, the sometimes-challenging family business dynamics that private equity firms must deal with, the importance of alignment of interest and shared vision, and why the experts remain bullish on the future of Latin America. Saval and Voss are board members of the Latin America Private Equity 8 Venture Capital Association (LAVCA). Don't miss the upcoming Nov 7 LAVCA Colombia Forum in Bogota. Registered users of Privcap may access this 12-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: What is the road ahead for financial services? According to Henry McVey, Managing Director and Head of Global Macro and Asset Allocation at KKR, heightened regulation, de-leveraging, and low rates are all challenging traditional financial intermediaries to ponder what will be the key drivers of growth and returns in this new and unfamiliar environment. An industry once thought of as an agent of change for global growth is now expected to produce, at best, “boring beta,” says McVey. In an exclusive interview with Privcap’s David Snow, McVey describes the key findings of his latest Insights report, titled “Financial Services: The Road Ahead,” the overriding point of which is that financial services are going through secular, not cyclical, change. In the interview, McVey discusses the ramifications of Wall Street being “forced to de-lever,” the long-term challenges to the credit markets, how the European crisis will continue to affect financial services businesses in the US and Asia, who will step into the securitization-market void, and why he is bullish about financial players that serve the housing market. (In this separate segment, McVey discusses the creation of his role at KKR and how his team works to support KKR's investments as well as provide market intelligence to the firm's clients.) Registered users of Privcap may access the 11-minute chaptered video program, the full transcript and the audio-only version, as well as Privcap’s entire archive of thought-leadership content.Register here. It’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Andrew Gaule, Founder of Corven Networks, describes the challenges that corporations face as they attempt to establish and build venture capital arms. In a Privcap interview, Gaule discusses the benefits that effective corporate venturing can bring to parent organizations, including a powerful spotlight on disruptive change. He discusses the difficulties that corporate venturing officers sometimes have convincing the highest echelons of their organizations to value the intelligence gathered in the venture market, and he also discusses trends in Europe and Asia that impact the flow of capital from corporate venture arms. Registered users of Privcap may access this 10-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Plotting the correct technology strategy is critical for any business. But how do you identify people who can take private equity portfolio companies to the next level of tech sophistication? “In terms of the talent itself, past is prologue,” observes Robert Nolan, Managing Partner at Halyard Capital. “If you can find out whether these individuals have delivered on time and on budget, that will give you a good indication.” Joining Nolan in this discussion of how to assemble a tech team are John Brittain, Senior Partner at Tatum, and Lewis Raibley, Senior Managing Director of portfolio operations at Castle Harlan. Other topics covered include when to make the investment in better technology and better people and when to stand pat with what you already have, the differences between technological know-how and managerial savvy, and tips for recruiting the most appropriate technology talent for portfolio companies. This is the third segment in a three-part Privcap thought-leadership series on human capital in private equity. The first program in this series, “Talent for Change,” is available here.  The second program, “Getting the Financial Team Right,” is available here. The program is sponsored by Tatum. Registered users of Privcap may access this 14-minute, chaptered video program, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Joyce Shapiro, Managing Director of Franklin Templeton Real Asset Advisors, describes her firm’s approach to real asset investing. Rather than plan the traditional limited partner role, the firm partners directly with local operators who “understand the value proposition at the asset level.” In a Privcap interview, Shapiro also discusses why she likes small- to mid-sized deals, how real assets can add diversification, strong yields and inflation linkage to institutional portfolios, why she is bullish about P3 (public-private partnership) opportunities in the US, how to control for “development and permitting risks,” and how real asset opportunities interconnected, such as agriculture and transportation. Registered users of Privcap may access this 9-minute, chaptered video program, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quic

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: In today’s market, fundraising means hundreds upon hundreds of reference calls between LPs and portfolio company executives. It is a level of due diligence that some CEOs find exasperating. What exactly do these investors want to find out? How to prepare these busy executives for a “deluge” of phone calls? In the third segment of this essential thought-leadership series, Pawan Chaturverdi, a Partner at Altius Associates, Matthew Pedley, a Principal at The Blackstone Group, and Jennifer Cho Rinehart, a Managing Partner at MVision Private Equity Advisers share best practices in conducting and facilitating portfolio-level due diligence. Topics discussed also include: how to maximize the quality of reference calls, what to expect in cases where a portfolio investment is not doing well, what investors want to know about valuation policies, and the sensitive issue of making forward-looking projections. This program is a must-see for any GP about to hit the fundraising trail and for any LP researching best practices in the due-diligence process. The first video in this series is “Track Records and Transitions." The second program is “Fundraisers Face Invasive Due Diligence." The segment includes an expert Q8A with Jennifer Cho Rinehart of MVision, sponsor of this series. Registered users of Privcap may access the 21-minute chaptered video program, the full transcript and the audio-only version, as well as Privcap’s entire archive of thought-leadership content.Register here. It’s free and quick

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Dr. Martin Haemmig, a noted academic and expert on corporate venturing, says that “massive wave” of corporate venturing is on its way, and not just in the United States, which currently accounts for 70 percent of such activity. A big push from the Chinese government “is driving corporate venturing like crazy” into even pre-revenue Chinese companies. In Russia, a new law will require corporations to set aside a certain percentage of profit for innovative companies. In an interview with Privcap, Haemmig discusses why successful corporate venture programs need to have a blend of strategic and financial incentives, why a “new wave” is on its way following a retrenchment in the post-2000 period, and why the West needs to focus more on business-model innovation if it wants to compete with Asia. Among his many projects, Dr. Haemmig is a key contributor to the creation of Ernst 8 Young’s annual Global Venture Capital Insights and Trends report, available here. Registered users of Privcap may access this 12-minute, chaptered video program, full transcript, audio-only version, as well as Privcap’s entire archive of thought-leadership content. Register here – it’s free and quick.