Privcap Audio: Private Capital Talk

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: Private equity can indeed create jobs – just ask Ohio state officials, who worked with Insurance Claim Management (ICM) and the private equity firm that owns ICM, The Riverside Company, to open a new Springfield facility that now employs 160 people. This impressive story is told by Paul Gross, President of Eau Claire, Wisconsin-based ICM, and Bill Seelbach, a former McKinsey consultant and now Senior Advisor to Riverside. Gross and Seelbach detail the formation of ICM as a spin-out from an existing Riverside portfolio company, the tax and other incentives that were agreed with Springfield and Ohio officials, the impact that the new facility has had on Springfield’s hard-hit economy, and how a local community college partnered with ICM to train a mostly manufacturing-oriented workforce to process insurance claims. This program is one of an ongoing Privcap series on value creation in private equity. The first segment is called "How WhatCounts and Riverside Partnered For Growth." The second segment is “How MLCOA and Riverside Partnered For Growth.” The third is “How Connor Sport Court and Riverside Partnered For Growth.” The fourth is “How Navex Global and Riverside Partnered For Growth.” The fifth is “How Diatron and Riverside Partnered For Growth.” 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: An interview with John Cook, the Chairman of placement group Rock Lake Associates, based in Zurich. Cook discusses the importance of seeking out “strategic” limited partners, and why allocations to private equity are increasing around the world. He also discusses his role as a co-founder of Bangalore-based Kyron, an “accelerator” venture capital firm that was formed with the massive success of California’s Y Combinator in mind. Registered users of Privcap may access this 6-minute, chaptered video program 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: Required viewing for any investor with a serious interest in the changing energy space. The world’s energy industry is going through revolutionary change driven largely by technological leaps made in the natural gas business – and investors who understand how and where to capture the value of these new extraction techniques will profit handsomely, says Craig Jarchow, a Managing Director at New York-based Pine Brook, a major investor in the energy space. In a fascinating interview with Privcap’s David Snow, Jarchow explains why new “fracking” techniques represent a long-sought “holy grail” in natural gas extraction, describes the third-wave technology behind the fracturing of “crappy rock,” and discusses the political and environmental challenges that still face companies that use fracking technology. As a private equity investor, Jarchow discusses how his firm seeks to create cash by partnering with the best project management teams, gives his analysis of the very competitive landscape among energy-sector investors, and explains why sand from Wisconsin and Minnesota is in high demand. Registered users of Privcap may access this 13-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: When private equity firm The Riverside Company acquired Budapest-based Diatron, the medical device company was “only in one half of the business” and need to go through a “big cultural change” in order to develop better systems for manufacturing, documenting and pursuing innovation. This is the story of how Diatron CEO Jim Schepp worked with Riverside Operating Consultant Howard Barnes to take the company from a commoditized set of revenue streams to a full-service, internationally competitive business. This program is part of an ongoing Privcap series on value creation in private equity. The first segment is called "How WhatCounts and Riverside Partnered For Growth." The second segment is called “How MLCOA and Riverside Partnered For Growth.” The third is called “How Connor Sport Court and Riverside Partnered For Growth.” The fourth is called “How Navex Global and Riverside Partnered For Growth.” Registered users of Privcap may access this 6-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: Don’t overlook the innovation and human capital that exists in “tech towns” located outside of Brazil’s biggest cities, argues Jon Toscano, President of Trivèlla Investmentimentos, a private equity firm that focuses on opportunities in mid-sized Brazilian cities. In this interview, Toscano discusses how venture ecosystems in university towns like Sao Carlos are similar to those in the US, how local entrepreneurs hate “helicopter investors” without a local presence, why many entrepreneurs prefer the better quality of life in smaller cities, and the impact that improved air travel options from companies like Azul has had on building businesses in mid-tier cities. This interview is part of the ongoing series “The Brazilian Opportunity,” sponsored by the Brazilian Private Equity and Venture Capital Association (ABVCAP) and the Brazilian Trade and Investment Promotion Agency (Apex Brasil). Registered users of Privcap.com may access this 6-minute, chaptered video, full transcript, as well as Privcap’s entire archive of thought-leadership video programs. Register here – it’s quick and free

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: The next 10 years of private equity in Brazil will be “much better than the past 10 years,” arguesFernando Borges, a current Vice President of ABVCAP as well as Managing Director and Head of South America for the Buyout Group of The Carlyle Group. In an exclusive interview with Privcap, Borges describes the evolution of the industry from an initial bad spell in the 1990s to a “new era” after 2007. Topics of discussion also include: How GPs have more ways to make money now than before, how Brazil’s huge population of people under 40 is driving growth, the importance of local stock markets to private equity exits, the “big gap” that exists between the expectations of local GPs and LPs, and how a change to the tax law is one of ABVCAP’s biggest accomplishments. This interview is part of the ongoing series “The Brazilian Opportunity,” sponsored by the Brazilian Private Equity and Venture Capital Association (ABVCAP) and the Brazilian Trade and Investment Promotion Agency (Apex Brasil). Registered users of Privcap.com may access this 9-minute, chaptered video, full transcript, as well as Privcap’s entire archive of thought-leadership video programs. Register here – it’s quick and free

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: When the leadership of corporate ethics and compliance platform NAVEX Global sought to expand, it partnered with private equity firm The Riverside Company. This is the story of how NAVEX, led by CEO Mark Reed and President 8 Chief Strategy Officer Shanti Atkins joined with Riverside Operating Partner Jeff Goodman to pursue a joint vision of leadership in the ethics services and training space. The group interview includes a discussion of why Riverside liked the ethics space, how NAVEX needed operating support, better financial systems and M8A expertise, the importance of strategic planning with “employees on board” who are made aware that “there is a finish line and you need to have clarity towards that." (NAVEX is a combination of four companies: ELT, EthicsPoint, Global Compliance and PolicyTech). This program is part of an ongoing Privcap series on value creation in private equity. The first segment is called "How WhatCounts and Riverside Partnered For Growth." The second segment is called “How MLCOA and Riverside Partnered For Growth.” The third is called “How Connor Sport Court and Riverside Partnered For Growth.” Registered users of Privcap may access this 6-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 International Finance Corporation has been among the most significant backers of private equity funds targeting emerging markets. So how has the IFC been rewarded by way of returns from this investment mandate? “It’s been a great story,” says Umberto Pisoni, Global Portfolio Head in the Private Equity and Investment Funds Department of the IFC. Pisoni says his portfolio has generated a net IRR in the range of 19 percent to 20 percent, and this is mostly due to the performance of first-time managers in underpenetrated markets. In a wide-ranging conversation with Privcap CEO David Snow, Pisoni shares statistical findings from the IFC’s private equity portfolio and discusses why emerging markets performance data has improved, why East Asia and Africa have been strong performers, the extent to which managers themselves are to blame for underperformance, why first-time funds often outperform larger follow-on vehicles, and why the IFC has just backed a fund in Nepal. The program is sponsored by Ernst 8 Young. 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: India needs a startup “accelerator” and Bangalore is just the place to base one, says Lalit Ahuja, Founding Partner of Kyron. In an interview with Privcap, Ahuja - a veteran of India’s corporate venturing and entrepreneurial scene – describes the mission of Kyron to nurture hand-picked “cohort” startups into world-class businesses. He discusses Bangalore’s ecosystem for innovation and how he will look for “black swan,” “ultra-disruptive” ideas from entrepreneurs who, for example, might just think that “Google sucks.” Registered users of Privcap may access this 5-minute, chaptered video program 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: An interview with Duncan Littlejohn, Managing Director for Latin America at Paul Capital and a Board Member of ABVCAP.  Littlejohn discusses the distinguishing characteristics of the Brazilian LP community, including veto rights and seats on the investment committee, why the industry as a whole lacks long track records despite “great case studies and home runs,” the evolving process of local LPs beginning to allocate to private equity, secondary activity among Brazilian funds, and the key objectives and accomplishments of ABVCAP, Brazil’s national private equity and venture capital association. This interview is part of the ongoing series “The Brazilian Opportunity,” sponsored by the Brazilian Private Equity and Venture Capital Association (ABVCAP) and the Brazilian Trade and Investment Promotion Agency (Apex Brasil). Registered users of Privcap.com may access this 8-minute, chaptered video, full transcript, as well as Privcap’s entire archive of thought-leadership video programs. Register here – it’s quick and free

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: In 2005, private equity firm The Riverside Company merged two providers of sports surfaces to create Connor Sport Court. The merger encountered problems and so Riverside called in Ron Cernyas President 8 CEO to help sort out issues with regard to product quality and “management team dysfunction.” The US company had a goal of growing its international revenue, and to help penetrate China market, Riverside deployed Managing Director Brian Bunker to help establish licensing agreements in China as well as products for Connor Sport Court to sell in North America. In this video, Ron and Brian tell the story of how they have worked together to increase the fortunes of the company in the face of corporate and international challenges. This program is part of an ongoing Privcap series on value creation in private equity. The first segment is called "How WhatCounts and Riverside Partnered For Growth." The second segment is called “How MLCOA and Riverside Partnered For Growth.” Registered users of Privcap may access this 6-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: Few people have been active in emerging markets private equity as long as Jonathon Bond, a Partner and Head of Fundraising at London-based Actis. In a wide-ranging interview with Privcap, Bond details the reasons behind Actis’ deal with the UK government to buy back 40 percent of the firm that the partners did not already own. Bond also discusses why he believes emerging markets private equity is “very much at an inflection point.” He cautions that the increasing popularity of emerging markets among limited partners may be “fueling a future problem” caused by the “unrealistic weight of expectations” about performance. Bond believes that the days of relying on economic growth to drive returns are over. Using India as a case study, he explains why he remains a “long-term bull” on the region but sees a “brutal culling” of Indian GPs in the short term. Finally Bond describes two cases in which Actis bought “trusted, local” brands in specific markets and grew them by expanding to other emerging markets, such as a South African stolen-car recovery system that has been expanded to Brazil. The series is sponsored by Ernst 8 Young. Registered users of Privcap may access this 19-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: Considering the challenges that beset the region, what are investor perceptions toward Emerging Europe right now? This question was posed by Privcap to Baris Gen, Senior Investment Officer for Private Equity Funds - Europe, Middle East 8 North Africa at the International Finance Corp.,Robert Graffam, Senior Managing Director of Darby Overseas Investments, and Ralph Jaeger, Managing Director, Siguler Guff 8 Company. The three experts discuss how fundraising for Central and Eastern European GPs is taking so much longer today, what a recent Darby fundraising was like (“It was hard”), how many first-time and even veteran GPs are wondering whether they’ve reached a “time-up” moment, and the need for more success stories to move Emerging Europe from its low place on LP priority lists. This is the third segment of a three-part Privcap thought-leadership series on private equity in Emerging Europe. The first segment is called "Eastern Shock." The second is called "What Happened to Convergence?"  The program includes an expert audio interview with Peter Wells, a Partner withErnst 8 Young in Prague. This program is sponsored by Ernst 8 Young. Registered users of Privcap may access this 8-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: Brazil’s energy market is world-class, but needs capital and ideas in order to transform itself to handle a “huge latent need” for power, according to Sergio Brandao, Partner and Co-Head of Energy,Rio Bravo Investimentos. In a conversation with Privcap’s David Snow, Brandao gives an in-depth analysis of the investment landscape across Brazil’s massive energy sector. Topics of discussion include: how wind energy has become “probably the most competitive form of energy,” the dearth of infrastructure and how losses in power transmission need to be addressed, why Brazil is no longer an “emerging market,” why Brandao welcomes the influx of foreign capital and talent into Brazil’s energy sector (“the cake is huge”), and what it was like for him to graduate in 1985 with an engineering degree in a very different Brazilian economic and political environment. This program is sponsored by the Brazilian Private Equity and Venture Capital Association (ABVCAP) and the Brazilian Trade and Investment Promotion Agency (Apex Brasil). Registered users of Privcap.com may access this 15-minute, chaptered video, full transcript, as well as Privcap’s entire archive of thought-leadership video programs. Register here – it’s quick and free

THIS IS AN AUDIO-ONLY VERSION OF A VIDEO INTERVIEW FOUND ON PRIVCAP.COM. VIEW THE FULL VIDEO HERE: While President of Google China, Kai-Fu Lee had front-row seat to China’s technology scene, but he also watched as some 50 employees left to launch “wildly successful” businesses. Today, Lee’s venture firm, Beijing-based Innovation Works, backs similarly motivated entrepreneurs by providing them capital and matching them with high-growth investment theses. In an exclusive interview with Privcap, Lee discusses what he learned while at the helm of Google, how he selects the startups that he backs, how he partners with other VC firms on seed and further rounds, why Chinese entrepreneurs are more focused on solving real problems than on “truly breakthrough ideas,” and how Innovation Works will distinguish itself in a crowded venture market. (You may view Lee’s Chinese-language analysis of venture’s economic impact here) Registered users of Privcap may access this 7-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