“What influence can Napoleon the pig have had on Private Equity?”

 “What influence can Napoleon the pig have had on Private Equity?”

… John Cockburn, Consultant at PER sums up the sentiments of the panel

Taking centre stage at the Real Deals Mid-Market PE event for the second panel session of the day were Jeremy Hand of Lyceum Capital, Hamish Mair of BMO Global Asset Management and Andrew Hartley; alongside Gail McManus, Managing Director of PER.

The topic: “Animal Farm – when some partners are more equal than others: Best practice in incentivisation, retention and succession”.

Chaired by Nicholas Neveling of Real Deals, the discussion involved a lively conversation on the trials and tribulations faced by founding partners when planning succession within their funds, and how the carried interest system can be an excellent incentive for some people, but also a handcuff for others.

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Private equity is no longer just an ‘alternative asset’, it is very much the mainstream.

Private equity is no longer just an ‘alternative asset’, it is very much the mainstream.

Written by PER’s Head of DACH: Rupert Bell

The private equity industry has expanded significantly in recent years as new capital has flowed into the market, arguably because big LP’s don’t really know where else to deploy it. Private equity is no longer just an ‘alternative asset’, it is very much the mainstream. There is no end to this on the short term horizon.

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Private Equity in Asia is building momentum leading to a healthy hiring market!

Private Equity in Asia is building momentum leading to a healthy hiring market!

Written by PER’s Head of Asia: Linn Cheng

We’ve had an interesting and varied year. Considering the political changes in the world, we have not seen this having a significant impact on the Asian private equity market, in actual fact on the contrary, Asia seems to be building momentum with strong fundraising and capital deployment, consequently leading to a healthy hiring market.

Interestingly, the bulge bracket investment banks have been struggling this year. Lay-offs throughout the year and bankers being made redundant prior to their bonuses being paid has resulted in a larger number of banking professionals available in the market. 

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30 senior private equity professionals debated the issues around promoting and retaining females at PER’s breakfast briefing

30 senior private equity professionals debated the issues around promoting and retaining females at PER’s breakfast briefing

… John Cockburn, Associate at PER sums up the sentiments of the room

PER was delighted to welcome 30 senior Private Equity professionals to their breakfast seminar to discuss the important topic of “Retaining and Promoting Females in Private Equity”. Managing director of PER, Gail McManus, introduced the guest speaker – Jeryl Andrew – the new CEO of Level 20. Jeryl has been an investor with Abingworth, Vencap and Advent Ventures and so knows first-hand the difficulties that women face in reaching senior positions within funds.

Level 20 is dedicated to increasing the amount of females in senior private equity positions across Europe to 20% by the year 2020.

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There is a larger percentage of female astronauts than female venture capitalists – time for VC to do some blue sky thinking around diversity maybe?

There is a larger percentage of female astronauts than female venture capitalists – time for VC to do some blue sky thinking around diversity maybe?

Written by PER Consultant Alex Horkan

Venture Capital in London is booming, heck Venture Capital is booming full stop. As an industry, the private markets have become remarkably good at funding and scaling companies with a sometimes un-nerving speed and the money is rolling in. According to Pitchbook’s PE & VC Fundraising & Capital Overhang Report, 2015 was the most successful year in almost a decade for Venture Capital funding with over $35.5billion being raised in the US alone. The fundraising trend is showing no signs of slowing down either, with $12billion already being banked in Q1 of 2016 according to Thomson Reuters and the National Venture Capital Association.

Many discussions have taken place over the last few months about the effects that the UK referendum, US elections and steep valuations may have on the stability of the industry. If we are to believe the co-founder of Accel Partners, Jim Swartz, then we are in the midst of a tech bubble that is set to deflate; the value of many unicorns is being re-assessed and founders are increasingly reluctant to go public.

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Senior Hires are a tricky business

Senior Hires are a tricky business

Written by PER’s Head of DACH: Rupert Bell

Senior hiring for private equity firms is a tricky business. There is arguably far more downside than upside, from disrupting the existing culture, and demotivating mid-level and junior colleagues, to the financial and PR costs of breaking a contract if the integration doesn’t work.

On the other hand, demand remains high: institutional investors have broadly doubled their allocations to private equity and this capital can only be deployed properly by seasoned investors. There is a plethora of new firms opening up – around 50 in Germany alone over the last couple of years – and these also need senior figures to lead deals and develop business. With more capital chasing the same historic level of dealflow, prices have soared, and with them execution challenges. Whilst a rational analysis might suggest taking resource out of this imbalanced equation until the market cools, in practice many of the key players are seeking to step up their hiring, to look for that incremental gain that gives them the edge in this ever more competitive environment.

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2016 Salary Survey: Data Sneak Preview

2016 Salary Survey: Data Sneak Preview

Our Salary Survey publication is getting closer. We have just had a sneak preview and we have some super data. We are more than sure our contributors are going to be pleased with the level of detail across multiple fund types and sizes. We’ve also got some special insights into gender split across all roles and levels this year.

There are no real surprises in what the data shows, but it really brings home the issues. Judge for yourself!

gender grpah

 

Back To School – Ensuring Staff Retention on their return from Holiday

Back To School – Ensuring Staff Retention on their return from Holiday

September always feels to me the like start of the school year. And many people get back into the office invigorated after their summer break. A couple of weeks on the beach is a great way to relax and destress – it’s also a great opportunity to reassess career choices. The number of applications to our online job advertisements surge in September. Applications can be up by 30% at this time of year.

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What’s the difference between a great fund accountant and gold dust?

What’s the difference between a great fund accountant and gold dust?

Gold dust is easier to find and less costly to lose!

 
Hiring at junior levels and growing your own is the best long-term strategy for your finance team. If you want a junior then attracting a good one from the big four or the specialist administrators is probably your best bet. You should be able to entice them with a winning combination of slightly higher compensation and the private equity appeal of becoming client rather than service provider.
 
Once you’ve got them then you want to make sure you keep them. On the plus side, good fund accountants tend to be loyal hard working people who value being part of a team and enjoy working in an in-house environment. So if your Fund Accountant feels valued in their work, can see that they are progressing and feels suitably compensated it will take a lot to make them leave.
 
But make no mistake about it, experienced fund accountants are in demand, and larger funds are prepared to pay for them. And if they’ve worked for you for a number of years it is very likely that their compensation hasn’t kept pace with the market.
 
You can see what the market is paying across all levels of experience and all fund sizes by participating in our 2016 Salary Survey. The data is free to all contributors.
 
Thirty minutes of your time filling it in might just save you a lot more than thirty minutes of grief when your lynch-pin team member tells you they’ve just been offered a 20% hike on their package.
 
Contribute to our 2016 Compensation Survey
The Cost: thirty minutes of your time.

The Benefits: accurate, detailed, reliable and extensive data on private equity compensation in Europe, including finance and operations.