PEI113 Awards

THE PRIVATE EQUITY INTERNATIONAL AWARDS 2012
2012 AWARDS
Shifting sands
Welcome to the Private Equity International Awards 2012 the only industry awards decided solely by the industry
Every year, in early December, we sit down and try to draw up the shortlists for our annual awards. And every year, regardless of how busy the market has been, it seems to get more difficult. Its not just that its tough to settle on a final four options that everyone agrees with (the debate has been known to get a bit heated at times, but as yet no blood has been spilled). The issue is more that it seems increasingly difficult to put firms into particular boxes as more and more institutions morph into global, multifaceted asset management firms. What constitutes a large-cap firm these days? Can a GP win its national category if all its deals have taken place beyond its borders, or should the prize go to a firm that has only been actively domestically? Does it make sense to try and evaluate new deals, when its only really on exit that well know how good they were? How do we reflect the achievements of those who have branched out successfully into new strategies? And should LPs doing direct investing count as GPs in some instances? There are no right answers to any of these questions, of course. For what its worth, we tried to focus largely on private equity activity in the region in question and for new deals, to pick out some examples that involved interesting structures or complex negotiations. And we also left a fifth option for each category up to you, by including a write-in box. That way, if you didnt agree with our choices, you were free to suggest an alternative. As usual, the votes poured in by the thousands this year. In some cases, the results were in line with expectations: the Carlyle Group was rewarded for a stellar year by winning large-cap firm of the year in North America, while EQT retained the equivalent title in Europe and Bain Capital took the top honours in Asia (some consolation for an uncomfortable year).Wins in the mid-market categories for Advent International, Navis Capital and The Riverside Company were also no great surprise given their respective (impressive) market activity. Other categories were less predictable, however. In China, the Carlyle Group bested local houses for firm of the year. In Europe, Swiss-headquartered Capvis Equity Partners won in Germany for the first time, as did HgCapital in the UK; while the EBRD was named as the top LP (ahead of the likes of ATP) and exit of the year went to KKRs Alliance Boots once a poster child for boom-era excess. And in the US, the LP of the year category was won not by the usual suspects in California, New York or Texas, but by the State of Wisconsin, whose investment board loudly proclaimed its intention to sell out of some the biggest names in the asset class. All of our winners are to be congratulated, because theyve all earned something very significant: the admiration of their peers. Thanks to all of you who voted; read on to find out why we think our winners came out on top. We look forward to another heated debate in December P.S. Although these are largely your awards, there is one category that we take it upon ourselves to decide: the PEI leader of the year award, which is designed to recognise those who have gone above and beyond the call of duty to promote the industrys cause (see opposite page). This year, for the first time, weve also introduced a special award for Asia, to reflect the particular importance of strong leadership in these developing markets.We hope youll agree that these are both worthy winners.
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private equity international
LEADERS OF THE YEAR
THE PRIVATE EQUITY INTERNATIONAL LEADERSHIP AWARD 2012
Ian Armitage, founder and outgoing chairman of HgCapital
Ian Armitage might not be as well known to a global audience as a Rubenstein or a Schwarzman. But hes unquestionably been one of the most significant figures in the development of European private equity. One of the pioneers of the UK industry, Armitage started out at 3i before moving on to run the private equity division of Mercury Asset Management. Since spinning out that team as HgCapital in 2000, he has succeeded in building a firm with a genuinely differentiated approach a sector-specific, labour-intensive model that puts substantial resource into boosting portfolio company operations. It was also one of the first firms to branch
out into renewable energy, which it now runs as a separate business line. Investors clearly like its style: it has accumulated assets worth over 3.6 billion (and with more to come; its currently in market with its seventh fund, which is apparently doing well). Armitage officially retired as Hg chairman last year, and hes clearly leaving the firm in excellent shape (it even won the UK firm of the year category in the PEI awards for the very first time in 2012 see p. 80). Even more impressively, he seems to have pulled off that rare trick in private equity: a seamless succession process. He leaves the reins with Nic Humphries, who took over as managing partner in 2007.
Building a wellestablished and extremely successful midmarket group is no mean feat in itself, of course. But its not the only reason we felt Armitage deserved recognition. For years now, he has been a tireless and eloquent advocate for the industrys cause. Even in retirement, he remains actively involved in the BritishVenture Capital Association, and will continue to hold another important advocacy role as chairman of LPEQ, an association that represents listed private equity groups in Europe. In the ever-approachable, extremely knowledgeable and impeccably-connected Armitage, it couldnt ask for a better champion.
THE PRIVATE EQUITY INTERNATIONAL LEADERSHIP AWARD IN ASIA 2012
Ashish Dhawan, co-founder and ex-senior managing partner, ChrysCapital
This year, Private Equity International is presenting its leadership award to a man who has helped to prove the long-term feasibility of the asset class in India a market that has prompted many others to retreat with expectations dashed. Ashish Dhawan launched India-focused ChrysCapital in 1999 and would go on to become a stalwart in this complex, frustrating but hugely important market. Under Dhawan, ChrysCapital built up $2.25 billion in assets under management across six India funds, a feat probably not accomplished by any other Indian fund manager. The firm attracted a mix of Asian and Western institutional investors, including Harvard Management Company,
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Stanford Management Company and the Rockefeller Foundation. ChrysCapital has also returned a substantial amount of capital to its LPs: since its first exit in 2002, it has averaged around five exits per year, according to Dhawan. For many of the institutional investors, we were their first GP in India. We always thought there was an onus on us to make sure we did a decent job because if we did a poor job, they would probably come to the conclusion India wasnt worth investing in. That was our single, largest contribution [to Indian private equity]. We convinced investors that this was a market
where if you back the right people and have the right strategy, you can make money, Dhawan told PEI. In 2012, Dhawan stepped down as the head of ChrysCapital. He will continue to work on the previous funds but will not lead the firms $510 million Fund VI. Besides his work at ChrysCapital, Dhawan has long been committed to furthering the K-12 education process in India. He will devote more time to the Central Square Foundation, a non-profit, venture-like organisation he founded which helps raise money for education sector projects and acts as an advocate for educational policy.
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THE PEI AWARDS 2012: roll of honour
EMEA
americas
asia
Large-cap firm of the year in Europe: EQT Mid-market firm of the year in Europe: Advent International Limited partner of the year in Europe: European Bank for Reconstruction and Development Secondaries firm of the year in Europe: Partners Group Special situations/turnaround firm of the year in Europe: Orlando Management AG Distressed investment firm of the year in Europe: Oaktree Capital Management Firm of the year in Africa: Actis Firm of the year in Benelux: Gilde Equity Management Firm of the year in CEE: Mid Europa Partners Firm of the year in France: AXA Private Equity Firm of the year in Germany: Capvis Equity Partners Firm of the year in Iberia: Investindustrial Firm of the year in Italy: Investindustrial Firm of the year in MENA: Abraaj Group Firm of the year in the Nordics: EQT Firm of the year in Switzerland: Capvis Equity Partners Firm of the year in the UK: HgCapital Firm of the year in Russia: VTB Capital Fund of funds of the year in Europe: BlackRock Private Equity Partners Placement agent of the year in Europe: Campbell Lutyens Mid-cap lender of the year in Europe: Partners Group Large-cap lender of the year in Europe: Deutsche Bank Law firm (fund formation) of the year in Europe: SJ Berwin Law firm (transactions) of the year in Europe: Clifford Chance European deal of the year: Douglas Holdings (Advent International) European exit of the year: Alliance Boots (KKR) European secondaries deal of the year: Lloyds portfolio (Coller Capital)
Large-cap firm of the year in North America: The Carlyle Group Mid-market firm of the year in North America: The Riverside Company Limited partner of the year in North America: State of Wisconsin Investment Board Secondaries firm of the year in North America: Landmark Partners Special situations/turnaround firm of the year in North America: Ares Management Distressed investment firm of the year in North America: Oaktree Capital Management Firm of the year in Canada: CPP Investment Board Firm of the year in Latin America: Rio Bravo Fund of funds of the year in North America: HarbourVest Partners Placement agent of the year in North America: Eaton Partners Mid-cap lender of the year in North America: GE Capital Large-cap lender of the year in North America: JPMorgan Law firm (fund formation) of the year in North America: Debevoise & Plimpton Law firm (transactions) of the year in North America: Kirkland & Ellis North American deal of the year: El Paso (Apollo Global Management) North American exit of the year: North American Breweries (KPS Capital Partners) North American secondaries deal of the year: Willis Stein restructuring (Landmark Partners, Vision Capital)
Large-cap firm of the year in Asia: Bain Capital Mid-market firm of the year in Asia: Navis Capital Partners Limited partner of the year in Asia: Government of Singapore Investment Corp. Secondaries firm of the year in Asia: Partners Group Distressed /special situations firm of the year in Asia: Apollo Global Management Firm of the year in Australasia: Pacific Equity Partners Firm of the year in China: The Carlyle Group Firm of the year in India: Everstone Capital Firm of the year in Japan: J-Star Firm of the year in Korea: MBK Partners Firm of the year in Southeast Asia: Navis Capital Partners Firm of the year in frontier markets: Actis Fund of funds of the year in Asia: Squadron Capital Placement agent of the year in Asia: UBS Lender of the year in Asia: HSBC Law firm (fund formation) of the year in Asia: OMelveny & Myers Law firm (transactions) of the year in Asia: Clifford Chance Asian deal of the year: Alibaba/Yahoo! (China Investment Corporation, Boyu Capital, CITIC Capital, China Development Bank) Asian exit of the year: Akindo Sushiro (Unison Capital) Asian secondaries deal of the year: GIC portfolio (CS Strategic Partners)
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THE PEI AWARDS 2012: EUROPE
LARGE-CAP FIRM of the Year in Europe

1. EQT 2. BC Partners 3. Cinven
Before the crisis, the idea of EQT winning this category might have seemed implausible. How could a decidedly midmarket Nordic player ever outstrip the growing powerhouses of Western Europe? But these are different times, and EQT has become a very different beast. As some of Europes larger firms have been forced to scale back their ambitions, EQT has been moving up the deal size scale and also adding new strings to its bow pushing further into China, developing its infrastructure business and even raising a debt fund. Its still going strong in its European heartland, though. As well as selling Gambro to Baxter for SEK 26.5 billion (3.1 billion, $4 billion), it also won the 1.8 billion battle to buy BSN Medical from Montagu, acquired retail chain Tiger and luxury phone maker Vertu, and attracted new investment for cleaning company ISS. Some of Europes biggest managers may not have considered EQT a direct rival in the past. They certainly do now.
Mid-market Firm of the Year in Europe
1. Advent International 2. Capvis Equity Partners 3. Nordic Capital
buyout vehicle, Advent International GPE VII, at a whopping 8.5 billion setting a post-Lehman fundraising record, and trumping some of Europes mega-funds into the bargain. Thats a pretty clear endorsement of the firms strategy and track record. Better still for Advents LPs many of whom re-upped from the previous fund the firm has not been resting on its laurels since. It has already agreed to three investments from the new vehicle: KMD, a Danish IT company, mattress manufacturers Serta and Simmons, and Cytec Industries coating resins business, for which it is expected to pay some $1.15 billion. A year to remember.
Limited Partner of the Year in Europe
1. European Bank for Reconstruction and Development 2. ATP Private Equity Partners 3. Oxford University Endowment
Associates and EVCA benchmarks for the region. The EBRD may be making daring strides into new territories but it seems to know exactly where its going.
Morocco: new destination for the EBRD
Deal of the year in Europe

1. Douglas Holdings (Advent International) 2. CPA Global (Cinven) 3. Teleservices Atento Group (Bain Capital)
It was no surprise to see Advent International take the plaudits in the mid-market category. This was a year in which many European firms experienced extremely difficult fundraising conditions, with many forced to downsize, extend or even postpone their offerings altogether. And yet Advent managed to close its latest
At a time when many LPs are taking a very conservative approach to their risk profile and their geographical allocations, there is at least one large European institution thats not afraid to brave new frontiers.The European Bank for Reconstruction and Development, already the largest private equity investor in the CEE and Central Asia, has recently made its first forays in North Africa, with investments in Morocco and Tunisia. Its also ploughing ahead with its investment activity in its core markets. All told, the EBRD invested in a total of 11 new private equity vehicles last year, committing a total of 336 million. And its clearly doing so in a very discerning way: as of 31st December 2011, the 10-year returns averaged by its private equity portfolio beat both the Cambridge
Advent shrugged off the widespread worries about European consumer confidence to de-list Douglas Holdings, the German company behind brands including Douglas perfumeries and Thalia bookstores, in a deal worth 1.5 billion. Advent initially developed its investment thesis with the founding family Kreke, who were the companys largest shareholders. It then reached an agreement with other large shareholders, paving the way for a voluntary tender offer which achieved an impressive acceptance rate of more than 96 percent. The price clearly helped: at 38 per share, Advents offer represented a premium of 41.6 percent over the average price of Douglas shares in the four weeks to 11 January 2012, the day the takeover rumours first surfaced. Obtaining debt can be tricky for consumer-related investments, but Advent
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found a creative solution: a mezzanine structure, which was led by Park Square and supported by Partners Group. All in all, a worthy winner.
Exit of the year in Europe
1. Alliance Boots (KKR) 2. Ziggo (Warburg Pincus, Cinven) 3. StarBev (CVC Capital Partners)
Secondaries deal of the year in Europe

1. Coller Capital (Lloyds Banking Group) 2. Blackrock (Swiss Re) 3. AXA Private Equity (Swedbank)
Alliance Boots: Boom-era deal in good health
Henry Kravis and George Roberts are fond of saying any fool can buy a company its only a successful exit that deserves celebration. So we imagine there was a good dose of the latter when US-based Walgreens paid $4 billion in cash and $2.7 billion in stock for a 45 percent stake in UK pharmacy chain Alliance Boots. The exit repaid roughly three-quarters of KKRs original $2.45 billion equity investment. Our funds have been marked up meaningfully by $1.6 billion because of Alliance Boots, Scott Nuttall, head of KKRs global capital and asset management group, said during an earnings call in July 2012. With co-investments, its $2 billion. Many onlookers including ratings agency Moodys expected this deal (and most others from the same era) to fail. Instead, the company has consistently performed well, proving that doing huge deals at the top of the market is not necessarily a prescription for disaster.
There were no shortage of good deals to choose from in the category, but UK-based Coller took the top spot after beating off competition from a number of rival groups to acquire a portfolio of private equity assets from UK-state-backed Lloyds (below). At 1.03 billion, it was one of the biggest secondary transactions on record (see p. 18). It also provided a clear and compelling illustration of Collers prominence in the secondaries space.The firm held a final close on its new $5.5 billion fund a few weeks earlier, and this deal proved that it was able to successfully deliver complex billion-pound deals all on its own. As the banking sector continues to shed assets over the coming years as it surely will in light of various political and regulatory pressures that means Coller now boasts the sort of firepower and execution experience that relatively few of its peers can match. A nice place to be.
Secondaries firm of the year in Europe
1. Partners Group 2. Coller Capital 3. AXA Private Equity
December, it closed a new 2 billion secondaries fund, which was oversubscribed and reached its hard-cap well before the end of the firms designated fundraising period. Partners has already put about one-fifth of this money to work; indeed, it said that it evaluated a record $70 billion-worth of secondary opportunities in 2012, and its predicting continued good deal flow in the coming year. One notable point is that Partners expects to commit a larger proportion of this new fund in Asia than with previous vehicles. The firm already has six offices in the region, and expects to see more opportunities as the market continues to mature. Elsewhere, it plans to target less mature assets that are less subject to exit risks.
Distressed Investment firm of the year in Europe
1. Oaktree Capital Management 2. AnaCap Financial Partners 3. TPG
In a closely-fought race, Partners Group came out just ahead of a very strong field. It spent most of the year on the fundraising trail, and with conspicuous success: in
Another year, another pair of wins for Oaktree Capital Management. As was the case last year (and the year before that, and the year before that), Oaktree has snagged distressed investment firm of the year honors in both North America and Europe. This time, it earned the distinction after having spent more than half the year as a publicly traded company. Although the markets response to Oaktrees initial public offering was muted at $43, its opening day share price closed at the bottom of its anticipated IPO range public investors have since developed a taste for the firm. Shares were trading at just over $50 at press time. In addition to its listing, Oaktree held a final close above target on a $5 billion distressed fund and also launched an emerging markets strategy with the hire of former
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Fintech Advisory president Julio Herrera. Another stellar year in the life of Howard Marks (right) and his $77 billion investment empire...
Special situations/ Turnaround firm of the year in Europe
1. Orlando Management 2. Sun Capital Partners 3. Better Capital
Amid the chaos in the Eurozone, Orlando Management continued to prove that there are attractive investment opportunities at least in the German-speaking region where it invests. The firm backed three businesses in 2012, bringing its latest fund to roughly 10 percent invested. Orlando purchased paper finishing and converting business Paper Systems Group, commercial vehicle supplier Beinbauer Automotive, and manufacturer Schneider Leichtbau, an add-on investment for fuel and emission reduction company LKE Group.
The firm also showed that limited partners love turnarounds. Orlando Management got off to a fast start in 2012, raising 230 million for its Special Situations Venture Partners Funds III by the end of March. The firm hit a final close in just under eight months, once again surpassing its 200 million target. In its only exit of the year, Orlando sold furniture group Vivonio to Equistone Partners.With continued dislocation in Europe, the firm should have no trouble finding more special situations in 2013.
Firm of the Year in Africa
1. Actis 2. Ethos Private Equity 3. The Carlyle Group
demonstrated that the African continent remains core to its strategy: close to 40 percent of its investments are located there. 2012 milestones included an investment in Garden City, Kenyas largest shopping centre, and support to large-scale energy projects in South Africa and Ivory Coast. But its probably on the exit front that Actis outstripped its peers in 2012. On top of its oversubscribed IPO for Umeme, Ugandas main power distributor, the firm also found eager buyers for its stakes in Banque Commerciale du Rwanda and the Accra Mall which should certainly come in handy as it hits the fundraising trail this year.
Firm of the year in Benelux
1. Gilde Equity Management 2. Advent International 3. Waterland
There are a lot of big funds now talking about investing in Africa, but Actis remains one of a few that really walks the walk. Having completed its spin-out from UK development finance institution CDC last April, the emerging markets specialist has
Garden City: fertile ground for Actis
Investing in a bakery business heavily reliant on consumer spending just after a VAT hike may not seem the most obvious thesis. But Gilde Equity Management clearly begs to differ: in October, it acquired Dutch bakery business Pr Pain & Smithuis, reportedly for 100 million, from Fortis spin-off Neon Private Equity. Although the consumer spending climate is undoubtedly tough in The Netherlands, the firm believes it has found a market segment that is growing the demand for luxury bread rolls is apparently rising as supermarkets increasingly compete with independent bakeries. But Gilde wasnt finished there: it also invested in Belgian glass producer Sovitec and software company BlueCielo. And on the exit front, it completed the sale of Salad Signature, a producer of convenience food that had doubled in size under the firms ownership (thanks in part to a number of add-on acquisitions, including Johma and Westland) to fellow Benelux firm AAC Capital. Anything but a half-baked year.
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Firm of the year in Central and Eastern Europe

1. Mid Europa Partners 2. Abris Capital Partners 3. Penta Investments
Obtaining senior debt may have been a challenge for some in 2012. But that didnt stop Mid Europa Partners managing to agree a 400 million recapitalisation of T-Mobile Czech Republic in July, a deal that was underwritten by a group of seven local and international banks. It was the largest refinancing in Central and Eastern Europe in the post-Lehman area, and one of the largest in Europe as a whole. It came as part of a busy year for Mid Europa. The firm agreed the sale of healthcare group LUX MED to Bupa for 400 million; this was the largest private equity transaction in Poland in 2012, and generated a 2.5x return for Mid Europa and its investors. It also bought laboratory diagnostics company Alpha Medical, and acquired a 50 percent stake in Walmark, an independent dietary supplements manufacturer. A perennial winner in this category, Mid Europa remains the pre-eminent panregional private equity player, as far as its peers are concerned.
Firm of the Year in France
1. AXA Private Equity 2. PAI Partners 3. Apax Partners France
Keolis: AXA on track
countrys second largest buyout of the year. But this was just one of a string of investments in the country: AXA also bought majority stakes in Ouvo, BulkyPix and Arkadin, and acquired minority interests in Place des Leads and Sibille Industrie, as well as backing several bolt-on deals at portfolio companies. It also had a strong year on the exit front, selling Alvest to LBO France, Unipex to IK Partners, and its Keolis stake to national railway operator SNCF. Although its ownership issue remains unresolved, 2012 was clearly business as usual for AXA despite the economic challenges in its home territory.
Firm of the year in Germany
1. Capvis Equity Partners 2. Deutsche Beteiligungs 3. Montagu Private Equity
for which Charterhouse reportedly had to beat off stiff competition from EQT Partners, CD&R and trade player Honeywell International netted Capvis a return multiple of more than 3x, PEI reported at the time. Capvis also managed to put fresh capital to work in Germany. In June, the firm acquired Hessnatur, a company that designs and distributes organic and sustainable home textiles and natural clothing. A month later, it snapped up Ondal Group, a producer of pendant systems for medical applications. A productive year for Capvis, then and one that highlighted the benefits of an on-the-ground presence in this challenging market.
Firm of the year in Iberia
1. Investindustrial 2. Bain Capital 3. Mercapital / N+1
Although various prominent figures in the French business world have been wringing their hands about the economic damage done by President Hollandes new regime, AXA seems to have reacted with little more than a Gallic shrug. Its most eye-catching French deal in 2012 was the acquisition of Fives Group, for between 800 and 900 million, the
Two notable exits helped Capvis to triumph in the Germany category for the first time. It sold WMF, a German coffee machine company, to Kohlberg Kravis Roberts for approximately $725 million. And together with Partners Group, the firm also offloaded Bartec, a German safety equipment maker to UK-based Charterhouse Capital Partners. This deal
The Spanish and Portuguese economies may still be flatlining, but Investindustrial remains convinced that there is value to be found in this struggling region. Spains subdued consumer spending climate certainly has not persuaded the firm to give up on PortAventura, Europes
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third largest theme park; on the contrary, in 2012 it increased its stake from 50 to 100 percent. Since its original investment in 2009, Investindustrial has managed to double EBITDA at the business, thanks largely to its success in attracting tourists from overseas. In addition, the Southern European investment firm teamed up with Trilantic Capital Partners to acquire a 48 percent stake in Euskatel, a telecommunications provider in the Basque region. And it completed a successful exit from Contenur, an urban waste manufacturer that has also enjoyed substantial expansion during Investindustrials ownership. So it has done more than most to demonstrate that buying and selling good assets is still possible in Spain.
Firm of the year in Italy
1. Investindustrial 2. AXA Private Equity 3. Pamplona Capital Management
investors that there are still good deals to be found in Investindustrials heartland.
Firm of the year in MENA
1. The Abraaj Group 2. Gulf Capital 3. Fortissimo Capital
For the fourth time in the row, Investindustrial has come out on top in Italy and its easy to see why. Although Italy found itself in the headlines largely for the wrong reasons in 2012, Investindustrial still managed to impress investors with some notable exits.The highest-profile was undoubtedly the $1.1 billion sale of storied motorcycle maker Ducati, a deal that yielded a 3x return for the firm and proved that Italian lifestyle brands are still in demand around the world. This multiple, coupled with a good return from last years divestment of engineering business Permasteelisa, ensured that Investindustrial had some good numbers to show LPs when it hit the fundraising trail last year. And sure enough, by the end of the year, the firm was well on track to hit its hard-cap of 1.25 billion. Clearly its track record was enough to convince
Abraajs worldwide expansion continues. Less than a year after it acquired Amundis North African buyout operations, the firm bought Aureos Capital in February 2012, giving it an immediate presence in many parts of the emerging world. Now with assets under management worth $7.5 billion, Abraajs global milestones in the past year included several successful Asian IPOs, as well as a string of deals and exits in Asia, Latin America and Africa. It also remains a power in the MENA region: 2012 saw a $125 million investment in Saham Finance, a Moroccan and WestAfrican-based insurer, and the $36 million first close of its Palestine Growth Capital Fund. The firm also provided its backing to Kuwait Energy, an oil and gas exploration and production company, a couple of months later. Abraaj is undoubtedly going global but it keeps on oiling the wheels closer to home, too.
Firm of the Year in the Nordics
1. EQT Partners 2. Nordic Capital 3. IK Investment Partners
European deal of the year, the 1.8 billion acquisition of German bandage manufacturer BSN Medical from Montagu Private Equity in June. It also bought IT software vendor UC4 for 220 million from Carlyle Europe Technology Partners, took a 70 percent stake in Danish retail chain Tiger and sold off the third and final part of medical company Gambro for SEK 26.5 billion (3.1 billion, $4 billion) taking the total transaction value of EQTs exit to approximately SEK 50 billion (5.8 billion, $7.6 billion). A regional powerhouse and now very much a European powerhouse too.
Firm of the Year in Russia
1. VTB Capital 2. Baring Vostok Capital Partners 3. Elbrus Capital
Burger King: VTB hungry for more
Perhaps not surprisingly, given its victory in the large-cap category, EQT retains its crown as king of the Nordics for a fourth year in a row. And no wonder: in a year when activity was down across the board in Europe, the firm continued to power ahead on the deal-making front including the largest
Baring Vostok Capital Partners may have closed Russias largest ever fund in 2012 $1.5 billion, if you include the sidecar but it wasnt enough to prevent rival firm VTB Capital retaining the country crown for a second year in a row. Led by Tim Demchenko, the private equity arm of state bank VTB Group certainly enjoyed an impressive year: it made milestone investments in consumer retail (via a joint venture with Burger King and Burger Rus, which will give it the exclusive right to develop the franchise in the country). It also agreed a strategic tie-up with outdoor advertising company JC Decaux.
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VTB also exited EPAM via an IPO on the New York Stock Exchange the first US flotation of a company of Russian origin since 2004 and sold White Square, an office centre in Moscow, for a return of more than 2x. Its peers clearly think this is a firm that is going places.
Firm of the year in Switzerland
1. Capvis Equity Partners 2. Akina 3. Equistone Partners Europe
admiration of its European peers in this years voting.

Firm of the year in the UK
1. HgCapital 2. Cinven 3. Graphite Capital
After being forced off its throne by Nordic Capital last year, 2010 winner Capvis Equity Partners was back on top in Switzerland in 2012. The Swiss buyout firm partially exited Koenig Verbindungstechnik, a Swiss fastenings and sealing technology products group, which it had jointly acquired in September 2008 with HgCapital. But its most notable exit in its home country was definitely the sale of its 20 percent stake in Stadler Rail Group, a Swissheadquartered supplier of parts and services to railway companies, to the companys chief executive and largest shareholder Peter Spuhler. Since Capvis acquired its stake in 2006, the business has increased turnover from CHF 786 million (631 million, $850 million) to CHF 2.4 billion, and boosted its staff headcount from around 2,000 to 4,500. With a big domestic success story like this, its no wonder that Capvis won the
A first victory in this category for HgCapital, following a good year for both deals and exits. In the summer, Hg sold pharmaceutical company Mercury Pharma to fellow UKfirm Cinven, delivering a return multiple of more than 4.1x. It also exited SHL, a provider of assessment testing products, which had seen revenues grow by more than 80 percent and EBITDA by over 200 percent (thanks to organic growth and acquisitions) during Hgs period of ownership. That one yielded a return of more than 3.1x and a gross IRR of 26 percent. The firm wrapped up the year with the acquisition of Valueworks, an e-platform provider for the UK housing and construction market. The investment was the first deal from its new Mercury fund, a 300 million vehicle it has raised specifically to target lower mid-market TMT deals. Founder and chairman Ian Armitage retired from Hg this year but hes clearly leaving the firm in rude health.
Fund of Funds of the Year in Europe
1. BlackRock Private Equity Partners 2. Access Capital Partners 3. Danske Private Equity
group, last July, in a deal that doubles the assets managed by its private equity unit to $15 billion. That will make it one of the largest fund of funds manager in the world, as well as reinforce its presence in the infrastructure, European and Asian private equity markets. Its also been a bumper fundraising year for BPEP; the firm gathered $1.6 billion in new commitments in 2012, including $700 million worth of re-ups from existing separate account clients and strategic partners. And it was also BPEPs strongest year yet in terms of LP distributions, with $1.2 billion handed back to investors over the period.
Placement agent of the year in Europe
1. Campbell Lutyens 2. MVision Private Equity Advisers 3. UBS
Capvis: sold Swiss rail company
As if it was not enough to be the worlds largest asset manager, BlackRocks decided that 2012 would be the year when it makes a big splash in the fund of funds pond. The firm acquired Swiss Re Private Equity Partners, the private equity and infrastructure fund of funds arm of the Swiss insurance
Campbell Lutyens, in prior years better known for its work in the secondaries and infrastructure markets, is now motoring in private equity fund placement, too. Led by Richard Allsopp (above), the primary fund placement team was responsible for the lightning quick fundraising of listed German buyout firm Deutsche Beteiligungs (DBAG).With the help of Campbell Lutyens, DBAG hit its hard cap of 700 million in just four months beating the original 650 million target. The firm successfully closed six private equity and infrastructure funds worth approximately 3 billion. And in what proved to be a record-breaking year for new business, the firm won more than 5 billion of primary fundraising mandates from new private equity and infrastructure clients. Even the monarch was impressed. In May, Campbell Lutyens celebrated picking
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up The Queens Award for Enterprise for its contribution to International Trade.
Law firm (fund formation) of the year in Europe
1. SJ Berwin 2. Simpson Thacher & Bartlett 3. Proskauer Rose
B&M: Clifford Chance helped CD&R bag some bargains
Europes largest fund team came out on top for the 12th year in a row, proving again that bigger can be better. In another typically busy year, SJ Berwin advised on nine fund closings in Europe more than any other law firm with a total worth of almost $2.5 billion. Notable clients included Patron Capital, which raised 880 million for its fourth fund, and Quilvest Private Equity, whom the firm advised on two separate fund closes. SJ Berwin does not appear to be dwelling on its success, either. 2012 saw the firm expand its jurisdictional reach by opening an office in Luxembourg, while it also hired David Huff, formerly 3is director of tax, as a private equity tax consultant. With the funds team already advising on several large and mid-market fundraisings that are approaching a final close, it would be brave to bet against them retaining their title next year. Can anyone stop them making it lucky number 13?
Law firm (transactions) of the year in Europe
1. Clifford Chance 2. SJ Berwin 3. Baker & McKenzie
For instance, the global firm acted for Clayton, Dubilier & Rice when it acquired UK retailer B&M Stores. It was also in Cinvens corner for the 465 million ($582 million; 454 million) acquisition of speciality pharmaceutical company Mercury Pharma from HgCapital, and its subsequent 367 million acquisition of family-owned Amdipharm. The firm was busy on the sell-side too: it advised Equistone Partners Europe on the 1 billion sale of Global Blue,The Carlyle Group on the 650 million sale of cash management business Talaris, and Montagu Private Equity on the blockbuster 1.8 billion sale of BSN Medical to EQT. All told, its no wonder Clifford Chance was voted as Europes top deal advisor for the 12th year running.
Large-Cap lender of the year in Europe
1. Deutsche Bank 2. JPMorgan 3. Goldman Sachs
billion acquisition of Ancestry.The bank also backed EQT when it bought BSN Medical, the German bandages maker, in a deal worth 1.8 billion. Deutsche also had a hand in floating Dutch cable company Ziggo for Warburg Pincus and Cinven while also assisting in the bookrunning for BC Partners new PIK notes for Swedish cable television group Com Hem, raising 250 million. In fact, with more than 4.5 billion of leveraged loan issuance, Deutsche was Europes top bookrunner and thus a worthy winner of our large-cap lender category.
Mid-cap lender of the year in Europe
1. Partners Group 2. HSBC 3. Intermediate Capital Group
There werent a lot of big European private equity deals in 2012, but when one did come along, it was a fairly safe bet that a Clifford Chance lawyer would be at the table.
For a second year running, Deutsche Bank has been pivotal in helping firms get the big deals done. Although it was a relatively quiet year for M&A at the larger end of the market, Deutsche managed to meet sponsors financing needs even as some of its rivals retrenched. UK headquartered buyout firm Permira used Deutsche for its $1.6
With some traditional providers choosing to reduce their lending activity in 2012, particularly in this segment of the market, Partners Group seized the opportunity to pounce.The firms private debt arm, headed up by Ren Biner and Juri Jenkner, raised its first-ever dedicated investment vehicle a 375 million fund that will provide debt financing to mid-market companies. By formalising and strengthening its lending activities, last years European Mezzanine firm of the year succeeded in dislodging last years winner HSBC from the top spot. Its timing seems to be impeccable. Capital constraints are forcing some of the banks to withdraw from the market (at least to some extent) but the demand for fresh debt remains strong, as GPs look to refinance their existing investments and put their dry powder to work. Partners is not the only firm to recognise this trend. But this result shows that not for the first time it has managed to stand out from the crowd. n
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THE PEI AWARDS 2012: americas Large-cap firm of the year in North America
1. The Carlyle Group 2. Bain Capital 3. Kohlberg Kravis Roberts
Mid-market Firm of the Year in North America

1. The Riverside Company 2. Vista Equity Partners 3. Thoma Bravo
This years king of the large-cap firms in North America is The Carlyle Group, a group that has perhaps more than any other mega-firm expanded its product offerings well beyond traditional private equity into strategies like real estate, credit and natural resources. Carlyles story highlights the relatively quick evolution of the largest section of the industry. Most mega-firms have moved from leveraged buyouts into many other areas, and its a trend that will continue as the biggest shops continue to grow. Still, the firms evolution has not impaired its ability to raise capital or make deals. Carlyle raised about $9.4 billion during the first three quarters of 2012 alone an impressive effort by its fundraising team. The firm also kept busy on the mega-deal front by acquiring DuPont Performance Coatings for $5.15 billion and Getty Images for $3.3 billion. Carlyle also found exits, including the sale of Dunkin Brands, which earned the firm a reported 3x return.
Many firms in todays volatile financial environment are struggling to make or exit deals. The Riverside Company doesnt seem to have that problem. Last year it made 36 new investments including its 300th global transaction. It also recorded no fewer than 14 exits, with highlights including the sale of a stake in Wildlife International, which netted the firm a cash-on-cash return of 11.9x, and specialty manufacturer DuBois Chemicals, which generated a 5x return. Its most recent fund, Capital Appreciation Fund V, was generating a combined net internal rate of return of 33 percent and a 3x cash-on-cash multiple. Indeed, for Riverside, last year was not all that different from previous years: regardless of the economic environment, or what other investors are doing, the firm continually follows its own path, finding and doing deals both in North America and beyond.
Limited Partner of the Year in North America
1. State of Wisconsin Investment Board 2. Florida State Board of Administration 3. Ewing Marion Kauffman Foundation
doesnt hurt). It also means helping set a standard in the industry that other limited partners end up following. Wisconsin made a bold statement in 2012 when it publicly revealed the rationale for selling a big chunk of its private equity portfolio. The system, one of the biggest and oldest investors in the asset class, had decided to back away from mega-funds. Now that some of the largest funds had gone public, they were no longer properly aligned with LPs, according to public documents from the retirement system. Wisconsin was not blazing a new path; other LPs have made the same choice in recent months and years. But its bold public pronouncement helped define a trend that had been gradually forming in the industry, and may well continue long into the future.
North American Exit of the Year
1. North American Breweries (KPS Capital Partners) 2. Suddenlink (Goldman Sachs, Oaktree Capital Management, Quadrangle Group) 3. Sunquest Information Systems (Vista Equity Partners, Huntsman Gay Global Capital)
Rubenstein: answering to LPs and shareholders
Being the years top investor means more than just committing the most capital to private equity managers (though that
This beer deal was legendary. The numbers dont lie: KPS Capital Partners reaped a 9x return on its sale of North American Breweries, making it one of the most successful exits of the year. But back when the firm launched its brewery effort in 2009, the chances of that happening looked remote. KPS took a collection of moribund brands, including the Genesee label that had been around for more than 150 years, and bolted them together into one business.
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THE PEI AWARDS 2012: Americas
American beer: revitalised by KPS
With North American Breweries, the firm built a company by combining a number of cast-off brands and revitalising them, as well as introducing some new products into the mix. The resulting company has several popular brands of beer, including Pyramid, Magic Hat and new products like Labatts lime-flavoured Blue Light Lime. Its not an easy way to live picking out the value that no one else can find but KPS clearly has a knack for it.
North American deal of the year
1. El Paso (Apollo Global Management, Korean National Oil Corp., Riverstone Holdings) 2. TCW (The Carlyle Group) 3. HIS (BC Partners, The Carlyle Group)
Of course, the deal was not without its complications; few $7 billion plus transactions are. El Paso investors sought to halt the acquisition an effort that was blocked by a Delaware court judge and there were some conflict of interest concerns surrounding Goldman Sachs involvement as an advisor to El Paso. However, none of these snags were sufficient to stymie the efforts of the Apollo-led group. The collective sealed the deal in May, and since then the newly-dubbed EP Energy has thrived. Oil volumes are up by 60 percent, and new gas rigs are planned in two of its properties, according to a third quarter investment report. Sometimes it pays to think big.
Secondaries deal of the year in North America
1. Willis Stein restructuring (Landmark Partners, Vision Capital) 2. Ridgemont Equity Partners spin-out (Goldman Sachs, AlpInvest and Landmark Partners) 3. OMERS Portfolio (AXA PE)
players Landmark Partners and Vision Capital (with some help from PineBridge Investments) was particularly creative. Willis Steins $1.8 billion 2001 vintage had struggled to close out its three remaining investments, much to the chagrin of some of its LPs. In order to liberate those assets, Landmark and Vision contributed $220 million to acquire existing LP interests and create a new vehicle for the remaining companies. LPs who chose to cash out on their investments received 90 cents on the dollar for their stakes, while those who stuck around rolled their commitment over into the new vehicle. With LP concerns over so-called zombie funds on the rise, Landmark andVisions solution to Willis Steins end-of-life woes serves as a timely reminder of how secondary strategies can provide an effective way out. Creativity and effectiveness definitely worth an award, in our book. Secondaries Firm of the Year in North America
1. Landmark Partners 2. AXA Private Equity 3. Lexington Partners
Apollo Global Management, the Korean National Oil Corporation and Riverstone Holdings aimed high with their acquisition of El Pasos oil and gas exploration division last year, shelling out $7.15 billion (in a deal that valued the whole company at $38 billion).
Every deal is different, but the Willis Stein restructuring arranged by secondaries
Landmark Partners seems to hold a perpetual spot at the top of the North American secondaries chart, winning this title year after year. The firm is known for its ability to craft creative solutions to the needs of buyers and sellers in the market. Last year was no exception: the firm teamed with Vision Capital on the restructuring of a long-lived tail-end fund in which limited partners were desperate for liquidity options. The deal which involved Willis Steins third fund was widely viewed as a model for how the secondary market could help LPs deal with funds in their portfolio that had lived long past their contractual lives. Landmark also took part in a deal to
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help Ridgemont Equity Partners achieve financial separation from its parent, Bank of America. Spin-outs from larger organisations were another trend in the market that could become an area of great opportunity for secondary players. And as usual, Landmark is leading the way.
Distressed investment firm of the year in North America
1. Oaktree Capital Management 2. Apollo Global Management 3. Centerbridge Partners
likes of the Washington State Investment Board, the Massachusetts Pension Reserves Investment Management Board, the Los Angeles County Employees Retirement Association and the Tennessee Consolidated Retirement System. The Howard Marks-led firm just seems to inspire confidence in its LPs especially with its strong past performance and todays volatile financial environment will likely keep the Los Angeles-based group busy for a long while yet.
Special Situations/ Turnaround Firm of the Year in North America
1. Ares Management 2. Sun Capital Partners 3. KPS Capital Partners
Of course, the speedy fundraise benefitted from Ares performance on Fund III, a $3.7 billion 2008 vintage that was generating a 25.4 percent net internal rate of return through June, according to California Public Employees Retirement System documents. In addition to knocking out a successful fundraise, Ares beat out Centerbridge Partners to acquire a majority stake in US grocery retailer Smart & Final from Apollo Global Management for $975 million. Ares also ventured south of the border for its investment in oilfield service provider Oro Negro.
Firm of the year in Canada
1. Canada Pension Plan Investment Board 2. Onex Corporation 3. Teachers Private Capital
Attracting some of the biggest state pension systems in the US into a fund is no mean feat, especially in todays ultra-tight fundraising environment. So when a slew of the biggest names in the state pension world commit, its pretty clear the firm running the vehicle is doing something right. Such is the case with Oaktree Capital Management, a threetime champion in distressed investments, both in Europe and North America. Last year, the firm collected $5 billion on a $4.9 billion target for its latest distressed fund, Oaktree Capital Management Opportunities Fund IX. Oaktree LPs include the
It all comes down to performance. If you cant generate returns for your LPs, dont expect your LPs to fork out commitments to your next fund. Neither was a problem for Ares Management in 2012. Ares closed its fourth flagship fund on $4.7 billion in August, well north of the $4 billion target the firm had set when it began pitching Ares Corporate Opportunities Fund IV to investors in early 2012.
Smart & Final: now the property of Ares
Keeping up with the Canada Pension Plan Investment Board is not easy. After naming Mark Wiseman (right) as its new president and chief executive officer and hiring Goldman Sachs veteran Mark Machin as president of CBBIP Asia, the C$172.6 billion manager went on an investing spree. CPPIB bought a majority stake in US cable company Suddenlink for a whopping $6.6 billion alongside BC Partners, and acquired the Air Distribution division of Tomkins for $1.1 billion. The pension plan also shook things up in the secondaries market, committing $654 million as the lead secondary investor in the restructuring of Behrman Capitals Fund III. While CPPIB continued to focus more on direct private equity deals last year including $400 million into oil and gas assets in Calgary and Alberta the pension plan was also active on the private debt side,
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financing $400 million of a $1 billion highyield loan to Formula One Group.

Firm of the year in Latin America
1. Rio Bravo 2. The Carlyle Group 3. BTG Pactual
Closing any fund these days is an accomplishment. Changing the way fundraising is conducted in one of the hottest emerging markets? Consider that spectacular. In May, Brazil-based Rio Bravo closed its clean energy Energia I fund on R$463 million (185.8 million; $229.6 million), a total that included commitments from 20 Brazilian pension systems among its investors. Brazilian pensions are notoriously demanding limited partners, and have historically insisted on holding a seat on their fund managers investment committees.That puts them at odds with more traditional LPs, particularly international investors, who are concerned about conflicts of interest. Rio Bravo found a way around Brazilian pensions unusual demands, negotiating a concession on Energia I that gave the pensions a seat on the funds advisory committee. That concession the first of its kind was enough reassurance for international investors, who entered the fund following a 2010 first close. A revolution in Brazilian fundraising? Not bad for R$463 million.
Fund of funds of the year in North America
1. HarbourVest Partners 2. Hamilton Lane 3. Portfolio Advisors
private equity firm Absolute Private Equitys portfolio, highlighting the trend for consolidation in the listed private equity world. In 2012, it made another acquisition in this space only this time, it went bigger. In July, the Boston-based fund of funds and secondaries specialist acquired Conversus Capitals portfolio of private equity fund interests and co-investments for $1.4 billion.The listed portfolio includes interests in more than 200 funds, making it the largest of its kind. Investors seem to approve: HarbourVests own listed vehicle narrowed its discount to NAV substantially last year. As if that wasnt enough, the firm also established a Chinese presence with its appointment of Sally Shan (above), who will head the firms new office in Beijing. Shans extensive private equity pedigree includes stints at JP Morgan, Lehman Brothers and Asia Strategic Investment Corp. No shortage of ambition, then...
Placement agent of the year in North America
1. Eaton Partners 2. Park Hill Group 3. Credit Suisse
$750 million target, and Parallel Resource Partners Energy Recapitalization and Restructuring Fund to $520 million smashing its $300 million target. Other highlights included Summit Partners debut credit fund, which collected $520 million on a $300 million target, and Intermediate Capital Groups Europe Fund V, which hit its GP-imposed 2.5 billion hard-cap. Eaton also claimed a piece of the separate account market, helping Asia Alternatives Capital Partners III raise $908 million on an $800 million target, plus $600 million of separate accounts.
Mid-cap lender of the year in North America
1. GE Capital 2. Golub Capital 3. Fifth Street Capital
A well-executed plan is worth repeating. In 2011, HarbourVest turned heads with its $800 million acquisition of listed
Fundraising for private equity funds hasnt gotten any easier, but having placement agent Eaton Partners raise your fund is certainly an advantage. The Connecticutbased firm helped several general partners exceed their targets and reach final closes without turning fundraising periods into multi-year affairs. Eaton was particularly active with energy funds (very popular at the moment). It helped take Red Kite Groups mining fund RK Mine Finance Fund II to $1.15 billion in just 10 months, well above the firms
At a time when many companies in the mid-market struggled to secure capital from the big banks, as they grapple with balance sheet problems, GE Capital has continued to prove itself to be the friend of the mid-market deal. The groups Sponsor Finance business completed 275 transactions for $17.8 billion in volume, while its Senior Secured Loan Programme provided $3.4 billion to mid-market borrowers and private equity firms. SSLP, which is jointly managed by an affiliate of GE Capital and Ares Capital Corporation, led a $367 million loan for Kelso & Companys acquisition of Augusta Sportswear and a $200 million loan to support the refinancing of consumer sewing machine business SVP Worldwide by Kohlberg & Company. Bigger-ticket transactions included a $405 million senior facility for Leonard Green & Partners acquisition of Tank
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Holdings and a $555 million loan for packaging solutions business TricorBraun, a CHS Capital portfolio company.
Large-cap lender of the year in North America
1. JPMorgan 2. Goldman Sachs 3. Royal Bank of Canada
Providing $32 billion in loans across 131 transactions in one year will get you noticed. JPMorgan has long been a preferred lender to the private equity community (it won last year too) and specialises in many of the headline-grabbing large-cap transactions pursued by giants like The Carlyle Group, Kohlberg Kravis Roberts and The Blackstone Group. This year, JPMorgan provided working capital through an asset-backed loan
to Carlyle in that firms effort to save a Philadelphia refinery. The high-profile public-private partnership which took place in the midst of a contentious debate about private equitys role in the economy is thought to have saved 850 jobs at the site, the oldest operating refinery on the east coast. The bank also arranged debt financing on Summit Partners and Golden Gate Partners merger of Infor and Lawson, a technology deal with a $1 billion-plus equity ticket. A tough year to top in 2013 but never underestimate the crew at 270 Park Avenue.
Law firm of the year (fund formation) in North America
1. Debevoise & Plimpton 2. Simpson Thacher & Bartlett 3. Latham & Watkins
Law firm of the year (transactions) in the Americas

1. Kirkland & Ellis 2. Ropes & Gray 3. Debevoise & Plimpton
Kirkland & Ellis started 2012 with a bang, winning more private equity deal work than any other law firm in the first quarter. And activity never slowed allowing Kirkland to depose rival firm Simpson Thacher & Bartlett as the top-rated firm for transactions.
JPMorgan: large-cap leviathan
During a period when fundraising conditions are tricky, to say the least, GPs place high value on having the industrys top legal advisors sitting at their end of the table during negotiations with LPs. That much was made clear as Debevoise & Plimpton continued its streak as the top choice for GPs raising capital. Led in New York by partners Michael Harrell and David Schwartz, the fund formation practice helped GPs secure an impressive $22 billion in commitments for funds that held a final close in 2012. Factor in money raised last year for funds yet to announce a final close, and that number jumps to $35 billion. Notable briefs last year included helping Baring Vostok Capital Partners secure $1.5 billion in total firepower for its Fund V; and Capital International corral an even higher $3 billion for its Private Equity Fund VI. No wonder its still the leader of the pack.
Ancestry: Kirkland advised on the $1.6bn deal
Stateside, its team of M&A lawyers could boast of advising a handful of GPs on $1 billion-plus deals, at a time when most law firms were happy to settle for mid-market transactions. Mega deals in which Kirkland took part included Permiras $1.6 billion buyout of genealogy website Ancestry.com; Bain Capitals purchase of tools manufacturer Apex Tool Group, also for $1.6 billion; and Thoma Bravos $1.1 billion all-cash acquisition of software company Deltek. With some industry observers predicting a return of the mega buyout in 2013 (especially in light of the Dell deal), Kirkland should be in pole position to retain its newly-acquired crown in the coming year. n
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THE PEI AWARDS 2012: asia Large-cap firm of the year in Asia
1. Bain Capital 2. Kohlberg Kravis Roberts 3. CITIC Private Equity Funds Management
Mid-market firm of the year in Asia

1. Navis Capital Partners 2. Warburg Pincus 3. Olympus Capital
Limited Partner of the year in Asia

1. Government of Singapore Investment Corporation 2. Temasek 3. Ontario Teachers Pension Plan
Shopping: Bain now big in Japan
Challenging US election rhetoric and strong competition from KKR and CITIC PE didnt faze Bain Capital. The firm (which won Firm of the Year in Japan last year) continued to complete large buyouts in Asias toughest markets. It was not only the $1.1 billion Jupiter Shop Channel buyout in Japan that earned Bain accolades, but the firms $1 billion purchase of business process outsourcing firm Genpact in India. There were also three control transactions in China, where such deals are rare. We have a flexible approach to investments in Asia and are able to pursue the best deals irrespective of scale and geography, says Jim Hildebrandt, managing director of Bain Capital. While we have completed many mid-market investments, we have also originated and closed some of the largest deals in the region. Indeed, the firm seems to be sailing on through the storm: Bain closed a $2.3 billion Asia fund during a year when annual Asia fundraising totals were down 30 percent.
In a tough year for deals and exits in the region, Navis was very much an exception to the general trend.The most eye-catching figures came from two 10x exits, one in Hong Kong and one in Indonesia. But all told, the team executed a total of six deals and six exits across Asia (excluding add-on acquisitions) in diverse markets including Malaysia, Vietnam and India. Its the first time ever our new deals equaled exits and we plan to maintain that going forward, says co-founder Nicholas Bloy (below). Navis (which also won the Southeast Asia Firm of the Year in 2012 and 2011) is happy to remain a mid-market firm that does almost exclusively control deals. That means, among other things, using far less leverage than the larger firms, Bloy says.The team would rather pursue an aggressive growth strategy backed by a strong balance sheet, instead of acquisition finance, which inhibits a company from growing because it has to pay back debt.
The Government of Singapore Investment Corporation upstaged local rival Temasek, courtesy of several large transactions and investments. GIC was largely cautious, stockpiling cash during the year as it awaited better investing conditions. Nonetheless, the $247 billion Singaporean sovereign wealth fund jumped in on two acquisitions with Bain Capital in India, including the $1 billion secondary buyout of General Atlantic- and Oakhill Capital-owned Genpact. GIC also joined a group of private equity investors in a $1 billion acquisition of Koreas Kyobo Life Insurance, further demonstrating to Asian GPs that it can carry out coinvestments across the region. Also in 2012 (during which it increased its allocation to alternative assets by 1 percent), GIC, along with KIA and a third unnamed fund acquired a 10 percent stake in CVC Capital Partners; the hope being that it will bring preferential access to CVC deals as well as a share of management fees and carried interest.
Singapore: GICs base for a shopping spree private equity international
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THE PEI AWARDS 2012: asia
Exit of the year in Asia

1. Unison Capital 2. Navis Capital Partners 3. Steamboat Ventures
2. China Cinda Asset Management (UBS, Standard Chartered, CITIC Capital) 3. Hong Kong Broadband Network (CVC Asia Pacific)
Sushi: healthy returns for Unison
A lack of deals and low returns in Japan have disappointed investors. But Unison Capitals 2012 exit of Akindo Sushiro, a sushi restaurant chain that it sold to UK-based Permira for $1 billion, may give some pause for thought. Unisons sale yielded an 8x exit multiple, says Tatsuo Kawasaki, Unison cofounder and partner. Operational work played a key role. Over a five-year holding period, EBITDA increased from 4 billion to 10 billion yen (84 million; $113 million), purely from organic growth, he adds. The management pushed forth with growth and profitability initiatives and these came to fruition in light of the fact that the Japanese economy at best is going sideways, Kawasaki says. In the last 13 months, Unison also made five acquisitions, four in Japan and one in Korea, which came from Fund III (vintage 2008). In 2013, the firm intends to raise a new Japan-focused fund, suggesting that the country, at least for Unison, is living up to expectations.
Deal of the year in Asia
1. Alibabas buyback of Yahoo! Shares (China Investment Corporation, Boyu Capital, CITIC Capital, China Development Bank)
Alibaba Groups $7.6 billion buyback of about half of Yahoo!s stake, driven by a China Investment Corporation-led group, was Chinas largest private financing ever for a private sector company. The group included Boyu Capital, CITIC Capital and CBD Capital, together providing $4.6 billion (including convertible equity). The complex deal had five parts involving M&A and financing, with private equity playing a key role in the final phase. Altogether we were executing five deals and all had to be coordinated with different parties with different interests in different jurisdictions, says Joseph Tsai, CFO of Alibaba. Talks with the Chinese investors began in early 2012, even before a deal withYahoo! had been sealed. We couldnt tell the PE guys we needed the capital until we had a deal locked up, so it was a chicken-and-egg problem. This year founder Jack Ma will step down as chief executive officer, leading to rumours that Alibaba which is valued at $40 billion will reward investors soon by launching an IPO.
Firm of the year in Australasia
1. Pacific Equity Partners 2. CHAMP Ventures 3. CHAMP Private Equity
Sims: Deal finder
acquired through LBOs for total dollar outlay in excess of A$1 billion. One of those was the A$720 million take-private of cleaning services giant Spotless Group, which had rejected previous offers from the Blackstone Group and CVC Asia Pacific, as well as PEP. This year promises more big events. PEP expects to realise nearly A$2 billion in the next 18 months and has high hopes for strong returns from several Fund IV portfolio companies.That ideally paves the way for the expected launch of the next fund: an ambitious A$2 billion core fund plus an A$1 billion sidecar for discretionary co-investment.
Firm of the year in China
1. The Carlyle Group 2. CDH Investments 3. FountainVest Partners
Its been a good year for Pacific Equity Partners. Although the number and value of Australia deals fell significantly (along with most of Asia), PEP reviewed close to 100 transactions, price indicated on 25 and went all the way on five, says managing partner and co-founder Tim Sims. Two werent sold and the other three the firm
HKEx: produced a 6x return for Carlyle annual review 2 0 1 2
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Think a foreign firm can no longer win in China? For the first time since 2006, a global firm unseated the local powerhouses. The Carlyle Groups work in China speaks for itself: in addition to eight domestic investments totaling more than $700 million, Carlyle was the lead investor on the landmark $3.7 billion Focus Media takeprivate. In addition, Carlyle realised over $1.5 billion in proceeds, including a multiple-stage exit of China Pacific Insurance Group via the Hong Kong Stock Exchange, which according to reports yielded a return of almost 6x. Having established our presence in China for more than 15 years, we have built a large local team with strong local networks and a highly respected brand name, explains Xiang-Dong Yang, Carlyle managing director. In that time, Carlyle has invested in everything from real estate to healthcare from five different funds three USD and two RMB and is targeting $3.5 billion for another Asia buyout fund.
Firm of the year in Japan
1. J-Star 2. Bain Capital 3. The Longreach Group
Woongjin Coway: MBKs watercooler moment in Korea
The big story in Japan in 2012 was the small-cap market, with 77 percent of deals under $125 million, according to Brightrust PE Japan figures. J-Star snatched the plaudits from industry giant Bain Capital as the leading firm in this arena and with good reason. The firm has had two impressive exits in a depressed market (a source close to the firm described the exits as 8x and 3.4x), both to strategic buyers. The seven-person firm also bought a controlling stake in Three Arrows, a small pet products supplier, for under $125 million. Gregory Hara, president and chief
executive of J-Star (below), likes to call the firms investments solution capital, because they focus on issues within the company that private equity can fix. He believes J-Stars reputation in the insular small-cap market has made all the difference.The firm also believes its wellpositioned to help Japanese companies expand offshore: a January 2013 exit involved a Japan-China business.
Firm of the year in Korea
1. MBK Partners 2. Hahn & Co. 3. H&Q Asia Pacific
MBK Partners took the Korea award from last years winner Morgan Stanley Private
Equity Asia, mainly on the basis of an unusual deal that attracted industry attention. The firms $1.54 billion investment in air and water purification business Woongjin Coway brought management control for just a 31 percent stake. It was also Koreas largest deal where the family-run conglomerates (or chaebols) lost the bidding, according to MBKs head of Korea James Yoon possibly signalling a change in the market dynamic. The firm also exited Koreas largest car rental, KT Rental, for a 1.9x return and 31 percent IRR, and held a $1.5 billion first close on their third fund just months after launching. MBKs choice to focus on the domestic consumption story, rather than Korea as an export base, has given the firm a distinct advantage, according toYoon. That helped us maintain our portfolio, even in times of greater market uncertainty, he explains.
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FIRM OF THE YEAR IN INDIA

1. Everstone Capital Partners 2. Warburg Pincus 3. ChrysCapital
For the second year running, Everstone Capital Partners took the award for India. Ploughing through its second India-focused fund, Everstone made a number of investments last year when other firms sat on the sidelines. Led by co-founders Sameer Sain and Atul Kapur, Everstone showed it could deploy capital in India, a market where deal flow has plunged in line with Indias macro indicators. The $580 million fund was 30 percent deployed as of October 2012 across six investments, including a $38 million acquisition of education firm S Chand Group and undisclosed investments in R&R Salons Private and Transpole Logistics. And the firms ambitions may be growing. According to reports, Everstone was one bidder for the India operations of travel service provider Thomas Cook. Also last year, Everstone strengthened its senior management: in October, it hired Rajesh Jaggi as head of real estate, allowing the existing senior partners to focus on the firms private equity business.
Indian education: an Everstone focus
Firm of the Year in Southeast Asia

1. Navis Capital Partners 2. Saratoga Capital 3. Northstar Pacific Partners
For the third year in a row, Navis Capital Partners takes home the Southeast Asia award. No surprise there; the mid-market firm has been a trailblazer in the region ever since its 1998 founding. Navis highlight of 2012 was exits, according to managing partner Nicholas Bloy.The firm had four in
Southeast Asia one 4x, another 2.5x and two 10x exits, which were Efficient English Services in Indonesia and Hong Kong-based TrimCo. Navis found easy exits, Bloy adds, because it was the controlling shareholder in each investment something strategic buyers will increasingly look for in Southeast Asia, he believes. Going forward, the challenge will be handling the rising complexity of crossborder growth within the region, Bloy said. The ASEAN single market is expected to come into force in 2015, and has drawn the attention of global and pan-regional funds. But Bloy believes Navis long history and track record in the region gives his firm a veterans advantage.
Frontier Market Firm of the Year
1. Actis 2. Mekong Capital 3. Silk Road Management
Sri Lankan healthcare:a new frontier for Actis
Our heritage is in the emerging or frontier markets, says Meng Ann Lim, head of China and Southeast Asia for Actis pointing out that his firm first went into China and India when they were considered frontier markets.
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Last year, the UK-based firm continued that tradition by investing in the far-flung, underdeveloped market of Sri Lanka, a place where other investors tend to be more circumspect. In October, Actis invested $32 million in the Asiri Group, a 604-bed private hospital group in Colombo. Actis also hired David Koh as director in Singapore and Ivy Santoso in Indonesia groundwork for more emerging market deals, Lim says. And in the ESG area, the firm developed an energy impact model aimed at identifying non-financial value drivers within its energy portfolio. A big milestone for Actis was full independence. In April, the firm bought the remaining 40 percent stake from the UK government, from which it had spun out in 2004.
Fund of Funds of the year in Asia
1. Squadron Capital 2. HarbourVest Partners 3. Pantheon
drops in deal flow and fundraising) and is now raising its third vehicle targeting $400 million, according to PEIs data division.
Distressed/Special Situations firm of the year in Asia
1. Apollo Global Management 2. Oaktree Capital 3. PAG
Squadron Capital held on to its crown again, despite active years for peers HarbourVest and Pantheon. During 2012, the firm was acquired by US-based fund of funds FLAG Capital, which brings the pairs total assets under management to $6 billion. FLAG will help Squadron tighten relationships with the North American and European investor base, says David Pierce, Squadrons chief executive. Competing in a populous funds of funds industry in Asia, in a tough year for deals, Squadron stood out by investing in China, India, Southeast Asia, Australia and Korea, says Pierce. There are some very good companies that are now available for investment at more attractive valuations than any time in the recent past. Squadron remains positive about the region during 2013 (despite Asia-wide
Being the senior lender in what became one of the biggest write-offs in private equity history was bound to turn some heads. Lucky for Apollo, its decision to provide the debt for CVC Capital Partners A$5.6 billion (4.3 billion; $5.9 billion) acquisition of Australian TV network Nine Entertainment paid off. In a debt-for-equity swap, Apollo and fellow lender Oaktree Capital led a group of investors to take control of the struggling media business after CVC accepted an A$1.9 billion loss. But what likely put Apollo ahead of Oaktree in the awards voting was its latest Indiafocused special situations joint venture with ICICI Venture, the private equity arm of Indias second largest bank. The firms formed AION, hoping to finance good companies in India struggling to refinance debt.The fund had a first close in mid-2012 and is expected to reach a final close on $500 million.
Placement Agent of the year in Asia
1. UBS 2. Campbell Lutyens 3. MVision Private Equity Advisers
($600 million), GGV Capitals Fund IV ($509 million) and FountainVest Partners Fund II ($1.35 billion). Each of the three was oversubscribed and closed on their respective hard-caps. We were very glad to close three funds on their hard-caps in an environment that was not that conducive to fundraising, says Javad Movsoumov, executive director at UBS. UBS had previously worked with FountainVest in 2008 on Fund I, while Saratoga Asia and GGV are new clients of the firm (and Saratogas first use of a placement agent). UBS now has six Asia-based professionals in its private funds group and is currently working on two other Asia-focused private equity funds, which are expected to close in 2013.
Law Firm of the year in Asia (Fund Formation)
1. OMelveny & Myers 2. Debevoise & Plimpton 3. Ropes & Gray
LPs are scrutinising each commitment like never before, so closing two funds targeting China and one for Indonesia is no mean feat. UBS did just that, helping complete fundraising for Saratoga Capitals Fund III
For the third year, OMelveny & Myers took the Fund Formation award in Asia. Part of the reason, says partner Dean Collins (left) is the firms track record. OMM has seven offices in Asia and was one of the earliest global firms involved in Asia fund formation, advising on their first in 2004. In 2012, the firm advised on 25 diverse funds across the region, including the first fund for Asia Growth Capital Advisors (a spinout from Credit Suisse); the debut fund from Indonesias KV Asia Capital; Sino-Centurys first US dollar vehicle and the $750 million Rothschild Investment Trust and Creat Group joint venture
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private equity fund. OMM also worked with large Asian LPs including the Government of Singapore Investment Corporation and China Investment Corporation. Collins believes private equity clients are attracted to the way OMMs team integrates with clients, adding that his firm sees itself as an extension of a GPs investor relations rather than an outsourced service provider.
Law Firm (Transactions) of the Year in Asia
1. Clifford Chance 2. Ropes & Gray 3. Freshfields Bruckhaus Deringer
Lender of the Year IN ASIA

1. HSBC 2. Standard Chartered Bank 3. Mizuho Bank
After two years, Clifford Chance has taken the Law Firm transactions title back from rival Debevoise & Plimpton. The firm advised on more than 20 complex transactions in Asia last year. Some of the highlights include CVC Asia Pacifics $105 million acquisition of Venturepharma Group (China); CVC Capital Partners $641 million acquisition of Hong Kong Broadband Network, a rare LBO of a Hong Kong-listed company; and Permiras $1 billion leveraged buyout of Japans Akindo Sushiro in a secondary deal from Unison Capital. The firm also promoted veteran Mark Shipman (above) to head of corporate practice in Asia-Pacific. Shipman has been with the firm in Asia since 1997, when private equity was just beginning in the region. Clifford Chance is also looking ahead. It was one of the first law firms to open an office in Seoul this year (after local regulations let in foreign law firms). It now has nine offices across Asia-Pacific.
HSBC was a key lender on several big Asian deals in 2012, including Alibabas private equity-backed $7.6 billion buyback of shares fromYahoo! and Pacific Equity Partners $753 million buyout of Spotless Group. Altogether, the bank underwrote $800 million of debt across five deals, according to Lyndon Hsu, head of leveraged and acquisition financing for Asia Pacific. This is quite a step-up yearon-year, he added in 2011, HSBC had only $400 million in underwrites. The activity comes during a time when many European banks are pulling back from debt lending in Asia in order to shore up their balance sheets at home. HSBC was originally a Hong Kong bank until the 80s and since then has built its brand via offices in most Asian countries, which serve to connect the dots for private equity, Hsu said. The consolidation of [acquisition finance] this year has really given a sense of renaissance to the bank.
Secondaries firm of the year in Asia
1. Partners Group 2. Axiom Asia 3. Lexington Partners
hired ex-JPMorgan executive Cyrus Driver to head its India operations, even as the market continues to loses its appeal to investors. With many funds coming to the end of life in China and India and exit markets clogged, will this be the year when the regional secondaries market really takes off? According to Adam Howarth (below), head of Asian secondaries at Partners, the market is at an inflection point in Asia. Many investors are looking at their portfolios and deciding what to do in terms of portfolio management.
SECONDARIES DEAL OF THE YEAR IN ASIA
1. GIC portfolio (CS Strategic Partners) 2. Mizuho portfolio (AXA Private Equity) 3. Thai solar portfolio (Equis Funds Group)
Rounding off the year with an impressive 2 billion final close on its latest global secondaries vehicle, Partners Group clinched the top spot for secondaries firm in Asia.The firms increased commitment to Asia Pacific will be reflected in a larger allocation of capital and resources to the region via the new fund. Another highlight of the year was Partners contrarian upbeat view on India: it
Appearing again on this years list of winners is the Government of Singapore Investment Corporation, the sovereign wealth fund, this time for selling a chunk of its massive private equity portfolio in a sales process run by UBS. GIC sold $750 million worth of its portfolio during the course of the year, but CS Strategic Partners took the largest piece close to $300 million worth of private equity assets. The sale represented the first time GIC has pursued a major, intermediated sale of its private equity assets, PEI reported. The move closely followed a change in management at the institution. In June 2011, GIC promoted Tay Lim Hock, deputy president of GIC Special Investments, the institutions private equity arm, to president. Since the end of the year there have been more top-level changes: Kok Song Ng, GICs first group chief investment officer, retired, making way for his deputy Chow Kiat Lim to take over his post. n
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THE PRIVATE EQUITY INTERNATIONAL AWARDS 2012

private equity international

LEADERS OF THE YEAR

THE PRIVATE EQUITY INTERNATIONAL LEADERSHIP AWARD 2012

Ian Armitage, founder and outgoing chairman of HgCapital

THE PRIVATE EQUITY INTERNATIONAL LEADERSHIP AWARD IN ASIA 2012

Ashish Dhawan, co-founder and ex-senior managing partner, ChrysCapital

THE PEI AWARDS 2012: roll of honour

private equity international

THE PEI AWARDS 2012: EUROPE

LARGE-CAP FIRM of the Year in Europe

Morocco: new destination for the EBRD

Deal of the year in Europe

THE PEI AWARDS 2012: EUROPE

Secondaries deal of the year in Europe

Alliance Boots: Boom-era deal in good health

private equity international

THE PEI AWARDS 2012: EUROPE

Garden City: fertile ground for Actis

private equity international

THE PEI AWARDS 2012: EUROPE

Firm of the year in Central and Eastern Europe

Keolis: AXA on track

private equity international

THE PEI AWARDS 2012: EUROPE

Burger King: VTB hungry for more

private equity international

THE PEI AWARDS 2012: EUROPE

admiration of its European peers in this years voting.

Capvis: sold Swiss rail company

private equity international

THE PEI AWARDS 2012: EUROPE

Mid-market Firm of the Year in North America

Rubenstein: answering to LPs and shareholders

private equity international

THE PEI AWARDS 2012: Americas

American beer: revitalised by KPS

private equity international

THE PEI AWARDS 2012: Americas

Smart & Final: now the property of Ares

private equity international

THE PEI AWARDS 2012: Americas

financing $400 million of a $1 billion highyield loan to Formula One Group.

THE PEI AWARDS 2012: Americas

Law firm of the year (transactions) in the Americas

JPMorgan: large-cap leviathan

Ancestry: Kirkland advised on the $1.6bn deal

private equity international

Mid-market firm of the year in Asia

Limited Partner of the year in Asia

Shopping: Bain now big in Japan

Singapore: GICs base for a shopping spree private equity international

THE PEI AWARDS 2012: asia

Exit of the year in Asia

Sushi: healthy returns for Unison

Sims: Deal finder

HKEx: produced a 6x return for Carlyle annual review 2 0 1 2

private equity international

THE PEI AWARDS 2012: asia