While traditional VC fundraising slumped in 2009, corporate venturing remained solid. A growing number of start-ups are now seeking to take advantage of this symbiotic source of capital.

UK private equity may have taken a beating over the past two years, but it was a mood of cautious optimism – and a desire to get back to business – that pervaded the UK Mid-Market 2010 conference in January.

Conservative financial policy – or lack of it – contains little to interest private equity. The outcome of David Cameron’s inevitable clash with the EU over regulatory policy, on the other hand, could be pivotal to the City’s future.

After a torrid 12 months, a handful of stoic LPs are preparing to return to the market. But these hardy investors will be wielding a long list of demands, due diligence will be brutal, and only a lucky few GPs will make the cut. Real Deals examines what it will take to close a private equity fund in 2010.

Europe’s homegrown mega buyout houses flourished in the boom years, but their funds, deals and reputations have since withered on the vine. Real Deals examines what the future holds for these fallen giants.

KKR’s £11bn acquisition of Alliance Boots marked the zenith of buyout excess. But despite the near collapse of the global financial system, a £9bn debt burden and ravaged retail markets, the high street chemist is going from strength to strength.

The head of Lloyds’ leveraged workout group on bridging the gulf between private equity and the banks that continues to threaten restructuring deals.

Buoyed by the prospect of some giant mergers, private equity houses are salivating at a potential feast of deals in the food and drink sector.

The niche turnaround sector has moved into the mainstream as firms take the plunge in search of recessionary riches.

The process may be tortuous, but the AIFM directive is progressing relentlessly through Brussels’ corridors of power. MEPs from across the political spectrum tell Real Deals that while it is never too late to fight, private equity firms must now brace themselves for inevitable and destructive regulation.

These are easy times for no one, but while a discredited LBO market has been brought to its knees, Europe’s VCs are standing tall.

Silverfleet Capital has defied a barren debt market to complete its first investment since spinning out of the Pru. The firm dipped into its€665m debut independent fund to back the €212.5m tertiary buyout of German sausage casings business Kalle from Montagu Private Equity last month.

Even with the notorious EMI investment lurking in its portfolio, Terra Firma, with charismatic front man Guy Hands at the wheel, is showing no sign of taking its foot off the pedal.

As the wheels come off the drive for international expansion, private equity must consider its motives for going global.
But providing they choose the right investment strategy, some firms could still end up with the world at their feet.

The US private equity industry has berated fair value accounting for failing to mirror the true health of its portfolios. Now that international accounting standards are coming into line with the hated FAS 157, will mark-to-market valuations shake the industry this side of the Atlantic?

The managing partner of Duke Street on rewards for failure in the public markets, the spectre of LP demands and close encounters with the Pensions Regulator.

3i has been through its share of turmoil, but with a new chief executive at the helm, this once venerable leviathan of private equity could yet be restored to the grandeur of its past.

Private equity is already well known for its focus on cash. But when sales are down, and new finance a precious commodity, it is essential that every last drop of working capital is squeezed from investee companies.

Private equity firms have cried foul as portfolio companies have suffered from the indiscriminate withdrawal – in some cases overnight – of credit insurance facilities. Buyout houses must now be constructive and communicative in order to help their businesses survive.

Restructuring a company that is on the ropes can be a battle of wills between warring interests, but overcoming these struggles could lead to triumph in the face of adversity.

Duke Street’s chastening experience with Focus DIY means that private equity investors must make their portfolio companies’ defined benefit pension schemes watertight.

August founder Andrew Hartley is revelling  in the new challenge of direct secondaries specialist Chamonix Private Equity.

It may be too soon to judge a tenure which has just passed the 100-day mark, but Barack Obama’s administration has emphatically shifted the balance of power from the money makers to bureaucrats, and private equity must react quickly.

As the global economy slides deeper into recession, the future of every UK buyout house is at stake. Real Deals has devised a formula for success. Does your firm have what it takes?

The former head of Kroll in Europe, ex-Tottenham Hotspur chief executive and turnaround guru on plans to raise a £500m distressed opportunities fund, bidding for Woolworths and calling the bottom of the market.

The Royal Bank of Scotland’s ignominious exit from the leveraged finance market this year ends another chapter in the history of a minnow that grew to dominate the industry. But
the story may not be over yet.

An online exchange for LP interests is theoretically flawed and complicated in practice. But in this unique financial climate, SecondMarket believes it can defy the cynics.

Sceptics may claim it is a desperate attempt to steady a sinking ship. But by making difficult decisions before it’s too late, HgCapital will weather the storm.

The chief executive of LDC talks about life after the HBoS merger, international expansion and why there is no prison break on the cards for this private equity captive.

No corner of the economy has been left untouched by a decimated banking system and
global recession. Businesses everywhere are fighting for survival and many are destined to fail.

Europe’s beleaguered banks return to fundamentals as the LBO market steels itself for a desolate 2009.

The opco/propco deal structure that allowed private equity firms to rake in debt at the top of the market now stands condemned.

Less reliant on debt than their big deal counterparts, and with the promise of forced sellers and genuine growth, the lower mid-market should be well positioned to weather the downturn. But inexperienced management, resilient pricing and companies vulnerable to economic distress mean there is trouble brewing for small cap investors too.

As the European parliament bears its teeth once more, closing in on sweeping anti-private equity legislation, Europe’s  industry bodies have orchestrated a plan to take on the regulators. Private equity awaits the Brussels Task Force.

Arcapita’s head of corporate investment in Europe discusses the power of diversification, rescuing portfolio companies and plans to create the first Sharia-compliant debt fund.

Luxury goods are no longer a recession-proof safe haven, but demand from emerging markets means the strongest brands will continue to thrive.

What it means for private equity

European venture capital is better positioned than ever before to emerge from the shadow of its buyout cousin. A group of the asset class’s biggest hitters discuss where they should
be taking the industry next.

How many of your portfolio companies would you reinvest with today? Has your royal flush turned into a busted flush? Is it time to fold or to raise the stakes? Real Deals is calling your hand.

A tumultuous 12 months on from the onset of the credit crunch, we asked 500 of the industry’s biggest hitters to name the most powerful people in European private equity.

The European Islamic Investment Bank is the first in a flood of new Middle Eastern institutions combining Western talent with Gulf dollars to invest in the European mid-market.

Ontario Teachers’ is not content to play the passive LP. The $110bn Canadian pension fund has cut out the middle man and is investing direct. Now it is coming to Europe.

For many, business earnings are holding up and panic has not yet set in. But those that don’t start to prepare for trouble today will find that tomorrow is too late.

Collapsed bridges, power outages and insatiable demand from emerging economies have rekindled the need for infrastructure investment. But despite a rush of new specialist funds, most continue to chase after the same old assets. Traditional private equity skill sets could unlock the sector’s real growth opportunities.

Investment banks and the big four are plummeting down the deal spectrum to keep busy. Independent advisers are preparing to take on the giants.

As conventional exit options dry up, direct secondaries transactions are beginning to hit GPs’ radars. Will the economic slowdown bring them into the mainstream?

After 20 years shaping one of the few successful captive buyout operations, the man who said “sod this” to an education is stepping down at Barclays Private Equity.

New players have entered the UK buyout market at an astonishing rate, and they are stealing market share.

It’s been seven years of hard labour since MTI last closed a fund – a stark indication of the state of Europe’s venture market. After a period of reflection and a change of approach, David Ward (left) and Ernie Richardson have bought MTI back into the early-stage venture business.

Single industry funds remain a rarity in Europe, unlike the more mature US. But as mainstream returns come under pressure, sector specialisation is gathering force.

BC Partners’ successful financing of the $3.25bn Migros deal is evidence that in Turkey, unlike the rest of the Western world, banks are still eager to do business. More deals are set to follow.

The large funding market is closed, syndications are stuck and secondary trading is gridlocked. It will get worse before it gets better.

Björn Savén, Chris Masek and Gustav Öhman on their latest fund, banking catastrophes and the benefits of racial stereotypes.

The might of the mega-fund has dominated the fundraising landscape in recent years.
But as credit woes threaten big buyout returns, LPs are fighting for a piece of the small deal pie.

Platina’s Thomas Rottner and Your Energy’s Richard Mardon deny that renewable energy is a bubble. In fact, the sector requires a whole ecosystem of businesses to support it. And private equity has a massive role to play.

Corporate venture investors are back in the market, but the best model for big companies backing new technologies remains a matter of fierce debate.

Corporate venture investors are back in the market, but the best model for big companies backing new technologies remains a matter of fierce debate.

Five years after rescuing aircraft engine parts manufacturer Firth Rixson following a prolonged share price nosedive, Carlyle nets “excellent” return.

Spain has been a hot spot for M&A and private equity, with high-profile deals and a raft of mid-market entrants. But as the market slows, a wall of money is fighting over ever fewer deals.

Starting life as a niche regional buyout house around 15 years ago, after a spin-out from Investor AB, EQT has long outgrown its native Scandinavia. In an exclusive interview with Real Deals, founding partner Conni Jonsson reveals that more expansion is on the agenda.

As the European buyout industry faces severe credit tightening, seven experts discuss whether asset-based lending could be a solution for mainstream private equity.

In just over ten years, Axa Private Equity has become one of the biggest global brands in the sector. Dominique Senequier, the driving force behind this growth, talks exclusively to Real Deals.

With €15bn of fire power, a five-year-old Greek bank has become one of the most powerful buyout groups in Europe. Its chief executive, Dennis Malamatinas, talks about the extraordinary rise of Marfin Investment Group.

Unknown in Europe just months ago, HIG has swept up €600m and a raft of top deal-doers to take on the Old World.

Who is the most powerful person in European private equity? We asked 250 of the industry’s biggest hitters – here’s their top 20.

An industry in crisis: four buyout chiefs may have struck a blow for private equity in the most recent Select Committee hearing, but the asset class remains at the top of the Treasury’s hit list.

To meet the needs of an increasingly diverse membership base, EVCA is undergoing a radical restructuring. Its success is vital to the health of European private equity firms, both great and small.

Ten years after WARBURG PINCUS completed its first deal in the Czech Republic, managing director Joseph Schull and principal Robert Feuer talk about the firm’s strategy for Central and Eastern Europe.

In anyone’s book, leaving a decade-old global network to form an international business starting with just three offices is brave. Livingstone is banking on its success.

The UK’s private equity industry faces a defining moment. In response to escalating criticism from all quarters, the BVCA has commissioned a working group, made up of ten industry leaders and led by Sir David Walker, former chairman of Morgan Stanley, to review the prevailing level of transparency and disclosure.

Bridgepoint has acquired one of Europe’s fastest-growing retailers, clothing brand Fat Face, from Advent International for £360m (€530m) in a deal which took just over 48 hours to complete.

“We look for ambitious, entrepreneurial charities that are eager and hungry to create an impact. We want the leaders of tomorrow.” Daniela Barone Soares, Impetus Trust

Six months after quietly closing its debut tech fund, Atlantic Bridge Ventures burst on to the big buyout scene with a £265m carve-out from LogicaCMG.

As billionaire playboys dominate the race to buy Aston Martin, buyout houses are increasingly being overtaken in their pursuit of trophy assets by private investors. Ignore these wealthy upstarts at your peril.