Private Equity Briefcase

March 24, 2008

There's Always Golf

When the going gets rough in the world of private equity--generally when the debt market is on hold or the economy tanking--it’s no secret (forgive the coming cliché) that the tough get going. In the world of high finance that means packing the Johnston & Murphy or Mulholland Brothers briefcase, and hopping a plane to an industry conference, preferably one taking place in a warm clime where suits can be shed and a gentlemanly round of golf can be had.

A conference is exactly the sort of informed distraction M&A dealmakers of all stripes could use at the moment, especially when the leveraged credit market remains largely tied up. Private equity fund managers, specialty lenders and middle market intermediaries then might look no further than the sun-drenched and palm-laden land of Southern California next week for just such a respite. Granted, this missive is beginning to sound like an infomercial, but who in the banker community isn’t tired, after all, from all the dour banking, capital markets and housing news?

Credit Suisse could provide the relief package in this case. The investment bank is expecting to draw 350 executives from the institutional private equity community—pension plans, endowments, foundations, fund managers, and other organizations—to its second annual Credit Suisse Small and Emerging Private Equity Manager Conference in Los Angeles. More specifically, conference that’s being sponsored by the investment bank’s customized fund investment group is being held on March 27 at the UCLA Anderson School of Management where attendees and panelists will huddle to discuss the topic of small and emerging private equity managers.

The Credit Suisse unit, co-headed by Michael Arpey and Kelly Williams, manages over $20 billion in commitments to private equity funds of funds and also co-investments in the US and abroad. Arpey said in a presser that the number of small and emerging, or first time, fund managers continues to increase, which is being spurred partly by seasoned dealmakers launching their own funds. “In light of this evolving landscape, we are working with our clients to identify ways to take advantage of the changing demographics and invest alongside them in the small emerging managers in a way that maximizes the opportunities that this sector offers.”

With the big deal LBO landscape frozen, it’s no wonder Credit Suisse wants to expand inroads for its clients in the area of emerging equity sponsors.

Stewart Kohl, co-chief executive of the Riverside Company is giving the conference’s keynote lunch speech. He will be joined by investment officers from the California's Public Employees' Retirement System, California State Controller Office, Los Angeles County Employees Retirement Association, New Jersey Division of Investment, New York State Common Retirement Fund and other state institutions.

Now, if the community of dealmakers can figure out how to jumpstart the debt market perhaps even the middle market will start generating more deals. On the other hand, after a bustling M&A business over the last three years it might just be the time to talk shop and network with peers. Who really knows, after all, when the deal business is going to come back?