Venture capital confidence index climbs again

The Silicon Valley Venture Capital Confidence Index rose in the first quarter for seventh consecutive quarter. This marks the longest upward trend in the history of the index, according to Mark Cannice at the University of San Francisco, who assembles it. The index now stands at 4.03 on a 5 point scale with 5 indicating high confidence. VCs interviewed for the index cited the IPO market and the rapid technological disruption being driven by startups for their confidence.

angels
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Angels backing more high valuation deals

Here’s a non-shocker: Angel activity is on the rise, with more high-valuation deals closed in 2013 than the previous year. That was one of the key findings of the Halo Report, an overview of angel investment published today by The Angel Resource Institute, Silicon Valley Bank and CB Insights. While median round sizes held steady […]

europassport

peHUB poll: Fundraising and the AIFMD

As if fundraising weren’t difficult enough, new and changing rules in Europe are likely to entangle — or perhaps strangle — GPs and LPs for years to come. Will the AIFMD affect your fundraising strategy?

Infographics: Where To Make The Big Bucks In PE/VC

So, let’s say you want to make more money. What do you do?

Here’s some advice: Head for the firms with the greatest assets under management.

It’s simple arithmetic. The more assets under management, the more a firm rings up in management fees and, in the case of buyout firms, deal-related fees (those not handed over to LPs). Bigger transactions also translate to bigger profits when it comes time to doling out carried interest.

Firms managing more assets tend to have more mouths to feed, but rarely do firms ramp up their payrolls at the same pace they do their fund sizes. The disparities in compensation, as the infographics below show, are dramatic—and a source of ongoing angst for LPs, who worry that partners will be tempted to raise bigger funds than they can wisely invest.

Infographic: LP Temptation To Cross To The Dark Side

Ronald Schmitz recently acknowledged to sister magazine Buyouts that the $900,000 in potential annual compensation offered by Virginia Retirement System factored in his decision to become its next chief investment officer this month. Schmitz had been CIO of Oregon Public Employees Retirement System since 2003.

Schmitz joins a parade of investment officers that have stepped down this year from positions at retirement funds in California, Massachusetts, New Mexico and New York. Some, like Schmitz, are staying in the public sector. Others, like Raudline Etienne, former chief executive of the New York State Common Retirement Fund, are heading into the private sector, in her case to join consulting firm Albright Stonebridge Group.

Just how big a role compensation plays in any individual departure is almost always impossible to say. Still, the latest edition of the 2011-2012 Holt-Thomson Reuters Private Equity and Venture Capital Compensation Report (North American edition) sheds light on what public pension funds are up against in competing with the private sector for talent–click through for infographic.

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Infographic: PE Vs. VC In Battle Of Compensation

So, who earns more money, buyout professionals or venture capital professionals?

The numbers are closer than you might think, based on an analysis of statistics presented in the just-published study, 2011-2012 Holt-Thomson Reuters Private Equity and Venture Capital Compensation Report, North American edition.

Partners at the venture capital firms who participated in the study earned a median salary plus bonus of $445,000 in 2011; their counterparts at LBO/growth equity shops, by comparison, earned a fatter median salary plus bonus of $540,000. However, managing general partners at venture firms actually pulled in slightly more than their counterparts at LBO/growth equity firms in median salary plus bonus, $1.1 million to 1.0 million. Click through to see an infographic comparing compensation for these and six other common positions.

Coller Capital: LPs Views on PE Brighten, But Hard Landings Are Expected

For the second straight summer, limited partners’ views on private equity as an asset class continued to brighten, according to a Coller Capital report released Monday. They’re looking to increase target allocation in greater numbers and LPs say debt markets are functioning well and that dividend recaps are a sign of strength. Nearly one quarter […]

It Was a Very Good Year (Especially If You’re a Late-Stage VC)

Late stage venture capital firms had a pretty good 2010, according the to Thomson Reuters U.S. Private Equity Performance Index—VC shops investing in late-stage companies enjoyed average returns of more than 35% over a 12-month span, according to data.

VCs like Elevation Partners, Goldman Sachs and Digital Sky Technologies—to say nothing of secondary market venture capital stake buyers, far greater in number—which spent the last year plowing cash into the meteoric ascent Facebook were rewarded…

Online Poll: Voting Open For Buyouts ‘Deal of the Year’ Awards: CORRECTED

Last year it took a deal that generated a return multiple of 7x and a 62 percent IRR over a seven-year holding period to win the Buyouts magazine ‘Deal of the Year’ award. (Ovation Pharmaceuticals, bought and sold by GTCR Golder Rauner.) What will it take this year?

That’s a question we’re hoping you’ll help us decide—by voting for your favorite deals in four categories: Small Market Deal of the Year, Middle Market Deal of the Year, Turnaround of the Year and European Deal of the Year. Just follow the links to our online voting booth, where you’ll find brief descriptions of the finalists. The editors of Buyouts will use the results of voting this week to settle on winners in each category; once we have those, we’ll ask you to vote on which of the four winners should also be awarded the coveted ‘Deal of the Year.’ (Please do not vote for your own deals, or ones in which you were involved as a service provider.)

The editors will announce winners in the individual categories via Twitter (@buyouts) in the weeks leading up to our annual Buyouts NY conference April 26-27 at the Waldorf-Astoria Plaza Hotel in New York City. We’ll announce the winner of the ‘Deal of the Year’ during the first-day lunch on April 26.

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