Some Trends Discussed At the Symposium: –

* Panelists at a session on the globalization of investing disagreed over the wisdom of sending private equity dollars abroad now. One general partner cautioned against the “Concord Effect,” by which a buyout professional flies the Concord to London or Paris, “kicks a few tires,” and then flies back across the Atlantic on the Concord thinking he understands the European market.

On the pro side, one G.P. said the “disease” of auctions has not yet ravaged the Old World as it has the U.S.

* In a discussion about the changing role of debt, one G.P. in a mezzanine fund described mezzanine financing as the “toughest part of the debt structure to do right.” He said the current deal climate may be the worst in 10 years, and that this would make junior capital all the more important.

* Panelists predicted that the middle-market would become even more saturated with buyers, as large buyout firms continue to target this realm while venture capital firms increasingly have been looking at larger companies.

However, in spite of increased competition, panelists noted that the U.S. middle market (defined here as companies valued at between $50 million and $500 million) is comprised of more than 16,000 companies, with revenue of more than $2.02 trillion, thus leaving ample room for growth.

* Panelists also predicted a drop in fund raising in 1999. After 1998 saw a record of more than $54 billion raised for LBO funds, Jonathan Roth, a managing director at Abbott Capital Management, said 1999 would not be a bumper year. “Just like George Costanza, we’ll see some shrinkage in fund raising to about $40 billion this year,” he said.