Investments in other Private Equity Funds
Since 1996 Smedvig Capital has committed more than $400m to other private equity funds. We have sought to identify market leading managers with whom we philosophically share common ground from an investment strategy perspective. Central to this is a high level of involvement in investee companies; for us a key driver of exceptional returns. As both a general partner and a limited partner, we feel we are well placed to understand ‘both sides’ and think that is a factor that has made us an attractive partner.
The most established of these relationships to date is Bain Capital whom we assisted in establishment of their first European office in London. We have progressively increased our exposure to each successive fund and have committed over $50 million to their latest fund. Other examples would include Pacific Equity Partners and Apax Partners, groups with whom we have also built a close relationship over the last ten years backing each fund.
During 2005, we saw significant liquidity events both within Smedvig Capital and in the larger Smedvig Group. This allows us to continue to increase our level of commitments to our existing partners. In addition, on a highly selective basis, we are seeking to form new long term relationships with a small number of leaders in their respective fields by stage, geography or sector. In 2006/2007 we will make new commitments of about $300m to new and existing relationships. More recent relationships include Blackstone, Sun Capital and HIG Capital.
Given the history of the Smedvig Group, where appropriate, we are in a position to offer our partners access to an established high quality network of relationships in Norway, Scandinavia and in the oil and shipping industries across the world.