Paul Capital
Encyclopedia
Paul Capital is a private equity
investment firm made up of a fund of funds
, secondary investments
and a healthcare direct investment (royalty and revenue interest financing) business. The firm has more than 100 employees and manages more than $7 billion across its three distinct investment platforms.
Paul Capital has offices in Hong Kong
, London
, New York
, Paris
, São Paulo
and San Francisco, as well as a network of regional representatives with local expertise in North America
, Latin America
, the United Kingdom
, Western Europe
, Central Europe
, Eastern Europe
, the Middle East
, South Africa
, Asia
and Australia
.
and leveraged buyout
fund positions from the Hillman Company in 1991. This was one of the earliest transactions in the private equity secondary market
and was completed before there was a name for this market or dedicated pools of capital available to acquire such illiquid assets.
Paul Capital expanded its investment platforms to include a fund of funds business and a healthcare team to purchase royalty and revenue interests in drug and device products.
(also known as secondaries) since 1991. The firm's secondaries team is the oldest and largest of Paul Capital’s three investment platforms with more than $4.4 billion in assets under management. Paul Capital has opened dedicated secondary private equity offices in emerging markets, including Asia
and Latin America
.
Paul Capital’s latest secondary fund, Paul Capital Partners IX, L.P., closed in May 2008 with $1.65 billion in capital commitments.
Paul provides liquidity solutions to institutional investor
s through the acquisition of interests in private equity fund
s as well as interests in private companies. Paul Capital works with a broad range of sellers, including pension fund
s, financial institutions, endowments
, family offices, corporations and general partners
. In addition to “traditional” secondary private equity transactions, Paul employs transaction structures for investors with complex needs, including but not limited to: the inability to bear a significant discount to their carrying value, the need to preserve relationships with general partners in the portfolio while still achieving early liquidity and concerns about forgoing the future upside portfolios.
and Coller Capital
as well as secondary players that also have active fund of funds
platforms (AlpInvest Partners
, AXA Private Equity
, HarbourVest Partners
) and certain investment banks (Goldman Sachs
, Credit Suisse
, Lehman Brothers
). Paul competes against mid-sized secondary firms (Landmark Partners
, Pomona Capital, Newbury Partners) focusing on more traditional purchases of private equity fund
interests.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
investment firm made up of a fund of funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
, secondary investments
Private equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....
and a healthcare direct investment (royalty and revenue interest financing) business. The firm has more than 100 employees and manages more than $7 billion across its three distinct investment platforms.
Paul Capital has offices in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
, São Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...
and San Francisco, as well as a network of regional representatives with local expertise in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
, the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Western Europe
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...
, Central Europe
Central Europe
Central Europe or alternatively Middle Europe is a region of the European continent lying between the variously defined areas of Eastern and Western Europe...
, Eastern Europe
Eastern Europe
Eastern Europe is the eastern part of Europe. The term has widely disparate geopolitical, geographical, cultural and socioeconomic readings, which makes it highly context-dependent and even volatile, and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
, the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
.
History
Philip Paul founded the firm when he had the opportunity to acquire 42 venture capitalVenture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
and leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
fund positions from the Hillman Company in 1991. This was one of the earliest transactions in the private equity secondary market
Private equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....
and was completed before there was a name for this market or dedicated pools of capital available to acquire such illiquid assets.
Paul Capital expanded its investment platforms to include a fund of funds business and a healthcare team to purchase royalty and revenue interests in drug and device products.
Secondary investments
Paul Capital has been an investor in the private equity secondary marketPrivate equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....
(also known as secondaries) since 1991. The firm's secondaries team is the oldest and largest of Paul Capital’s three investment platforms with more than $4.4 billion in assets under management. Paul Capital has opened dedicated secondary private equity offices in emerging markets, including Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
and Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
.
Paul Capital’s latest secondary fund, Paul Capital Partners IX, L.P., closed in May 2008 with $1.65 billion in capital commitments.
Paul provides liquidity solutions to institutional investor
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
s through the acquisition of interests in private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
s as well as interests in private companies. Paul Capital works with a broad range of sellers, including pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s, financial institutions, endowments
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
, family offices, corporations and general partners
Private equity firm
A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital...
. In addition to “traditional” secondary private equity transactions, Paul employs transaction structures for investors with complex needs, including but not limited to: the inability to bear a significant discount to their carrying value, the need to preserve relationships with general partners in the portfolio while still achieving early liquidity and concerns about forgoing the future upside portfolios.
Competitors
Paul competes against several large secondary investors such as Lexington PartnersLexington Partners
Lexington Partners, is a leading independent manager of secondary private equity and co-Investment funds, founded in 1994. Lexington Partners manages approximately $18 billion of which $3.8 billion was committed to the firm's sixth and latest fund .Lexington was founded by former investment...
and Coller Capital
Coller Capital
Coller Capital, founded in 1990 by Jeremy Coller, is one of the leading global investors in the Private equity secondary market ....
as well as secondary players that also have active fund of funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
platforms (AlpInvest Partners
AlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
, AXA Private Equity
AXA Private Equity
AXA Private Equity is a diversified private equity firm with $ 25 billion of assets managed or advised and with an international reach across Europe, North America and Asia...
, HarbourVest Partners
HarbourVest Partners
HarbourVest Partners is a private equity fund of funds and one of the largest private equity investment managers globally. The firm invests in all types of private equity funds, including venture capital and leveraged buyout funds, and also directly in operating companies...
) and certain investment banks (Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
, Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
). Paul competes against mid-sized secondary firms (Landmark Partners
Landmark Partners
Landmark Partners, founded in 1989, is a leading investor in the Private equity secondary market . It is based in Simsbury, Connecticut.The firm was founded by Stanley Alfeld.-Investment Program:...
, Pomona Capital, Newbury Partners) focusing on more traditional purchases of private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
interests.
External links
- Paul Capital (company website)