Monthly Archives: July 2013

Venture Capital in the U.S. and Europe Compared

Venture Capital in the U.S. and Europe Compared

Following up on the European second quarter tech funding data we reported earlier in the week, we have had a look at the comparable data for the U.S. and some interesting, and stark, comparisons emerge.

While inevitably Europe does not compare favorably with the U.S. in a like-for-like comparison, there are signs that things are getting better in Europe, as we reported. Unfortunately, as the data show, while Europe is improving, the gap between Europe and the U.S. is widening.

Once again, while Dow Jones VentureSource reports on all industrial sectors, in this report we have just looked at three sectors that are the most tech heavy: business and finance, information technology and consumer services.

Read more

Arrested analyst allegedly tipped off hedge fund to Microsoft deal

Arrested analyst allegedly tipped off hedge fund to Microsoft deal

Federal authorities have arrested a financial analyst who shared inside information about a 2009 advertising deal between Microsoft and Yahoo. He allegedly got the tip from a Microsoft executive.

NEW YORK — A financial analyst provided inside information about a blockbuster deal between Microsoft and Yahoo to a portfolio manager at a hedge fund that’s become the target of a sweeping investigation, authorities said Tuesday.

Federal prosecutors in New York announced the securities-fraud charges against Sandeep Aggarwal a day after he was arrested in San Jose, Calif. There was no immediate response to a phone message left Tuesday with his attorney.

Read more

Recent SEC ‘Bad Actor’ Provisions For Hedge Funds, Private Equity Funds, Could Unearth Unethical Backgrounds Of Executives: Securities Lawyers

Recent SEC ‘Bad Actor’ Provisions For Hedge Funds, Private Equity Funds, Could Unearth Unethical Backgrounds Of Executives: Securities Lawyers

Recent regulations unearthing the legal backgrounds of those who sell private securities could lead to nervousness and layoffs among hedge fund and private equity executives, according to securities lawyers.

The major 2010 Dodd-Frank financial reforms required the Securities and Exchange Commission to adopt so-called “bad actor” provisions, which bar those convicted of financial crimes from selling private securities. The commission adopted these rules earlier in July.

Although only crimes committed after September 2013 will automatically disqualify private fundraisers, the provision still requires investment executives to at least disclose past convictions to investors.

Read more

Grosvenor poised to buy private equity unit from Credit Suisse

Grosvenor poised to buy private equity unit from Credit Suisse

Chicago-based Grosvenor Capital Management LP is in advanced talks to buy a private equity unit from Credit Suisse Group AG, a person familiar with the matter said on Wednesday.

The deal, to be valued at more than $200 million in cash and other considerations, could be announced as early as this week, the Wall Street Journal earlier reported.  The transaction, if completed, could roughly double Grosvenor’s size by assets, the Journal said.

Grosvenor’s chief executive is Michael Sacks, who is also vice chairman of World Business Chicago and the closest business advisor to Chicago Mayor Rahm Emanuel.

A Credit Suisse spokeswoman declined to comment while a Grosvenor representative was not immediately available for a comment.

Read more

Why NY Venture Capitalists Should Pay Attention To Foreign Tech Startups

Why NY Venture Capitalists Should Pay Attention To Foreign Tech Startups

I’ve written about the Series A Crunch, and why entrepreneurs can and should consider alternative sources of funding – with a big focus on investment crowdfundingto kickstart the startup’s growth. Securing funding is a constant challenge that many entrepreneurs in the US face these days. Yet, the challenge for foreign tech entrepreneurs is even greater. As innovation becomes a global phenomenon with accelerators, incubators, micro-VCs and seed funds popping up all over the world to jumpstart entrepreneurship, one would expect the distribution of capital to reflect that. However, this is not the case.

Historically, many international entrepreneurs and startups have expanded their operations to Silicon Valley. Being a mature ecosystem, the focus in the Valley is on creating great companies, no matter their origin. This is one of the reasons it’s such a unique place. In fact, the experience and network created in the Valley is so great that it made countries like Canada, Britain and Australia offer incentives for entrepreneurs willing to “pivot” and bring this culture and their startups “home”, so they can create their own versions of Silicon Valley.

Read more

Mizuho Global Sees $2 Billion as Japan Pensions Seek Hedge Funds


Mizuho Global Sees $2 Billion as Japan Pensions Seek Hedge Funds

Mizuho Global Alternative Investments Ltd., which introduces hedge funds to Japanese investors, expects assets to reach $2 billion by the end of the business year, reflecting demand from local pensions.

The unit of Japan’s third-largest bank by market value raised $1.7 billion by the end June that it placed with global alternative asset managers that offer funds that invest in bank loans and multistrategy hedge funds, Chief Executive Office Manabu Ando said in an interview in Tokyo. It plans to offer other alternative investments such as private-equity and infrastructure funds by the end of this fiscal year in March 2014, he said.

Read more

Big Hedge Funds to Swoop on Start-Up Talent

Big Hedge Funds to Swoop on Start-Up Talent

Some of the world’s biggest hedge funds, including Marshall Wace, Millennium Management, CQS and BlueCrest Capital Management, are among firms that are capitalizing on a difficult environment for start-ups, hiring potential managers who might once have considered setting up on their own.

Marshall Wace, which has seen its assets grow 60% in the past 12 months to $10.7 billion, is planning a recruitment drive in the U.S., which will be spearheaded by partners Daniel Roberts and Nick Nielsen, who are relocating to New York. The firm plans to hire about a dozen staff, including portfolio managers in the next couple of years and is moving its U.S. office from Connecticut to midtown Manhattan, according to a person familiar with the matter.

Read more