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Vive la différance! Private equity firms need to develop "differentiated strategies" to be successful, says Maurice Tchénio. The "me too" attitude won't work, he warns. Tchénio's trenchant views about the way firms need to evolve are particularly striking at a time when some large, well-established buy-out houses are having trouble raising money and several financial groups are selling off their private equity portfolios. Meanwhile, investors are increasingly asking whether large buy-out funds can continue to outperform. But Tchénio also says that there are many opportunities for firms that innovate, take a proactive approach to origination and develop real sector expertise. And it's noteworthy that some new firms have recently found success raising money. Earlier this year, Englefield Capital picked up EUR700m for its maiden vehicle. It has a strong team, a formidable board that could be a big help with origination and is targeting deals in niche sectors. Meanwhile, Altor Equity Partners has just put together its EUR650m maiden fund in less than four months. Founder Harald Mix thinks there's plenty of scope in the Nordic mid-market, where there is a "vacuum" of buy-out backers. It will be interesting to see if their "differentiated strategies" pay off. Shaun Beaney |