Highlights / Key Themes

Henry Kravis, Founding Partner, Kohlberg Kravis Roberts & Co

Henry Kravis, Founding Partner, Kohlberg Kravis Roberts & Co. and Leon Black, Founding Partner, Apollo Management International, were just some of the high-powered buyout chiefs at the Super Return conference, where the talk focused largely on surviving the downturn rather than making megadeals.

“You have to accept the fact that transactions will be smaller and have far less leverage -- that's a fact," said Henry Kravis. "That means all of us have to adapt. We have to change the way we'll do business. If we don't, we'll be left out."

Henry Kravis said the firm was seeking alternative investment opportunities instead of buyouts, as it waits out the credit crisis, including distressed debt, mezzanine financing and infrastructure.

Leon Black, Founding Partner, Apollo Management International

Leon Black, who finished raising a $14.8 billion fund in December, expects to be buying debt for the next two years instead, with the focus on credit-oriented investments, particularly in large senior loans and distressed assets.

"When financing comes back we will be a classic buyout house again but not till then," Black said.
The economic and financial crisis is leading to a fundamental change in the business model of the buyout industry and the topics of conversation were a sea change from two years ago, when remarks were about achieving bumper returns and striking $50 billion deals.

Kravis said looking after the portfolio was his most important focus in 2009. "It's portfolio, portfolio, portfolio, it's our obligation," he said. "We will focus laser-like on the portfolio. Nothing is more important than managing that portfolio. Our investors demand it."

David Rubenstein, Founder and Managing Director of the Carlyle Group

There were discussions about why, despite what may be a private equity shakeout, there is reason to be optimistic. David Rubenstein, Founder and Managing Director of the Carlyle Group, had a list of 15 points that put a positive spin on the recent private equity conditions, varying from a return to more-normal patterns of investing with less frenzy and activity (and hence more time to focus on companies), higher demand for private equity capital and the chance that private equity’s image might improve.
Mr. Rubenstein said that private equity is not seen as one of the causes of the current financial contagion in the same way that banks and hedge funds are being singled out. He said “I don’t think generally that we’re seen as causers of potential systemic risk. I think as an industry we need to spend some time explaining why we don’t think we’re causers of systemic risk.”

Steve Pagliuca, Managing Director of Bain Capital

In his keynote address, Steve Pagliuca, managing director of Bain Capital, said that structures in the private equity business will change as a result of the downturn: “Going forward in the brave new world, profit improvement, better strategic positioning and sales growth are going to be the key levers. The private equity firms that are structured to enhance and support that are going to be the ones who succeed”

	Leon Black Founding Partner APOLLO MANAGEMENT INTERNATIONAL

	William Macaulay Chairman & CEO FIRST RESERVE CORPORATION

	Henry Kravis Founding Partner KOHLBERG. KRAVIS, ROBERTS & CO

	David Rubenstein Founder & Managing Director THE CARLYLE GROUP

	Kenneth Shen Head of Strategic & Private Equity QATAR INVESTMENT AUTHORITY

	Jon Moulton Managing Partner ALCHEMY PARTNERS

	George Anson Managing Director HARBOURVEST PARTNERS (UK)

	Steve Pagliuca Managing Director BAIN CAPITAL PARTNERS

	Arif Naqvi Founder & Group CEO ABRAAJ CAPITAL LTD

	Jonny Maxwell Global Head, Private Equity Fund of Funds ALLIANZ PRIVATE EQUITY PARTNERS

	Guy Hands CEO TERRA FIRMA CAPITAL PARTNERS

	Steven Costabile MD, Global Head of Private Equity Funds Group AIG INVESTMENTS

	Paul Fletcher Senior Partner ACTIS Paul is based in London and heads up Actis's business activities worldwide. Paul joined Actis in 2000 as Director of Africa and Global Sector Groups and was appointed as CEO in 2002, after which he led the demerger of Actis from CDC. Before joining Actis, Paul was Head of Emerging Markets Strategic Planning forCitibank in London and, prior to that, General Manager for Citibank in East Africa based in Nairobi. Paul also spent eight years working as a Corporate Finance professional in New York...

	Scott Sperling Co President THOMAS H LEE PARTNERS

	Daniel Och CEO OCH-ZIF CAPITAL MANAGEMENT GROUP

	Thomas Pütter Chief Executive ALLIANZ CAPITAL PARTNERS

	Helen Steers Partner PANTHEON VENTURES

	Philip Yea CEO 3i

SUPERRETURN TV

SuperReturn International 2009

February 09

SuperReturn International 2009 in Berlin

"It was another great conference and you did a fantastic job. I look forward to participating next year. "

Gordon Hargraves

Partner

RHO Fund Investors

"Thanks again for including me at SuperReturn 2009. There was huge interest in turnaround investing this year and thus it was an excellent event for me to attend. Congratulations on a top class event. "

Garry Wilson

Managing Partner

Endless LLP

"The SuperReturn conference in Europe has clearly become the most important annual gathering in the private equity world. I am not even sure what is the second."

David Rubenstein

Founder & Managing Director

THE CARLYLE GROUP