At Barclays Private Equity (BPE) we have always believed in making public our portfolio investments and exits and welcome the steps taken by the private equity industry to codify best practice in transparency principles and good governance.  In addition, we recognise that our stakeholders are interested in the structure and workings of BPE:

Management and governance structure

The Investment Manager of our funds is Barclays Private Equity Limited (BPEL) which is authorised and regulated in the UK by the Financial Services Authority.  BPEL is a UK limited company and ultimately a wholly-owned subsidiary of Barclays PLC.   BPE operates with a high degree of autonomy but as a division of Barclays Capital, the investment banking arm of Barclays Bank PLC.  BPE receives support from Barclays Capital in areas such as compliance, human resources and legal services. 

BPE makes investment and divestment decisions through a three-stage investment committee process and makes business management and operational decisions through a management committee.  

BPE operates in the following countries:  UK, France, Germany, Italy and Switzerland.  The Co-heads of BPE are Gonzague de Blignieres (Head of France), Peter Hammermann (Head of Germany) and Paul Goodson (Head of UK).  In addition, Tom Lamb is chairman of the European Investment Committee. 

Conflicts of interest, Corporate and Social responsibility (CSR), and wider reputational issues are all factors that are addressed at each operational decision or investment decision stage.  Typically we will deal with these issues independently or through our wider relationship with Barclays Capital and, where necessary, in consultation with our external investors.

Further details of Barclays CSR policies and activities can be found via the link above.

Our investors

Barclays Private Equity is currently investing its third external fund, Barclays Private Equity European Fund III ("BPEEF III").  The Fund is structured as a series of English and Scottish limited partnerships and operates a co-investment agreement with Barclays Bank PLC, a wholly owned subsidiary of Barclays PLC, through which the bank’s capital is invested alongside the external capital on a completely pro-rata and coordinated basis.  The Barclays investment is on a passive basis.

Barclays Bank PLC has committed to invest EUR 650 million alongside the external investors in BPEEF III, who collectively have committed EUR 1.795 billion, giving the Fund total commitments of EUR 2.445 billion.

The external capital that comprises BPEEF III can be categorised as follows:

BPEEF III: External investors by geography

BPEEF III: External investors by type

Financial results and remuneration

As a division of Barclays, the profits generated by BPE from its investing and fund management activities form part of the profits generated by the bank as a whole. 

The executives of BPE are all employees of Barclays Capital, the investment banking arm of Barclays Bank PLC and receive a salary and discretionary bonus as part of their remuneration package.  Additionally, the executives may be invited to invest their own money into vehicles that invest alongside the funds and which entitle them to receive a carried interest in the profits generated by the portfolio companies.  This closely aligns the economic interests of the executives with investors.

Portfolio company compliance with the Walker Report

BPE is a lower mid-market investor and our UK portfolio investments all fall below £500m in terms of enterprise value.  Accordingly, the findings of the Report by Sir David Walker published in November 2007 do not directly apply to our portfolio companies, or to those companies’ disclosure requirements.  We recognise that the framework for disclosure may evolve and continue to monitor our policies and disclosure levels to ensure that they are appropriate.

We recognise the need for transparency in our investment decisions and details of each of our portfolio companies and portfolio exits can be found on this website.  In addition, further comment on the investments and exits in a specific year are included in each of our annual newsletters.

For further information about these issues, please contact Christiian Marriott, Investor Relations Director christiian.marriott@bpe.com.