THE DEAL'S PRIVATE EQUITY ROUNDUP REPORTS THAT BUYOUT FIRMS HUNT FOR TECH GROWTH INVESTMENTS IN EUROPE TO BOOST RETURNS

October 24, 2000--New York, N.Y.--Private equity firms' investment behavior increasingly resembles that of venture capitalists according to a special report on private equity featured in today's edition of The Daily Deal.

In the overview of the 12-page special report, assistant managing editor Julie Connelly describes how private equity firms, facing more challenges in traditional buyout deals, are making growth-stage investments in technology companies,taking equity stakes in public companies overseas and are raising capital for new-economy funds. The reasoning behind the shift investment strategies is primarily to net higher returns and close the gap on the gains reaped by venture capitalists.

Raising capital doesn't seem to a pressing issue for buyout firms, which continue to attract large sums from pension funds and institutional investors, anticipated to reach $80 billion this year, up from $50 billion in 1999. The nation's largest pension fund, California Public Employees Retirement Fund (CalPERS), has become one of the top private equity investors writes senior writer David Carey. He reports that CalPERS has broken new ground in private equity investing, increasing its allocation of private equity from 6% to 7%, and earning a reputation on Wall Street as an innovative and nimble investor. CalPERS new look began with the hiring of Barry Gonder, a senior investment officer, to oversee private equity four years ago.

While private equity in the U.S. is increasingly resembling venture capital, more traditional leveraged buyout deals are taking off in Europe, reports John Morris, assistant managing editor based in The Deal's London bureau. As he explains, European buyouts funds are getting bigger thanks to capital from America, and they are attempting bigger and more complex transactions. All of these factors are influencing the market's vibrancy and have allowed a more American-style, traditional LBO model to take hold.

The Global Private Equity Roundup, includes The Daily Deal's signature charts, ranking the top private equity firms, investors and companies and industries targeted for investment.

The Daily Deal and on its Web site www.thedailydeal.com publishes more private equity news than any other daily print or online publication. As traditional and new economies converge and business deals take new forms, The Deal offers definitive news, commentary, information and services for dealmaking professionals around the globe.

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