NICSA Alternative Investments: Hedge Funds and Private Equity Conference

1
NICSA Alternative Investments Hedge Funds and
Private Equity Conference

• November 7, 2003
• The New York Athletic Club

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Fund Raising, Product Development Marketing
Panel

• Moderator Mark A. OConnor,
• Vice President-Business Development BISYS
  Private Equity Services
• Speakers J. Lyons Brewer, Partner
• CP Eaton Associates
• Chris Kelley, Managing Director
• Weston Capital Management LLC
• Daniel Strachman, Managing Partner Answers
  Company LLC

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BISYS Private Equity Services, Inc.

• BISYS Private Equity Services is a leading
  provider of outsourced private equity services to
  sponsors and investors
• The firm brings best practice accounting, tax,
  and technology outsourcing solutions to over 225
  private equity funds representing 80 clients with
  committed capital in excess of U.S. 30 billion
• Originally founded in 1986 as DML, acquired in
  2002 by The BISYS Group, Inc. (NYSE BSG), the
  worlds largest financial outsource provider
• The BISYS Group, Inc. headquarter in New York
  City, provides business process outsourcing
  solutions to over 22,000 domestic and
  international firms through its three business
  units Insurance Services, Investor Services, and
  Infrastructure Services

4
CP Eaton Associates

• Placement agent with a 20-year history of
  successfully placing funds with Institutional
  Investors
• Alternative and traditional funds expertise
• 11 billion in closings with more than 300
  investors globally
• Highly specialized, flexible approach
• 10 experienced partners with deep domain
  knowledge and complementary backgrounds
• Independent, entrepreneurial partnership
• Global capabilities with offices in the U.S. and
  Europe

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Weston Capital Management LLC

• Independent fund manager specializing in
  alternative Investments
• Founded in 1993
• Currently manages over 1 Billion
• Offices in Westport, New York, London, and
  Vancouver
• 42 Professionals, 10 dedicated to Research and
  Portfolio Management
• Six Senior Research and Portfolio Management
  Professionals with a total of 120 years of
  experience
• Registrations FSA, NFA, RIA, NASD

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Answers Company LLC

• Highly focused consulting and marketing firm
• Unique strategy for meeting needs of clients in
  the money management industry
• Sophisticated services to clients
• Working with new and established organizations to
  create, develop and market new and existing
  products and services
• Developing strategic marketing and distribution
  programs to target specific areas of the market

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How New Entities Approach Launching a New Fund

• Establishing the value proposition
• Partnering, economics, and the business plan
  Will it work?
• Resources and the choice of advisors
• Setting realistic objectives and timeframes
• Building the business while building the fund

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Fund Raising

• The challenge for new funds remains
• Why unique value propositions breed success. Why
  experience matters.
• Execute a plan to ensure success
• What you should do in your fundraising
• What you should avoid (or try to!)

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Raising Money Hedge Funds vs. Private Equity

• Why Hedge Fund investors are different than
  Private Equity investors
• What approaches attract institutional investors?
  Which are appropriate for high net worth
  individuals?
• Given the differences, how do you know if your
  funds terms are set correctly?

10
Current Hot Products

• Current income funds (mezzanine)
• Sector expertise funds (healthcare)
• Middle-market buyout funds
• Event driven funds (merger arbitrage)
• Principal-protected products (retail)

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Wrap-up
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Biographies

• Mark A. OConnor,
• Vice President-Business Development
• BISYS Private Equity Services, Inc.
• Prior to joining BISYS, Mr. OConnor served CIBC
  in a number of management capacities since 1987.
  Most recently, he served as executive director of
  CIBC Capital Partners where he helped build and
  manage the firms private equity fund investment
  unit. Prior to CIBC, he served in management
  positions with several banks, including The
  Connecticut Bank Trust Company/FleetBoston
  Financial, and Dresdner Bank AG. He is a
  graduate of Trinity College and received his MBA
  from New York University.
• Mr. OConnor is based in the BISYS Private
  Equity Services office located at 245 Fifth
  Avenue, New York, New York, 10016.

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Biographies (contd)

• J. Lyons Brewer, Partner
• CP Eaton Associates
• Lyons launched his career as an analyst at
  Kidder, Peabody Co. He then structured and
  managed principal investments at Travelers and
  Desai Capital Management. He also formed and
  managed RNE Partners, a healthcare venture
  capital firm, as well as Woodland Capital, which
  marketed alternative investment products to
  institutional and accredited investors. Lyons
  holds an MBA from Northwestern University.

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Biographies (contd)

• Chris Kelley, Managing Director
• Weston Capital Management LLC
• Mr. Kelley was most recently a Managing Director
  at Citigroup Alternative Investments (CAI), and
  prior to that position, was a founder and
  president of Value Asset Management, Inc. (VAM),
  where he also served on the board.
• While at CAI, Mr. Kelley spent six years at VAM,
  which he founded and helped develop into a 12
  billion holding company invested in a wide
  variety of privately-held investment management
  firms. VAM was originally backed by BancBoston
  Captital, and continues in business today with
  investments across a full spectrum of asset
  classes and investment styles, including a
  majority equity position in alternative
  investment firm Grosvenor Capital Management
  LLC., which is on Institutional Investors 2002
  Top Ten Fund of Fund Hedge Firms in the world.
  Chris activities on behalf of Grosvenor
  included, distribution and working with their
  incubation program having provided Chris the
  experience and expertise needed to successfully
  drive the Weston program.
• Mr. Kelley worked between 1988 and 1994 for
  Stamford, CT-based Olympus Private Placement
  Fund, LP, as a General Partner and between 1984
  and 1988, for General Electric Capital
  Corporation (GECC), as Vice President in
  Corporate Finance. Mr Kelley holds a B.A. from
  the University of Massachusetts as well as a
  Masters in Business Administration from
  Dartmouths Amos Tuck School of Business.
• Mr. Kelley has served on public and private
  company boards as well as not-for-profit boards.
• Nominated and finalist as Southern New Englands
  Entrepreneur of the Year, sponsored by Ernst
  Young, NASDAQ Stock Market and USA Today.

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Biographies (contd)

• Daniel Strachman, Managing Partner
• Answers Company LLC
• Mr. Strachman is the Managing Partner and
  Founder of Answers Company a financial services
  consulting firm based in New York City that
  specializes in working with the financial
  services industry.
• Prior to founding Answers Company, Mr.
  Strachman was director of marketing and product
  development at the Orbitex Financial Services
  Group Inc. a global money management firm that
  offered domestic mutual funds, hedge funds and
  offshore investment vehicles to both retail and
  institutional investors. Previously, while at
  Cantor Fitzgerald Co., Mr. Strachman created
  the first electronic execution system for
  publicly registered but not publicly traded
  limited partnerships.
• Mr. Strachman, an accomplished writer
  specializing in finance, has written about the
  money management industry for more than nine
  years and is the author of the books Getting
  Started in Hedge Funds (Wiley 2000) and Essential
  Stock Picking Strategies (Wiley 2002), which was
  named by Barrons one of the ten best investment
  books of the year. His articles have appeared in
  The New York Post, The Financial Times, The
  Boston Globe and Interview Magazine.
• In addition to lecturing on finance at the New
  York Society of Security Analysts, Mr. Strachman
  is an adjunct assistant professor at New York
  University where he teaches a course on hedge
  fund industry. He is a frequent speaker at
  industry conferences and forums as well as in the
  media on the money management industry. Mr.
  Strachman was graduated from Clark University
  with a Bachelor of Arts.