Standard Life ezine - Investing for growth with private equity – Standard Life Savings & Investment Ezine

Standard Life's Savings & Investment newsletter for advisers

Issue 7: September 2007

When you think of private equity, perhaps the TV show ‘Dragons’ Den’ springs to mind, where business owners pitch their plans to secure capital and expertise to help grow a new business. Or perhaps you think of the investment group 3i and their buyouts of larger, established companies. Private equity investments can take many forms and are made at all stages during the life of a business; the common thread is an active ownership model that seeks to enhance performance and deliver differentiated returns to investors.

Active ownership
The concept of active ownership is fundamental to private equity investors, who invest their capital in primarily unlisted companies in return for a significant ownership stake. This enables them to exercise an active, hands-on approach to drive business performance, using their skills and experience in areas such as management, finance, marketing and strategic planning.

Private equity investors seek to identify companies with good business models and the potential for growth, but which require capital and strategic direction to achieve their full potential. Successfully developing businesses and delivering profitability takes time and there are risks involved, but by investing their capital and working closely with the business, private equity can often provide the catalyst to significant business growth.

Gaining access
To date, individual investors haven’t had many opportunities to invest in private equity. Although there are funds available, they are often not available or appropriate for retail investors as they are characterised by high entry costs, illiquidity and low levels of diversification.

The CF Macquarie Global Private Equity Securities Fund (the Fund) offers UK investors, including retail investors, an opportunity to access a diversified portfolio of typically 10 to 25 private equity securities. The Fund offers low initial investment levels, daily liquidity and, importantly, global diversification. Specifically, the Fund aims to identify and invest in listed private equity securities that apply an active ownership principle in order to deliver returns to investors.

The Key benefits of this structure are:

Superior growth potential

Immediate access to the range of private equity sectors

Diversification by region and private equity management styles

Daily liquidity

CF Macquarie Global Private Equity Securities Fund
As part of a strategic alliance with the Macquarie Group, Standard Life offers UK investors access to this exciting asset class via the CF Macquarie Global Private Equity Securities Fund. Standard Life has an agreement with Macquarie to be the only life office provider offering the Fund on an insured basis until early 2008.

The Fund may be appealing to investors who are seeking a capital growth opportunity, a differentiated approach to equity investing and broader diversification alternatives for their existing portfolio.

Click here to learn more about private equity and the CF Macquarie Global Private Equity Securities Fund.

The Macquarie Group
The Macquarie Group provides specialist investment banking and financial services around the world with more than 10,000 people in 24 countries. Macquarie has a highly qualified team comprising two portfolio managers and 10 analysts dedicated to private equity research and investment. The team has been managing private equity funds for retail and institutional investors for almost 10 years and is responsible for more than £1.2 billion of funds under management or advice (as at 30 April 2007).

Availability
You can invest in the Fund through our Capital Investment Bond (CIB), our pension products and through FundZone. Charges for CIB and FundZone are shown below.

Untitled Document

CIB	Annual Management Charge	Additional Charge
Level	1.80%	0.11%
Stepped	2.30%	0.11%

	Initial Charge	Annual Management Charge
FundZone	4.50%	1.60%

Part three of our strategic deal with Macquarie
Our strategic deal with Macquarie includes the CF Macquarie Global Infrastructure Securities Fund, covered in the last issue of e-zine. In the next issue of e-zine, we will explore global property, and introduce you to the CF Macquarie Global Property Securities Fund. For more information on these funds, or to find out how you can invest, please contact your account manager.

Past performance is not a guide to future returns. The value of investments can fall as well as rise. No guarantees are given regarding the effectives of any arrangements entered into on the basis of this content.

We are not responsible for the content of external websites and/or ensuring that the information is compliant and reserve the right to remove these from our website at any time.

Investments in the CF Macquarie Global Private Equity Securities Fund are not deposits with or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 or any Macquarie Group company and are subject to investment risk, including possible delays in repayment and loss of income and capital invested. Neither Macquarie Bank Limited nor any other member company of the Macquarie Group guarantees any particular rate of return on, or the performance of the CF Macquarie Global Private Equity Securities Fund nor do they guarantee the repayment of capital from CF Macquarie Global Private Equity Securities Fund.