Landmark Partners
Encyclopedia
Landmark Partners, founded in 1989, is a leading investor in the Private equity secondary market
(also known as secondaries
). It is based in Simsbury, Connecticut
.
The firm was founded by Stanley Alfeld.
purchasing interests in various investment funds, typically structured as limited partnerships. Landmark acquires positions in venture capital
, leveraged buyout
and mezzanine capital
funds, together with portfolios of companies or stakes in companies from institutions, corporates, government bodies and family offices. Landmark is also one of the only leading secondaries
firm that also focuses on the purchase of real estate
private equity
interests.
Landmark is a dedicated secondaries
investor and as such has limited ability to make new commitments to private equity funds. This has affected Landmark's desirability to financial sponsor
s or other general partner
s to serve as a replacement limited partner.
Landmark is in the process of finalizing fundraising for a $2 billion fund (Landmark Partners Fund XIV) and a parallel $400 million fund for early secondary transactions. Previously, Landmark was investing out of a $1.2 billion (Landmark Partners Fund XIII), raised in 2005. In recent years, Landmark has focused on purchasing smaller portfolios than larger competitors Lexington Partners
and Coller Capital
.
In 2007, Landmark participated in the sale of assets by American Capital Strategies
to a newly formed $585 million private equity fund
.
In 2004, Landmark acquired a $1 billion portfolio of private equity fund interests from Bank One.
In 2000, Landmark Partners and its then chairman agreed to pay a civil penalty totaling $150,000 to the United States Securities and Exchange Commission
to settle allegations related to the bribery scandal.
and Newbury Partners.
include market leading dedicated secondary firms (Coller Capital
and Lexington Partners
), large fund of funds
(HarbourVest Partners
, AlpInvest Partners
), certain investment banks (Goldman Sachs
, Credit Suisse
and Lehman Brothers
) as well as mid-sized secondary firms (Pomona Capital, Newbury Partners, Paul Capital) focusing on more traditional purchases of private equity fund
interests.
Private equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....
(also known as secondaries
Secondaries
Secondaries is a shorthand form for:* Private equity secondaries, pre-existing investor commitments to private equity and other alternative investment funds purchased in the private equity secondary market...
). It is based in Simsbury, Connecticut
Simsbury, Connecticut
Simsbury is a suburban town in Hartford County, Connecticut, United States. The population was 23,234 at the 2000 census. The town was incorporated as Connecticut's twenty-first town in May 1670.-Early history:...
.
The firm was founded by Stanley Alfeld.
Investment Program
Landmark invests primarily as a fund of fundsFund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
purchasing interests in various investment funds, typically structured as limited partnerships. Landmark acquires positions in venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
, leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
and mezzanine capital
Mezzanine capital
Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares...
funds, together with portfolios of companies or stakes in companies from institutions, corporates, government bodies and family offices. Landmark is also one of the only leading secondaries
Secondaries
Secondaries is a shorthand form for:* Private equity secondaries, pre-existing investor commitments to private equity and other alternative investment funds purchased in the private equity secondary market...
firm that also focuses on the purchase of real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
interests.
Landmark is a dedicated secondaries
Secondaries
Secondaries is a shorthand form for:* Private equity secondaries, pre-existing investor commitments to private equity and other alternative investment funds purchased in the private equity secondary market...
investor and as such has limited ability to make new commitments to private equity funds. This has affected Landmark's desirability to financial sponsor
Financial sponsor
A financial sponsor is a term commonly used to refer to private equity investment firms, particularly those private equity firms that engage in leveraged buyout or LBO transactions....
s or other general partner
General partner
General partner is a legal term used to describe a person who joins with at least one other person to form a business. A general partner has responsibility for the actions of the business, can legally bind the business and is personally liable for all the business's debts and obligations.General...
s to serve as a replacement limited partner.
Landmark is in the process of finalizing fundraising for a $2 billion fund (Landmark Partners Fund XIV) and a parallel $400 million fund for early secondary transactions. Previously, Landmark was investing out of a $1.2 billion (Landmark Partners Fund XIII), raised in 2005. In recent years, Landmark has focused on purchasing smaller portfolios than larger competitors Lexington Partners
Lexington Partners
Lexington Partners, is a leading independent manager of secondary private equity and co-Investment funds, founded in 1994. Lexington Partners manages approximately $18 billion of which $3.8 billion was committed to the firm's sixth and latest fund .Lexington was founded by former investment...
and Coller Capital
Coller Capital
Coller Capital, founded in 1990 by Jeremy Coller, is one of the leading global investors in the Private equity secondary market ....
.
In 2007, Landmark participated in the sale of assets by American Capital Strategies
American Capital Strategies
American Capital is an alternative asset management company based in Bethesda, Maryland. Founded in 1986 and publicly traded since 1997, American Capital is the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers...
to a newly formed $585 million private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
.
In 2004, Landmark acquired a $1 billion portfolio of private equity fund interests from Bank One.
Legal and Regulatory Issues
In 2005, a Connecticut man was sentenced to prison in connection with a scheme under which $150 million of state pension money was inappropriately committed to a fund to be managed by Landmark Partners in exchange for payments and favors that violated his fiduciary duties.In 2000, Landmark Partners and its then chairman agreed to pay a civil penalty totaling $150,000 to the United States Securities and Exchange Commission
United States Securities and Exchange Commission
The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States...
to settle allegations related to the bribery scandal.
Alumni
Former professionals from Landmark Partners have gone on to found some of the largest secondary focused private equity groups in the US, most notably Lexington PartnersLexington Partners
Lexington Partners, is a leading independent manager of secondary private equity and co-Investment funds, founded in 1994. Lexington Partners manages approximately $18 billion of which $3.8 billion was committed to the firm's sixth and latest fund .Lexington was founded by former investment...
and Newbury Partners.
Competitors
Landmark's largest competitors in the private equity secondary marketPrivate equity secondary market
In finance, the private equity secondary market refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds....
include market leading dedicated secondary firms (Coller Capital
Coller Capital
Coller Capital, founded in 1990 by Jeremy Coller, is one of the leading global investors in the Private equity secondary market ....
and Lexington Partners
Lexington Partners
Lexington Partners, is a leading independent manager of secondary private equity and co-Investment funds, founded in 1994. Lexington Partners manages approximately $18 billion of which $3.8 billion was committed to the firm's sixth and latest fund .Lexington was founded by former investment...
), large fund of funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
(HarbourVest Partners
HarbourVest Partners
HarbourVest Partners is a private equity fund of funds and one of the largest private equity investment managers globally. The firm invests in all types of private equity funds, including venture capital and leveraged buyout funds, and also directly in operating companies...
, AlpInvest Partners
AlpInvest Partners
AlpInvest Partners is a private equity investment manager and at the end of 2009 globally managed over €42 billion ....
), certain investment banks (Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
and Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
) as well as mid-sized secondary firms (Pomona Capital, Newbury Partners, Paul Capital) focusing on more traditional purchases of private equity fund
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
interests.
External links
- Official Website
- Institutional investor profile, Landmark Partners Europe (AltAssets)
- Landmark Partners Sponsor Overview (Institutional Real Estate, Inc.)
- The Private Equity Analyst Guide to the Secondary Market (2004 Edition) -- DowJones Private Equity Analyst