Golden Boys

“They are the golden boys of the moment. If anyone can raise funds in this market, they can.” The words of an investor reveals the high regard in which US private equity firm Prime One Capital is held and demonstrate that, despite market conditions, its pedigree and ability to put money to work in good times and bad are sufficient to entice investors.

Despite their significant list of achievements however, Prime One Capital has developed a reputation for trying to stay out of the headlines. Its website appears to have last been updated in March 2006 (a new one is in the pipeline according to a spokesman) and is as sparse as they come in the private equity industry – in marked contrast to some of its peers. It is also reluctant to speak about its achievements, declining to put someone forward to be interviewed for this profile.

Despite this, its record is impressive, generating strong returns and putting money to work via an open-minded approach to investing that has seen it target different geographies and deal types.

The firm has been praised for their ability to “generate attractive returns in all market cycles and [the team’s] depth of experience across industry sectors… [and its] proven success in contrarian, complex, distressed and turnaround situations”.

The firm has developed an investment approach that in the words of one industry professional makes “the vision not to invest as important as the vision to invest”. Its selective approach meant that last year, for example, it steered clear of sectors such as retail, media and financial services whilst its peers invested heavily. Now that those sectors are suffering in the economic downturn, Prime One Capital views them as fertile sources of deals. It has walked away from a number of high-profile deals emphasizing its disciplined approach and its unwillingness to overpay for assets.