PaineWebber Capital Inc/Chartwell

We have formed a dedicated, Special Purpose Acquisition Vehicle, Chartwell, which acquired 28 direct and indirect investments from UBS Americas Inc.

Chartwell I has returned 1.60x capital over its first (12) months operation. We achieve performance by maintaining a disciplined investment process and our use of demanding criteria to choose acquisitions which we feel can meet our return criteria. We execute substantial due diligence on each portfolio company. We focus our investments in industries that we know and understand well. After we make an investment, we actively monitor it through communication with the executive management, board members and industry participants. We believe that the strategy of investing in a limited number of portfolio opportunities that provide essential products and services and have loyal customers, recurring revenues, sustainable competitive advantages, high returns on invested capital and strong free cash flow, is unique and powerful.

All of our funds will target a total gross return exceeding 2.0x capital, which will place our performance in the top quartile of private equity managers. It is our goal to replicate the performance of Chartwell I with further successive Chartwell offerings designed to capitalize on the timely opportunity to acquire assets at good value and potentially generate alpha for our investors. Each Chartwell pledge fund will offer the following consistent terms:

  • Target Acquisition Size: $25m—$250m based on portfolio assets to be acquired
  • Investor Commitment: Subject to transaction size
  • Term: Targeted shorter maturities (24 – 36 months)
  • Management Fee: Highly competitive due to lower fixed management costs
  • Carried Interest: Direct Transactions: 15% / Indirect Transactions: 7.5%
  • Incentive Fee: To be agreed on a deal-by-deal basis
  • Advisory Board / Observer Status available subject to size of capital commitment
  • Financial Reporting: Monthly update calls; quarterly and annual financial reporting with in-depth analysis on each company or portfolio