Gamechangers magazine-eleven-15

GamechangersMAGAZINE
ELEVEN / 15
LAW FIRM
Commercially Savvy & Confidential
P20
FROM GM TO GC
HIP HOP’S NEW POWER KINGS
P46
SHALE TECHNOLOGY
A GAMECHANGER FOR THE GLOBAL OIL MARKET
P40
ACQUISITIONS AND ABC DUE DILIGENCE:
THE LAW AND UNINTENDED CONSEQUENCES
P62
VIDEO GAME-CHANGING
WITH ACTIVISION BLIZZARD
P64
BUSINESS THROUGH THE EYES OF H.E.
Dr AMBASSADOR TAL EDGARS
P80
Quentin Bargate.
Senior Partner.
Bargate Murray
Business Lawyers
A WORLD CLASS
EXPERTS IN SUPERYACHTS
TM

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Gamechangers 4
COVER WORLD VIEW
CONTENTS
84 80
QUENTIN BARGATE.
BARGATE MURRAY
BUSINESS LAWYERS
Leading Shipping and Maritime
Law Firm Senior Partner discusses
the changing face of maritime law.
20. 26.
30.
32.
38.
40.
42.
10 BEST AND WORST
COUNTRIES FOR
STARTING AND
RUNNING A BUSINESS
LONDON’S CORPORATE
TECH BOOM
Have we learnt past lessons?
A GAME-CHANGER
FOR THE GLOBAL OIL
MARKET
Over the past five years shale
oil production has increased
by a factor of ten in the USA.
THE FUTURE OF ICT
Brought to you by the world
economic forum.
UNIVERSITY OF
EDINBURGH SECURES
UK’S FIRST RISK
AND RESILIENCE
INNOVATIONS
SHOWCASE
SIBOS 2015: RENMINBI
The real gamechanger
GameChangers™ welcomes news and views from its readers. Correspondence should be sent to gamechangers@acq5.com For more information about GameChangers™ visit www.acq5.com/posts/gamechangers/
GameChangers™ Copyright © 2015 GameChangers™ No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form without permission.
SAFE HARBOR
The interviews in this publication may contain certain forward looking statements with respect to the financial condition, results of operations of the businesses profiled. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those
expressed or implied by these forward looking statements and forecasts. The statements may have been made with reference to forecast price changes, economic conditions and the current regulatory environment.
Nothing in these announcements should be construed as a profit forecast.

5 Gamechangers
David Rogan - President & Editor-In-Chief
Jon Van Dyke - Editorial Director
James Wiltshire - Publisher
EDITORIAL
J Robson - Editor-At-Large
L. B. Kooler - Deputy Editor
T Gardiner - Senior Editor
J LaRusso - Copy Chief
M-C Fisher - Editorial Assistant
B Sancheze - Senior Staff Writer
ADVERTISING
A Bott - Digital Advertising Director
J Downey - Advertising Director
Z Wolfel - Business Development Director
C Thomas - Account Executive
H Smith - Account Executive
ADMINISTRATION
A Kessler - Finance & Administration
Director
B McLaughlin - Technology Manager
P Hughes - Operations Coordinator
T. A. Black - Office Manager
20ARISEBEHIND THE BRAND
TABLE OF CONTENTS
46.
50.
54.
56.
62.
64.
72.
76.
80.
84.
88.PRODIGY FINANCE.
Innovations in global
financing, with inbuilt social
and financial benefits.
DEVERE GROUP .
Noble aspirations from
one of the worlds largest
independent financial
advisory organisations.
GBSH CONSULT GROUP
Good Karma and advanced
strategies, H.E. Dr
Ambassador Tal Edgars tells
his story.
PENDO SYSTEMS.
Pamela Cytron gives us a
clear insight into her digital
world; her motivations and
keeping up in her fast paced
industry.
AL SAFAR.
A careful balance of human
nature and lawyers instincts
have resulted in a 33 year
longevity in strategic legal
solutions.
HIP HOPS POWER
KINGS.
Tackling perceived value in
the music industry. We take
a look at raps big hitters.
MOST VALUBLE
ATHLETE BRANDS &
GAMECHANGING IN
THE RUGBY WORLLD
CUP
Woods and Mickelson lead
the pack.
SIGNALLING CHANGE
Sign manufactuing, your
one-source re-branding
solution.
iDEAL
STRAIGHT OUTTA
HARVARD
Ranking number one
business school globally,
it’s hardly surprising that it
produces the cream of the
crop.
ACQUISITIONS AND
ABC DUE DILIGENCE:
The Law and unintended
consiquences.
COULD THE ACTIVISION
BLIZZARD ACQUISITION
OF KING LITTERALLY BE
GAMECHANGING?
Activision looks set to
accelerate it’s strategic
growth plan.
TEAM

Gamechangers 6
Paperchase, the design-led stationery, greeting
cards and gifts specialist, has secured a £50m
refinancing package that will further support
and enhance the company’s strong growth
ambitions in the UK and internationally.
The financing package includes a £32m six-year
term loan from direct lending fund Permira
Credit Solutions II and £18m of capex, revolving
credit and ancillary facilities from Lloyds Bank
Commercial Banking.
Paperchase will remain under the ownership of
Primary Capital, a leading provider of private
equity to UK-based growth companies, and
existing management led by chief executive
Timothy Melgund. The debt investors have been
attracted by the company’s strong trading and
prospects for the future.
In July the company announced a 33% increase
in profit for the year ended January 2015 with
EBITDA up to £9.6m and total sales up 7% to
£128.0m. Ecommerce sales jumped 42% in the
year. Paperchase is on course for another strong
year with the current trading figures being
ahead of expectations.
During the last 12 months alone, Paperchase
has launched in Canada through major
department store chain Hudson’s Bay, the USA
through stationery giant Staples and added a
further 13 new standalone UK stores. It expects
to open another five stores before the year end.
Meanwhile, the company has seen its profile
among customers grow exponentially since
the launch of its Treat Me reward programme,
which is on track for one million members in
the first six months since the UK launch this
summer.
Timothy Melgund, Chief Executive, said: “We
are delighted to have agreed this arrangement
with two very well known funders. The debt will
enable us to further build on the momentum
in the business and continue to deliver our
ambitious growth plans.”
Dan Hatcher at Permira Debt Managers, said:
“We have long admired Paperchase’s clear
leadership in its market and its dedication to
innovation and growth year after year. We
are delighted to be part of that story with
our European direct lending fund providing
substantial growth capital to support the
company’s ambitious plans.”
Chris Birt, Director at Lloyds Bank Commercial
Banking, said: “Having already built a clear
identity and market share in both the UK and
North America, Paperchase is now set to further
develop its presence globally. The company’s
impressive performance in recent years is
testament to its ambitious management team
and the catalytic qualities of private equity
investment. This refinancing demonstrates our
confidence in the business’ future potential as it
builds on a flourishing online offering and some
exciting new opportunities abroad.”
Primary and management were advised by PwC
Debt & Capital Advisory.
Paperchase secures £50m
refinancing package to
boost growth
FineFrance UK (“FineFrance”), an importer
and distributor of premium food products to
Michelin star restaurants, has been sold to
Vestey Holdings Limited for an undisclosed
strategic price. The transaction was originated
and led by Gary Ecob and Steve Nock from
Birmingham based corporate finance advisers
Orbis Partners.
Established in 1989, FineFrance operates across
London and the South of England supplying
into over 400 UK restaurants as well as the
wholesale markets. FineFrance’s ability to
combine high provenance premium products
with exceptional levels of customer service has
enabled the company to develop a high-quality
customer base.
The fine dining restaurant market demands
traceability, speed of supply and focuses on
provenance foods. FineFrance’s efficient and
diverse supply chain allows its customer base to
get next day quality fresh product sourced from
mainland Europe.
Vestey Food Holdings (“Vestey”) a £300m+
turnover group comprises 7 food companies,
specialising in supplying, sourcing and
distributing food products to 70 countries
around the world.
Following the sale of FineFrance majority
shareholder Alain Nozahic said, “Having been
involved in the business for over 14 years, I am
delighted to have completed a deal that will
enable FineFrance to enter the next stage of
its growth. The advice and guidance received
from Orbis throughout the process has been
invaluable and has helped to deliver an excellent
result for the shareholders.”
Commenting on the transaction Gary Ecob,
partner, from Orbis said, “I am delighted to
have concluded a deal that recognises the
strategic value of FineFrance. From an early
stage we identified Vestey as a strong potential
buyer due to its previous experience within
the fine food sector and the complementary
businesses within its Group.”
Other advisers involved in the deal included
Coffin Mew LLP, who provided legal advice to
the shareholders.
Orbis is a mid-market corporate finance house
advising on a wide range of M&A transactions
covering sectors such as Food & Consumer,
Business Services, Industrials, TMT and
Healthcare.
Orbis is the UK partner for Clairfield
International, a worldwide partnership providing
cross-border mergers and acquisitions advisory.
Orbis also has an active investment portfolio
held through its investment vehicle, Intrinsic
Equity.
Baring Private Equity Asia (“Baring Asia”),
one of Asia’s largest and most established
independent private equity firms, has today
completed the deal announced in May to
acquire a majority stake in Vistra Group
(following regulatory approvals). This change of
investor from the previous majority stakeholder,
IK Investment Partners (“IK”), does not affect
the ongoing operations of Vistra Group, whose
management team will continue to hold a
significant shareholding in the company.
Advising funds that manage more than USD9
billion in committed capital, Baring Asia runs
a pan Asian investment program, sponsoring
management buyouts and providing growth
capital to companies for expansion or
acquisitions, making it a perfect partner to
support and enhance Vistra Group’s continued
growth.
Commenting on the completion, Martin
Crawford, CEO of Vistra Group, said, “Our
partnership with Baring Asia brings a new and
exciting chapter for the Vistra Group. With
their support, we can continue the success and
growth of the firm to the satisfaction of our
clients, our employees and our shareholders. We
very much look forward to what lies ahead.
“I would like to thank IK for their help in
building the Vistra Group into the successful
business it is today. Under their stewardship, we
have become one of the global market leaders
in our industry, of which we and they can be
hugely proud.”
Jean Eric Salata, Founder and CEO of Baring
Asia, added, “Vistra Group has an impressive
track record, which has resulted in its position as
one of the industry leaders. We are delighted to
be partnering with Vistra Group to build on its
success and drive it forward into a new era.”
Ranked among the top four corporate service
providers globally, Vistra Group is a versatile
group of professionals, providing a uniquely
broad range of services and solutions. Our
capabilities span across company formations to
trust, fiduciary and fund administration services.
Comprising two key brands, Vistra and OIL, the
Group employs over 1,300 employees in 46
offices across 35 jurisdictions.
Visit: www.vistragroup.com, www.vistra.com
and www.oilglobal.com
iDEAL BRIEF
Orbis advises on sale of
premium food importer
FineFrance UK to Vestey
Holdings Limited
Baring Asia completes
deal to acquire majority
stake in Vistra Group

7 Gamechangers
Equiteq, a consulting sector M&A specialist,
is pleased to announce the sale of Noah
Consulting, LLC to Infosys Ltd. (NYSE: INFY) for
an aggregate purchase consideration of $70
million. Equiteq principals acted as the exclusive
financial advisor to Noah Consulting, an award-
winning information management consultancy
catering to the oil and gas industry.
The transaction was announced on October
19, 2015, and is expected to close in the fourth
quarter of calendar year 2015, subject to
customary closing conditions.
Founded in 2008, Noah Consulting is a provider
of advanced information management solutions
for the oil and gas industry with offices in
Houston, TX and Calgary, AB. Noah’s deep
domain expertise in upstream oil and gas,
coupled with their tools, solution accelerators
and proprietary methodologies, makes them
a leader in driving strategic data management
engagements.
This acquisition combines Noah’s deep industry
knowledge, information strategy planning,
data governance and architecture capabilities
with Infosys’ ability to provide technology and
outsourcing services on a global scale to oil and
gas clients.
John Ruddy, President of Noah Consulting said,
“We are excited about the new capabilities
that the combination of Noah and Infosys will
bring to our clients. Together, we can effect
transformational change for our oil and gas
clients by using information management to
integrate supply chain, safety, environmental
and financial data with geoscience, engineering
and other operational and technical data –
an industry challenge that has never been
addressed effectively. We look forward to
making a difference together.”
David Jorgenson, Equiteq’s Global Head of M&A,
commented, “Noah is a world-class information
management consulting business that has
developed differentiated capabilities and
excellent client relationships in the energy sector.
The company’s focus on disciplined growth
has allowed it to expand significantly while still
delivering margins above the industry average.
The combination of Infosys and Noah will deliver
exciting opportunities for their global team and
provide their clients access to a broader suite of
complementary service offerings. We thoroughly
enjoyed working with Noah’s founders, John
Ruddy, Shannon Tassin and Stewart Nelson, and
congratulate the team on this exciting milestone
for the business.”
Shannon Tassin, Director and Co-Founder
of Noah Consulting, added, “Equiteq’s
appointment was driven by their specialist
expertise as an M&A advisor in the consulting
space. Their guidance through the process was
invaluable as Equiteq demonstrated a strong
ability to assess, explain and negotiate on behalf
of Noah.”
The Georgian Co-Investment Fund (“GCF”), a
US$6B private equity fund based in Georgia, and
AXIS, a leading Georgian construction company,
officially announced AXIS TOWERS, a project
to build the tallest twin skyscrapers in Tbilisi on
Chavchavadze Avenue, at a presentation held
on October 20th at the site of the construction.
The presentation was delivered by George
Bachiashvili, CEO of GCF, and Giorgi Kapanadze,
General Director of AXIS; Irakli Garibashvili,
the Prime Minister of Georgia, also addressed
the audience. Members of the Georgian
government, foreign diplomats, representatives
of international organisations and financial
institutions, as well as senior executives of major
companies operating in Georgia were amongst
the many attendees.
GCF and AXIS shared information on the
project’s economic and technical parameters
with the audience. GCF acquired 50 percent of
AXIS TOWERS while the other 50 percent is held
by AXIS. At 147 meters, AXIS TOWERS will be
the tallest skyscrapers in the capital of Georgia.
The multifunctional complex consists of two
41-storied towers (4 of which are underground).
One tower is glazed with dark glass; the
other features white stone cladding. The total
buildable area of the towers equals 94,000 m².
The glass tower will house a 5-star Pullman
hotel. Pullman is a high-end international
French brand from the ACCOR Group, mainly
targeted at cosmopolitan travellers and business
tourism. The agreement between AXIS TOWERS
and ACCOR Group was signed during the
presentation. The tower will additionally feature
an A-class business centre with 15,000 m² of
office space. Meanwhile, the stone tower will
comprise of 15,000 m² of residential property,
featuring apartments with impressive views of
Tbilisi. The tower will be equipped with all the
necessary infrastructure to create the maximum
comfort for its residents.
AXIS TOWERS will offer its customers a
wide range of options for recreation and
entertainment. The skyscrapers will include
several facilities such as: a fitness and spa centre;
a 25-meter long swimming pool with a sliding
roof; a Sky Bar on the top of the towers with
panoramic views of Tbilisi; a 1,100 m² concert
hall; a shopping mall, several restaurants and
cafes. The AXIS TOWERS project will feature an
underground car park area with capacity for
500 vehicles. As part of the project, a new street
connecting Chavchavadze Avenue and Abuladze
Street will also be developed which will house
a recreation area with a number of cafes and
restaurants. This will improve pedestrian access
in Tbilisi and the street will become a place
where residents and tourists can gather and
meet.
Since the creation of the AXIS TOWERS
concept, Georgian specialists have worked in
cooperation with international experts and
representatives of major global brands such as
the leading global engineering firm Arup Group
on every step of this project. The audience
at the presentation was able to see a special
documentary feature on AXIS TOWERS, which
illustrated the cooperation between AXIS and
other international and local partners involved in
the project.
The General Director of AXIS, Mr. Giorgi
Kapanadze commented: “AXIS TOWERS is an
unprecedented project in terms of its scale and
functionality. This is a multi-functional complex
which includes five directions of development as
the skyscrapers will house high-level residential,
office, commercial and entertainment areas as
well as a 5-star Pullman hotel. AXIS continues
to play an important role in advancing Georgia’s
industrial development and we are especially
proud that AXIS TOWERS will be the new
landmark of Tbilisi. The project was renewed in
cooperation with the Georgian Co-Investment
Fund and is progressing actively. I am pleased to
announce that residential areas at AXIS TOWERS
go on sale today.
THE CEO of GCF, Mr. George Bachiashvili
commented: “TheAXIS TOWERS project is
fully in accordance with the mission that the
Georgian Co-Investment Fund seeks to fulfill.
By implementing this project with AXIS we are
investing US$83 M in Georgia’s economy. At
the same time, we are supporting the further
development of an already successful Georgian
company, AXIS. We are also utilising the
expertise of the international industrial leaders
through our work on this project and creating a
range of new local jobs.
“We are glad that the Georgian Co-Investment
Fund played a crucial role in making this project
happen: with ours and AXIS’ efforts several
months ago, we were able to renew a project
that had stalled for 7 years. Now, the project is
expected to be completed in 2017.
We are confident that AXIS TOWERS will be an
outstanding project in terms of its architecture,
scale and quality of construction, incorporating
best global industry practices. It will set a new
standard in real estate not only for Georgia but
for the wider Caucasus’ real estate market.”
The Prime Minister of Georgia, Mr. Irakli
Garibashvili said: “The development of the
hospitality and real estate sectors is a very
important element in ensuring Georgia’s
continued economic growth. The public had a
chance to get acquainted with the impressive
AXIS TOWERS project today, and this will play
an important role in this development. I would
like to mention with pride that this is another
interesting and exceptional Georgian project
which represents a new statement in modern
Georgian architecture. My compliments go
to AXIS for the role it plays in developing the
construction industry in Georgia. This company
is always outstanding with its innovative, quality
solutions. I would also like to emphasize the
GCF’s continuing role in supporting Georgian
businesses. GCF’s involvement made it possible
to restart the project in 2015 and as a result of
AXIS and GCF’s successful partnership, Tbilisi
will acquire a unique multi-functional complex in
2017, which will attract FDIs, create additional
revenue for the central budget, support the
development of business tourism and create jobs
for hundreds of people.”
iDEAL BRIEF
AXIS and Georgian Co-
Investment Fund to build
“Axis Towers”, the tallest
skyscrapers in Tbilisi
Equiteq sells Houston-
based information
management consultancy
to Infosys

Gamechangers 8
Corporate Group Advises
Custodian Reit Plc On A
Fundraising To Raise Up
To £75 Million
Corporate lawyers at Walker Morris have
advised the commercial real estate investment
company, Custodian REIT Plc, on its proposed
fundraising to raise gross proceeds of up to £50
million, with the ability to increase this to up to
£75 million.
The funds will be raised through the issue of
up to 71,976,967 new Ordinary Shares by way
of a Placing, an Open Offer and an Offer for
Subscription, all at 104.2 pence per Ordinary
Share. In addition, the Company is facilitating
potential issues of up to 100 million further
Ordinary Shares pursuant to a rolling 12 month
Placing Programme.
The funds will be used to capitalise on current
opportunities to invest in commercial real
estate properties in the UK to add to its existing
portfolio of 101 assets. Custodian recently
entered into non-legally binding heads of terms
to acquire a portfolio of 11 UK commercial
properties for an aggregate consideration of
approximately £69.4 million. In addition, the
Company has committed pipeline investments
and other opportunities.
Richard Naish (partner), Jon Wharam and James
Goose from the Walker Morris Corporate Group
advised Custodian.
Richard Naish said:
“As a firm we have had an extremely busy
year in terms of public market deals which is
testament to both changing market conditions
and our reputation in this specialist field. This
latest deal provides Custodian with a solid
platform to expand their property portfolio and
achieve their growth ambitions.”
Numis Securities acted as sponsor and broker
to Custodian REIT Plc, advised by Travers Smith
(Aaron Stocks).
BULLDOG London Dry Gin announced that
Farlap Partners, a UK-based principal investment
firm, has agreed to make a minority investment
in BULLDOG. Farlap Partners will become one
of BULLDOG’s largest shareholders after this
transaction. Farlap will work with BULLDOG’s
management team to continue expanding
the brand and building the business both
domestically and internationally.
BULLDOG Founder and Chief Executive Officer,
Anshuman Vohra, said, “This transaction
represents a major step up in our financial
strength and comes on top of recent major
distribution and route to market gains for
BULLDOG, which today is a top 5 premium gin
worldwide. Farlap has deep relationships and a
coveted investor base. They will be a fantastic
investment partner and we look forward to
building the next few chapters of BULLDOG
with their help.”
Farlap Managing Partner, Karan Chadha, said,
“Having followed BULLDOG since its inception,
we are confident that BULLDOG - as the highest
quality product in its category - will continue its
meteoric rise around the world. Farlap, along
with our investment partners, has a strong
history of helping companies expand globally,
and we are thrilled to partner with Mr. Vohra
and fully support his vision to continue to
disrupt the existing order and reshape the global
premium gin landscape.”
BULLDOG London Dry Gin is today the fastest
growing gin in the world and available in 80
plus countries on all continents. As a leader
within the super-premium gin space, BULLDOG
currently occupies the leading position in several
important markets around the world.
Polaris Private Equity (Polaris) divests its holding,
equivalent to 75 percent of all shares, in Skånska
Byggvaror to Byggmax. Byggmax pays a consid-
eration of SEK 741 million for all the shares in
the company. In addition to the initial purchase
price there is a possibility to get an additional
payment of SEK 110 million, based the financial
performance for Skånska Byggvaror during
2016.
Skånska Byggvaror is an online based retailer of
refined do-it-yourself products. The Company
has operations in Sweden and Norway with an
assortment focused on the building’s interior
and exterior environments, ranging from win-
dows and doors to storage and conservatories.
Over the past 12 months Skånska Byggvaror had
net sales of SEK 690 million, growing by approx-
imately 20 per cent year-on-year, and EBITA of
SEK 47 million (excluding nonrecurring items).
“During the autumn we have prepared a change
of ownership where a sale to a larger industry
player has been an option. This is an attractive
deal for all parties, in which Skånska Byggvaror
is able to continue to develop under its own
brand, but from Byggmax’s strong Nordic plat-
form. This is an important deal for Polaris and
we are proud of the company’s development
under our active ownership.” says Peter Ankerst,
Polaris Private Equity.
Polaris acquired Skånska Byggvaror in 2012
and has since then worked actively with the
company’s omni-channel strategy, including
the establishment of six physical stores - four in
Sweden and two in Norway. The product range
has also been expanded, which combined has
resulted in an increased annual average growth
rate of 20 percent, with good profitability, the
Polaris Private Equity
divests Skånska
Byggvaror
Farlap Partners
Announces Minority
Stake In Bulldog Gin
past three years.
“We are impressed by Skånska Byggvaror’s
ability to grow turnover over time, while the
company has been profitable. We see significant
synergies between the companies, mainly that
we can benefit from each other’s assortments to
boost sales. Skånska Byggvaror’s conservatories,
which they assemble and sell under their own
brand, is their largest category. Conservatories
have positioned Skånska Byggvaror as a strong
brand that combines good quality with low
prices. The market for conservatories is expected
to have good growth in the foreseeable future.
“Says Magnus Agervald, CEO Byggmax Group.
“Together with Byggmax we get an opportu-
nity to extend our offer and at the same time
increase our sales through Byggmax strong
presence on the Nordic market. We know that
our customers purchase building material when
they finalize their DYI-projects and we are happy
to be able to provide this in the future. We look
forward to continue our journey and strengthen
our brand together with Byggmax.” says Anders
Johansson Eickhoff, CEO of Skånska Byggvaror.
Potential additional purchase price is based
on Skånska Byggvaror’s financial performance
during 2016. The transaction is subject to
approval by the Competition Authority. The
transaction is expected to be completed in the
fourth quarter 2015.
Skånska Byggvaror Polaris Private Equity have
been advised by Carnegie and Mannheimer
Swartling and Byggmax has been advised by
Danske Bank, Lindahl and EY.
iDEAL BRIEF

“Gamechanger: What we
define as an individual or
business that aims to create
a new model that leaves
the older model obsolete.
Gamechangers impact how
the game is played from one
objective and ruling model
to a completely new vision –
changing the face of how we
know something.”
Gamechangers 10

Nicola Horlick to supercharge
pension-led funding
Horlick gets behind SME funding solution that
has potential to provide £100bn of finance
through investment from the pension funds of
directors and business owners…
Money&Co. CEO, Nicola Horlick, has
been appointed a non-executive director
of Pension-led funding specialists, Clifton
Asset Management. Horlick, who launched
crowdfunding platform Money&Co. in April
2014, will help to guide Clifton through its
next phase of growth. The company facilitates
investment into SMEs from the pension funds of
directors and business owners. It also operates
the website www.pensionledfunding.com
Clifton won the Best Alternative Funding
Provider Award in 2014 and is one of the largest
providers of alternative business finance in the
UK having facilitated more than £250 million in
funding to more than 1,500 businesses. Nesta
11 Gamechangers
research found that almost two-thirds of SMEs
using Pension-led funding saw their profits rise -
and almost half employed more people.
Horlick has been a leading fund manager in
the City of London for over 30 years. During
that time, she has set up and managed several
investment businesses. Money&Co. has a shared
interest with Clifton as it provides loans to SMEs
looking to grow their businesses.
Adam Tavener, Chairman of Clifton Asset
Management said:
“We’re delighted that Nicola has decided
to become a non-executive director of our
company. Her huge experience in the City and
more recently in the alternative funding market
will undoubtedly benefit both Clifton and
Pension Led Funding”
Nicola Horlick added:
“I get approached for non-exec roles almost
every week, but what particularly attracted
me to Clifton was that Pension-led funding
is something that is genuinely original and
disruptive in the pension space.
“Pension-led funding has the potential to
become a much more mainstream funding
solution for SMEs – particularly as the
government, through pension freedom, has
changed the mind set of not touching your
pension until retirement. As a result, we are
seeing a new wave of entrepreneurs turning to
their pension funds for growth capital.”
Clifton’s Pension-led funding solution is aimed
specifically at business owners and directors who
have accumulated pension funds greater than
Michael O’Higgins appointed
as LLPP Chairman
The Lancashire County Pension Fund (LCPF)
and London Pensions Fund Authority (LPFA)
today announced that the former Chairman
of the Pensions Regulator, Michael O’Higgins,
will chair their £10bn partnership. The London
and Lancashire Pensions Partnership (LLPP) will
pool LCPF and LPFA assets, jointly manage the
liabilities of the two administering authorities
and offer pension fund management as a
fully-fledged pension service organisation.
Crucially, it will allow both Funds to maintain
their local accountability with LCPF Pension
Committee and LPFA Board maintaining
control of key strategic decisions. Speaking
about the appointment, Leader of Lancashire
County, Jennifer Mein, said: “As we await the
Government’s announcement of their criteria to
assess proposals for pooling LGPS assets, we are
moving forward at pace. Michael’s vision and
experience are welcome assets, which should
give others confidence in the seriousness of our
joint endeavour, as we work towards launching
the new company in April 2016.” LPFA
Chairman, Sir Merrick Cockell, added: “Michael
is highly respected in the public and private
sectors as well as academia. His experience
is invaluable as we develop this unique and
ground-breaking partnership and we look
forward to working with him. To have a person
of Michael’s calibre chairing the partnership
£50,000. They don’t need to be 55 or over, and
should there be more than one owner director
in the same firm, the pension funds can be
amalgamated to invest in the business.
Adam Tavener continued: “Pension-led funding
has huge growth potential. Many entrepreneurs
and business owners have been forced to
personal guarantees, often putting their family
home at risk. Pension-led funding allows
business owners to invest in their businesses and
potentially create a larger pot of money for their
retirement if the business succeeds.”
Clifton launched pensionledfunding.com to
provide an online resource to business owners
and their advisers. The site explains how
pension-led business works and illustrates this
with a number of case studies.
3.1m SME owner managers in the UK have
a private pension pot. The National Office of
Statistics calculated the average private pension
pot is £25,000. Over its 20 years of working
with SMEs Clifton has found the average SME
owner pension pot is, in fact, £75,000 (3.1m x
£75,000 = £232bn). Therefore, far more than
£100bn of finance could be sourced directly
through director/business owner pension funds.
Nesta surveyed 15,658 people from March to
September 2014 for Understanding Alternative
Finance, The UK Alternative Finance Industry
Report 2014. Nesta is an innovation charity
that helps people and organisations bring the
best out of their business through alternative
funding.
is a real testament to what we are trying to
achieve. “He has had a distinguished career
spanning the academic, private and public
sectors. He has a wealth of knowledge about
the UK pension sector following his time as
Chairman of the Pensions Regulator, serving two
terms as a Non-Executive of HM Treasury and
writing extensively on pension reform during
his academic career.” Michael will be joined on
the LLPP Board by Deputy Leader of LCC, David
Borrow as the LCC representative and Skip
McMullan as the LPFA Board representative, as
well as three new independent Non-Executive
Directors to be appointed shortly. Commenting
on the appointment, Michael O’Higgins said:
“I’m delighted to be involved with Lancashire
and LPFA as they embark on this ambitious
project that could completely change the face of
the public sector pension industry. I applied for
this role because I believe what Lancashire and
London are doing with this partnership is exactly
what should happen across local government,
and indeed the wider pension sector, to help
secure better benefits for members. “My first
task will be to recruit a Board to support this
and in order to ensure the governance capability
to deliver the ambitions of the Partnership.”
Michael will commence in the role with
immediate effect.
MOVES

Gamechangers 12
Elian appoints Chief
Commercial Officer and Head
of Elian Corporate Services
Elian has made two strategic changes to its
senior leadership team.
Philip Norman, who has been with the business
for 16 years, has been appointed Chief
Commercial Officer and promoted to the Elian
board. A key priority for Mr Norman will be the
continual development of new products, driving
business growth and market share, whilst at
the same time maintaining high levels of client
service across the globe.
Gridiron Capital announces
promotion
Mr. Gault’s responsibilities since joining Gridiron
have grown to include sourcing and evaluating
potential investment opportunities, performing
due diligence, and participating in the
structuring, negotiation, financing and closing
of portfolio investments. While at Gridiron, Mr.
Gault has helped close a wide variety of platform
and add-on acquisitions. He is also a Director
on the Boards of several Gridiron portfolio
companies including Quality Solutions, Executive
Cabinetry and LRS. Prior to joining Gridiron
Capital, Mr. Gault worked in investment banking
with Lehman Brothers, based in New York,
NY, as a member of the firm’s Global Financial
Sponsors Group where he worked extensively
with Sponsors in the consumer, retail, industrial,
media and healthcare industries. Mr. Gault
graduated with a B.A. in history from Dartmouth
College. Mr. Gault also holds an M.B.A. from the
Kellogg School of Management at Northwestern
University.
Tom Burger, Managing Partner of Gridiron
Close Brothers Asset Finance
expands manufacturing team
Close Brothers Asset Finance, part of the com-
mercial division at Close Brothers Group, today
announced the appointments of Simon Duck-
worth and Ben Coldwell as area sales managers
to its mid corporate team in the manufacturing
division. Close Brothers Asset Finance offers a
range of flexible of funding options including
hire purchase, leasing and refinancing. As a
member of the Close Brothers Group, Close
Brothers is a leading UK merchant banking
group providing lending, deposit taking, wealth
management services, and securities trading.
Simon Duckworth joins as area sales manager
for the southern region.
Having worked in financial services for over 20
Group director Simon Mackenzie, who joined
the firm in 2002, has been appointed Head of
Elian Corporate Services. Mr Mackenzie will lead
Elian’s corporate services business, focusing on
further integration and expansion. The business
provides bespoke administration services to
corporate and institutional clients across all
of the global markets they operate in. Mr
Mackenzie has extensive experience specialising
in the administration of complex corporate
owned structures both offshore and onshore. He
takes over as head of Elian Corporate Services
from Mr Norman.
Elian Chief Executive Officer Paul Willing said:
‘Philip and Simon play integral roles within Elian
and thoroughly deserve their promotions. We
have had an exciting first year as Elian. We have
expanded our footprint in North America and
continental Europe with our new office in New
York and with the acquisition of SFM Europe.
We have very exciting growth plans and Philip’s
team will be vital in helping us expand and grow
the business in new markets and geographies.
Simon is a highly skilled and respected corporate
services professional and the ideal person to
lead Elian Corporate Services as it continues
to develop its global platform. These strategic
appointments allow us to continue our relentless
pursuit of client service excellence and provide
Elian with the leadership to take the business to
the next phase of its development.’
Specialists in Corporate Services, Fund
Services, Private Wealth, Capital Services
and Due Diligence Services, Elian has a clear,
uncompromising vision: to continually deliver
more value by raising the bar in Administration
services.
We work with global law firms and accountancy
firms, multi-national corporations, financial
institutions, high net worth individuals, family
offices and fund managers and believe that the
best can always be better.
With over 500 professionals across a network
of 11 international offices, covering all time
zones and key financial centres, we are experts
in handling large, demanding and complex
engagements.
From our technical skills and market
understanding, to the personalised service we
give our clients, we are always looking to set
new industry standards by challenging standard
practice.
Elian’s network of offices comprises of Bahrain,
the British Virgin Islands, the Cayman Islands,
Dublin, Guernsey, Hong Kong, Jersey, New York,
London, Luxembourg and Tokyo.
Visit: www.elian.com
said, “Josh has been a valuable member of
the Gridiron Team. Josh joined Gridiron back
in 2007 as a Pre-MBA Associate, went back
to business school, and rejoined Gridiron after
completing his MBA at Kellogg. He is a pleasure
to work with and he brings value in acquisitions
and in working with our portfolio companies to
drive growth and value. Josh has consistently
taken on more responsibility since joining the
Gridiron Team and we look forward to his
continued success at the firm.”
years, Simon’s most recent experience position
was as business development manager for Lom-
bard.He arranged complex financial agreements
for customers and managed a successful sales
team, and this has provided a great commercial
platform for his new role.
Simon believes his knowledge of manufacturing
and a wide range of financial products will be
advantageous to his new role with Close Broth-
ers Asset Finance. He commented: “I am excited
to be entering this new chapter in my career,
and I am pleased that I have joined an ambitious
and highly motivated team, with a clear focus
on supporting UK manufacturing.”
Ben Coldwell joins as area sales manager for the
northern region
Ben is a credit-qualified asset finance business
development manager with five years’ asset
finance sales experience with Lombard, and
seven years in business banking with RBS /
Natwest group. He has a strong background in
the industry, arranging finance for SMEs across
a range of hard and soft assets. Ben said “I am
delighted to be joining the team. It is a great
opportunity and I am pleased to join a team that
share the vision and desire I have in supporting
UK businesses with their capital expenditure
plans and requirements.“
Managing Director of Close Brothers Asset Fi-
nance Manufacturing division Ian Barker added:
“We pride ourselves on our ability to understand
what our customers are looking for, and so
these key appointments really strengthen our
team. The experience and knowledge that both
Simon and Ben have in this field will be a real
asset to our business.”
MOVES

13 Gamechangers
David Hunter appointed as
Senior Adviser for European
Real Estate by H.I.G. Capital
H.I.G. Capital, LLC (“H.I.G.”), a leading global
private equity investment firm with 17 billion of
equity capital under management, is pleased to
announce the appointment of David Hunter as a
Senior Adviser for European Real Estate.
With more than 40 years of experience,
David is a leading figure in the European Real
Estate Industry. Prior to setting up his own
independent real estate advisory firm in 2005,
he was Managing Director of Aberdeen Asset
Management’s £6.5bn property fund business
and was President of the British Property
Federation in 2004. Since then, he has held
a variety of roles in both quoted and private
property funds.
H.I.G. Capital’s real estate platform targets
small/midcap opportunities with a meaningful
value-added component. With resources based
in offices in London, Madrid, and Milan, the
H.I.G. European real estate team is active across
a wide spectrum of real estate asset classes. It
has completed 21 transactions across multiple
jurisdictions in Europe since the beginning
of 2013 including in the U.K., Spain, Italy,
the Netherlands, Finland and Portugal. With
the ability to invest in all parts of the capital
structure, H.I.G. Capital is able to develop
creative financing solutions and consummate
transactions on an expedited basis. Typical
investment size ranges from 10 million to 100
million.
In commenting on the appointment, Sami
Mnaymneh, Founder and Co-CEO of H.I.G.,
noted, “I am delighted to welcome David as an
adviser to the firm. He is a very experienced and
successful real estate investor who significantly
augments the expertise and capabilities of
our team. I am confident he will play an
instrumental role in H.I.G. Capital’s continued
success in the European real estate sector”.
David Hunter commented, “I am delighted to be
working with H.I.G.’s team. I am truly impressed
by their success in sourcing and closing such
Partech Ventures appoints
Olivier Schuepbach as new
partner for Germany
The March 2015 announcement that Partech
Ventures would expand its presence in Germany
is followed by actions: Olivier Schuepbach is ap-
pointed partner of Partech in Germany and will
lead the team of three investment professionals
based in Berlin. Schuepbach is well-known
among the German start-up scene: In the past
he has already worked as a venture capitalist
at Wellington Partners and has operationally
helped start-ups such as Brands4friends, in its
international expansion and ultimate sale to
eBay.
Partech’s managing partners Philippe Col-
lombel and Jean-Marc Patouillaud gave a warm
welcome to the new arrival: “We want to raise
our exposure in Germany to the next level. With
Olivier we gained a well-known and widely
appreciated business partner to reach that
goal,” explains Collombel. Patouillaud added
that “Germany has a strong entrepreneurial
scene which needs further growth capital and
fully dedicated teams to unlock its potential.
Investors in place must know the local market
from inside out and have the right instincts to
identify the rising stars. Olivier truly brings the
experience and network we’ve been searching
for.”
With Schuepbach, the transatlantic venture
capital firm appoints an experienced entrepre-
neur and investor in the German and interna-
tional technology scenes. Schuepbach started
his career in the U.S. at Texas Instruments and
has been working with fast-growing technolo-
gy companies for more than 15 years. Prior to
joining Partech Ventures, Olivier was in charge
of international development and M&A at
Brands4friends before eventually leading its
successful exit to Ebay. Previously, he worked
at the venture capital firm Wellington Partners
where he teamed up with Partech for example
on an investment in Qype, which was later sold
to Yelp. A passionate entrepreneur and investor,
Schuepbach is also known for his role as CFO
of MarkaVIP, now one of the largest ecommerce
companies in the Middle East.
Born and raised in Switzerland, Schuepbach
moved to Munich nine years ago. He has a very
deep understanding of the German technol-
ogy ecosystem from Berlin to Bavaria and is
looking forward to actively supporting it: “With
our transatlantic and pan-European structure
and investment tickets ranging from 250,000
to 40M, we are in a position to accompany
ambitious entrepreneurs in every phase of their
growth.”
Partech will invest in Germany through three
funds: Seed (Partech Entrepreneur), Venture
(Partech International) and Growth Capital
(Partech Growth). Olivier will work in close prox-
imity to principal Otto Birnbaum, who has been
an active investment professional in the German
Partech office since 2014 and who will focus on
seed investment.
Visit: http://www.partechventures.com/
Blandine Fauran joins De
Gaulle Fleurance & Associés
as a new partner
Blandine Fauran, so far Legal and Compliance
Director of the LEEM (the French pharmaceutical
companies association) just joined De Gaulle
Fleurance & Associés in order to reinforce the
Health and Life Sciences practice.
De Gaulle Fleurance & Associés thus strengthens
its capacity to assist its clients facing challenges
arising from the evolution of the legal
framework applicable to health products and,
more particularly, e-health, product compliance
and security.
Drawing on her experience in issues impacting
pharmaceutical companies and in the legal
and regulatory evolutions of the sector at
both national and European scale, Blandine
Fauran shall bring her knowledge of regulation,
competition, ethics and compliance.
Blandine Fauran: « Transformations of
innovation in the drug sector and new multi-
technology health solutions make news. I shall
therefore assist companies commercializing
health products, biotechs and organizations
operating in this sector ».
Since the beginning of her career in 1989 at the
French national union for the pharmaceutical
industry (SNIP), Blandine Fauran has supported
the development of the union, which became
the LEEM in 2002, and climbed the professional
ladder up to the head of the then created Legal
and Compliance Department in 2003. Blandine
wrote numerous publications relating to health
law. Blandine Fauran holds two postgraduate
degrees (DEA) in European law and in business
and economic law (University Paris I Panthéon
Sorbonne, 1984 and 1986).
Visit: http://www.degaullefleurance.com/en/
MOVES

GamechangersGamechangers 14
“A Gamechanger changes
the way that something is
done, thought of or made;
they transform the accepted
rules, processes, strategies
and management of business
functions. They shift
behaviour, shape culture and
make clever happen.”

Panasonic ‘Future Mirror’
You might have seen it already a
prototype of this cool interactive
mirror at the CES in January, but the
one being shown in Germany is an
improved version. Not only it can
digitally enhance your face to show
you how you would like with different
makeups (in my case, with different
types of beard, or moustache) and
detect your skin conditions and
recommend how to improve it, but
now includes features such as vital
statistics check, magnifier and rear
view of yourself. A must-have, for
all narcissists, when and if it will be
marketed.
A Glow-In-The-Dark
Smartphone
French smartphone manufacturer
Wiko might not be a behemoth like
Samsung or Apple, but it is doing well
for itself, carving a niche in the market
with quality products that offer good
value for money. At IFA, it announced
the latest collection of mobile devices.
Some of them immediately available,
others set to be launched in Autumn.
To this second bunch belongs the
Wiko Fever, a $199 iPhone looking
device with 13-MP camera, 5.2”
display, 5-megapixel front camera for
quality selfies and octa-core 1.3 GHz
processor. But its distinctive feature is
that luminescent glow that makes it
easier to find it at night or inside your
bag.
Gamechangers 16
PARADE

Ultrasound Images Via A Mobile App
Among many other things, Philips introduced at the IFA, Lumify, an app-based
ultrasound solution that offers high-quality imaging on a compatible smart device.
It is sold through a subscription model, and is intended mainly for healthcare
professionals, but it has a consumer side. It could be used for instance by women
waiting for a baby to take ultrasound images of the fetus and send them to the
doctor. Users can have access to an online portal where they can manage their
device and access Philips’ support services. As for availability, the Lumify will be
marketed in the U.S. later this year, but not in Europe.
17 Gamechangers
A PC In A Stick
Among the many products announced
by Asus at the fair, one of the most
interesting is the VivoStick PC, an
ultra-miniature PC that turns any
HDMI-enabled TV or monitor into
a fully-functional Windows 10
PC (provided you add a keyboard
and a mouse), and which can also
be controlled remotely from a
smartphone. It costs $129, and for
that price you get 2GB of RAM, 2
USB ports, 32GB of storage, and a
headphone jack. Unfortunately, it’s still
unclear when it will go on sale.
PARADE

Ricoh Pherical HD Camera
Ricoh unveiled a new fully spherical
portable camera, an improved version
of its previous m15 model. It can
capture high-resolution spherical
images of up to nearly 14 megapixels
and it can also record spherical video
in full HD with a maximum recording
time of 25 minutes. Images can then
be shared on social networks or sent
to Google Maps or Google Street
View. It does not come cheap, the
base sale price is $349, so if you’re
thinking of just using it for group
selfies, you might want to reconsider
your ambitions.
Pebble Time
Pebble kicked off the smartwatch
category—and with the Apple Watch
looming, it’s not backing down from
the fight. Today the company unveiled
its next-generation product, which
includes a color screen, thinner design
and microphone, allowing you to
interact vocally with the device. Pebble
Time is compatible with the more than
6,500 apps that exist for the current
Pebble Watch. As with the original,
the company turned to Kickstarter to
launch the device, selling it for $159. I
doubled its campaign goal of $500,00
in just 33 minutes. After the campaign
ends, the price will jump to $199.
Gamechangers 18
PARADE

d
n
e
n
It
00
n
19 Gamechangers
LG Twin Wash
Admittedly more home appliance than digital
home, the LG Twin Wash is nevertheless my
favorite find at CES this year. It’s essentially a
washing machine within a washing machine.
There’s space for a full-size load on top, and a
smaller, pull-out drawer on the bottom allows
you to wash a second load simultaneously, so
that you can get through the dreaded laundry
day in half the amount of time.
Digitsole
Fitness trackers don’t have to live on your wrist. Digitsole is an insole
for your shoes that can keep better track of your daily steps (and,
presumably, calories burned) and even keep your feet warm. The
$200 soles transfer data via Bluetooth and, as a bonus, add a layer of
padding in your footwear to absorb shock and vibrations as you walk
and run.
PARADE

21 Gamechangers
“
“
Quentin Bargate, Senior Partner at Bargate Murray Solicitors
AS ONE OF THE LEADING UK SHIPPING AND MARITIME LAW FIRMS, BARGATE MURRAY STANDS OUT
STRONGLY REPRESENTING THE EVOLVING SUPERYACHT INDUSTRY. IN THE MID-SEVENTIES YACHT
WORK WAS RARE COMPARED TO THE FINANCING OF BULK CARRIERS AND OTHER VESSELS BUILT
BY EUROPEAN YARDS - THE PAST TWO DECADES HAVE SEEN THE DEVELOPMENT OF THE ONCE
MODEST YACHT, INTO THE VAST SUPERYACHTS AND NOW MEGA-YACHTS THAT EXIST TODAY.
I think the root of our success has been a
joint emphasis on the quality standards that
we insist upon, and the personalised way in
which we deliver our services. We also have
a young, talented and highly driven team
that believes in those principles
Q. As a partner in shipping and maritime law firm Bargate Murray, can you tell us about yourself?
I have a great passion for the law, and the intellectual challenges it presents but, first and foremost, I am a devoted family man. I have
three outstanding sons that are at the centre of my life and of whom my wife Glynis and I are very proud.
Q. What motivated you to launch yourself into law?
I like the challenge of complex intellectual problems and finding ways to solve them. I also pride myself on my understanding of the English
language and enjoy using it to its fullest extent.
Q. Do remind us and for those who don’t know, what does being a superyacht lawyer entail?
The work is complex and international in its scope. When you think that, essentially, a superyacht is a highly complex construction project
that is subject to international regulation and control, along with the laws of whichever jurisdiction it may be visiting at any given time, you
begin to see what I mean…
Q. What was it that initially interested you in the superyacht industry?
I was initially attracted to the industry through instructions I received from existing clients’ interest in investing in yachts. I was, at that time,
already a maritime lawyer and yachts just seemed to be a fascinating and exotic subset of maritime law.
Q. With the launching of Triple Deuce, the world’s largest superyacht at a whopping 728ft in length, there’s clearly a consistency in eclipsing
for their billionaire owners. Putting aside harboring issues, is there a point where these “floating palaces” become too big?
In my view, the answer is probably yes, but then I am not a potential yacht builder or owner! There is, and has been for some time, a certain
cache associated with being the owner of the world’s largest yacht, so I do not see this trend of ever-bigger yachts ending any time soon.
That said, I hope that todays yacht owners also embrace technological advancements with newbuild yachts, making them ever more sophis-
ticated as well as simply larger. Also, I hope to see the adoption of greener technologies.
Q. With 223 sold already so far in 2015, 81 orders placed and an impressive 115 launched putting 2015 on an increase from last year’s progress
already, we can see that the superyacht industry is vastly expanding. What does the future hold for superyacht acquisitions and trade?
I don’t believe we have even scratched the surface of the potential of superyacht ownership globally. I believe there is great potential for
further expansion, not only in superyacht ownership in the developing parts of the world, but also in the associated development of mari-
nas in new cruising destinations.
Q. With the majority of the globe’s superyachts being flagged within Europe and Central America, it was recently reported that China
(now the world’s largest economy) possess a minute 0.7% of the world’s 4,836 superyachts – in your opinion, why are there so few flagged
throughout Asia and Africa? Does the sheer volume of piracy across the two continents have any impact on this?
I’m not sure it’s correct to say that the majority of superyachts are flagged in Europe. Red ensign flags such as Cayman and Bermuda ac-
count for a very substantial portion of the world’s superyacht fleet. There is a good reason for this, namely long experience and expertise.
Nonethe-less, I do see a greater role for alternative flag jurisdictions provided this does not adversely impact upon quality. I don’t believe
the risk of piracy is a material factor at this time.
COVER

Gamechangers 22
Q. What are your most recent highlights as a firm at Bargate Murray?
We have taken on some fabulous new clients in 2015, which I put down to the strength of our team. This has been one factor in the continuing
development and success of some of my more junior colleagues, with Mark Needham, my former Senior Associate being promoted to
Partner in September.
Q. You have previously said that you’re very much a family man, how do you balance the sheer intensity that comes as a superyacht lawyer
with family life?
I find my role as a superyacht lawyer is a cathartic experience because I get so much satisfaction out of the work I do, and the clients I meet. I
try to bring that positive energy into my family life; my family knows that I enjoy my work and they are very supportive so I try to make sure
the time I spend with them is valued.
Q. The launch of Bargate Murray’s new Property Department is an exciting prospect; please tell us more about this…
Given our UHNW client base, this seemed like a natural progression for the firm and, whilst it is very much in its infancy by comparison to our
superyacht practice, our experience and knowledge is growing daily and we look forward to taking on ever bigger and more complex cases in
the future.
Q. Is this a preview of what’s to come for Bargate Murray; currently standing as a boutique law firm, are there any more plans to branch?
I think our “boutiqueness” is actually one of the key factors that set us apart from our competitors, so that is factored in to any discussions my
Partners and I have regarding growth. Put another way, we are not dead set on “growth for growth’s sake”. It will only be considered if we
take the view that it will improve the quality of our business, not dilute it.
Q. When we last spoke we focused solely round Bargate Murray and the super yachting industry. With 14 years of experience as a partner at
your previous firm, what do you feel that you took from your time at Simmons and Simmons that has transferred into the success of Bargate
Murray?
Commercial savvy. There is no substitute for experience, a point often lost in a world driven by an obsession with youth culture.
Q. As head of the Superyacht Group as well, in your opinion, what are the common struggles within the development of yachting?
One thing I have noticed is the struggles that yacht class regulations seem to have to keep up with ever-larger yachts. The large yacht code,
for example, mandates that the maximum number of guests a yacht can accommodate is 12, but in a time when yachts regularly exceed 100m
in length, this seems unduly restrictive. That said, the introduction of the Passenger Yacht Code, which permits the carriage of up to 36 guests,
might go some way to assuaging the problem.
Q. As an advocate for ADR, what experiences do you feel influenced you to take preference to this approach?
If I’m honest, litigation is little more than a lottery and often a complete waste of time, money and resources. The big advantage of ADR,
particularly mediation, is that not only are the parties in control of the process but they can also, with the assistance of the mediator, design
solutions to their dispute that can preserve their business relationship. Never forget that Judges are civil servants; you get to choose your
mediator but you have no choice over which judge you get. In my view only a mad person would choose litigation over mediation.
Q. With the rise of the superyacht and heightened media interest seeing an increase in headlines every year, how do you manage the critics?
We take a very strict approach to confidentiality; criticism from the general public is not something we often have to deal with. It’s in our own
best interests as well as our clients’ that we generally stay out of the public eye.
Q. In your 34 years’ experience in law, what were some of the memorable and most challenging events so far in your career?
The most challenging and exciting event was starting BM in 2004. It was a leap in the dark, and very hard work, but the challenge was very
worthwhile and the last 11 years since the firm’s foundation have been the most rewarding of my life.
Q. As one of the world’s leading superyacht law firms, how do you keep one step ahead of the game?
I think the root of our success has been a joint emphasis on the quality standards that we insist upon and the personalised way in which we
deliver our services. We also have a young, talented and highly driven team that believes in those principles.
Q. What does success mean to you?
Happy clients.
Q. If you could choose one yacht, any yacht to be in possession of yourself, which would you choose?
My ideal yacht has not yet been built, but if it is, I’ll let you know.
Q. Is it all sun, sea and superyachts?
In short, no – that’s the preserve of the owners! The vast majority of our work is very similar to that of most practice areas; we spend a lot of
time poring over contracts, articles and the latest case law. However, my team and I do travel from time to time to various yacht shows or
closing meetings. Monaco, Fort Lauderdale, Cannes and various spots in Italy are popular destinations!
COVER

23 Gamechangers
Bargate Murray, Business Lawyers
Tel: (switchboard): +44 (0) 20 7375 1393
Fax: +44 (0) 20 7392 9529
Email (general office) info@bargatemur-
ray.com
Our Website: www.bargatemurray.com
On Facebook:
https://www.facebook.com/bargatemur-
ray
COVER

Gamechangers 24
The man behind the brand...
Which three people would you most like to invite to a dinner party?
Arnold Schwarzenegger, James Caan, and Sigourney Weaver.
What is your most used phrase in both work and play?
It is clear beyond peradventure.
Who outside of your field of interest inspires you and why?
John Cleese (as Basil Fawlty) because he proved that success & madness are
not mutually exclusive.
What animal do you take the most inspiration from?
Border Terrier because it’s bright, tough and very loyal, just like me!
Most common thought when you first wake?
WHERE’S THE BACON?
The last thought before you sleep?
Did I finish the bacon?
What song, film or literature best describes your life?
2001 – A Space Odyssey. Full of mystery and very unpredictable.
What makes you howl with laughter?
Politicians, because of their desperate attempt at false sincerity.
Ocean bed or outer space?
Outer space.
Have you ever stolen a pen from work?
Of course, who hasn’t? But in my case, as I own all the pens (and have
eaten all the pies) it doesn’t really count.
“What makes you cry
or angry?
An unpaid invoice”
COVER

Gamechangers 26
10 Best Countries In The
World For Starting And
Running A Business
“Today, the pressure is on economies
because the other drivers of growth
are not doing well”
The World Bank’s ‘Doing Business 2016’ report
was recently released – as the most authoritative
source in the world for which countries are most
friendly to entrepreneurs, and where’s it’s least
onerous to keep an enterprise running, we’ve
laid out which countries are in the very upper
end of the ranks. Also documented is where
they were last year, and where they were five
years ago, in the 2011 index.
The World Bank calculates its own score for
each country, based on the “distance to fron-
tier” (DTF). That tracks how far each country is
from the best ever score for a number of differ-
ent measures. Those measures include things
like how long it takes to get necessary permits,
how long it takes to establish a business, and
how burdensome the regulatory and tax envi-
ronments are. It’s one of the most well respected
indexes on economic performance in the world,
and there’s fierce competition for a place in the
upper ranks.
Rather than create more attractive business
climates to spur souring growth prospects, many
of the world’s largest economies may actually
be making it more difficult to start and run a
company. Almost half of the Group of 20 largest
economies have fallen in the World Bank’s
annual “Doing Business” rankings, including
emerging markets such as China, Turkey, South
Africa and Brazil that most need economic over-
hauls to revive growth prospects.
The World Bank’s flagship report on the best
and worst places to start and operate a business
in 189 economies around the globe underscores
the inability of many governments to make
needed policy changes. Global growth is settling
into a long period of anemic expansion as large
emerging markets. Those troubles are rippling
out across the globe, jeopardizing prospects for
rich and poor countries alike. G-20 nations have
vowed to restructure their economies to make
them more competitive and attractive to invest-
ment, but have so far failed to deliver on their
promises. Ballooning government debt levels
and central banks that have stretched the fron-
tiers of monetary policy are leaving authorities
with little ammunition to jumpstart growth.
“Today, the pressure is on economies because
the other drivers of growth are not doing well,”
said Kaushik Basu, the World Bank’s chief
economist, in an interview. “So a lot depends
on the ease of doing business….There is a much
greater need to work on this than before.”
The rankings of the 189 economies can be a
boon or humiliation to countries around the
world seeking to attract more investment.
They’re based on a raft of indicators that gauge
the business climate, including paying taxes,
registering property, and permitting and contract
enforcement. Over the last two years, the bank
has been updating its metrics, including trying
to better measure the quality of regulations.
Here’s how the 10 best coun-
tries look this year…
10. Finland (from 9th) - despite a drop this year,
Finland has improved over the last 5 years, rising
from 13th. It sneaks into the top 10, one of 5
European countries that does.
9. Norway (from 6th) - though Norway has
slipped a little, it still holds a top 10 spot. It’s
only the 3rd best-ranked Scandinavian nation,
showing how well that part of the world per-
forms.
8. Sweden (from 11th) - the country’s climb in
the ranks makes it to the third most busi-
ness-friendly country in Europe, and the second
most in Scandinavia.
7. United States (unchanged) - the world’s
biggest economy still holds a relatively high
spot, but has lost ground relative to 5 years ago,
when it came in 5th.
6. United Kingdom (from 8th) - home to Eu-
rope’s biggest financial centre, the UK was cred-
ited by the World Bank for a cut in corporation
tax, and comes second in terms of European
countries.
5. Hong Kong (from 3rd) - China’s premier fi-
nancial city and an access gateway for western-
ers, Hong Kong has slipped down the rankings.
As recently as 2011, it vied with Singapore for
the top spot.
4. South Korea (from 5th) - in recent years South
Korea has become much more business-friendly,
according to the World Bank, rising from 16th
just 5 years ago.
3. Denmark (from 4th) - this country tops the list
for European countries, and has quietly climbed
from 6th in the last 5 years. Though it’s known
for its Scandinavian-style welfare state, it’s a
dynamic business-friendly economy too.
2. New Zealand (unchanged) - this tiny economy
has become a model to emulate in terms of its
approach to start-up business. On the World
Bank scoring system, its now less than one point
away from the overall winner.
1. Singapore (unchanged) - this financial hub
went through a dramatic growth period during
the 20th century, and has now topped the
World Bank Ranks for 10 straight years.
WORLD VIEW

27 Gamechangers
Kaushik Basu, the World Bank’s chief economist
WORLD VIEW

Gamechangers 28
Iceland is the safest country in the world, while Syria is the
most dangerous, the latest report from the Institute for Eco-
nomics and Peace has found.
The rankings were based on 23 different metrics, taking into
account statistical factors such as murder rates and military
expenditure, but also including perceptions of criminality
within states and terrorism levels. The metrics are combined
into a single number, called the Global Peace Index (GPI). The
lower the number, the safer a country is regarded.
WORLD VIEW
The 10 safest countries in the
world – and the 10 most dangerous
UK ranked 39th most peaceful country in the world in ninth edition of Global Peace Index
rankings

29 Gamechangers
WORLD VIEW
The report, released annually, ranked Syria as
the 88th most peaceful country in 2008, out of
162 total nations. However, the outbreak of civil
war and the rise of Islamic State (IS) have caused
its peace ranking to shoot through the floor,
according to The Independent. Syria earned a
GPI of 3.645.
The ten least peaceful countries in the
world
Syria
Iraq
Afghanistan
South Sudan
Central African Republic
Somalia
Sudan
Democratic Republic of Congo
Pakistan
North Korea
Iceland, by contrast, earned its rank from a low
level of militarisation and conflict both domes-
tically and internationally. Iceland is one of few
countries in the world – and only Nato member
– without a standing army. The closest agency
it can deploy is the coastguard. Factors such as
these earned Iceland the lowest GPI, at 1.148.
Nordic countries and Alpine states including
Austria and Switzerland rank highly on the list
of most peaceful countries – Denmark sits in
second place, and Finland in sixth. Sweden and
Norway are 13th and 17th, respectively, due to
their higher crime levels and weapons exports;
Sweden prefers to stay neutral in conflicts, yet
is the 12th largest exporter of weapons in the
world.
The ten most peaceful countries in the
world
Iceland
Denmark
Austria
New Zealand
Finland
Switzerland
Canada
Japan
Australia
Czech Republic
The UK came in 39th place, due primarily to
higher perceptions of criminality and a greater
threat of terrorist attacks, according to the
Independent. Being a nuclear state is also a
detriment to its rank.
The ten least safe countries in the world are
comprised primarily of states in the Middle East
and north and central Africa. These states suffer
from frequent bouts of civil war and the effects
of the “War on Terror”. North Korea also made
the bottom ten.
This is the ninth edition of the GPI report. Over
the past eight years, the average country score
has fallen by 2.4 per cent, indicating that, by
and large, the world is becoming less peaceful.

Gamechangers 30
London’s Corporate Tech Boom -
Have We Learnt Past Lessons?
London is currently at the heart of one of the
most significant corporate trends – a global tech
boom that is transforming ambitious start-
ups into billion dollar “unicorns”. And with
memories of the late-nineties dot-com bubble
still fresh, the key question for City investors is
this: have lessons been learnt, or are we due a
sharp correction?
Firstly, there are clear differences between the
two markets. At its heart, the dot-com boom
was driven by companies rooted in conventional
models which offered little more than digital
windows to “old world” businesses. In
many cases, projected revenue growth never
materialised and investors rapidly lost confidence
in their bullish valuation multiples.
In contrast, the best of the companies leading
today’s tech boom are set apart from the
dot-com darlings by their disruptive business
models that address real consumer desires, build
strong communities, and reject “status quo”
solutions. Taking three examples of London-
based companies that have recently completed
successful investment rounds, TransferWise
has pioneered a new way of transferring
money that has slashed remittance costs for its
users, Farfetch has given consumers access to
a previously cut-off global network of luxury
designer boutiques and Funding Circle, just
one of several successful peer-to-peer lending
ventures, has radically challenged the classical
bank finance model. Valuations of these
companies may be seen as aggressive, but are
ultimately underpinned by deep user bases, solid
revenues and “proven” concepts, in contrast
to the raft of tech companies that went from
inception-to-IPO at breakneck speed in the late
1990s.
That said, investors should take stock of the
current market. Many private equity and
venture capital houses are sitting on significant
pots of “dry powder”, built up during a re-
invigorated fundraising market and a hot exit
climate over the last 18 months. And with
quality assets often heavily outnumbered
by willing investors, prices are being forced
upwards. Investors must therefore be smart
in getting to know the market ahead of their
rivals, but alert to the dangers of over-paying
for assets that have achieved full market
exposure. They should also consider the pitfalls
inherent in investing in highly digitised markets.
Until companies reach critical mass and build
up considerable brand loyalty they remain
vulnerable to new market entrants – see, for
instance, Uber’s challenge to Addison Lee in the
“on demand” transport sector.
Corporates seeking to leverage M&A
opportunities in the tech sphere should take
inspiration from recent successes, whilst heeding
warnings from the dot-com boom, such as the
now-infamous AOL Time Warner tie up that
sought to combine wholly disparate business
platforms. Successes such as the purchase
of Zoopla (an online property window) by
Daily Mail General Trust (the publisher) and
Countrywide (the bricks-and-mortar estate
agency) show that in order to build real value,
strategic acquisitions must be underpinned by
industry know-how and demonstrable synergies
rather than sentiment.
With a mature investment and exit network and
strong professional services support platform,
London is undoubtedly well placed to continue
to drive (and benefit from) the corporate tech
boom. Numerous home-grown companies
are using technology to implement genuinely
revolutionary business models that are shaking
up established markets and delivering real value
to their investors. We’re in a very different place
now than we were 15 years ago – but must
nevertheless recall past mistakes to ensure they
aren’t repeated.
Andrew Wingfield, Partner and Matt Clift, Associate from the London Corporate Finance Team of International Law Firm,
King & Wood Mallesons
WORLD VIEW

Gamechangers 32
UNIVERSITY OF EDINBURGH
SECURES UK’S FIRST RISK
AND RESILIENCE INNOVATION
SHOWCASE
• AIMday event will provide a pathway to find solutions that will
‘Future-Proof’ business, helping companies to safeguard the bottom
line and maintain competitive edge
• This is the first time that AIMday has looked at ‘Risk & Resilience’
- a topic that is becoming central to boardroom discussions globally
today.
• Company registration now open for unique 27th January business
- academic showpiece
WORLD VIEW

33 Gamechangers
Edinburgh Research and Innovation, the
commercialisation arm of the University of
Edinburgh, has announced a new AIMday®
(Academic Industry Meeting day) for companies
looking to anticipate possible future risks to
their operations and plan resilience strategies for
today’s global marketplace.
AIMday Risk & Resilience will tackle topics such
as risk & financial decision making, management
risk in day to day operations, strategic resilience,
regulatory issues and climatic risk.
Risk & Resilience - terms that have become
increasingly commonplace in boardroom dis-
cussions - places greater emphasis on planning
for dramatic economic or climatic changes
and technological advances that could have
repercussions for companies, their customers,
employees and supply chains within the compet-
itive market environment.
AIMday is a one-day event that allows com-
panies to submit a question or commercial
challenge around any element of Risk and Resil-
ience. Academics from across the University, will
self-select those questions where they believe
their research could add the most value to the
company discussion.
On the AIMday itself, the companies and
academics meet in a one-hour workshop face to
face to discuss possible pathways to a solution
- the emphasis being on generating innovative
ideas to meet today’s challenges using multi-dis-
ciplinary approach.
Douglas Graham, Commercial Relations Exec-
utive, University of Edinburgh Business School
comments;
“The announcement of an AIMday focused on
the topic of Risk & Resilience coincides with
increased emphasis on the identification and
management of risk in industry today. With
companies increasingly looking to meet global
market demands, universities are a vital source
of knowledge on this topic. This AIMday event
will provide a source of innovative and multi-dis-
ciplinary thinking to companies who are looking
to protect their supply chains, investments and
bottom line well into the future.
“Today, it is important that organisations embed
risk management strategies into their day-to-
day operations. Supply chains are increasingly
outsourced, therefore, companies need to
understand, anticipate and plan for strategic
resilience in order to safeguard their bottom line
and competitive edge.
“I am delighted the University of Edinburgh is
hosting what will be a compelling and infor-
mative AIMday and we’re looking forward to a
good level of engagement particularly from the
public sector, financial services and construction
industries amongst many others.”
The event will be held on 27th January 2016 at
the University of Edinburgh Business School and
will allow companies to access the interdisciplin-
ary strength and depth of expertise across the
University of Edinburgh’s three Colleges of Hu-
manities & social science, Medicine & Veterinary
Medicine and Science & Engineering.
In 2014, The University of Edinburgh became
the first higher academic institute outside Scan-
dinavia to be approved as hosts for AIMday®
– a unique collaborative knowledge exchange
initiative which began life at Uppsala University
in Sweden
This is the sixth AIMday to be organised by
Edinburgh Research and Innovation (ERI) at the
University of Edinburgh, an event which is prov-
ing successful in establishing useful contacts and
collaborations, as well as identifying possible
new solutions to challenges facing organisations
today.
Companies can register and submit their ques-
tions or challenges until 30th October 2015,
at which point academics will be able to select
those questions their research is most closely
aligned to.
Interested companies can find out more at
http://aimday.se/risk-resilience-edinburgh-2016/
WORLD VIEW

Globeleq is an experienced developer, owner and operator
of independent power generation projects specialising in
the emerging markets.
Energy for a Changing World
Since 2002, Globeleq has participated in nearly 14,000 MW
of power assets in 27 countries investing approximately
US$1.3 billion of equity across 44 different power projects.
As the leading African independent power company, it invests capital to enhance
performance of existing assets and acquiring, developing and/or constructing new
power projects.
With assets in Tanzania, Côte d’Ivoire, South Africa, Cameroon and Kenya, Globeleq focuses
on developing economically sustainable projects that support the continued development
of the power sectors in Africa, in turn driving economic development. The company actively
participates in the communities located near to its operations and develops its community
engagement programmes in collaboration with local community, businesses, governments
and private and multilateral organisations.
Globeleq’s strength is the ability to develop, build and operate power generation assets in a
variety of markets, electing technology appropriate for long term sustainability, generating
reliable and affordable energy.
The company has a highly qualified team of power developers, engineers, legal,
financial and administrative managers which is fundamental to the company's success.
The team has extensive experience at all project stages from inception, development,
acquisition, financing, construction to operation and management of power assets.
Globeleq is proud to be voted by its industry peers for the
third consecutive year in the 2015 ACQ Global Awards
– the ﬁrst company to ever receive this recognition during the
10 year history of the ACQ Global Awards:
International - Energy Business of theYear
(Emerging Markets)
COMMERCIAL FEATURE

London
Dar es Salaam
Azito 430 MW
Dibamba 88 MW
Kribi 216 MW
Kribi 114 MW Expansion
Tsavo 75 MW
Abidjan
Droogfontein 50 MW
Jeﬀreys Bay 138 MWCapeTown
Songas 190 MW
De Aar 50 MW
Oﬃce
Operations
Development
Generating power for
emerging markets
Mikael Karlsson was appointed as Globeleq’s Chief Executive
Officer in 2009. He has transformed Globeleq into the leading
African power company with more than 1,200 MWs of assets
delivering power to 15 million people in Africa.
Mikael has been involved in global development, acquisition, financing and equity investments of
energy and infrastructure for around 25 years. He has been involved in power projects in China,
India, Bangladesh, Malaysia, Morocco, Côte d’Ivoire, Tanzania, Kenya, South Africa, Colombia,
Brazil, Chile, Mexico, Costa Rica, Honduras and Nicaragua.
With such extensive experience in emerging markets energy,
industry peers recognized Mikael’s contribution to the industry.
Congratulations to Mikael Karlsson, recipient of the
2015 ACQ Global Award
International – Gamechanger of theYear
(Energy)
COMMERCIAL FEATURE

Azito
Côte d’Ivoire
Azito generates electricity
at its power plant using
natural gas supplied from the
country’s offshore gas fields.
Located in the village of Azito in the
district of Yopougon, approximately
6 kms west of Abidjan, the facility
uses combined cycle gas turbines
to generate 430 MW of electricity.
This equates to around 1/4 of the
country’s base load generation.
The plant supplies electricity under a
24-year concession agreement with
the Government of Côte d’Ivoire.
Globeleq owns 77% in the project
company and 100% of the related
operations and maintenance
company.
In May 2015, an expansion to
the facility was completed (total
generating capacity 430 MW). The
expansion project was awarded
2012 African Power Deal of the Year
by Project Finance International and
2013 Deal of the Year (Power) by
Infrastructure Journal.
De Aar
South Africa
De Aar Solar Power is a
50 MW photovoltaic (PV)
facility and is one of the first
solar generation plants in the
country.
The plant is located 6 km from the
town of De Aar in the Northern Cape
on approximately 100 hectares of
land owned by the local Emthanjeni
Municipality.
The plant has 167,580 PV panels
generating electricity directly into the
Eskom distribution system under a
20 year power purchase agreement.
The plant generates approximately
85 GWh per year, supplying enough
clean, renewable electrical energy
to meet the annual needs of more
than 19,000 average South African
homes.
A percentage of the operational
revenues benefit the local
community through socio-economic
and enterprise development
programmes.
Globeleq is the majority shareholder
in a consortium group and provides
day to day commercial and
operational management services.
Jeffreys Bay
South Africa
Jeffreys Bay Wind Farm
has an installed capacity of
138 MW.
The facility is located between
the towns of Jeffreys Bay and
Humansdorp, approximately 70 km
west of Port Elizabeth in the Kouga
Municipality area on the Eastern
Cape. The site is situated across
a total of eight farms and spans
almost 3,700 hectares.
Jeffreys Bay uses 60 x Siemens
2.3 MW turbines and supplies
enough clean, renewable electricity
to power more than 114,100 South
African homes.
programmes.
Songas
Tanzania
Songas’ business consists
of two different operating
streams – gas processing/
transportation and power
generation.
Gas from the Songo Songo gas field
is processed and then transported
through a 225 km pipeline to Dar es
Salaam where it is used in Songas’
190 MW Ubungo power plant.
Songas also processes and
transports gas on behalf of the
owners of the gas field to Dar es
Salaam where it delivers gas to
several other power generation
facilities and other industrial
consumers who use the natural gas
in various manufacturing processes.
Using six gas fired turbines, Songas
supplies the national electricity grid
under a 20 year power purchase
agreement, and supplies nearly 1⁄4
of the country’s electricity.
By using the country’s own natural
gas resources, it is estimated that
the Songas facilities have saved
Tanzania more than US$5.0 billion
by helping to avoid the high costs
of importing fuel oil used for
power generation and industrial
applications.
The facilities are owned and
operated by Songas Limited, of
which Globeleq holds a majority
interest.
COMMERCIAL FEATURE

Globeleq Advisors Limited
2 More London Riverside
London SE1 2JT
United Kingdom
Tel: +44 (0)20 7234 5400
Fax: +44 (0)20 7234 5486
www.globeleq.com
Tsavo (Kipevu II)
Kenya
Tsavo (Kipevu II) 75 MW
power plant in Mombasa
supplies shoulder load
electricity to the national grid.
The facility uses 7 Wartsila 18V38
HFO reciprocating engines and sells
electricity to the Kenya Light and
Power Company under a 20 year
power purchase agreement.
Tsavo is Kenya’s first privately
owned generating plant. It performs
efficiently and has maintained
excellent availability records.
As with all of Globeleq’s operations,
the Tsavo team has a strong
emphasis on health and safety with
zero lost time accidents occurring
since the facility commenced
operations in 2001.
Globeleq holds a 30% interest in
Tsavo.
Droogfontein
South Africa
Droogfontein Solar Power is a
50 MW PV facility and is one
of the first solar generation
plants in the country.
The plant is located 15 km north
of Kimberley in the Northern Cape
on approximately 100 hectares of
land leased from a local community
property association.
Droogfontein uses 168,720
photovoltaic panels, generating
electricity directly into the Eskom
distribution system under a 20 year
power purchase agreement.
The plant supplies approximately
85 GWh per year, providing enough
clean, renewable electrical energy
to meet the annual needs of more
than 19,000 average South African
homes.
programmes.
Dibamba
Cameroon
Dibamba Power 88 MW
generation plant in Yassa
Village near Douala supplies
electricity to the national grid
when demand is at its peak.
The facility uses 8 Wartsilla 18V38A
reciprocating engines and is fuelled
by heavy fuel oil. The plant sells
electricity to ENEO, the national
transmission and distribution
company through a 20 year power
purchase agreement.
The plant was commissioned in
2009 in two stages. It was originally
designed to be a peaking plant
but due to demand for electricity
continuing to outstrip supply,
Dibamba is running more frequently.
Globeleq is majority owner in
partnership with the Government of
Cameroon holding the remaining
share of the business. Globeleq
purchased its share in the facility in
June 2014.
Kribi
Cameroon
Kribi Power 216 MW gas fired
generation plant near the
coastal city of Kribi supplies
electricity to the national grid.
Kribi is a natural gas fired power
plant which was commissioned in
2013. It uses 13 Wartsilla 18V50DF
generating sets. The plant sells
electricity to ENEO, the national
transmission and distribution
company, through a 20 year power
purchase agreement.
The Kribi power plant runs on
natural gas with light fuel oil as a
backup. Natural gas is supplied from
the offshore Sanaga South gas field
in Cameroon.
Globeleq is majority owner in
partnership with the Government of
Cameroon holding the remaining
share of the business. Globeleq
purchased its share in the facility in
June 2014.
An expansion project for the Kribi
project is currently in development
and once completed, will expand
the facility to generate a total of
330 MW.
Generating power for
emerging markets
COMMERCIAL FEATURE

Gamechangers 38
Kicking off a Big Issue Debate session
on the final day of SIBOS in Singapore,
47 percent of session participants said in
an interactive poll that they believe the
Renminbi (RMB) is already an international
currency, while 41 percent said it is not and
11 percent weren’t sure.
Commenting on the results, Asia Global
Institute Distinguished Fellow Andrew
Sheng said that even though restrictions
on capital accounts mean the RMB cannot
be used freely, it is already a game changer.
Citi Regional Head of Treasury Amol Gupte
concurred, saying the RMB is already
relevant and will become even more so.
HSBC China CEO David Liao added that
despite capital account controls, there
are already about US$1.5 billion of
cross-border RMB flows and there are
investments in RMB as well.
In a second interactive poll, 62 percent of
session participants said the IMF should
add the RMB to the SDR Basket in 2016
while 20 percent said it should not and 18
percent said they don’t know.
Gupte said he would like to see more
capital account convertibility before the
RMB is added to the IMF basked, as more
trust, transparency and liquidity would
be beneficial. While adding it to the SDR
basked would not change things materially,
Gupte said there might be unintended
consequences such as inflows that have a
tighter monetary implication
Liao disagreed, saying that the RMB should
represent where the currency stands and
many central banks want the SDR to
legitimize the RMB so they can invest in
it. He also noted that China has fulfilled
35 out of 40 IMF criteria for the RMB to
become a SDR currency.
Sheng added that he would be very
worried if the RMB is not in the basket.
The IMF is a major lender to a world in
distress and will need more reserves, and
the only country that he believes will
put resources on the table is China. “If it
doesn’t join, the IMF won’t have enough
funds for the next market drop.”
Looking ahead in the final poll of the
session, 40 percent of session participants
said the RMB might rival the Euro by 2025,
while 31 percent expected it to rival the
Euro by 2020 and 29 percent expected it
to rival the Euro in 2030 or later.
Commenting the results, Sheng said
that although the RMB can be a reserve
currency, whether it becomes a safe haven
currency depends on geopolitical and
military factors. “It took seventy years
for the US dollar to replace sterling,” he
elaborated. “I don’t see RMB replacing the
US dollar for many years.”
“If it (China) doesn’t
join, the IMF won’t have
enough funds for the next
market drop.”
Sibos 2015: Renminbi,
The Real Game Changer
WORLD VIEW

Contact us:
First Floor, Elunda Two
Addis Ababa Roundabout
Rhodes Park
Lusaka
Unit 14 Lyness House
Freedom Avenue
Kitwe.
Telephone: +260 211 372 900
Email: zm-fmzambia@kpmg.com.
With 60 years of operating in Zambia, we provide Audit, Tax and Advisory
services, delivering a globally consistent set of multidisciplinary finance and
accounting skills and capabilities based on deep industry knowledge. Our
industry specialisation helps KPMG people to develop a rich understanding
of clients’ businesses, acquire insight, skills and resources required to
address industry-specific issues and opportunities.
Audit services
Our Audit services include:
■ Financial statement audit
■ Financial statement reviews
■ Agreed upon procedures
Tax services
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Gamechangers 40
WORLD VIEW
Shale technology is a
game-changer for the
global oil market. Today,
this new technology has
been developed mostly
in the U.S. And, over the
past five years, shale oil
production in the U.S.
has increased by almost
a factor of 10—“every
two years a ‘new
Norway’ has been put in
production,” says Oliver
Appert, President of the
World Energy Council
French Committee in a
recent interview.
A Game-Changer for the
Global Oil Market
...Despite the continuous increase of world oil
demand, this has resulted in an over-supply of
1 to 2 Mb/d, million barrels per day, since 2004.
“Surprisingly, the Organization of the Petroleum
Exporting Countries (OPEC) didn’t react to this
new situation by decreasing its production
as it has during past decades,” says Appert.
And, as a result, the price of oil has dropped
dramatically. Today the price of oil has reached
its lowest level since the economic crisis in 2008.
“At the same times, shale technology has had a
dramatic impact on the global gas market,” says
Appert. And thanks to shale gas, the U.S. is set
to become self-sufficient for its gas supplies, and
will start to export on the international market
within the next few months.
Shale: The next “swing” producer in the
global market
For the past 40 years, the OPEC has played the
role of the “swing producer” in setting the price
of oil on global markets. This means the OPEC
producers increased their production when the
market was tight, as was the case in 1990, and
reduced their quotas when the prices dropped
due to over-supply. “This happened in 1986,
1999 and 2008, after which, a few months later,
the price went up,” says Appert.
Today, the OPEC has decided not to react to the
over-supply due to shale oil in order to keep its
market share. Shale production is more flexible
than conventional oil, so if the price of oil is up,
investments in shale will increase rapidly and
production will follow.
“Experts were anticipating that shale oil
production would decrease with lower prices;
however, this hasn’t happened,” says Appert.
“In fact, while the number of drilling rigs has
dropped by almost a factor of two in the U.S.
since Sept. 2014, shale oil production has
remained almost stable.” This is due to the
improvement of shale technology in just a few
years. For example, the well cost has been
reduced from $8.1 million in 2012 to $5.5
million in 2015. The drilling cost per foot has
also been reduced by 44% in five years, and the
completion costs by 34%
“So, in the present circumstances, if the OPEC
decides to reduce its quotas, prices will go
up and shale producers will restart investing
massively with production going up again thank
to the low inertia and the flexibility of the U.S.
industry,” says Appert.
As a result, shale oil in the U.S. is setting the
price on the market.
How is shale technology accessed
The bulk of oil production in the U.S. and
elsewhere is still coming from conventional
fields. And, those fields, require large initial

39 Gamechangers
WORLD VIEW
investments. However, after many years of
operation, they are still producing at low
operating costs.
“As long as oil prices are higher than operating
costs, oil companies will continue to produce
using conventional methods,” says Appert.
“However, the drop in oil prices has affected oil
companies’ investments, which have dropped
by 20 to 40% with the cuts mostly focused on
exploration expenditures and postponement of
new developments.” Over times, this will have a
clear impact on oil production.
For the time being, shale is called “non-
conventional,” according to Appert. “But
experience in the oil sector shows that
non-conventional technologies soon become
conventional technologies,” says Appert. “Take
for example ultra-deep offshore technologies.”
Shale technology, however, is based on two
major components: fracking and horizontal
drilling. Shale oil and gas is produced in very
tight geological formations, so it’s necessary to
increase the permeability of the rock by fracking
the formation and increasing the contribution
that horizontal wells make. “This increases
dramatically the contribution to production
compared to simply using vertical wells,” says
Appert.
Fracking and horizontal drilling technologies
have been known for many years. In fact,
the first frack was done in 1949, and the
first horizontal wells were drilled in the mid
1980s. “By efficiently combining these two
technologies, it’s now possible to exploit new
resources such as tight reservoirs or source rocks
efficiently and cost-effectively,” says Appert.
Shale production has boomed in the
context of high oil prices; and, thanks to an
industrialization of both technologies, it’s now
possible to produce shale resources in the
present context of lower prices.
The issues with fracking
In many areas, fracking technology is facing
strong opposition from environmentalists and
local communities due to misplaced perceptions
about the environmental impact it can have.
“For example, fracking technology is banned in
some countries, and even in some states in the
U.S.,” says Appert.
The environmental impact of fracking may be
minimized by implementing state-of-the-art
technologies. “It is also mandatory to gain
support of local communities and land owners
before it can begin, which means greater
transparency to the benefit of all stakeholders,”
says Appert.
The International Energy Agency released a
report recently on shale describing the “Golden
Rules” to implement in order to mobilize the
shale resources. And these rules must be put in
place by industry and governments.
The future of shale technology
While worldwide shale resources are huge
according to the U.S. Energy Information
Agency, there are still uncertainties about the
economics of its production and environmental
issues. “Shale production in the U.S. has
experienced a dramatic growth in the last five
years, which will continue in years to come,”
says Appert.
In fact, the U.S. Dept. of Energy anticipates a
significant growth in shale oil production at least
until the end of the decade, “but for it to grow
globally in countries such as China, Argentina
and the U.K., these countries must tackle their
particular economic, industrial, environmental
and legal issues,” says Appert.
The future growth of shale will heavily be
dependent on the price of oil. However, it’s
certain that shale technology is here to stay.

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