Nigel Doughty, RIP

Nigel Doughty died Saturday, age 54. With Dick Hanson, he founded one of Europe's most respected buy-out firms, Doughty Hanson, which has invested €23 billion in over 100 deals.  Doughty self-made and helped create the industry that made him rich.

Our paths crossed a few times : in 1997 I interviewed for Associate , my ears still wet from MBA school. By today's standards, Doughty Hanson then small , with maybe £1 billion under management.  Following eight interviews, Nigel enters , no pre-amble : "Using the capital asset pricing model please explain why Doughty Hanson has been able to achieve superior returns." Me, blank. Doughty: "Feel free to use the chalkboard."  Yes, an unfair question - CAPM used to value companies, not explain a firm's success - but it was all him : punchy, direct, challenging and a bit of fun. I didn't get the job.

In '99 I went back to Nigel and this time Doughty Hanson gave me $8 million to launch an Internet company.  The firm had taken an interest in the technology business, forming a maiden venture fund, and I was his first investment.

When not trading companies, Doughty's interests covered politics ( major donor, Labour party), "responsible capitalism" (Founded the Doughty Centre for Corporate Responsibility at Cranfield Mgmt School) and football (owner of Nottingham Forest Football Club).  Private equity and all of us lost a good one. (photo from the www)