Gerry Grimstone, chairman of
Candover, which has recently succeeded in taking Dutch conglomerate
Sales included Vetco, Thule, Dakota, Minnesota & Eastern Railroad Corporation, Bureau van Dijk and Get. Candover also listed Wellstream on the London Stock Exchange.
However, Grimstone said he does “not expect the rate of realisations achieved in 2007 to continue into 2008”.
He warned: “The tight credit market conditions show no sign of slackening, and this will inevitably have an impact on both the pricing of transactions and the overall level of activity in the buyout market.”
Candover will not rush to sell investments in this environment. “Lower debt multiples may result in lower prices and this may cause vendors, including Candover, to delay selling businesses until a recovery is seen in the market,” said Grimstone.
Candover has just launched a €5bn fund, its tenth in all, and is also establishing an Asian operation. “History has shown that a downturn in the markets can prove to be a good time for investing,” said Grimstone.
Lazard vice chairman Nicholas Jones is joining the trust’s board from April 14.