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December/January issue

News highlights

European GPs may face US regulation

IPES expansion details

Institutions favour alternative investments

Biotech investments make slow progress

Advantage West Midlands to launch LBX

Nordic investors favour hedge funds over PE

Proventure takes on Pohjola-Suomi funds

Italian reform provides more choice on shares

VCTs: time to consolidate?

FSA proposes change to listing rules

Recovery will be sector specific

EVCA queries IAS 27

AIM rules change

Germany: high hopes for Q4

Funds

C share for Sitka’s VCT

Italy’s first mezzanine fund on track

Quester seeks further £2m

First close for Halder-GIMV

Baronsmead VCT 4 seeking funds

Golding & VCM launch German mezz Fofs

ViaNova launches novel FoF fee structure

Exits

RLPE’s first deal provides 3i exit

Trio of exits for Permira

Industri Kapital cashes in shares

Recapitalisation of TeamSystem

PPM exits fashion chains

KKR’s first European IPO

ISIS buys Art Group second hand

AMJPE exits Intron

Topway partial realisation

Hilding Anders secondary buyout

ABN AMRO Capital’s first exit

IRRfc completes Ward realisation

Candover sells Pandrol

Novell acquires SuSE Linux

NextGenTel to list on Oslo Stock Exchange

Bridgepoint and Electra sell Gower

Groupe Plastex in secondary buyout

People

EVCJ wins award

KPMG boosts team

Jones Day moves

New Arma partner

Werner to RBS France

Alta Berkeley recruits

Elbaz to Equitis

New MD at Giza

New recruit at CDC

Bank of America moves

Deloitte fund raising appts

Dunedin promotes Fraser

Jennings joins Hermes

SEP boosts UK team

SYIF appoints

Kalido wins award

New face at AshtonPenney

Interregnum promotes

Features

Real estate: How is investing in private equity real estate?

As an asset class, real estate has a far longer pedigree than private equity and applying private equity principles to real estate investing is an even more recent development. This concept, which originates in the US, is rapidly becoming a feature of the European market against a background that has seen growing commitments across the whole spectrum of real estate funds. Louise Cowley reports on the evolution of private equity real estate funds, their investments and the trends driving their growth.

Mezzanine: The hottest ticket in town

Average mezzanine contributions to European LBOs are steadily increasing and have more than doubled over the past three years. Investment banks are hungry for deals and have already shown they understand the market by becoming more creative with innovative structures such as the Ontex and Telediffusion de France warranted/warrantless melange and the Focus Wickes hybrid mezzanine note issued earlier this year. Although the investment banks are keen and have been making waves at the top end of the deal spectrum, the mid market for mezzanine is now awash with funds and enthusiastic participants. Angela Sormani looks at the attractions of this market and where it goes from here.

Equity structures: Why have all the angels gone?

Angel investors, seed investors and early stage investors, in that order of severity, saw their investments wiped out when venture capital and private equity valuations collapsed in late 2000 and during 2001. For many it’s a case of a lesson they feel no need to repeat, but others are coming back, strictly on their terms. Angel, seed and early stage investors are developing new investment models, some of which have already begun to emerge. Given that most of these investors received unsympathetic treatment at the hands of later stage venture capitalists it should come as no surprise that these new models are unlikely to offer much benefit to the later stage venture capital community. This could be a worrying development given that later stage venture capitalists have traditionally relied on these earlier stage funders to create at least a part of their deal flow. Lisa Bushrod reports.

Buyouts: Buyouts dominate M&A scene

The US recovery shows signs of being stronger than expected and the country’s stock markets have turned almost over night from bear to bull. And European stock markets are poised for a similar, if less marked, transformation. Among other things this should mark the resumption of corporate M&A activity, so how long buyout investors can command the best seat at the M&A negotiation table remains to be seen. Certainly buyout firms still have plenty of money, which should ensure they get invited to bid. But how long will it be before they are beaten back by strategic acquirers and deeper pockets? Lisa Bushrod reports

Legal & Regulatory Exchange: The Private Privak: a fund for Europe?

Earlier this year the Belgian Parliament passed legislation creating a new type of collective investment vehicle designed to cater to the specific needs of the private equity industry. The Private Privak, a un-listed, closed ended, tax transparent vehicle that is subject to an indirect tax regime, is already being hailed as a possible model for the long-awaited pan European fund structure. Louise Cowley reports

These stories and more can be accessed with a username and password to www.evcj.com or by subscribing to the magazine version of European Venture Capital (& Private Equity) Journal.