Palmer Capital Partners has raised £85m (€124m) for its second Active Value Fund. Of this, £80m comes from investors such as Morley Fund Management, Foreign & Colonial, Hermes and CBRE Investors and the remaining £5m from Palmer Capital Partners and its investee companies. Palmer Capital Partners is a real estate private equity fund specialising in specific property or brownfield and greenfield development sites rather than trading businesses with a strong property element.
Structuring of the fund with its debt to equity ratio of 60:40 means the firm expects the final spending power of the fund to be around £225m once fully invested. Palmer Capital Partners Active Value Fund I raised £50m in October 2005.
The Active Value Fund II expects an absolute return of 12% across all deals, which will typically involve lot sizes of £40m and will be sourced through the various property companies in which Palmer Capital Partners holds an equity stake in the management company.
These property companies only receive a performance fee if they produce a return in excess of 10% on the deals they undertake, and they will also offset part of the profits they make from deals undertaken for the fund to underpin a total return to investors.
- Active Value Fund II will be managed by Rupert Sheldon, a director of Palmer Capital Partners, who joined the firm from Henderson Global Investors in December last year.
- Swiss buyout firm Madison Private Equity is raising SFr50m (€32m) to continue its strategy of offering succession solutions to family businesses. The extra capital will be used to back new acquisitions and support the existing portfolio.
Madison’s target companies are profitable, medium-sized firms with annual sales between SFr50m and SFr150m. The firm focuses on investments in Switzerland, Germany and Austria.
Madison shareholders include Swiss pension funds (about 70%) and Swiss private individuals or family offices (about 30%).
- Nordea is offering its private clients an opportunity to access the private equity asset class, which so far has only been available to large institutional investors in the region. Nordea is launching a bond for these investors and is the first Nordic bank to launch this type of private equity product to the retail market.
The product will be managed by Nordea Investment Management, which has more than five years’ experience in successfully managing private equity funds intended for institutional customers. The subscription period of the bond began on April 26 and will run until June 9.