July/August 2006 issue

Editor’s Note

Good times have rolled for private equity investors in Europe so far this year, albeit amid moans about top of the range pricing as competition for deals shows no signs of abating. In much the same way, buyout fundraising shows no immediate signs of slowing down meaning private equity firms have ever increasing pools of money to deploy. But then the debt markets have proved more resilient and supportive of sponsor-led leverage financings for far longer than many expected them to, although the finger has been pointed at the banking market as a key factor in enabling deals to be overpriced in the first place.

News analysis

Pensions: all the action is behind the scenes

At the start of this year it became public knowledge that Ed Truell, co-founder of Duke Street Capital, would step back from his role there as chairman, instead taking on the title of partner and focusing on a new business line to be known as Duke Street Capital Structured Solutions. Not much more has been said on the subject other than that Duke Street Capital Structured Solutions would focus on financial strategies, notably around long-term pension provision. Although it’s likely that fundraising is obviously well advanced for this project, given that Truell will begin briefing the market on his project “soon”, according to his advisers. Lisa Bushrod reports.

Private equity advice: reaping the rewards

As buyout funds reach unprecedented sizes, fees generated from the deals being made from these mega funds are also reaching record levels. Private equity advisors don’t come cheap and recent figures reveal they are reaping the rewards of their labours with millions of dollars of fees. For JP Morgan, the highest paid investment bank in the sector, the percentage of fees generated from private equity firms is coming in at over a quarter of the bank’s total fee income. And in Europe for the first four months of the year, private equity groups have accounted for over 20% of revenues that banks have made in the last year. Angela Sormani reports

Rising debt levels: concerns continue

Concerns about rising debt levels in transactions has been reinforced by a survey of mid-market M&A, which found that 70% of respondents believed current and recent deals were over-leveraged. So, are current debt levels in the mid-market unsustainable and is there a risk of wider collapses for the private equity industry?

News highlights

Same-day registration returns

AA shareholders come under attack

Cazenove and Prelude become Esprit

Energy attracts investment

Bank of Ireland backs PCTTI

Record fund raising for AIM

Mourant admitted as listing agent

Euro lev fin: high activity

Seed through early stage

Enterprise Ireland €30m to tech transfer

BBAA awards

LBS social entrepreneurship study

EVPA conference

Hotbed investors see profitable exit

SQW & Oxford Innovation merge & to IPO

Small businesses face tech challenges

Kemp Little partners AngelNews

Fund news

Lead story

Bestport targets lower mid-market

Seasoned players in the UK mid-market Ole Bettum and James Stoddart are targeting this less crowded space with their new development capital fund Bestport LP fund. Angela Sormani reports.

Quick view

Timberland fofs close

Enterprise Ireland backs tech

Alchemy sets up £250m special situations fund

Final close for HitecVision

Frontiers raises €25m

CapMan Buyout VIII close

Bedminster’s SEEF II reaches US$200m

Crédit Agricole launches new funds

ACP Mezzanine to launch on AIM

Partners closes buyout fund

Second closing for Euroknights V

Bridges raises £33m

Exit news

Lead story

LGV makes gain on Club Company

Golf and country club chain The Club Company has made a neat profit for investors LGV since it was taken private in 2004. Angela Sormani takes a look at the development of the business under LGV’s management.

Quick view


Bridgepoint acquires Groupe Moniteur

Azzurri makes 4.9x return for 3i

EI celebrates Sfinks IPO

AXA sells Vulcanic in secondary deal

YOC floats in Frankfurt

Biofrontera IPO

3i makes JP Corry exit

Capvis sells myonic in secondary deal

Warner Chilcott to float

Outinord goes to ABN AMRO Capital

3i sells betapharm

Paroc sold to Arcapita

3i sells stake in Atea

Vue sold in secondary

Segulah sells NVS Installation to Triton

Hotbed exits Home and Legacy

bmp to list fuel cells company

HgCapital makes £22m from IPO

bmp celebrates Bankier IPO

Barclays Ventures sells Enigma

Terra Firma makes rapid sale on ESP

La Croissanterie sold in secondary buyout


Technology acquisitions fall

Europe reaches record fund raising levels

PE performance: steady returns


CVC recruits

Paul Capital hires

New Aztec office

BoA appts

BoS appts

Deloitte recruits

Aurora appts

Hotbed hires

Kirkland & Ellis Asia office

New InnovationsKapital director

NBGI expands

New senior partner at Travers Smith

Barclays Capital appoints

ACP new recruits

Landsbanki expands

Alchemy recruits Cash

LDC boosts team

New Impetus CEO

Hinson joins Sovereign

Ares appoints

Candover adds to team

Beer joins Hotbed board

Deloitte poaches PwC partners

F&C expands

Ariadne Capital appoints

Optos wins award

NautaDutilh targets London

Beer & Partners boosts team

Close Bros appoints

Triago-X expands

Blenheim expands team

Hotbed recruits

Duke Street appts French partner

Alta Berkeley moves

Bennett to ACP Capital

Linklaters new senior partner

Campbell Lutyens move

AIG boosts team


Funding Russian private equity

The attractiveness of Russia as a destination for private equity investment is clearly on the rise with a number of dedicated funds being raised and launched over the last year, but problems remain that continue to put many investors off. Tom Allchorne reports.

Ireland: expanding the investor base

With investment capital available to the Irish venture capital community close to being 100% committed, Irish VCs are on the fund raising trail again. The Irish Venture Capital Association predicts that VC investment would have to quadruple over the next five years to €4bn if Ireland is to satisfy the demands for capital in the marketplace. Angela Sormani takes a look at how the industry is going to raise those funds and whether the returns generated so far are attractive enough to pull in much-needed LPs.

LP Talking Head

Taking a view: EIF

Legal & Regulatory

The devil is in the detail

The UK Company Law Reform Bill is currently working its way through the legislature and has been subject to much debate, lobbying and so far quite a bit of change to the original proposals. Lisa Bushrod looks at how things currently stand.

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