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
EXITS
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
Dataroom
Technology acquisitions fall
Europe reaches record fund raising levels
PE performance: steady returns
People
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
FEATURES
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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