June 2004 Issue

News highlights

Private equity news

EVCA warns of tax and legal inefficiencies

UK 2003 performance measurement and investment activity figures

Ripplewood to join forces with MidOcean

S&P launches recovery ratings for Euro secured loans

Philip Yea new 3i chief exec

Pensions Bill causes concern for investors

SCM looks to real estate

Vandevelde focuses on Change Capital

Venture capital news

Israel: investments up

AIM to become exchange-regulated market

Business confidence high

Ariadne add investors to network

Fund news

Lehman Brothers mezzanine fund exceeds €500m target

North Atlantic Value begins raising second fund

New fund targets real estate

Vintage closes debut secondaries fund

DEWB raises €6.2m

Finatem holds first close on second fund

Gresham exceeds target for third fund

Exit news

2e2 seeks AIM listing

First biotech IPO monitor launched

Warburg Pincus’ Czech IPO

Europe’s first high yield IPO

AIM: room for improvement?

CVC exits Trench Electric

Doughty Hanson to float Umbro

Halfords’ IPO pending

More cash from Alfa for IK

IPO for Telenet?

Close VM realizes care homes

Granville IPOs Public Recruitment

BBI Holdings floats on AIM

Wendel seeks bioMérieux IPO

EAC floats Star Energy

Doughty Hanson to list ATU

3i sells Reeves Oilfield Svcs

Candover & LGV exit Earls Court

AMJPE exits Conveco

LDC exits Phones Int’l

3i floats Pinewood

BC Partners IPOs C&C

Alchemy backs ATH listing

Apax floats Moneybox on AIM

Gresham exits office2office

NeSBIC sells Scana Noliko in secondary

Gresham exits Sterling


Sagitta new hires

CAM PE boosts team

SCM strengthens team

Pinsents appts

ISIS recruits

SCM looks to real estate

BLP boosts business

Taylor to Barclays?

CIBC hires

Baker Tilly wins

Two join AMJPE

Avanti Capital recruits

Duke Street builds team

Augusta appts

Bridges’ new director

Linklaters boosts team

New 3i chief exec

RPPE recruits

Altium grows team


Turnarounds: an acquired taste

The restructuring landscape in Europe is going through great changes brought on by a combination of market conditions and legal and regulatory issues. While there is some pressure to adopt the US Chapter 11 method of restructuring, there is a natural resistance to change and the complexities of insolvency procedures across Europe present further obstacles to company rescue techniques. Where do the opportunities lie for private equity players in the restructuring universe? Angela Sormani takes a look at what private equity does and doesn’t do in turnarounds.

Assessing CEE private equity post Accession

Accession day is past and the European Union finds itself with ten new members. As the largest single expansion of the EU in its history, things will undoubtedly never be the same again, be that socially, politically or economically. Since 1990, it is estimated a total of between €5bn and €7bn of private equity has been raised in the nascent Central and Eastern European market. ‘Will Accession affect its development, or will it mature at its own pace?’, asks Tom Allchorne.

Corporate venturing: state of the market

Most corporate venturers have been out of the market for the last three years. But with the pick-up in the wider economy and a renewed business interest in technology expenditure, Vicky Meek asks ‘are we finally seeing increased investment activity among some of Europe’s largest companies?’

Buyouts: Strong liquidity drives structural aggression

As investor demand continues to outstrip deal supply across Europe’s leveraged buyout financing markets, sponsors are demanding increasingly aggressive structures. Equity components are plummeting and US features, such as second liens, are pushing up total leverage multiples. Joanna Hickey reports.

LP Corner: Working out where the value lies

Analysing the performance of private equity investments remains an imprecise science, with most institutional investors opting to use the long established return multiple (cash in versus cash out) and internal rate of return (IRR) calculations. But Oliver Gottschalg of INSEAD’s Buyout Research Group, Nicolaus Loos of JP Morgan and University of St Gallen and Anne-Laure Alviset of Paris-based consultancy PERA suggest institutional investors could make their performance assessment more relevant by benchmarking them against the performance of alternative investment options.

Due diligence gets commercial

Market, or commercial due diligence as it tends now to be known, is increasingly biting into the pot of advisory fees put aside for a private equity transaction. Lisa Bushrod finds out why.

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