Where private equity fears to tread
Hybrid bonds: likely to lower the cost of LBO financings?
Hybrid bonds have started to move into non-investment grade territory in recent months, begging the question of whether they can they be incorporated into the balance sheets of private equity-backed companies. Given their relatively flexibility and cheaper cost, compared to the PIK tranche they would most likely replace, larger buyout firms are beginning to eye these financial instruments with interest. Lisa Bushrod reports.
Rise of the private equity debt fund
The relationship between private equity and the debt market has become much more intimate in recent years. But with firms getting bigger and bigger and increasing liquidity in debt trading, European private equity is branching out. Tom Allchorne reports.
KKR opens public market floodgates
KKR Private Equity Investors (KKR PEI) was admitted to listing on Eurolist by Euronext Amsterdam in May and was the largest IPO on Euronext since the beginning of the year in terms of capital raised. Investor demand for the product was stronger than expected and several days before the flotation KKR PEI increased the number of common units from 60 million to 200 million. Based on the opening price of $24.80 (€19.64), the market capitalisation of the vehicle reached $5bn (€4bn), quite a leap up from its expected $1.5bn. In addition, KKR is in the process of raising some $10bn from traditional LPs and the main question begging an answer is where the firm is going to deploy all this capital and whether investors in the new vehicle will make the returns they are anticipating. Angela Sormani reports.
Braveheart to fund raise via AIM IPO
Q1 2006 record Euro CLO issuance
PE exceeds stock market
Mid-market brimming with confidence
Triago-X to list
Seed through early stage
Amadeus handed ECF
UK small co investment peaked Dec 05
Enterprise Ireland €175m handout
Imperial Innovations wins spinouts R&D grants
PE is attractive to SIPPs investors
Vision Capital secures €1bn
Vision Capital, a buyer of direct private equity portfolio assets, is eyeing a potential pool of €1bn for future investments. The new investment programme comprises a €350m committed core fund, Vision Capital Partners VI LP, which is expandable through a series of parallel investment vehicles that offer an additional funding capacity to reach a final programme size of €1bn. The fund structure will allow for the efficient execution of transactions of varying size and diversification (from €20m to in excess of €500m of equity), reflecting the differing numbers and sizes of companies in the private equity portfolios the firm is targeting. Angela Sormani reports
Palmer Capital raises £85m
Madison raises CHF50m
Nordea launches bond for private clients
Partners mezz fund close
Waterland final close
Norvestor IV fund close
New FoFs for Amanda Capital
Targacept: European venture in the US
Based in North Carolina Targacept specialises in the design, discovery and development of a new class of drugs to treat central nervous system diseases and disorders, such as Parkinson’s and Alzheimer’s. It started life in 1982 as part of RJ Reynolds Tobacco Holdings, set-up to study the effects of nicotine on the human body. In 1997 it was incorporated as a wholly owned subsidiary, achieving independence in August 2000. Tom Allchorne reports.
Exits on the up
BVCA looks at IPO appeal
Debenhams IPO priced at bottom of range
Logstor acquired in secondary
CVM sells care homes
IK reduces Oriflame stake
Enermet sold to Bayard Group
Gresham makes 4x return on Alstec sale
Infinity merger means exit for VCs
VC-backed NoemaLife floats
bmp to float YOC
H&T sold by Rutland
Two exits for ABN AMRO
Northzone exits NextGenTel
VCs exit CropDesign
HM Capital sells ETG to Candover
Capiton sells EHR
GIMV exits LA Gym
Investcorp sells Minimax to IK
3i and Electra sell Tensar stakes
Charterhouse makes quick Avent exit
Former Internet start-up gets PE backing
Schmack Biogas IPO
Refinancings on the up
Report on best global PE jurisdictions
2005: a good year for Austrian private equity
Ashton Penney appts
SJ Berwin promotes
Linklaters German name change
3i new team
Seven Hills appts
Dechart’s Weil raid
Celtic Pharma appts
Barclays Ventures hires
Gordon Bros promotes
CEE: full steam ahead
The pace of fund raising, transactions and exits has accelerated in Central & Eastern Europe (CEE) over the past few years. Angela Sormani looks at the attractions of the market for investors and how the increasing availability of debt has changed the buyout landscape.
LP Talking Head
Management fees: alignment of interests
There has been much hype in the press recently surrounding management fees and their impact on returns for LPs. Recent research has revealed annual management and performance fees can vary significantly from fund to fund and the main concern for LPs in the event of poor fund performance is that these fees can eat significantly into returns. Angela Sormani reports on how LPs are ensuring their GPs’ interests remain aligned.
European Buyout Supplement
Anthony O’Connor reports on this fledgling, but exciting new market.
Much hype, but little substance to date, reports Anthony O’Connor.
Never had it so good!
It’s undoubtedly a heady time for European buyout firms on the fundraising trail. Preliminary figures for 2005 show European buyout firms captured 76.6% of total funds raised last year, which works out at a whopping €25.329bn spread between 2,178 firms. Figures for 2004 were similar and already the pundits are predicting 2006 will at least match this success. Lisa Bushrod reports
Patrick McCurry takes a look at the growing trend for club buyouts.
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