Pacific Corporate Group (PCG), the US-based investment management and advisory firm, has formed a subsidiary (PCG International) to focus on making investments and providing advice to private equity markets outside the US, Western Europe, Australia and Japan. PCG International’s activities will be coordinated with the group’s historical joint venture partners – Macquarie Funds of Australia and AI Capital, a joint venture between Mitsubishi and Daido Life.
- Duke Street Capital has acquired Hogg Robinson Benefits and Consultancy Services Group from Permira. The deal is understood to value the company at around £115m. BCS comprises three businesses – Entegria, Paymaster and Claybrook – which provide specialist outsourcing and consultancy services, focusing on outsourced pensions payments and processing, employee benefits consulting and the provision and maintenance of pensions software. As companies shift from Defined Benefit to Defined Contribution pension schemes to mitigate pension deficits, a substantial increase in project work for actuarial and pension investment consultants is anticipated.
- Icelandic investment group Baugur has joined up with property entrepreneur Robert Tchenguiz in a bid for UK supermarket Somerfield. This means that an auction of the UK’s fifth largest supermarket group is less likely. Tchenguiz is working in association with Apax and Barclays on a potential bid that would value the retailer at around £1.1bn. A second bid from Ian and Richard Livingstone, the brothers behind London & Regional Properties, has also been under consideration.
- Prudential Capital Partners closed its latest mezzanine fund at US$775m. The fund, Prudential Capital Partners II, was launched with a US$600m target. It gained support from 22 investors, including many from the previous 2001 vehicle, which closed at US$620m. The latest fund will maintain a similar strategy as its predecessor, making investments of US$10m to US$50m for acquisitions, buyouts, sponsorless and sponsored recapitalisations, and expansions for mid-market companies.