May issue
News analysis
Euro venture, stuck in the shadows
Bumper fund raising times are upon us, if you’re in the buyout arena at least, just a quick flit through the funds section of this issue pays testament to that fact. European venture funds, however, are still waiting in the wings hoping that although today they are playing Cinderella to the big bumptious buyout funds’ stepsister, tomorrow they’ll be dancing at the LPs ball, darlings of all assembled, a position more akin to their US venture counterparts. Lisa Bushrod reports.
More debt and more distress
The topic of debt multiples is one you can’t seem to escape at the moment. Go to any conference and there’s sure to be at least one session dedicated to the subject, and the issue will be raised in numerous others. The concern among many, and voiced at February’s Super Return conference by Alchemy chief Jon Moulton, is that the current levels of debt multiples are creating the next generation of distressed companies. But there is another argument that says these fears are exaggerated, based on a memory of the heady leverage days in the 1980s. Tom Allchorne reports
Will individuals net something of high worth?
Whatever the current disparity in fund raising fortunes between buyout and venture investment firms in Europe, they are all seeking from the same, largely institutional investor, pot. Despite this, the make up of investors in private equity funds is beginning to shift, albeit slowly. In light of this, the European Private Equity & Venture Capital Association commissioned some research, published this spring, on the growing influence of family offices investing in private equity. Lisa Bushrod reports.
News highlights
Lloyds TSB Corporate targets larger deals
Making Europe a priority
Euro VC market back on track
SCM predicts record year for Euro buyouts
Partners Group opens London office
PEIGG releases US performance guidelines
Close Brothers new PE group
AXA PE internationalises its activities
Bullhound & GP Capital merge
UK Venture Index launched
Secondary LBO paper trades rationally
Fund news
Carlyle fund raising
CapMan Mezzanine IV fund closes on €240m
Penta expands fund
ECI closes on £255m
Advent Int’l closes €2.5bn fund
PAI Europe IV reaches €2.7bn
AGF launches fourth fund
Solid Capital launch fund
Egeria holds interim close on second fund
Finadvance raises 3rd LBO fund
Advent closes 3rd CEE fund
Astorg Partners closes 3rd LBO fund
Exit news
Strix sold to ABN AMRO Capital
CapMan sells Setec
Advent Int’l sells Aviagen
Graphite sells Ashbourne
Industri Kapital exits Laho Equipment
Charterhouse sells Tussauds
Flender exit for CVC
Barclays PE & 3i sell stake in INBIS Group
3i exits Morgan McKinley
CapMan & Eqvitec sell Normet
Partial exit for CapMan of Tamore
Sigma Technology floats Vividas
Bowmark Capital sells Living Ventures
EQT sells Dometic in secondary deal
CBPE sells NDR
Phoenix sells Mill House in secondary buyout
Ciao float provides VCs with exit
Barclays PE exits Cameca in secondary deal
Bain exits Jack Wolfskin in secondary deal
Igeneon sold by VC backers
Carlyle exits Apama
IDM exits in all share deal
DEWB exits OASIS SiliconSystems
AAC Cosmos sold to management
Datamars in secondary buyout
Covenant secondary buyout
LDC sells Xpert
Segulah recaps Callenberg
Baring Corilius exits Allami
Close Venture make 2.9x return on exit
Gresham exits MSS
Bridgepoint sells Erftcarbon
EI exits Orange Romania
PPM sells Astron Group
Hardide floats on AIM
Cinven sells Dynacast and McKechnie
BC Partners to sell Polyconcept
Mölnlycke Health Care in secondary buyout
Barclays Private Equity sells DCK stake
Dataroom
US investment figs Q1 2005
Italians release investment & performance data
VCT fund raising strong
Euro buyouts break records
Irish tech strong in Q1
UK MBO market still buoyant
US venture-backed IPOs Q1 2005
US venture returns Q4 2004 released
People
CBCF rebrands
PwC poach Sprague from KPMG
Sofinnova appoints managing partner
Cipio Partners appts
ABN AMRO promotes
Hicks Muse appts
Partners Group in London
Nikko appts
Change Capital gets Hicks Muse director
ISIS appts
New chairs at CapMan
Wellington appts
VCM recruits
New MD for BoA
CIBC new exec
PwC’s McKee wins award
MTI planning US expansion
Tehranian leaves GMT
AXA adds to exec committee
AXA Private Equity has appointed Stephan Illenberger, the managing director
IDG gets new GP
T-Ventures appts MD
Waterland hires new principal
SEP creates IR role
LDC strengthens team
Reed Smith hires new partner
ATP recruits
Actis appts directors
Linklaters appts partners
FEATURES
Venture capital turning a corner in France
Who says the French don’t have a word for entrepreneur? George W Bush does if you believe press reports. But that perception is slowly beginning to change, as recent regulatory and legal initiatives designed to boost entrepreneurship and VC commitment in France are now starting to have an effect. James Brandman reports
Land of the secondary buyout
Secondary buyouts were the most popular form of exit in the French market last year, and almost half of all buyout transactions were between private equity firms. Tom Allchorne reports on a popular market that loves to recycle.
Captives and conflicts
JPMorgan’s decision in March to spin off JPMorgan Partners is confirmation for some market observers that in-house private equity operations and banks do not mix. However, other institutions remain committed to direct investing and are successfully managing the potential client conflicts and earnings volatility that captive units can entail. Joanna Hickey reports
Italy: still a family affair?
Despite ownership models with more loops than a bowl of spaghetti, major deals, new funds and increasing mid-market action continue to drive Italy’s private equity market forward. Joanna Gant reports
Can VCTs earn investor trust?
Thanks largely to government tax breaks, the last financial year marked a dramatic recovery in fund raising for UK-based venture capital trusts (VCTs) but will the influx of funds improve performance? Patrick McCurry reports
Getting yourself a reputation
There’s been plenty of talk over recent years about how branding can help fund managers with, deal origination, fund raising and staff retention. But what about LPs? Now that access to the best funds is becoming an issue in Europe, should investors be building their reputations among GPs? Vicky Meek asks
Transfer pricing ruling dismays UK private equity
The March 4 announcement on transfer pricing was a body blow to the UK private equity industry. In one fell swoop the UK Government tarred the industry with the brush of tax avoidance by stating it intended to stop interest on shareholder debt being tax deductible on all deals made after March 4, 2005. For those deals done before that date, the legislation will become effective from April 1, 2007, unless any amendments are made to the terms of the shareholder debt, such as changes to the parties, interest rate or repayment terms, other terms or conditions, in which case the rules will apply from when the changes were made. Tom Allchorne reports
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