News analysis
Out with the new, in with the old
As this year draws towards its close, it’s easy to assume that one of the things 2005 will be remembered for is the vast amount of money pouring into private equity funds. But, for the most part, unless you are an existing and established buyout fund, little or none of this fund allocation bonanza will have passed your way. Europe’s venture capital funds didn’t get much of a look in; but then the majority of them didn’t make their investors either enough or any money and so shouldn’t expect to be funded a second time around. But the very fact that so many new funds, especially those European venture capital funds spawned in the 1999 to 2001 bubble, didn’t deliver value has added to the perception of risk associated with anything new, perhaps helping to explain part of the current appeal of tried and tested European buyout groups to institutional investors. Lisa Bushrod reports.
Feeling the pressure
The fears over early cash withdrawals continue this month with Standard & Poor’s (S&P) latest research note, PIK Pressure: How Pay-In-Kind Bonds Have Affected European Corporate Credit Ratings. In 2004 and the opening half of 2005, says S&P, owners of European companies that have been the subject of an LBO have been using PIKs to reduce their capital commitment by paying themselves dividends, placing a financial burden on companies that has affected their credit ratings. Tom Allchorne reports.
Public v private equity
Private equity and public equity have always interacted to some degree but many believe the boundaries between the two are becoming blurred. If true, what are the implications for the private equity industry?
SPAC to the future
SPACs are coming to the UK and they are aiming to take on private equity. They’ve been around in the US since the 1990s, but over the last year SPACs, or specified purpose acquisition companies, have become really popular Stateside and now they are set to take off in Europe. A SPAC is an asset-free company that lists on the public market with the intention of using the money raised in the IPO to invest in or acquire companies operating in a specified industry. Tom Allchorne reports.
In the club
Club buyout deals are becoming increasingly common, as private equity houses band together to purchase larger companies. But these deals do not always go smoothly and there are some concerns about what happens when houses fail to agree on strategy or exit timing and about the impact on LPs’ investment diversification.
WRAP solution for private equity deals
A new type of insurance product for private equity professionals is making its market debut this month. Aon Limited, the UK arm of the insurance broking and risk consulting firm, has unveiled the new product called a Warranty Replacement and Acquisition Protection (WRAP), to replace the usual giving of warranties by a seller to a buyer in an M&A transaction. The product is said to offer an alternative for deals deadlocked over warranty issues. Angela Sormani looks at the costs and appeal of such a product to the private equity community.
Understanding private investors
Private equity has a reputation as an exclusive club for institutional investors and uber high net worth individuals among the private investment community. But there are ways for those private investors without millions in the bank to get access to the top-performing, big brand names. And the benefits of having such investors on board can work both ways. Angela Sormani reports.
News highlights
UK LPs to increase PE investment
UK Gov’t launches director disqualification website
LSE goes European
Darby targets CEE
Partners acquires West LB portfolio
Two-thirds of deals scrapped because of pensions
BoS (Ireland) targets acquisition finance
Kaupthing builds PE portfolio
European Capital opens London office
PE firms wary of debt levels
PE rules M&A market
Pension deficits deter PE
AlpInvest spins out Taros Capital
Tech venture investment still slow
Seed through early stage
Small venture deals increase
Marketing to private investors: problems ahead?
Fund news
French tech FoFs launched
A French technology fund-of-funds has been launched with €150m for investment. The Fonds de Fonds Technologique (FFT) was unveiled by Thierry Breton, Minister for the Economy, Finance and Industry; Francis Mayer, chief executive of Caisse des Dépôts; and Philippe de Fontaine Vive, vice-president of the European Investment Bank, at the headquarters of Caisse des Dépôts in Paris this month.
Quick view
Nestle launches €500m fund
European Capital closes on €750m
Carlyle raises €760m for real estate
Spanish SME fund
Macquarie raises US$1.3bn for real estate
TVM closes life science fund
SPEFOFIII first close
Creative Capital Fund launch
KKR European Fund II closes on €4.5bn
First close for Mangrove tech fund
Exit news
Made in Europe, big in America
The IPO of Vistaprint might initially look like an exit for US venture capital, but in fact, the company started life in Paris. Tom Allchorne looks at how a small business card company came to make it big in America.
Exits: quick view
Cinven sells Fitness First to BC Partners
Q-Cells to float
HJB exit for VCTs
Sofinim exits Aviapartner
Reiten sells Heimstaden
Partial exit for Texas Pacific
Telenet preparing for IPO
HSBC regional fund sells WCBS
Bridgepoint sells Virgin Active
Backers make 4x from Cablecom sale
Permira sells Premiere shares
Beringea sells Nectar
CapMan exits PPTH-Norden
LGV exits Hayley Conference Centres3i celebrates Interhyp IPO
3i makes 5.3x on Petrofac float
Ventizz floats Ersol
Vistaprint floats on NASDAQ
Esmertec IPO
ABN AMRO in tertiary buyout
GIMV sells Telenet shares
3i exits RK Group
Earlybird cashes in on Tipp24
3i sells Republic to Change Capital
Pompe Gabbioneta sold to Weir
Platinum Equity sells ACR Logistics
Duke Street Capital sells Sporting Index
Industri Kapital exits Sydsvenska Kemi
CVC’s Adisseo acquired by Chinese giant
VCs set for biotech exit
Beringea to sell LFR stake
Montagu to let ferry company sail
Pricoa sells Hofmann
3i sells Encon
Permira sells Little Chef
Pizza group to float
BASF sells DENC stake
Innova partial exit
Orange Slovakia sold
Dataroom
French PE hitting new heights
Alternative investments on the up
Italian investment doubles
French venture funds stats
US venture on a high
People
SVG appts
Access recruits
Abingworth hires
Lovells’ resignations
DVC loses
Cinven appts
ISIS EP adds
3i infrastructure
HgCapital promotions
ISIS EP appts
GE promotes
NautaDutilh promotions
Close Bros recruits
CapMan appts
ITI LS resignation
Darby expansion
Index appts
Carlyle hires
Triangle partner
Oakwood poaches HBOS
Kleinwort adds
Quester promotes
Entrepreneur awards
GBCP promotes
Acanthus appts
Iris recruits
Electra adds
SWVF appts
New Kaupthing team
Euro Cap London
EVCA appts
Invision adds
New role for Reyes
TVM moves Pihlava
Risman leaves Apax
Promethean hires
ITI LS appts
AMJPE name change
FEATURES
Taking a view: Suva
Placement agents are dead?
Long live placement agents. With fund raising as buoyant as it’s ever been in private equity and a trend for firms to build in-house investor relations teams, how are these intermediaries adapting and evolving? asks Vicky Meek
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