October issue
News highlights
CULS: a PtP stalemate solution?
Blackstone opens German office
Gartmore develops PE business
Mezzanine still popular
European Venture Philanthropy Association founded
Institutions favour lower risk
Deutsche Bank retains MGPE Italy
Power resurfaces at Inflexion
Greek venture capital association founded
Laporte opens advisory business
Dewey Ballantine goes Italian
EVCA’s first FoFs survey
Spain: investments up
Funds
Standard Life reaches €892m
New Nordic fund from Accent
Partners Group unveils secondaries fund
Astorg III underway
£40m for Scottish Co-Investment Fund
DBAG Fund IV final close
Evergreen Partners holds final close
Exits
Birthdays exit for 3i, Permira and PPM
First Fund III exit for Doughty Hanson
3i’s fast food return
GIMV makes partial exit on Capelle
Alchemy makes speedy sale
Media exit for LDC
3i exits Seaham
GIMV sells Nieuwe Havema
HgCapital provides Xyratex exit
LBO France gets Materis
People
ISIS new recruits
Dewey Ballantine goes Italian
Powell joins Gilde
Hotbed adds to team
Amethyst gets adviser
Davison to Bridgepoint
E&Y boosts team
Darbys gets 3i exec
Debevoise & Plimpton appts
HPE recruits
Electra boosts team
Advent International appts
New face at Acanthus Advisers
RBS hires
New faces at SJ Berwin
Curwen to Paris
Foulds to Duke Street
CSFB hires
Gresham expands
NVP Brightstar appts
MTI boosts team
Blackstone targets Germany
Advent International appts US partner
Cloherty heads Delta
CapMan expands in Norway
Castle steps down
AshtonPenney targets Europe
Power resurfaces at Inflexion
HVCA founded
Features
Secondaries: what next?
The secondaries market is increasingly competitive and a growing number of dedicated funds is driving prices up and encouraging an easing of discounts. Since 1980, secondary funds (both dedicated and non-dedicated vehicles) have raised over $25bn to buy existing primary investments in private equity funds and direct company investments. Industry experts estimate between $6bn to $16bn of secondary deals will be completed by 2006. Angela Sormani reports on this and on developments in secondary investing beyond the traditional secondary funds.
Spain: Hidden treasure
Spain is flourishing; the economy has enjoyed several years of high economic growth, a decrease in unemployment rates, controlled inflation, low interest rates and small public budget deficits. So far in 2003 Spain has outperformed most of its European peers, posting a 2.7% GDP growth in the third quarter and it is heading toward achieving a balanced budget by year-end. Even stock market performance has improved during 2003 recovering from the five-year low reached in October 2002. So for private equity firms the time is now to promote their industry, but how sustainable is the asset class for Spanish institutions given the legal and regulatory hurdles they face? Angela Sormani reports.
Buyouts: Labour pains
Company restructuring is often needed to get the best out of an investment and improving efficiency can mean it is necessary to reshape the workforce. But the vagaries of employment law across Europe can turn what looks like an attractive investment into a minefield. How can private equity investors avoid falling foul of this regulatory labyrinth? Louise Cowley reports.
Legal & Regulatory Exchange: To elect or not to elect?
When UK Chancellor of the Exchequer Gordon Brown’s budget speech made a one line mention of simplification to company taxation little heed was paid until 105 pages of legislation appeared the following week, which caused the blood to drain from many faces in the private equity industry. Although things have since significantly progressed the industry remains for a large part confused about what these changes will mean to future deal structures. Lisa Bushrod reports.
PLACEMENT AGENTS SUPPLEMENT
Placement agents: market update
A depressed fund raising market has led to changes among players in the placement agent industry. The withdrawal of some placement groups has opened up opportunities for others, including new entrants. As the investment banks that offer the service thin out the boutique model appears to be in ascension. Louise Cowley reports
Choosing a placement agent
Life is difficult enough for private equity and venture capital firms looking to fund raise, but changes at the banks and boutiques that place those funds could complicate things before the fund raising process has even started. The fund placing business is evolving. Some players are expanding their services or forming new alliances, others have dropped out of the market and new ones are springing up in unexpected places. For general partners, the choice has never been so diverse. Louise Cowley reports
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