European private equity returns reached 11.7% in 2007, up from the 10.8% of 2006, according to preliminary data from the
The figures, which are net of management fees and carried interest, saw buyouts return 16.1% and venture capital 4.5%.
Top quarter buyout funds produced pooled IRRs of 33.4%, with venture fund making 15%, and all top quarter private equity funds achieving 23.5%.
The preliminary statistics – produced by the EVCA in conjunction with
Around 120 independent funds reached final close last year, with an average fund size of €560m. This number falls to €246m when the cumulative amount raised by the €1bn plus funds is taken out.
Investment in 2007 looks likely to exceed the previous year’s tally of €71bn, with the early data likely to exceed the current €68.3bn. Divestments totalled €23.1bn.
The final figures of 2007 will be published at the EVCA Symposium in June.
Darling delivers maiden Budget
SMEs also look set to benefit from the appointment of industry veteran and
Other announcements included the increase of tax relief for companies in the Enterprise Investment Scheme by £100,000 to £500,000, and tax relief for employees under the Enterprise Management Incentive Scheme, which goes up from £100,000 to £120,000. Also, a £12m fund has been set-up to back female entrepreneurs, and the Chancellor has also pumped in an extra £60m in funds to the Small Firms Loan Guarantee scheme.
Largest LBO since credit crunch launches
Will Honeybourne, managing director of First Reserve, said: “Long-term industry demand, based on global needs for increased oil production over the medium to long term, makes Abbot an attractive acquisition for First Reserve.”
Carlyle breaks French record
US buyouts giant
Numericable operates the leading alternative high speed network in France, covering close to 10 million households and providing high definition television, video on demand, very high speed internet and telephony services. Numericable is the first operator to have massively deployed its own fiber network in France. This fiber network already passes over 2 million households and will be extended to 8 million households by 2010. Completel offers differentiated services to corporate customers using the largest alternative metropolitan fiber access network and the third largest DSL network in France.
Benoît Colas, managing director at Carlyle, said: “Carlyle’s financial strength and depth of experience, gained from numerous investments including Casema, Com Hem, UPC Sweden and Bredbandsbolaget in Europe will enable us to be strong partner to management and existing shareholders Altice and Cinven in progressing the companies’ development.”
La Caixa hunting for private equity managers
Spanish banking group
Speaking to EVCJ sister publication Thomson Investment Management News, chairman of the scheme’s trustees, Antonio Canals Coll said that the seven-year old defined contribution scheme has a structure whereby 52% of its assets are in bonds, 38% in equity, and the rest goes to private equity, commodities, hedge funds and real estate in equal measure.
It is currently in hiring mode and is looking for private equity, hedge fund and real estate fund managers. It has hired Mercer as consultant on the process.
Canals Coll told Thomson IM News that about half of private equity’s 2.5% share of the alternatives allocation is invested in funds of funds, the rest is invested in mutual funds and shares of listed private equity funds.
Ferd rebrands as Herkules
Ferd has been the largest investor in the firm since it was established in 2004, although the two have operated independently. CEO of Ferd Johan H. Andresen said: “Ferd was the originator and founder and has been a solid contributor to this investment firm – which has provided excellent returns for everyone involved.”
Herkules has NOK6.25bn (€776m) of capital under management, and is led by managing partner Gert W. Munthe. Herkules currently consists of two funds, which have invested in small and medium enterprises in the Nordic region, primarily in Norway. In total, Herkules has invested in 33 companies with combined annual revenues of NOK18.6bn.
The firm’s last fund,
Renaissance smashes US$500m PE target
Russian investment bank
Renaissance was founded in 1995 in Moscow, and is now one of the leading investors in emerging markets, with a presence in Sub-Saharan Africa and the Middle East as well as Russia and the CIS. The firm also offers its clients access to these markets through offices in London and New York.
In other Russian private equity news,