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German Ergo Equity Partner takes over management of IMH Funds

Ergo Equity Partner, the private equity arm of the Ergo Insurance Group, has taken over the management of the private equity funds of the IMH Group. Ergo is assuming responsibility for managing the funds after IMH failed to secure sufficient funding from its investors.

IMH has set up three venture funds since 1999 with a total value of approximately E100m. The three funds originally targeted a total of E150m.

Ergo's principal objective will be to stabilise the existing portfolio of 20 companies, to gain the confidence of institutional investors and to secure additional commitments from them.

IMH funds are invested in telecommunications and life sciences companies within the European life sciences sectors. The firm typically sought to invest up to E5m per company.

So far there have not been many examples of troubled venture portfolios being rescued by specialist management groups but the fragility of a lot of VCs, particularly in continental Europe, is expected to generate a lot more activity in coming months.

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