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European Doughty Hanson to return E175m to investors

Following the recapitalisation of France-based Saft, European buy-out firm Doughty Hanson is to return E175m to investors in its latest private equity fund, Doughty Hanson and Co IV.

This represents around 1.5 times their equity investment and investors will also maintain their stake in the business. As a result of the transaction, Doughty Hanson will have returned more than 10 per cent of total commitments to Fund IV to investors.

Saft designs and manufactures high-tech battery technology for a range of niche applications and markets including the energy, railway, aviation, telecoms and defence sectors.

In January 2004 Doughty Hanson acquired Saft for a total capitalisation of €410m in the firm's first private equity portfolio investment in France. The acquisition was financed through equity investment of €120m and €290m of debt.

Doughty Hanson closed Doughty Hanson IV in January 2005, following a difficult two-year fundraising process. The fund, with an original target of €3bn, was capped at €1.6bn.

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