News Archive: August 2004 
Private equity drives growth of securitisation in the UK
31/08/2004. The private equity sector is driving the growth of securitisation in the UK and the future development of this form of finance is likely to depend on private equity groups using them as a partial exit from their investments, according to a report by JC Rathbone. 
Swiss LGT Capital closes Crown Private Equity on E392m
31/08/2004. Swiss alternative investment manager LGT Capital Partners has announced the final closing of Crown Private Equity with E392m of commitments, significantly higher than its E200m target. The fund will invest in small and mid-market buy-out opportunities in Europe.
US influence on European private equity continues to grow, research shows
31/08/2004. US private equity firms' influence on the European private equity industry continues to grow according to new figures released by Zephyr, Bureau van Dijk Electronic Publishing's database of mergers and acquisitions. In the first half of 2004, 26 per cent of all private equity acquisitions announced in Europe emanated from a US bidder, rising from 18 per cent in 2003 and 12 per cent in 2002.
US Newbridge Capital to buy stake in Japanese Takefuji
31/08/2004. US Newbridge Capital is to buy a one-third stake in Japanese consumer finance firm Takefuji Corporation from its family owners. The deal understood to be valued at somewhere between $3.4bn and $3.65bn.
Israeli Gemini closes fourth fund on $200m
31/08/2004. Gemini Israel funds, a venture capital firm providing start-up financing, has closed its fourth fund with $200m. The fund will focus on seed investments in information technology, with a particular emphasis on the semiconductor, enterprise software, wireless technologies and communications sectors.
US private equity firms help drive appetite for European technology companies
31/08/2004. US private equity firms and strategic investors are increasingly looking to invest in the European technology sector, according to research by Close Brothers Corporate Finance.
US Aurora Funds hires Mike Gorman as chief financial officer
27/08/2004. US early-stage venture capital firm, The Aurora Funds, has recruited Mike Gorman as chief financial officer. Gorman has 20 years of financial, operational and business experience at a range of companies including Global Knowledge Network, Accton Americas Management Group, SunTechnologies Group, Datalogic and Ernst & Young.
ABN Amro Craig launches New Zealand's third retail private equity fund
27/08/2004. ABN Amro Craig and Direct Capital are to jointly launch New Zealand's third retail private equity fund targeting $50m. The new venture follows Goldman Sachs JB Were's Hauraki Private Equity No 1 and No 2 Funds, which have raised a combined $100m.
Derek Lemke-von Ammon joins FTVentures as partner
27/08/2004. Derek Lemke-von Ammon has joined US venture capital firm FTVentures as a partner. He will be responsible for the firm's development efforts with its strategic investors.
Blackstone and Terra Firma short-listed in UK Odeon auction
26/08/2004. Private equity firm Blackstone and Terra Firma have both been short-listed in the sale of UK cinema chain Odeon. The transaction is expected to raise over £380m.
US Oak Hill strengthens investor relations team
26/08/2004. US private equity firm Oak Hill Capital Management has recruited Suzanne Bryan as vice president responsible for managing investor relations. The firm has also hired Patricia Selcke as an investor relations associate.
US First Reserve buys Dresser-Rand for $1.2bn
26/08/2004. US private equity energy specialist First Reserve has acquired Ingersoll-Rand's equipment unit for $1.2bn. Dresser-Rand produces equipment such as turbines and compressors and provides aftermath services to the energy industry.
Former 3i execs close Exponent debut fund on £400m
25/08/2004. Exponent Private Equity, a UK-based buy-out firm co-founded by former 3i director Tom Sweet-Escott, has closed its debut fund on £400m after just five months of fundraising.
Former employees sue CIBC over private equity fund
25/08/2004. Two former executives from the Canadian Imperial Bank of Commerce are suing the firm over investments in its $400m private equity fund. James Forsythe and Alan Tesche are alleging that the bank routinely put its own money interests ahead of many of its top employees who invested in the fund, which has lost around $50m in value since its launch four years ago.
Former US defence secretary to launch private equity fund
25/08/2004. The former US defence secretary William Cohen is to form a merchant banking firm to broker industry mergers and plans to raise $300m to invest in defence companies. The new firm will be called TCG Financial Partners.
German MPC Muenchmeyer Petersen Capital launches sixth fund of funds
25/08/2004. German MPC Muenchmeyer Petersen Capital has launched its sixth fund of funds, MPC Global Equity VI. The new fund is targeting E25m and will make investments in US and European funds.
Norwegian Ferd Equity Partners holds first closing on E151m
25/08/2004. Norwegian Ferd Equity Partners, the private equity arm of Norwegian industrial group Ferd AS, has reached a first close on its debut fund at NOK1.25bn. The fund is targeting a maximum of NOK1.5bn.
US Venture-backed valuations continue to increase in second quarter 2004
25/08/2004. Valuations of US venture-backed companies increased in the second quarter of 2004, showing steady improvement for the fifth consecutive quarter, according to the latest figures from VentureOne. The overall median pre-money valuation reached its highest level in two and a half years at $13.8m, a significant increase from the $9.1m posted in the same period last year.
Apax backs Bayer drug unit in $32m spin-out
24/08/2004. Global private equity firm Apax Partners has backed the $32m spin-out of a specialist drug development unit from pharmaceutical group Bayer. The newly formed company is called Aerovance and will be dedicated exclusively to developing and commercialising biologic treatments for respiratory diseases.
3i's US chief Gagen resigns to be replaced by Ferguson
23/08/2004. 3i executive director Martin Gagen has announced plans to resign from the company after more than 20 years to take up a place studying at Stanford University. He will be replaced as the firm's top person in the US by Allan Ferguson, who is currently based at 3i's Waltham Massachussetts office.
German group Nanno and two US groups buy Agfa-Gevaert photo business
20/08/2004. German private equity firm Nanno and two US groups have reportedly joined forces to back the management buy-out of the troubled consumer photo business from Belgian-based Agfa-Gevaert for a reported E175m.
Blackstone Group buys US hotel group Prime Hospitality Corp. in $790m deal
19/08/2004. US private equity giant the Blackstone Group has bought hotel group Prime Hospitality Corp. in a deal worth $790m. The firm will pay $12.25 per share, a 42 per cent premium to the closing price on Aug 18.
Canadian Q2 venture investment activity up 48 per cent on year
18/08/2004. Canadian venture capital investment activity rose 48 per cent in the second quarter compared with the same period of 2003 signalling a continuation to the recovery first evidenced in the first quarter, according to the Canadian Venture Capital Association.
TPG reported to be joining forces with ex-Goldman star to set up hedge fund
18/08/2004. US buy-out giant Texas Pacific Group is reportedly joining forces with an ex-Goldman Sachs luminary to create a new hedge fund business. The Wall Street Journal says TPG is teaming up with Dinakar Singh, former head of Goldman's in-house trading desk, to form TPG-Axon Capital and aims to raise some $3bn over the course of the rest of the year.
Phoenix exits HPI with £120m sale to Aviva
17/08/2004. UK buy-out firm Phoenix Equity Partners has exited its investment in HPI, a car status information provider, to insurance group Aviva for £120m. The sale is understood to represent a doubling of the investment Phoenix made in 2003.
European/US private equity consortium buys Intelsat in deal valued at $5bn
17/08/2004. An unusual alliance of US and European private equity firms has won the auction to buy Bermuda-based satellite business Intelsat. Europeans Apax and Permira and US firms Apollo Management and Madison Dearborn will pay $3bn for the business and assume $2bn of debt, valuing the transaction at $5bn.
Montagu Private Equity announces £146m buy-out of Survitec
17/08/2004. UK-based Montagu Private Equity has beaten off significant competition to secure the £146m buy-out of survival technology firm the Survitec Group. Survitec is division of Air-Sea Survival Equipment Limited, a company controlled by the Alchemy Investment Plan.
CalPERS private equity investments post 12.7 per cent return for 2003-04
16/08/2004. CalPERS, the giant US public sector pension fund, generated a 12.7 per cent return and profits of around $1bn on its private equity investments in the fiscal year 2003-04, comfortably outstripping its 9.7 per cent benchmark.
Industri Kapital buys Norwegian wholesaler and two discount retail firms
16/08/2004. Nordic buy-out firm Industri Kapital has bought Norwegian wholesaler Terje Hoili and the franchise rights to discount retail chains Europris and Max 20. IK will hold 80 per cent of the assets when the three units are integrated into newly-named Ekstrem Lavpris and the current owners will retain a 20 per cent stake.
Asian and Australasian private equity tops historic $100bn mark
13/08/2004. Asian and Australasian private equity firms are now managing in excess of $100bn of capital for the first time, surpassing even the boom years of 1999 and 2000, according to research released by the Asian Venture Capital Journal.
KKR to buy Panamsat in cut-price deal
13/08/2004. A consortium of private equity firms led by Kohlberg Kravis Roberts is set to complete the acquisition of Panamasat next week. The protracted transaction process is finally nearing an end after the satellite company's owner, DirecTV, slashed the price of the deal by $200m.
US Cerberus Capital bids for E500m blood products business
13/08/2004. US turnaround specialist Cerberus Capital Management has entered into exclusive talks to buy Bayer's blood products unit for around E500m. The private equity firm is making its offer in conjunction with Precision Pharma, a services provider to the pharmaceutical and biotechnology industries.
US Radius Ventures hires Dr. Dilip Mehta as venture partner
13/08/2004. US life sciences venture capital firm Radius Ventures has hired Dr. Dilip Mehta as a venture partner. Mehta was previously the senior vice president of clinical research at Pfizer.
Swedish Ratos hires Leif Johansson as senior investment manager
12/08/2004. Swedish Rato's has recruited Leif Johansson as a senior investment manager. He joins the firm from private equity firm Procuritas, where he served as executive-in-residence.
US Fenway Partners buys Bell Sports for $240m
12/08/2004. US Fenway Partners has acquired Bell Sports, a manufacturer of cycling and skiing helmets, for $240m. The deal comes a year after Fenway bought Riddell Sports, another US helmet maker that provides 85 per cent of helmets used in the National Football League.
Standard Chartered Private Equity appoints Fan Chen as head of China
12/08/2004. Standard Chartered Private Equity has appointed Fan Chen as managing director and head of Greater China. He will be responsible for the firm's activities in China, Taiwan and Hong Kong.
Canadian Ventures West expands biotech team
11/08/2004. Canadian Ventures West has announced the appointment of Dr. Maha Katabi as vice president. Katabi will be responsible for deal generation and portfolio management in the biotech sector, particularly for early-stage companies in Ontario and Quebec. She will split her time between Ventures West Toronto office and the newly established office in Montreal.
Cinven in exclusive talks to buy cable units
11/08/2004. Cinven and Luxembourg-based cable operator Altice One Group have entered into exclusive negotiations with France Telecom and Vivendi Universal to buy their cable television business. The transaction has been valued at around E500m.
Craig Allen joins Funk Ventures advisory board
11/08/2004. Interactive gaming pioneer Craig Allen has joined the advisory board of private equity and venture capital firm Funk Ventures. Allen is currently the chief executive of Spark Unlimited.
US Ferrer Freeman closes $400m healthcare fund
11/08/2004. US Ferrer Freeman & Company has closed its third private equity fund with $400m of commitments. The fund will make investments in expansion-stage and mature healthcare companies to fund organic growth and acquisitions.
US Galen Partners closes fourth fund on $250m
11/08/2004. US healthcare investor Galen Partners has closed its fourth fund on $250m. Investors in the fund include Verizon Asset Management, the Public Employee Retirement System of Idaho, GE Equity, HarbourVest and Daimler Chrysler.
US venture-backed M&A activity continues to improve in Q2 04
10/08/2004. US venture-backed merger and acquisition activity rose for the fifth consecutive quarter to 86 companies acquired in the second quarter of 2004, according to Thomson Venture Economics and the National Venture Capital Association. The average valuation on disclosed deals also improved to $94m, up from $88.6m in the previous quarter.
South Korea's Hana Bank launches $100m joint private equity fund
10/08/2004. South Korean Hana Bank has announced that it is to join forces with US Cambridge Capital Partners and IMM Venture Capital of South Korea to launch a $100m private equity fund.
Carlyle sells orthopaedic company for $360m
10/08/2004. Carlyle Group has agreed to sell orthopaedic medical products company Empi to publicly held Encore Medical for around $360m. Encore Medical will pay Carlyle $325m of the deal price in cash and will issue the private equity firm with eight million shares of common stock.
US Watermill Ventures hires Leslie Lewis as operations partner
09/08/2004. US Watermill Ventures, a private strategic investment firm, has recruited Leslie Lewis as operations partner. Lewis will focus on developing Watermill's new private equity fund and on managing the operations of the firm's portfolio companies.
OVP Venture Partners hires Rick LeFaivre as venture partner
09/08/2004. US-based OVP Venture Partners has recruited Dr. Rick LeFaivre as a venture partner. LeFaivre has over 25 years experience within the fields of personal computing, advanced software environments, computer graphics and interface technology.
Carlyle launches European leveraged finance business
09/08/2004. US private equity firm Carlyle has announced the launch of a European leveraged finance business to invest in European senior secured bank loans, mezzanine loans and high yield bonds. The firm has hired the former head of leveraged finance at Prudential M&G, Mike Ramsay, to run the business.
New York Mercantile Exchange turns down $1.6bn private equity bid
09/08/2004. The New York Mercantile Exchange (Nymex) has turned down a takeover bid from US private equity firm Parthenon Capital. The offer is believed to have valued the world's largest energy futures exchange at around $1.6bn.
Capvent expands into Asia with opening of India office
09/08/2004. Private equity fund of funds manager, Capvent, has announced plans to expand into Asia with the launch of an office in India. The firm will make fund investments and co-investments exclusively in the Indian market.
Warburg Pincus buys Hungarian cable company from Argus Capital
06/08/2004. Warburg Pincus has acquired Hungarian cable communications provider FiberNet from Argus Capital Partners, a Central and Eastern European private equity firm. The transaction has been valued at around $72m.
Former British prime minister quits Carlyle
06/08/2004. John Major, former British prime minister, has stepped down as European chairman of Carlyle Group. The move reflects a cultural shift in the private equity firm famed for its political connections, with the group now appearing to favour the appointment of advisers from the world of business.
US Telos Venture Partners hires James Hogan and Charlie Huang as general partners
05/08/2004. US Telos Venture Partners, an early-stage venture capital firm focused on next-generation electronic design automation and fables semiconductor investments, has recruited industry veteran James Hogan and EDA entrepreneur Charlie Huang as general partners. The announcement comes as the firm begins to invest its third fund, which closed with $50m of commitments in June this year.
US Golden Gate Capital closes $1.8bn middle-market fund
05/08/2004. US Golden Gate Capital has announced the final close of its $1.8bn private equity fund. This is the firm's second fund, which brings its total capital under management to approximately $2.5bn.
Risk Capital Partners buys Mayfair Bingo
05/08/2004. Risk Capital Partners has acquired Mayfair Bingo, the owner and operator of bingo clubs under the Riva brand, for an undisclosed sum. The company owns six sites across the UK, which host over one million player admissions a year.
Irish Delta Partners expands life sciences team
05/08/2004. Irish Delta Partners has expanded its life sciences team with the hire of Dr Joey Mason. Mason was previously the co-founder and managing director of Eumom, a medically endorsed internet business, and was corporate development director at Biotrin, a venture-backed diagnostics company.
Private equity firms circle talent agency
04/08/2004. The prospective sale of talent agency International Management Group has attracted lively interest from private equity firms looking to cash in on the enduring popularity of sports stars, celebrities and their merchandising prospects.
Nordic Accent Equity Partners reaches final close of debut fund at E250m
04/08/2004. Nordic Accent Equity Partners has announced a final closing on its debut fund at E250m. Investors in the fund include AP Fonden 6, Dansk Kapitalanlaeg, AP Fonden 4, LRF, the Federation of Swedish Farmers, ForeningsSparbanken and a number of undisclosed investors from France, Luxembourg, Germany, Holland, Switzerland, the UK and the US.
European technology investment continues to grow in Q2 04
04/08/2004. The surge in venture capital investment targeting European technology companies continued in the second quarter of 2004, according to Tornado Insider Data Research. A total of E1.04bn was invested in the sector, a 21 per cent increase on the previous quarter.
EQT exceeds target with E2.5bn fourth fund
04/08/2004. Northern European private equity firm EQT has announced the final close of its fourth fund on E2.5bn, significantly exceeding the original target of E2bn. The fund's sponsor, EQT Partners AB, provided a E500m cornerstone investment.
Chinese venture capital deals up 31 per cent
04/08/2004. A total of $348m of venture capital was invested in Chinese companies in the first half of 2004, a 32 per cent increase over the same period in 2003. Foreign venture firms accounted for 85 per cent of the capital invested so far this year.
Bridgepoint sells Western Wines stake
02/08/2004. UK private equity firm Bridgepoint has sold its stake in Western Wines, owner of the South African Kumala wine brand, to Canada's Vincor International as part of a £135m transaction. The sale represents Bridgepoint's first exit from its E2bn Bridgepoint Europe II fund that closed in May 2002.
Change Capital buys Hillarys blinds for over £100m
02/08/2004. Change Capital has acquired Hillarys, the manufacturer of made to measure blinds, for over £100m. The deal represents the private equity firm's second completed transaction following its acquisition of Robert Dyas for £61m last March.
Duke Street Capital closes third CDO fund on E450m
02/08/2004. Duke Street Capital Debt Management has announced the final close of its third collateralised debt obligation (CDO) fund with E450m of commitments. Duchess III will focus predominantly on senior secured loans but will reserve approximately 20 per cent of its capital for mezzanine financings.
Private equity firms in the running for £80m renewable energy business
02/08/2004. A number of private equity firms including Terra Firma, HG Capital and GE Capital are among the leading bidders for the UK-based United Utilities' £80m renewable energy business.
US influence on European private equity continues to grow, research shows
02/08/2004. US private equity firms' influence on the European private equity industry continues to grow according to new figures released by Zephyr, Bureau van Dijk Electronic Publishing's database of mergers and acquisitions. In the first half of 2004, 26 per cent of all private equity acquisitions announced in Europe emanated from a US bidder, rising from 18 per cent in 2003 and 12 per cent in 2002.
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