News Archive: September 2004 
CVC close to buying BASF's ink business
30/09/2004. Pan-European buy-out firm CVC Capital Partners is close to acquiring the printing ink business of German chemical group BASF. The deal is likely to be valued at between E600m and E700m. 
Lone Star to close Beijing office
30/09/2004. Lone Star, the US turnaround specialist, is to close its office in Beijing and reduce its activity in China due to a lack of viable investment opportunities.
US Forstmann Little to buy sports marketing company for $700m
30/09/2004. US private equity firm Forstmann Little is close to acquiring International Management Group (IMG), the global sports marketing group and talent agency, for around $700m. A deal would mark the end of a three-month auction for the company.
Jonathan Diggines quits Aberdeen Murray Johnstone
30/09/2004. Jonathan Diggines, the head of Aberdeen Murray Johnstone Private Equity, has left the company this week after failing to agree a management buy-out. Hugh Little will now oversee the firm's entire £420m in capital under management.
ING launches listed private equity vehicle in Australia
29/09/2004. Global investment company ING Investment Management has launched Australia's first listed private equity fund of funds, ING Private Equity Access Ltd (ING PEAL). ING PEAL opens to raise up to $120m from Australian and New Zealand investors.
Newbridge trumps Woolworths bid for Australian liquor store chain
29/09/2004. Newbridge Capital, the Asian arm of US buy-out firm Texas Pacific, has made an offer of A$1.1bn for pub and liquor store chain Australian Leisure and Hospitality (ALH). The offer trumps a A$970m hostile bid by Woolworths.
Finama strengthens secondaries activity with hire of Yonel Génin
29/09/2004. Finama Private Equity - Quartilium, the private equity fund of funds arm of French insurer Groupama, has recruited Yonel Génin as an investment manager dedicated to secondaries.
SVG raises E400m from fixed income markets for investment in private equity
29/09/2004. SVG Advisers, the private equity investment company formerly known as Schroder Ventures, has raised E400m in bonds and preferred equity in a rare example of a private equity fund raising capital in advance of an acquisition from fixed-income investors.
CSFB plans private equity push into Asia
28/09/2004. Credit Suisse First Boston has pledged to step up investment in Asia with a push into private equity, high-yield debt and securitisation.
Swedish AP1 seeks strategic partners for private equity
28/09/2004. Forsta AP-fonden, the First Swedish National Pension Fund, is seeking 'strategic partners' for around $400m in private equity. AP1 is looking to appoint one or more partners to provide advice on three mandates covering global investments, the US and Europe.
US Morgenthaler hires former General Electric executives
28/09/2004. US middle-market private equity firm Morgenthaler Partners has announced the recruitment of Al Stanley and Daniel Farrar. Both Stanley and Farrar join the firm from General Electric and will work in the firm's buy-out division.
US Western Technology closes eleventh venture debt fund on $500m
28/09/2004. US Western Technology Investment has announced the final close its eleventh venture debt fund with $500m of commitments. The firm now has over $1bn under management.
US Vestar Capital Partners to buy Dockers for $800m
28/09/2004. US Vestar Capital Partners has reportedly agreed to acquire Dockers, a casual clothing brand of Levi Strauss, for around $800m. The private equity firm has joined forces with Eric Rothfeld, a clothing industry veteran, according to the Wall Street Journal.
US Providence Equity closes latest fund on $4.25bn
27/09/2004. US Providence Equity has closed its latest fund on $4.25bn but the buy-out group is reported to have attracted investor support for almost double that sum, according to the Financial Times.
Permira considers £5bn offer for Sainsbury's
27/09/2004. Permira is reported to be considering an offer of over £5bn for the UK's third largest food retailer J Sainsbury. The private equity firm is currently in talks with other potential financial backers, according to the Sunday Times. Permira's offer is being led by managing partner Damon Buffini.
Private equity firms eye up PPR's Rexel stake
27/09/2004. Five groups of private equity firms are believed to be considering offers for PPR's 74 per cent stake in electrical retailer Rexel. The stake is worth in the region of E1.7bn.
Irish Pension fund to invest 20 per cent of assets in private equity and real estate
27/09/2004. The E10.6bn Irish National Pensions Reserve Fund (NPRF) is to invest approximately 20 per cent of its assets under management in private equity and real estate. This will give the pension fund an allocation of around E2bn for the asset classes.
Blackstone close to buying UK cinema chain in £120m deal
24/09/2004. US Blackstone Group is close to buying the UK cinema operator Cine-UK for around £120m. The move signals an acceleration in the shake-up of the UK cinema industry.
Greenfield Capital Partners set to exit Dutch Telfort in E400m secondary buy-out
24/09/2004. Greenfield Capital Partners is set to exit its investment in Dutch cellphone operator Telfort. Five private equity buyers are said to be considering offers of around E400m for the company.
PPM Ventures announces E100m acquisition of Müller & Weygandt
24/09/2004. PPM Ventures, the mid-market private equity specialist, has announced the acquisition of Müller & Weygandt (M&W), a German dental distributor currently owned by Permira. The deal has been valued at E110m.
US Blackstone buys Vanguard Health Systems for $1.75bn
24/09/2004. US Blackstone Group has acquired a majority equity stake in Vanguard Healthcare from Morgan Stanley Capital Partners for around $1.75bn. The firm beat rival offers from Kohlberg Kravis Roberts and Thomas H.Lee Partners.
Cinven and Apax to pay E2bn for Dutch directories business
24/09/2004. Cinven and Apax Partners are to buy the telephone directories business of Dutch publisher VNU for E2bn. The consortium beat rival offers from Permira and CVC, Carlyle, Blackstone and BC Partners.
KKR founder warns of hedge fund invasion
23/09/2004. Henry Kravis, co-founder of US buy-out house Kohlberg Kravis Roberts (KKR), has warned the private equity world that cash rich hedge funds are invading the world of leveraged buy-outs. Speaking at a recent conference in New York, he also suggested that hedge funds might not have the skills required to execute these transactions successfully.
Private equity owned Warner Music plans $5bn IPO
23/09/2004. Warner Music, currently owned by Thomas H Lee Partners, Bain Capital and Providence Equity Partners, is considering a flotation valued at up to $5bn. The initial public offering could take place as early as next spring.
Blackstone-led private equity consortium bids £1.5bn for UK drug group
22/09/2004. A private equity consortium led by Blackstone Group has tabled an offer of £1.5bn for UK drug group Warner Chilcott. Shares in the women's healthcare specialist surged 15 per cent to 747p as the company confirmed the bid.
Geoff Lee to join MezzAsia Capital
22/09/2004. Asian mezzanine firm MezzAsia Capital has recruited Geoff Lee as a director of investments with responsibility for China, Taiwan, Hong Kong and South Korea. Lee joins the firm from HSBC where he served as a director in the investment banking division. He previously worked for Peregrine Capital in Hong Kong.
Former CSFB execs to launch new private equity firm
22/09/2004. A group of investment professionals that defected from DLJ Merchant Banking Partners, the private equity arm of Credit Suisse First Boston, have launched a new firm called Diamond Castle Holdings. The new firm is planning to raise a fund targeting between $1bn and $1.5bn.
3i's Westminster Healthcare up for grabs
21/09/2004. Westminster Healthcare, 3i's UK nursing home operator, is being auctioned for around £450m. The company is expected to attract more than ten bids by today's deadline for first round offers, including a number from private equity firms.
US-based CMEA Ventures closes $300m venture fund
21/09/2004. US-based CMEA Ventures has announced the final closing of its sixth venture fund with $300m for investment in high technology and life sciences companies. The fund was originally targeting $250m.
Goldman Sachs and Société Générale agree $400m secondary private equity deal
21/09/2004. Goldman Sachs Vintage Funds, which makes secondary acquisitions of portfolios of investments owned by private equity groups, has agreed to buy two private equity funds managed by SG Capital Europe for E220m. Goldman Sachs and Société Général have also agreed to invest a total of E180m in a new fund that will be managed by SG Capital Europe.
US Fortress to buy Stelmar Shipping for $677m
21/09/2004. Fortress Investment Group, a US private equity firm with around $10bn under management, has agreed to buy oil tank operator Stelmar Shipping for $677m. The deal values the Greek company at $38.55 per share, an 8.4 per cent premium over its Friday closing stock price of $35.55.
US Founders Equity announces final closing of fund with $140m
21/09/2004. US Founders Equity has announced the final close of its Founder Equity SBIC I and affiliated funds with $140m of commitments. Investors in the fund include Colorado PERA, Citibank, HSBC, JPMorganChase, Washington Mutual and RWB. In addition the New York State Common Retirement Fund has committed $20m to a side-by-side affiliated fund specifically for investments in the State of New York.
Elaine Small joins Paul Capital as managing director
20/09/2004. Paul Capital Partners has recruited Elaine Small as managing director of its secondaries operations. She will be responsible for the sourcing and negotiations of transactions in the UK and Ireland. She will also be involved in the management of GP relationships as well as with communications with institutional investors throughout Europe.
Cypress Group and Goldman Sachs to buy car parts business
20/09/2004. Private equity firms Cypress Group and Goldman Sachs Capital Partners have agreed to buy the car parts division of Cooper Tire & Rubber for $1.17bn.
Private equity exits up 15 per cent in 2003, survey finds
20/09/2004. Private equity fund managers reported a 15 per cent increase in exits last year compared to 2002, according to a survey conducted by SCM Strategic Capital Management. The European funds in the sample demonstrated a particularly strong improvement with a 39 per cent increase in realisations. The total value of reported exits across all geographies increased by 41 per cent.
US Venture Strategy Partners hires John Hamm as general partner
20/09/2004. US Venture Strategy Partners, an early-stage venture capital firm, has hired John Hamm as a general partner. He will focus on enterprise and consumer investment opportunities.
Silicon Valley Bank opens offices in UK and India
17/09/2004. Silicon Valley Bank has opened an international subsidiary in London. SVB Europe Advisors is primarily targeting UK-based high-growth technology companies with business services and access to customised debt financing. Silicon Valley Bank also announced the opening of SVB India Advisors in Bangalore.
Coller Capital acquires $90m private equity portfolio from Dresdner Bank
16/09/2004. The institutional restructuring unit of Dresdner Bank has agreed to sell a $90m private equity portfolio to Coller Capital. The portfolio consists of 22 companies from a broad range of sectors based primarily in the US.
Heidi Levin joins US Northern Trust as vice president of private equity
16/09/2004. US Northern Trust Global Advisors, an investment management subsidiary of Northern Trust Corporation, has announced the appointment of Heidi Levin as vice president in the private equity group.
Private equity firms consider bids for Canadian Alcan
16/09/2004. A number of private equity firms including Blackstone and Kohlberg Kravis Roberts are believed to be considering bids of between $4bn and $5bn for the rolled products business of Canadian aluminium manufacturer Alcan.
UK Greenpark Capital hires Permira's Christophe Nicolas as investment director
16/09/2004. UK Greenpark Capital has recruited Permira's Christophe Nicolas as an investment director. Nicolas spent three years at Permira where he specialised in transaction origination and execution in the media, leisure and business services sectors.
UK West Private Equity completes first exit with £162m sale of Southern Cross
16/09/2004. UK West Private Equity has completed its first exit with the £162m sale of Southern Cross Healthcare to the Blackstone Group. West Private Equity acquired Southern Cross, which operates 139 care homes in the UK, for £90m in August 2002.
US Core Capital Partners hires Tom Wheeler as special partner
16/09/2004. US Core Capital Partners has recruited telecommunications veteran Tom Wheeler as a special partner. Wheeler recently retired as president and chief executive officer of the Cellular Telecommunications and Internet Association (CTIA) and will assist Core Capital in identifying and pursuing new technology investment opportunities.
US Longroad Asset Management closes debut special situations fund on $183m
16/09/2004. US Longroad Asset Management has closed its first special situations fund with $183m in commitments. The fund will invest in middle-market companies with revenues of between $50m and $500m.
Ventures West closes Canada's largest ever venture capital fund
15/09/2004. Ventures West has announced the final close of Canada's largest ever venture capital fund with C$250m. The fund will invest in early-stage technology companies in the biotechnology, communications, energy technology and information technology sectors.
US Bessemer Venture Partners hires Dinesh Vaswani as entrepreneur in residence
15/09/2004. Bessemer Venture Partners, a venture capital firm investing in early-stage technology companies, has recruited Dinesh Vaswani as an entrepreneur in residence. He will specialise in identifying investment opportunities in US/India cross-border firms.
US New Enterprise Associates adds medical device specialist as venture partner
15/09/2004. US-based New Enterprise Associates has recruited medical device entrepreneur Joshua Makower as a venture partner. Makower will focus on all major medical device markets with a particular emphasis on cardiology, neurology and orthopaedics.
US Tennenbaum Capital Partners closes $2bn fund
15/09/2004. US Tennenbaum Capital Partners has closed its fourth fund, the Special Value Opportunities Fund, with $2bn of commitments. The fund will invest in long-term special situations opportunities in a range of industries in both the public and private sector, including bank debt, mezzanine securities and distressed bonds.
Philip Conboy joins UK Sovereign Capital
15/09/2004. Sovereign Capital, the UK lower mid-market private equity firm, has announced that Philip Conboy is to join the firm as a director. Conboy joins the firm from Kleinwort Capital where he was a founding shareholder and director with a focus on support services and healthcare.
Bear Stearns joins forces with GlobeSecNine to invest in US homeland defence sector
14/09/2004. Bear Stearns has formed a strategic alliance with private investment firm, GlobeSecNine, to pursue private equity investment opportunities in the homeland defence and security sectors.
US InterWest Partners closes ninth venture fund on $600m
14/09/2004. US InterWest Partners has closed its ninth venture capital fund on $600m. The fund will invest in early-stage life sciences and information technology companies.
Morgan Stanley's Gustavo Schwed joins Providence Equity Partners
14/09/2004. Former Morgan Stanley European partner, Gustavo Schwed, has joined Providence Equity Partners' London office as a managing director. Schwed will specialise in media and communications investments.
Alistair Mackintosh joins Actis as chief investment officer
13/09/2004. Alistair Mackintosh has joined UK emerging markets private equity investor Actis as chief investment officer. He will oversee the development of Actis' investment strategy on a global basis and will chair the firm's investment committees.
Benchmark closes second European fund on $375m
13/09/2004. Benchmark Capital has announced that it has raised a new European venture capital fund with $375m of commitments. Benchmark Europe II was oversubscribed and exceeded its target in a single close.
European Duke Street completes £450m recapitalisation of three portfolio companies
13/09/2004. European buy-out firm Duke Street Capital has announced the £450m recapitalisation of three of its portfolio companies. Paragon Healthcare, Galaxie Hotel and Esporta have each completed refinancings to fund the next stage of their growth.
JP Morgan may spin off One Equity Partners
13/09/2004. JP Morgan Chase is expected to spin off Bank One Corporation's private equity business into an independent entity.
Swiss Partners Group holds final close on dedicated secondaries fund
13/09/2004. Swiss Partners Group has announced the final closing of its dedicated secondaries fund with E500m of commitments. The fund, which was significantly oversubscribed, will focus on secondary interests in European buy-out funds but will include some exposure to the US.
US Enterprise Partners announces three more hires
13/09/2004. US Enterprise Partners Venture Capital has announced three new hires following the recruitment of Erik Nierenberg as a portfolio associate last week. The firm has now appointed Benjamin Myers as a principal responsible for providing business support to the firm's portfolio companies, Moya Gollaher as a principal responsible for marketing and business development initiatives, and Philip Choi as a portfolio associate.
US Enterprise Partners expands executive team
10/09/2004. US Enterprise Partners Venture Capital has announced that Erik Nierenberg has joined the firm as a portfolio associate. He will assist the firm's portfolio companies with capital structuring and business support.
UK Terra Firma hires Michael Hewett as investor relations director
10/09/2004. Michael Hewett has joined UK private equity firm Terra firma as investor relations director. He will take up the newly created position in November.
3i enterprise barometer shows slight fall in European business confidence
10/09/2004. The latest quarterly European Enterprise Barometer Index, measuring private companies' confidence in business, political and economic climates, remains in positive territory despite showing a slight fall from the high of last quarter. After increasing in every survey over the past year, the index has fallen from +49 to +30 in the third quarter of the year, the same level as six months ago.
US Caltius closes executive fund and announces new hires
09/09/2004. Caltius Mezzanine has announced the closing of Caltius Partners Executive III. Investors include executives of Caltius' current and former portfolio companies. The fund was established in conjunction with Caltius Partners III that closed at $300m in June this year.
Japanese Mizuho plans Y30bn private equity fund
09/09/2004. Two units of Mizuho Financial Group, Japan's biggest banking group, have announced that they are to set up a Y30bn private equity fund to cater for the growing demand for alternative investment opportunities among Japanese institutional investors.
US Mellon withdraws from private equity
09/09/2004. Mellon Ventures, the private equity arm of Mellon Financial, has announced that it will not be making any new investments. But the firm, which has $1.3bn under management, will continue to support its 130 portfolio companies and more than 50 private equity funds in which it has invested.
Neil MacDougall to replace Jonathan Morgan as managing director of PPM Ventures
09/09/2004. PPM Ventures has announced that Neil MacDougall is to replace Jonathan Morgan as managing director. MacDougall has most recently been responsible for PPM's investment strategy in healthcare and chemicals.
US Norwest Equity Partners closes new $800m fund
09/09/2004. US Norwest Equity Partners has closed its latest fund on $800m. Norwest Partners VIII will continue the firm's strategy of investing in growing and profitable middle-market companies.
European venture investment improves in second quarter, research finds
08/09/2004. The total value of European venture capital activity increased significantly in the second quarter of 2004 with E967.3m invested. This represents the highest quarterly amount invested since 2002, according to research released by Ernst & Young and VentureOne. The number of completed financings fell 20 per cent on the second quarter of 2003 but rose ten per cent over the first quarter this year.
CalPERS faces disclosure lawsuit over private equity management fees
08/09/2004. The California Public Employees' Retirement System (CalPERS), the biggest US pension fund with $166bn under management, is facing a lawsuit over its failure to disclose the management fees that it pays to private equity and hedge fund managers.
Sir Robert Smith and Peter Mihatsch to join 3i board
08/09/2004. 3i has strengthened its board with the appointments of Sir Robert Smith and Peter Mihatsch. Smith is a private equity industry veteran and chairman of Weir Group, while Mihatsch is a former Mannesmann executive.
UK Alchemy Partners to sell Innspired pub chain
08/09/2004. UK private equity firm Alchemy Partners is looking to exit its investment in the Innspired pub chain. The deal is expected to generate in the region of £350m.
US Quaker BioVentures closes inaugural fund with $280m
08/09/2004. US Quaker BioVentures has closed its debut fund with $280m under management. The fund, which was launched in early 2002, was $80m oversubscribed and is targeting life sciences companies in the Mid-Atlantic region.
US Castanea Partners closes new fund on $207m
08/09/2004. US Castanea Partners has closed its latest fund with $207m of commitments. The fund will target small to mid-market investments in publishing and information, human resource and business services, consumer product and speciality retail sectors.
French insurers bow to pressure and invest more in private equity
07/09/2004. French insurers have bowed to government pressure by agreeing to invest an additional E6bn of life assurance savings in private equity over the next three years. The move is designed to narrow the gap in private equity funding between France, and the UK and US.
UK Phoenix Equity Partners expands investment team
07/09/2004. UK mid-market private equity firm, Phoenix Equity Partners, has recruited Tim Dunn and Kathryn Purves to its investment team. Dunn joins Phoenix from US private equity firm Monitor Clipper Partners, and Purves joins from Deutsche Bank's fund of funds team.
William Mills quits Advent for EGS Healthcare Capital Partners
07/09/2004. William Mills has left his position as a partner at Advent International for a similar position at EGS Healthcare Capital Partners.
Barclays looks to sell Hobbs fashion group in £100m deal
06/09/2004. Barclays Private Equity is looking to exit its investment in upmarket fashion retailer Hobbs. Indicative bids for the company are expected tomorrow and are likely to be in excess of £100m.
Louis Roquet hired as president of Canadian Desjardins Venture Capital
06/09/2004. Louis Roquet has joined Canadian Desjardins Group as president and chief operating officer of Desjardins Venture Capital. He was previously president and chief executive officer of the Société des Alcohols du Québec.
Private equity firms eye up Spanish travel business
06/09/2004. A number of private equity firms have emerged as possible bidders for Spanish travel company Amadeus. European Permira, Apax, BC Partners, Cinven, CVC Capital Partners and PAI are all considering offers for the world's largest reservations and ticketing firm.
US Hellman & Friedman to bid for Gray Global
06/09/2004. US private equity firm Hellman & Friedman is to submit an offer of between £600m and £700m for Gray Global, the world's second largest advertising firm. US private equity firms Providence Equity Partners and Blackstone are understood to have decided against tabling a bid.
UK Inflexion opens Manchester office
06/09/2004. UK Inflexion Private Equity has announced the opening of an office in Manchester. The new office will be led by director Tim Smallbone.
Bridgepoint close to acquiring UK consumer finance firm First Credit
03/09/2004. European private equity firm Bridgepoint is close to completing the acquisition of First Credit, the consumer debt company, for up to £80m, according to the Financial Times. First Credit is currently owned by Gresham Private Equity and the company's management.
Montagu announces £244m acquisition of UK Maplin Electronics
03/09/2004. Montagu Private Equity has agreed to buy UK Maplin Electronics for £244m. The company is currently owned by Graphite Capital and its management team.
Permira and Cinven buy stakes in Vendex from KKR
03/09/2004. UK private equity firms Permira and Cinven have agreed to acquire a 44 per cent stake in Dutch retailer Royal Vendex from Kohlberg Kravis Roberts (KKR). Terms of the deal were not disclosed but the two firms are understood to have each invested $200m.
CalSTRS invests $300m in big name funds
02/09/2004. California State Teachers' Retirement System (CalSTRS) has announced that it has made $300m of commitments to three private equity funds.
SEC bars former private equity executive
02/09/2004. The Securities and Exchange Commission has barred Charles Spadoni, a former executive at private equity firm Triumph Capital Group, from the securities industry.
UK Innisfree raises £360m for third infrastructure fund
02/09/2004. UK infrastructure investment group Innisfree has closed its third fund on £360m. The fund will invest in public-to-private partnership and private finance initiative projects in the UK and continental Europe.
Bain Capital to buy Canadian telephone directory business
01/09/2004. Bain Capital has entered into exclusive negotiations to acquire Verizon Communications' Canadian telephone directory business in a deal valued at up to $1.5bn. Verizon acquired the SuperPages business from Canada's Telus Corporation for $810m three years ago.
Five private equity firms make UK Saga shortlist
01/09/2004. Five private equity firms have made the short list for insurance, holiday and media group Saga. KKR, BC Partners and Charterhouse have all made the next round with independent bids, while Apax Partners and Cinven, and JP Morgan Partners and Hg Capital, have made joint offers in the auction.
German CAM Private Equity strengthens operations and investor relations teams
01/09/2004. German fund of funds manager CAM Private Equity has recruited three new professionals to its operations and investor relations teams.
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