News Archive: February 2005

James Hance joins Carlyle as senior advisor
15/12/2005. US private equity giant The Carlyle Group has appointed James H Hance, Jr, former vice chairman and chief financial officer of Bank of America, as a senior advisor. In his new role Hance will focus on helping Carlyle expand its leveraged finance business and identify attractive financial services investments. He will be based in New York City.

US Shasta Ventures closes $210m venture capital fund and announces first investments
28/02/2005. US venture capital firm Shasta Ventures has closed its first fund with commitments of $210m, ahead of its original target of $175m. The fund will invest in early-stage companies in the US - with a special focus on the West - in the infrastructure, software and technology-enabled service sectors.

Apax agrees £1bn acquisition of foreign exchange firm Travelex
28/02/2005. European private equity firm Apax Partners has agreed to buy a majority stake in foreign exchange specialist Travelex at a price that values the firm at more than £1bn. The transaction is expected to close in July 2005.

Crescent Capital Investments (Europe) and First Islamic rename themselves Arcapita
28/02/2005. Crescent Capital Investments (Europe), the European private equity arm and subsidiary of Bahrain-based First Islamic Investment Bank B.S.C. (c), and First Islamic are changing their names to Arcapita.

Industri Kapital adds two new members to its senior management team
28/02/2005. European private equity firm Industri Kapital is broadening its senior management group by adding Christopher Masek, partner responsible for IK's French activities and Detlef Dinsel, partner responsible for the firm's German activities. This brings the total number of senior executives to six.

UK Kleinwort Capital makes eight times return on sale of Vivista to SunGard
28/02/2005. UK buy-out firm Kleinwort Capital has sold its portfolio company Vivista Holdings to software and processing solutions provider SunGard Data Systems in a transaction that will generate cash proceeds of 8.1 times the initial investment and an IRR of 254 per cent per annum, according to the firm. The final consideration could increase the transaction proceeds by up to a further £5.5m.

Index Ventures closes €300m fund Index Ventures III
28/02/2005. Index Ventures has closed its fourth fund, Index Ventures III, on €300m. Besides previous investors such as HarbourVest Partners, LGT Capital Partners, Partners Group and Schroders Investors, the fund has also attracted a raft of new investors, including Adams Street Partners, AlpInvest Partners, BP Pension Fund and Horsley Bridge International.

European businesses more confident
25/02/2005. Business confidence in Europe has become stronger. It has climbed from +23 to +38 on 3i's quarterly European Enterprise Barometer Index, which measures private companies' confidence in business, political and economic climates. The weighted index for Europe is now at the highest level it has been since its peak of +49 in 2000.

Russian Baring Vostok closes third fund on $400m
25/02/2005. Russian private equity firm Baring Vostok has closed its third investment fund, Baring Vostok Private Equity Fund III, on $400m - well above its original $350m target.

US Carlyle reacts to threat posed by hedge funds by planning its own hedge launch
24/02/2005. David Rubenstein, a founder of the US private equity giant The Carlyle Group, has warned that buy-out groups will become dinosaurs if they do not position themselves better in competition with hedge funds.

Apax Partners merges US buy-out business with Saunders Karp and Megrue
24/02/2005. Apax Partners Worldwide has merged its US unit Apax Partners with buy-out specialist Saunders Karp & Megrue to benefit from SKM's strong position in the US middle-market. The merged firm will operate out of Apax Partners' New York and Menlo Park offices. The merger is expected to close on 15 March.

US Centre Partners acquires Uno Restaurant Holdings Corporation
24/02/2005. Middle-market US private equity firm Centre Partners has acquired Boston-based Uno Restaurant Holdings Corporation, an operator and franchisor of full-service, casual dining restaurants with revenues of nearly $500m.

Oak Hill Capital Management to close $2.5bn buy-out fund before the end of March
23/02/2005. US private equity firm Oak Hill Capital Management reportedly plans to close its second buy-out fund, Oak Hill Capital Partners II, on $2.5bn before the end of March. The original target is said to have been $2bn.

Permira-backed German pay-TV Premiere plans to raise €1.2bn with March IPO
23/02/2005. Premiere's shareholders, including European private equity giant Permira, HVB Group, BayernLB and Premiere chief executive officer Dr Georg Kofler, are planning to sell 42m shares at a price range of €24-28 each to institutional and private investors. The shareholders have chosen a price range at the lower end of analyst valuations for the IPO in March to increase investors' interest.

Providence, 3i and David Elstein buy Crown Media's international business
23/02/2005. US media specialist Providence Equity Partners, European group 3i and UK television executive David Elstein have teamed up to buy Crown Media's international business. Crown Media owns Hallmark Channel. The value of the transaction is $242m, subject to purchase price adjustments and working capital changes.

Sugar giant Tate and Lyle sets up £25m venture capital fund
22/02/2005. London-headquartered sugar giant Tate & Lyle is planning to invest up to £25m over a five-year period to set up a wholly-owned venture fund. Tate & Lyle Ventures will invest in start-ups and expansion-stage companies that support the company's strategic growth.

Apax close to buying foreign exchange group Travelex for £1bn
22/02/2005. European private equity firm Apax is in exclusive talks to buy Travelex for £1bn in a deal that could be signed by the middle of next month, according to reports. The business attracted considerable attention from other large buy-out groups, including BC Partners, Permira and US private equity giant KKR.

AXA Private Equity to launch mezzanine fund of funds
22/02/2005. French AXA Private Equity, a subsidiary of the AXA insurance group, is reportedly planning to launch a very large mezzanine fund of funds. The firm did not comment but sources close to AXA Private Equity said that a possible mezzanine fund of funds is currently being discussed, although no decision has been made yet.

CVC could get up to €1bn for car parts repair specialist Kwik-Fit
21/02/2005. European buy-out firm CVC Capital has been told by investment banks that Kwik-Fit could fetch between €750m and €1bn if auctioned, the Financial Times reported. CVC bought the company from Ford for £350m in 2002.

PPM sells Roventa to the management team of the Swiss watchmaker
21/02/2005. Mid-market private equity firm PPM Ventures has agreed to sell private label watch manufacturer Roventa Henex to Roventa's management team. Financial details of the transaction have not been disclosed but it is understood that PPM only generated a small return on its investment. PPM led the original management buy-out in 1997, backing the existing management team.

South Korean Hana Bank launches $50m private equity fund
21/02/2005. Korea's Hana Bank has launched a $50m private equity fund, Korean newspapers reported. Hana-Cambridge-IMM Private Equity Fund will invest in small and medium-sized companies.

3i-backed Lord Alli visits Sir Richard Branson to progress bid for Virgin Radio
18/02/2005. Labour peer Lord Alli is understood to have met with Sir Richard Branson to discuss the Lord's £100m offer for Virgin Radio, the Financial Times reported. Brand contracts would allow Sir Richard to veto against the takeover but Branson seems to have indicated that he will not oppose the deal if it can be agreed with Virgin Radio's owner Scottish Media Group, which rebuffed Lord Alli's initial approach last month.

US middle-market private equity investments expected to be up 33 per cent in 2005
18/02/2005. The middle-market private equity industry is poised for another active year as 56 surveyed US-based firms anticipate an increase of 33 per cent in the number of portfolio company investments and an increase in exit activity over the next 12 months, according to figures released by Robert W. Baird and Co. The median number of investments per firm is expected to increase from three to four while the median dollar amount invested is expected to increase from $50m to $80m.

HSBC joins forces with Partners Group to launch private equity fund
17/02/2005. HSBC Investment Management has linked up with Switzerland-based asset manager Partners Group to launch the HSBC Partners Group Global Private Equity Fund, aimed at private clients and smaller institutions. Investors have to be able to commit at least $25,000.

US buy-out group Blackstone bids for Italian telecommunications company Wind
17/02/2005. US The Blackstone Group has made an offer for a majority stake in Wind, the Italian telecommunications company owned by Enel, the Financial Times reported. According to the newspaper Blackstone has offered to buy a stake of about 63 per cent for just under E8bn. The deal, if completed, would represent the largest ever European leveraged buy-out deal.

CVC Capital sells stake in Spanish Inalta to Red Electrica for E739m
17/02/2005. European buy-out firm CVC has sold its 75 per cent stake in Spanish Infraestructuras de Alta Tension to partially state-owned power transmission and operation specialist Red Electrica de Espana for E739m, according to the Financial Times.

Canadian Whitecastle Private Equity Partners closes first private equity fund
16/02/2005. Canada-based Whitecastle Private Equity Partners has closed the Whitecastle Private Equity Partners Fund with more than $60m of capital under management.

European Doughty Hanson to return E175m to investors
16/02/2005. 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.

US TH Lee Putnam Ventures promotes Sasha Grutman and Todd Miller to partners
16/02/2005. US TH Lee Putnam Ventures has named two new partners, Sasha Grutman and Todd Miller. Grutman helps lead the firm's investment strategy in financial services and marketing services; and Miller helps lead the firm's investment strategy in business process outsourcing, offshore services and marketing services.

French AXA Private Equity closes AXA LBO Fund III on E500m
15/02/2005. France-based AXA Private Equity has closed its AXA LBO Fund III on E500m after less than three months of fundraising. The fund held a first closing on E293m in mid December.

Promotions at US firms Cardinal Venture Capital and Kodiak Venture Partners
15/02/2005. Christian Borcher has been promoted to partner at California-based Cardinal Venture Capital, a firm that focuses on investments in early stage information technology companies. In his new role he will continue to be responsible for identifying, leading and managing investments for the firm. Borcher focuses on wireless technologies, digital media and mobile content and consumer applications.

US Carlyle's best year ever sees firm return $5.3bn to investors
14/02/2005. US The Carlyle Group returned $5.3bn to investors in 2004, marking 'Carlyle's best year ever', according to Carlyle's co-founder and managing director, William E Conway.

Expedia founder Richard Barton joins US Benchmark Capital as venture partner
14/02/2005. Richard Barton, the founder of online travel service Expedia, will join US early-stage high-technology venture capital firm Benchmark Capital as a venture partner to focus on expanding Benchmark's internet portfolio. Barton founded Expedia inside of Microsoft in 1995.

US BA Venture Partners closes $400m venture fund
14/02/2005. US venture capital partnership BA Venture Partners has closed its $400m fund BAVP Fund VII. Bank of America is BAVP's sole limited partner.

AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL
14/02/2005. Dutch private equity investor AlpInvest and US secondaries specialist Lexington Partners have bought a $1.2bn portfolio of private equity fund investments from US energy company DPL in one of the largest secondary transactions of the last 12 months.

European venture capital investment held steady in 2004
11/02/2005. European venture capital investment appears to have finally arrested its precipitous decline that followed the implosion of the technology bubble in 2000, according to new figures published by VentureOne and Ernst and Young. The value of investment in 2004 was E3.5bn, just a fraction below the level recorded in 2003, although the number of deals fell 20 per cent to 1,026 rounds.

US Praesidian Capital closes its debut mezzanine fund on $156m
11/02/2005. US firm Praesidian Capital, a provider of mezzanine debt for middle-market companies, has closed its debut fund on $156m, including both private capital and leverage from the United States Small Business Administration.

Electra Partners Europe to sell Ashbourne Healthcare to HBOS
10/02/2005. The integrated finance unit of UK banking group HBOS has come close to winning the auction for care homes business Ashbourne Healthcare, being sold by pan-European buy-out firm Electra Partners Europe. The deal, valuing Ashbourne at about £275m, could be announced before the end of the week, according to the Financial Times.

Warburg Pincus buys $40m stake in new European specialty pharmaceutical company
10/02/2005. US private equity giant Warburg Pincus has bought a $40m stake in the new European specialty pharmaceutical company Archimedes Pharma. The new firm aims to buy in product as well as develop its own pipeline of drugs, both of which activities will be funded in part by the private equity firm's injection.

PPM sells pulp chemicals producer Finnish Chemicals Oy to Kemira Oyj
10/02/2005. A PPM Ventures-led syndicate of investors has agreed to sell pulp chemicals producer Finnish Chemicals Oy to Kemira Oyj, an international chemicals business with headquarters in Finland, for E345m. The transaction is subject to regulatory approvals.

CalPERS boss voices concerns about private equity bubble
10/02/2005. The overhang of buy-out capital risks creating an asset bubble that could be damagingly pricked by tightening credit conditions and further inflows of capital from hedge funds, according to Mark Anson, the chief investment officer of CalPERS - one of the largest private equity investors in the world.

UK retailer Woolworths rejects Apax Partners' £789m takeover bid
09/02/2005. UK retailer Woolworths has rejected an indicative proposal from buy-out group Apax Partners that could have been worth up to £789m. Apax is considering taking private the UK retailer and offers between 50-55p per share.

Nordic Capital and Baker Capital to sell C More Group to SBS Broadcasting
09/02/2005. Nordic Capital and New York-based private equity firm Baker Capital have signed a definitive agreement to sell their interest in C More Group to European media group SBS Broadcasting for E269.6m. The transaction is subject to competition authority approval and is expected to close in the second quarter of 2005.

Industri Kapital sells Swedish Arca Systems to Stirling Square
09/02/2005. Pan-European mid-market private equity firm Stirling Square Capital Partners has acquired Sweden's Arca Systems, a producer and provider of plastic-based material handling systems, from Nordic buy-out firm Industri Kapital for approximately E190m.

Nokia Venture Partners holds first close on $350m fund and renames itself BlueRun
08/02/2005. Nokia Venture Partners, the California-based IT corporate venture unit of the eponymous Finnish mobile phone manufacturer, has renamed itself BlueRun Ventures. The firm has also a first close for its $350m venture fund and says it expects a final close in the first half of this year.

UK-based Terra Firma bids for WestLB's US aircraft leasing company Boullioun
08/02/2005. UK-based buy-out group Terra Firma is one of four bidders left in the auction process for Boullioun, which is valued at up to E600m, the Financial Times reported. The German bank WestLB acquired the US aircraft leasing company four years ago from Deutsche Bank for $1.2bn.

Eric Archambeau joins German venture firm Wellington Partners as general partner
07/02/2005. Eric Archambeau, a French native with 23 year of experience in founding, financing and investing in young technology companies, joins Munich-based venture capital firm Wellington Partners as a general partner. In his new role, he will focus on internet services, enterprise software and semiconductor opportunities.

Barclays Private Equity closes European buy-out fund on €1.65bn
07/02/2005. Pan-European mid-market buy-out specialist Barclays Private Equity, the private equity arm of Barclays Capital, is about to close its second European mid-market fund on €1.65bn. Blue chip investors from Europe, the Middle East, the Far East and the United States have invested in the new fund, and Barclays Bank itself contributed €700m.

Consolidation of FoF sector continues with Capital Dynamics acquisition of Westport
07/02/2005. The gradual consolidation of the private equity fund of funds sector has moved forward another step with the takeover of UK-based firm Westport by the US and Swiss-based firm Capital Dynamics. CD's acquisition of the business from hedge fund manager the Man Group will turn it into one of the largest fund of funds managers in the world with more than $5bn of global commitments.

SVG to launch new fund to apply PE investment techniques to public companies
07/02/2005. SVG Advisers, the UK-based private equity fund of funds specialist, has announced plans to launch a new public equities fund to build on the performance of its first public equity Strategic Recovery Fund. The new vehicle will differ from its predecessor by targeting institutional investors as well as high net worth investors.

French venture firm Sofinnova Partners closes fifth fund at €385m
07/02/2005. Paris-based venture capital firm Sofinnova Partners has closed its fifth fund, Sofinnova Capital V, with commitments worth €385m. The fund was launched in September 2004 with a €350m target and a self-imposed cap of ten per cent above the targeted fund size.

US Kayne Anderson Capital Advisors closes $550m energy private equity fund
07/02/2005. US Kayne Anderson Capital Advisors has closed its third energy private equity fund with total commitments of $550m. As with prior funds, the new fund will focus on investments in early to mid-stage oil and gas companies in North American. Typical investments range from $10-75m.

Danish/Swedish PE firm Polaris holds first closing of its second fund on €180m
07/02/2005. Polaris Private Equity, a buy-out firm that focuses on Denmark and Sweden, has announced a first closing of its new fund, Polaris II, with commitments of €180m after two and a half months of fundraising. The fund has a target of €215m and the final closing is expected before the summer.

Schroder Ventures US renames itself SV Investment Partners
04/02/2005. Schroder Ventures US has changed its name to SV Investment Partners to reinforce its independence from former parent Schroders plc.

Vincenzo Morelli joins US buy-out group Texas Pacific's London office as partner
04/02/2005. Vincenzo Morelli will join US-based buy-out firm Texas Pacific Group as partner in charge of operations for TPG's European portfolio companies on 1st March.

Pan-European BC Partners sells Sanitec Corporation to Swedish EQT
04/02/2005. Pan-European buy-out group BC Partners has exited its investment in Finland and Germany-based Sanitec Corporation, the Finnish parent company of the Sanitec Group. The buyer, EQT, has agreed to acquire all shares in the Corporation. Negotiations between the two private equity firms began in December 2004. Financial details have not been disclosed but BC Partners described the deal as 'successful'.

US Century Park closes second fund on $265m
03/02/2005. Los Angeles-based Century Park has announced the final closing of its second fund, Century Park Capital Partners II, on $265m. The firm said that CPC II was fully funded within a few months and significantly oversubscribed.

First closing of Emertec2 on €20m
03/02/2005. French Emertec Gestion has announced the first closing of Emertec2 on €20m. The fund's target is €40m. Emertec2 will invest in micro- and nanotechnologies, mainly in the semiconductor sector. It will focus on seed and early stage investments, favouring companies based in Western Europe.

US Fifth Street Capital holds first close of middle-market mezzanine fund on $68m
03/02/2005. New York-based Fifth Street Capital has held a first closing of its second mezzanine fund, Fifth Street Mezzanine Partners II, with commitments of approximately $68m. A range of family offices, foundations, trusts, pension funds and individuals have invested in the fund. Fifth Street Mezzanine Partners II has a target of no more than $200m and is expected to close later this year.

Dr Jonathan Wang joins Burrill as general manager for Greater China
03/02/2005. Dr Jonathan Wang has joined San Francisco-based life sciences merchant bank Burrill & Company as general manager for Greater China. He will be responsible for building and leading Burrill's Greater China Group and for managing a variety of Greater China-related strategic partnering opportunities, including collaborations, product and technology licensing and M and A.

Darby moves into CE Europe with acquisition of Dresdner Kleinwort portfolio
02/02/2005. Darby Overseas Investments, the US-headquartered emerging markets specialist, has extended its reach into Central and Eastern Europe with the acquisition of a portfolio of investments in the region from Dresdner Kleinwort Benson. The Emerging Europe Fund was raised in 2000 with commitments of around $220m.

Japan's Phoenix Capital plans to sell shares in troubled carmaker Mitsubishi Motors
02/02/2005. Phoenix Capital reportedly plans to gradually offload its shares in Tokyo-based Mitsubishi Motors Corporation from June of this year. Phoenix is the largest shareholder in unprofitable MMC, with a 28 per cent holding.

Carlyle doubles its money on sale of investment in German MEC Group
02/02/2005. The Carlyle Group has doubled its money with the sale of a 51 per cent stake in MEC Holding to Messer Industrie, the holding company of the Messer family. The deal marks the eighth successful exit from the Carlyle Europe Partners I portfolio and the fifth since September 2004.

European buy-out firm Permira strengthens country teams
02/02/2005. Permira, one of the largest pan-European buy-out houses, has strengthened its country teams with a series of hirings and promotions. Carlos Mallo and Cheryl Potter have been promoted to partner. Sonja Mikic has been appointed partner in the Frankfurt office and Rory Cullinan, former head of equity finance at the Royal Bank of Scotland, has joined the London team.

European private equity investment hits €78.5bn in 2004; buy-outs set new record
02/02/2005. The value of European private equity investment hit €78.5bn in 2004, up 18 per cent from €66.7bn in 2003, according to new figures. The main impetus was the buy-out sector, which made up €72.2bn despite signs of a slowdown towards the end of the year.

Nordic Capital bids to delist Kompan from Copenhagen Stock exchange
01/02/2005. Nordic Capital has made a recommended tender offer to the shareholders of playground equipment supplier Kompan that values the business at DKK737m (€100m). The Swedish mid-market specialist said in a statement that it aimed to acquire 100 per cent ownership of Kompan for the purpose of delisting the company from the Copenhagen Stock Exchange.

European buy-out firm Doughty Hanson closes fund below €2bn target on €1.6bn
01/02/2005. Following a two-year fundraising process, UK-based pan-European Doughty Hanson has finally closed its fourth fund with total commitments of only €1.6bn, some way short of its original target of €3bn.

Apax considers takeover of UK retailer Woolworths
01/02/2005. Apax has confirmed that it is thinking of trying to take private the UK retailer Woolworths in a deal that could be worth as much as £700m. The buy-out group's public-to-private bid is likely to be with Roger Pedder, head of Clarks shoes and former chairman of Robert Dyas, and former Robert Dyas chief executive Brent Wilkinson.

US LLR Partners closes its second private equity fund on $360m
01/02/2005. US LLR Partners has raised its second private equity fund, LLR Equity Partners II, with commitments of $360m, well above its $300m target. The fund will invest in middle-market companies primarily in the Mid-Atlantic region of the US.