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Funds: June 2001

Europe – Duke Street prices largest ever European CDO, Doughty Hanson to launch mega-fund, CVC closes record European buy-out fund. US – Hicks Muse way off $4.5bn target, Blackstone to launch new buy-out fund, Behrman Capital III closes

Europe

Launch of MetVP II
Metropolitan Venture Partners is on track to launch its first external fund - MetVP II - with a target size of $50m (Private Equity Europe, June 2001). The early-stage technology firm has recently launched its European operations.

Successful closing for Sofinnova
France-based Sofinnova Capital IV secured E330m in its latest round of fund raising, exceeding the original target of E230m (EVCJ June 2001). The fund will invest in the early-stage IT and life sciences sectors, with 50 per cent going to French companies.

International fund-of-funds for Sal. Oppenheim
German-based Sal. Oppenheim Jr & Cie KgaA launched its debut fund of funds - Oppenheim Private Equity Holding, according to Private Equity Europe (June 2001). The vehicle is targeting E200m from institutional and private investors.

First closing for Technostart
According to the EVCJ (June 2001), Technostart Ventures II made a first closing at E49m. Commitments to the German-based fund have been secured from high-profile institutional investors such as the European Investment Fund and Feri.

SG Hambros and Duke Street join forces
Wealth manager SG Hambros has joined forces with Duke Street Capital to launch a new private equity fund for its individual investor clients. With no official target size, the fund is expected to raise around E11m (7.6.01).

First closing for CROWN
CROWN, the fund of funds vehicle managed by LGT Capital Partners and SOLUTIO made a first closing at E120m (EVCJ June 2001).

First close for Sovereign Capital III
Sovereign Capital - formerly Nash, Sells & Partners - announced a first close for its third fund at £55m. The fund has secured commitments from both institutions and high net worth individuals (15.6.01).

Second fund for Capricorn
Belgian-based Capricorn Venture Fund II is looking to raise E100m to invest in European technology companies, according to the EVCJ June 2001. Capricorn also announced that it has formed an alliance with Neo Group Ventures.

Greenhouse gains independence from Reuters
Reuters confirmed reports that its corporate venturing arm, the Greenhouse Fund, is to spin out into an independent fund management firm. The fund's new-found independence will release it from the remit of investing in companies of strategic benefit to Reuters (14.6.01).

Final closing for InnovationsKapital
Innkap III closed at E132m, exceeding its original target by E12m (EVCJ, June 2001). Over 50 per cent of commitments were secured from non-Swedish investors.

E3m for Fastventures
Fastventures secured E3m in its second round of funding, with over 80 per cent committed by Bank of Austria (Venturewire). The Hungarian VC firm will invest in early-stage companies.

Launch of Aurora Capital
CDC Capital Partners and Norfund launched a new vehicle - Aurora Capital - to make venture capital investments in developing countries, according to the EVCJ, June 2001.

Top-up for BC Partners fund
BC Partners added an extra E700m to its European buy-out fund, BC European Capital VII, taking its total to E4.2bn. The fund, which originally closed back in July, was heavily oversubscribed (7.6.01).

nCoTec announces first closing at E45m
Communications technology specialist nCoTec ventures shrugged off the high-tech gloom by announcing that it has made a first closing of its debut fund at E45m. A range of institutions has committed E30m to the early stage fund, including Societe Generale and Commerzbank (11.6.01).

Duke Street prices Europe's largest CDO fund
Duke Street Capital Debt Management, a new enterprise sponsored by the Duke Street Capital Group, completed the pricing of Europe's biggest ever collateralised debt obligation fund (CDO) and is on course to close it by the end of the month. The E750m Duchess I is the latest in a growing list of CDO funds in Europe (12.6.01).

Irish IT fund for Gensec
South African bank Gensec is looking to raise up to E50m with its Irish IT venture fund. The bank will market the fund to South African and European institutions (14.6.01).

Hg Capital on way to reaching target
Hg Capital - until recently known as Mercury Private Equity - has raised £220m towards its latest European fund, according to a report in the Financial Times (15.6.01). The fund is scheduled to close by the end of the summer and is targeting £400m.

Doughty Hanson to launch E4bn mega-fund
London-based buy-out firm Doughty Hanson is expected to start raising a new fund towards the end of the year (PrivateEquityCentral.net 15.6.01). Doughty has been out of the fund-raising arena since 1997, when it raised a giant $2.5bn fund

E250m fund for Polytechnos
German-based Polytechnos launched a second high-tech fund, according to Venturewire 17.6.01. The fund is expected to make a first closing in July.

Germany lures new vehicles from Axa
Axa Investment Managers is to launch a range of products aimed at German institutional investors, hoping to take advantage of changes to the corporate tax regime. The new vehicles will include a fund of funds, a buy-out fund and a venture capital fund (25.6.01).

Mezzanine Management raising Central European fund
Mezzanine Management is said to be raising an E150m fund to finance private equity investment in Central and Eastern Europe. It will focus on EU accession countries -Poland, Hungary, the Czech Republic, Slovakia and Slovenia - according to eFinancial News (26.6.01).

CVC Capital Partners closes record E4.65bn European fund
CVC Capital Partners has taken the lead in the ongoing race to raise Europe's largest buy-out fund. It announced the final closing of CVC European Equity Partners III at E4.65bn, taking total funds under management to E9.3bn (28.6.01).

First closing for Axa's secondary fund
Axa Private Equity announced the first closing of its secondary fund after attracting E350m in just two months. The firm aims to close the global fund at around E450m in the autumn (28.6.01).

US

Earlybird fund for MCC
Moore, Clayton & Co launched a new early-stage technology fund and is looking to raise $50m over the next few months. Substantial commitments have been secured from Old Mutual and Genesis (EVCJ June 2001).

Behrman Capital closes fund
Behrman Capital III closed at $1.2bn, with institutional investors - including Calpers, New York State Common Retirement Fund and Kansas Public Employees Retirement System - contributing 98 per cent of committed capital (Unquote, 4.6.01). The firm is looking to increase its European allocation.

$1bn fund for Matrix Partners
Matrix Partners, based in Massachusetts, became the twelfth private equity firm to raise $1bn this year. The early-stage technology fund will focus on opportunities in the US market (4.6.01).

Hicks Muse struggling to hit target
US buy-out firm Hicks Muse Tate & Furst has reportedly admitted that it may close its fifth fund at just $2bn - well short of its $4.5bn target (Financial Times 7.6.01).

Successful fund raising for Apollo
The Apollo Investment Fund V is on track to raise $4bn, with $3.5bn already secured to date (Venturedome 11.6.01). The fund will invest mainly in distressed companies.

$600m closing for Sigma
California-based Sigma Partners closed its sixth fund at $600m (Venturewire 13.6.01). With previous investors on board, the early-stage, high-tech fund only took four weeks to raise.

Accel raises fund for Europe
The Accel Europe Fund closed at $500m, according to Venturewire (13.6.01). Limited partners on both sides of the Atlantic have made commitments to the fund, which will invest in communications, internet infrastructure and wireless industries across Europe.

Blackstone on fund raising trail
New York-based Blackstone Group is launching a $4bn buy-out fund, according to the Wall Street Journal Europe (14.6.01).

New VC fund for Lucent
Lucent Venture Partners is launching a third venture capital fund - LVP III (Venturewire 20.6.01). The early-stage fund will be backed by Lucent Technologies and will invest in the communications sector.

Early-stage fund for Softbank
The latest fund from Softbank Venture Capital - Grandbanks Capital LP - is targeting $200m to invest in East Coast companies. The fund had a first closing in January (PrivateEquityCentral.net 20.6.01).

Allegis looking to close fund
Allegis Capital - formerly known as Media Technology Ventures - will most likely close its fourth fund at $200m by late summer (Venturewire 25.6.01).

$450m for ABS Capital Partners
The San-Francisco-based company closed its fourth fund at $450m, according to Venturewire (27.6.01). Commitments have been secured from high-profile investors including CalPERs, Pennsylvania State Employees Retirement System and the Wellcome Trust.