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UK & Ireland: December 2001

Barclays to increase private equity exposure, Scotland home to new nanotechnology centre, upturn in European market, says Legal & General, new BVCA valuation working party…

Irish technology attracts funding
Despite a current downturn in IT spending, VCs poured over E450m into Irish technology companies this year - a figure comparable with last year's, said private equity firm Ion Equity. E300m of this came from international sources.
PrivateEquityOnline 5.12.01

UK Barclays pension fund increases private equity exposure
The giant UK Barclays pension fund has begun implementing its decision to increase its private equity exposure from two per cent to four per cent over the next few years. A spokeswoman for the fund declined to give details about the precise destination of the new allocation but said that more than half of the money would be invested outside the UK. The bank's pension fund trustees made the decision to increase its private equity allocation back in December 2000 but until now have been studying how best to improve the risk/reward characteristics of the portfolio.
AltAssets 12.12.01

Nanotechnology moves to Scotland
As part of a joint project between Scottish Enterprise and Medical Marketing International, the Alba Centre in Scotland is to be the base for a £15m project to incubate nanotech start-ups. The centre will benefit from access to spin-outs from Scotland's 13 universities.
PrivateEquityOnline 13.12.01

UK buy-out values fall for the first time since 1993
The value of buy-outs in the UK this year is on course to fall well short of last year's level, the first annual decline since 1993, according to research from the Centre for Management Buy-out Research. The figures confirm the abrupt slowdown in activity this year compared to last year's exuberance. CMBOR said the total deal value for 2001 is reported at just £17.9bn, compared with £23.9bn in 2000. There were 46 deals completed this year.
AltAssets 17.12.01

BVCA to establish working party to examine valuation guidelines
The BVCA announced the establishment of a working party to examine valuation and reporting guidelines. The working party, led by BVCA vice chairman Michael Queen, will target relevant parties across Europe, consulting with member firms, investors, service providers and EVCA.
AltAssets 7.12.01

Private equity funds for Schroders
Schroders is said to be considering setting up a series of direct private equity funds now that its original private equity operation has made a break for independence. As part of this bid for freedom, Schroder Ventures was recently renamed Permira.
Financial News 3.12.01

Abingworth closes life sciences fund at $225m
UK-based life sciences venture firm Abingworth Management announced the final closing of its latest fund, Abingworth Bioventures III LP, at $225m.The closing was well in excess of its original target of $150m, demonstrating the present levels of enthusiasm about biotech. The fund will focus on investing in early-stage biotechnology and medical companies in the UK, US and Europe. Since the first closing in April the fund has invested in nine companies, of which seven are based in Europe and two in the US.
AltAssets 6.12.01

Upturn in European market next year says Legal & General Ventures
Legal & General Ventures has joined other private equity firms by predicting that the market will pick up in 2002. Adrian Johnson, chief executive, said confidence would be restored and transactions would increase. The European private equity market still lags far behind the US and stalled for the first time this year.
Financial News 11.12.01

Pantheon creates marketing director role to capitalise on growing institutional interest
UK private equity firm Pantheon Ventures has created a marketing director role to capitalise on the growing interest it has encountered from institutions in the asset class in the UK and Europe. It has appointed Peter Flynn to the job. Despite the downturn in public and private markets since the middle of 2000, institutions in Europe have continued to explore the asset class.
AltAssets 4.12.01

UK private equity market plummets
The final quarter of 2001 has witnessed a drop in the UK private equity market - just 79 deals, worth £1.1bn were completed. This drop means that for the first time ever, Europe's investment totals will be more than those in the UK. The largest decrease was in deals worth more than £100m, which decreased from 45 in 2000 to 34 in 2001.
Financial News 17.12.01

EU to inject £50m into regional UK venture capital funds
The European Union is to pour more than £50m into a series of UK regional venture capital funds launched by Chancellor of the Exchequer Gordon Brown in 1999 to fill the so-called ‘equity gap' in poorer parts of the country. The EU's contribution had been delayed by an investigation into whether the funds constituted an unfair state aid. The money will be channelled through the European Investment Fund, which is owned by the European Investment Bank, the European Commission, and a string of private banks and institutions. Its contribution to the regional funds will make up about 20 per cent of their total value.
AltAssets 13.12.01

Friends Ivory & Sime Private Equity changes name to ISIS Capital
Friends Ivory & Sime Private Equity has changed its name to ISIS Capital. The newly named business will continue as before, focusing on research-led, sector-focused investments in unquoted companies across Europe. It specialises in business services, consumer markets, healthcare, information technology, media and telecommunications.
AltAssets 4.12.01

Seymour Pierce in running for antfactory
UK investment bank Seymour Pierce has expressed interest in buying the loss-making incubator antfactory, whose investors include Allianz Capital Partners, Citicorp Venture Capital, Whitney & Co and CVC Capital Partners. The bank said it was bidding for antfactory because of its profitable clients, intellectual capital and investment portfolio, many of which are ‘adequately funded' and have a ‘real chance of showing us good returns in two or three years'. Antfactory reported a pre-tax loss of $32.8m for the first three quarters of 2001.
eFinancialNews 24.12.01

David Cranston to step down as director general of the UK's NAPF
David Cranston has announced his intention to step down as director general of the UK's National Association of Pension Funds at the end of the year. Jenny Rosser will step in on an interim basis until a permanent replacement has been identified. The NAPF has been at the heart of several high profile debates over the course of the past year. The Myners report on institutional investment made some far-reaching proposals about the way trustees should behave, while the government's support for stakeholder pensions has placed new demands on the industry. The introduction of the new FRS17 accounting standard, among other issues, will guarantee an intense agenda for the association's year ahead.
AltAssets 13.12.01