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UK and Ireland: May 2001

Crucible opens office in Northern Ireland, Charles Thompson joins Inflexion, 3i posts negative returns…

Hermes takes direct stake in Botts
Hermes Pensions Management has invested in Botts & Co's management company as well as committing around £35m to the Botts Capital Partners 2 fund. Hermes said that it was interested in accessing private equity deal flow to make direct investments; the advantage for Botts is that it can finance larger deals that it might not otherwise have the capacity for. This type of investment is relatively popular in the US, but Hermes is one of the first European pension funds to take a direct stake. Calpers has already invested in the holding companies of three private equity firms this year.
PrivateEquityOnline 11.5.01

Granville Baird director moves to Inflexion
Charles Thompson, formerly a director at Granville Baird Capital Partners, has moved to Inflexion. Thompson directed Granville Baird's investment in Matalan, the UK based out-of-town clothes retailer, in which he saw a return of 12 times the initial investment of £2m. Thompson remains a non-executive director of Matalan. Inflexion is an AIM-listed private equity vehicle that invests in high-growth companies in the middle-market.
EFinancial News 29.5.01

Crucible opens in Belfast
Dublin-based early-stage private equity firm Crucible has revealed that it plans to open a Belfast office by the end of the summer. It has also declared that it has raised $10m in funding for Northern Irish technology start-ups primarily from institutions, US venture capital firms and high net worth investors experienced in this sector.
PrivateEquityOnline 25.5.01

Post Office appoints Pantheon Ventures to run private equity fund of funds
The Post Office, now branded Consignia, has appointed Pantheon Ventures over Standard Life to run a £100m European fund of funds mandate. This completes its £500m allocation to private equity, which has increased from one to three per cent. Philadelphia-based Hamilton Lane and Partners Group have already won fund of fund mandates back in April for Consignia. Hermes already held a private equity mandate brief for Consinia, which has been raised from £140m.to £200m. The Post Office has the fourth largest pension fund in the UK.
EFinancial News 16.5.01

Scott Lanphere to leave Morgan Grenfell Private Equity
Scott Lanphere is leaving MGPE. He has been singled out for his role in the firm's E242m paper loss from its investment in Formula One, yet insiders claim he was no more to blame than others working on the investment. Lanphere may be retained by the company to advise on some of the portfolio companies in which he invested, such as French advertising firm Giraudy, internet firm Red Sheriff and services Group City Reach. Venturedome 13.5.01

3i posts negative returns
Despite healthy gains in the UK, 3i has been badly hit in the US and Continental Europe, with losses of £56m and £145m respectively. Chairman Sir George Russell, who has announced he is to step down from the board, has attributed this to declining investor appetite, the deterioration of the financial markets, particularly in the technology markets, and worsening corporate earnings outlook. However, 3i made £81m on its UK investments. It has also has outperformed most of the leading stock market indices, with a pre-tax profit of £120m., up by £1m.
Venturedome 21.5.01

New leader at the helm of 3i
Baroness Sarah Hogg is to take over from Sir George Russell as 3i chairman. Former policy adviser to UK prime minister John Major, Baroness Hogg has previously served as director of GKN, P&O Princess Cruises and sits on the board of governors of the BBC.
PrivateEquityCentral 21.5.01

Standard Life sets up private equity trust fund
Standard Life Assurance has announced that it will launch a £160m European private equity investment trust, in an attempt to attract institutions hesitant to invest in unlisted vehicles. The insurer's asset management arm, Standard Life Investments, has reassigned its mature funds to the new vehicle, giving it a 50 per cent stake in the trust. The remainder will be raised from outside institutional investors. Shares commenced trading on the London Stock Exchange on 29 May. UBS Warburg is to market the trust to institutional investors.
EFinancialNews 18.5.01

Bank of Scotland merger set to increase private equity drive
The Bank of Scotland and Halifax alliance, soon to be known as HBOS, is set to lead to an increase in its private equity participation. This should help to close the gap that currently exists with rival the Royal Bank of Scotland.
EFinancialNews 8.5.01

Private equity firms vie for Woolworths MBO
Charterhouse Development Capital, Schroder Ventures, Cinven and Nomura are said to be in the running to for Woolworths' management buy-out from Kingfisher.
The MBO's estimated value is £600m. Schroder Ventures recently acquired Homebase from Sainsbury's and so the Woolworth's deal would give it a significant high-street presence.
EFinancialNews 25.5.01