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Funds: May 2003

Nordic Capital exceeds target size to raise E1.5bn, Partners Group launches first dedicated secondaries fund, Charterhouse lowers target on latest mega-fund, Tenaska plans $700m energy fund, MMC Capital launches third financial services fund, Charterhouse Group holds first close at over $300m, Altira closes fourth energy technology fund…

Europe

Sigefi and Finnat launch Italo-French private equity fund
French private equity firm Sigefi Private Equity has joined forces with Italian wealth management bank Finnat to launch an Italo-French private equity fund. Siparex Italia aims to raise between E40m and E50m from Italian, French and international investors. Siparex and Finnat have each committed E7.5m to the fund, which will focus predominantly on Italian middle-market companies but will also invest in France.
AltAssets 27.5.03

Baring targets $500m for first global buy-out fund
Baring Private Equity Partners is targeting $500m for its first global buy-out fund. The move is based on expectations that increasing international trade will fuel the growth of companies in relatively untapped emerging markets. Baring plans to market its global fund to insurance companies, pension funds and other investors that don't have the resources to select funds across the world. The firm is joining Advent International, which has a $2bn global fund, and Warburg Pincus, which raised a $5.3bn global fund last year.
AltAssets 1.5.03

CapVent to relaunch E400m fund of funds
Switzerland-based CapVent will relaunch its E400m fund of funds sometime in June. The firm's second fund of funds was originally launched in March of last year, however management decided to redesign it amid difficult market conditions. The initial target size was a range between E300m to E400m.
eFinancial News 19.5.03

UK-based Alcuin Capital to launch debut fund
UK-based Alcuin Capital is to launch its first independent private equity fund in June. The fund is targeting between £30m and £35m and will focus on investments in small to mid-market UK-based companies in a wide range of sectors. Alcuin was founded by former Banc Boston Capital professionals Ian Henderson-Londoño and Mark Storey. Henderson-Londoño and Storey were responsible for Banc Boston's small to mid-sized buy-out activities and will continue to invest between £1m and £4m in companies valued at under £15m on an independent basis.
AltAssets 19.5.03

Nordic Capital exceeds target size with E1.5bn fund
Swedish buy-out firm Nordic Capital has exceeded its target size to raise E1.5bn from 60 investors. Over half of those that invested in Nordic Capital V were investors in the previous four funds. The fund will invest in between ten and 15 mid-size companies in the Nordic region.
Real Deals 8.5.03

UK Quester raises £22m for fifth private investor fund
Quester, the UK venture capital firm, has raised its fifth fund, closing Quester VCT 5 at £22m, despite a tough fundraising environment. The fund was launched last December and has targeted high net worth individuals in the UK. Investors have contributed between £3,000 and £100,000 to the fund. Existing investors accounted for the majority of the fund's contributions.
AltAssets 5.5.03

Finnish MB Funds holds final close at E117m
The Finnish private equity firm MB Funds has held a final close on its third fund at E117m. MB Equity Fund III was launched in early 2002. MB's buy-out fund attracted 19 Finnish institutional investors, the majority of which were public and corporate pension schemes and insurance companies. Most of the committed capital came from institutions, which had contributed to earlier MB funds, but the firm was also able to widen its investor base.
AltAssets 13.5.03

Schroder's SVIIT issues £40m convertible bond to raise extra investment cash
Schroder Ventures International Investment Trust (SVIIT) has issued £40m of subordinated convertible bonds and increased its credit facility with the bank in order to free up cash for current investment opportunities. The bonds have an annual coupon of 4.5 per cent and are convertible into fully paid ordinary shares of SVIIT at a conversion price of 480p.
AltAssets 21.5.03

Partners Group to raise first dedicated secondaries fund
Zug-based fund of funds manager Partners Group has announced plans to begin raising its first dedicated secondaries fund. The fund will look to raise E300m and is called Partners Group Secondary LP. The fund will be invested primarily in Europe and up to 80 per cent may be invested in buy-out funds.
Real Deals 8.5.03

Investors in Private Equity launches new French buy-out fund
France-based Investors in Private Equity (IPE) has launched a new LBO fund with a target size of E300m. The fund will invest in mid-market companies where it can gain majority positions. The seven-strong team consists of four partners and three senior associates.
AltAssets 14.5.03

Mark Chiba quits UBS Japan to launch private equity fund
UBS Japan's chief executive, Mark Chiba, has quit investment banking to set up his own private equity fund. Chiba's new firm is to be called Longreach. Longreach will be an Asian regional fund with an initial focus on Japan and Hong Kong. Chiba declined to comment on the size of the fund and was unwilling to identify the other founding partners of the new company.
Financial Times 23.5.03

UK BML and Imperial College London to raise £50m life sciences venture fund
UK-based BioScience Managers Limited (BML), and Imperial College London have launched a joint initiative to raise a venture capital fund. The BML Venture Imperial Fund, with a target of £50m, will make investments in 12-15 start-up and early-stage companies in the healthcare sector. The fund will have exclusive preferential access to opportunities emerging from Imperial and anticipates that approximately 50 per cent of its funds will be invested in young companies built around Imperial science. The remainder will be invested in similar opportunities predominantly in the UK.
AltAssets 12.5.03

European 3i sees light at the end of the tunnel despite negative returns of £935m
European private equity giant 3i believes that the worst of the economic slump has passed and has raised its dividend by 3.8 per cent despite reporting negative returns of £295m in its year-end results. 3i's investment portfolio has suffered a valuation drop of £1.2bn but Michael Queen, the firm's chief financial officer, attributed the decline to falling stock markets. Queen claims that market movement adjustments accounted for £800m of the loss.
AltAssets 15.5.03

Altor targets E600m for first-time fund
Stockholm-based Altor Equity Partners has set out to raise E600m for its first fund. The fund will target buy-out opportunities in the Nordic region. Deal sizes will range between E75m and E225m. The new firm was set up by Harald Mix, formerly of Industri Kapital.
Real Deals 8.5.03

London-based Schroders launches second fund of funds
London-based Schroders has launched its second private equity fund of funds. The asset management group is targeting E250m to soak up excess demand for its first fund that closed at E242m a year ago. Schroder Private Equity Fund of Funds II has been structured to meet the requirements of both small and large institutions as well as high net worth individuals. The investment vehicle offers investors the choice of three separate share classes with differential pricing, allowing for a minimum investment of E125,000.
AltAssets 6.5.03

Charterhouse lowers E3bn buy-out fund target
Charterhouse Development Capital has reportedly cut the E3bn target for its new buy-out fund to reflect the deterioration in fundraising conditions. This is the first fund the private equity firm has raised since gaining its independence from HSBC in 2001. Charterhouse originally planned to hold a final closing in April but has so far raised just E2.36bn. The firm has now agreed to settle for E2.5bn by the end of July.
Bloomberg 7.5.03

North America

Edgewater closes fourth fund on $200m
Chicago-based firm, The Edgewater Funds, has closed its fourth fund on $200m. The firm launched Edgewater Private Equity Fund IV in the second quarter of 2001. The firm will invest between $5m and $15m in companies in the business products and services, communications and information technology.
AltAssets 29.5.03

Tenaska plans $700m energy fund
Nebraska-based power plant owner Tenaska is planning to raise a $700m energy fund from a broad base of institutional investors. In a separate venture last month Tenaska teamed up with Bain Capital, forming a $550m energy partnership. Tenaska is planning to acquire power plants that generate power to sell on the wholesale market.
The Private Equity Analyst May 2003

Riverlake Partners holds first close
Oregon-based firm Riverlake Partners has held a first close on its debut buy-out fund at $15m. Riverlake intends to focus on companies in the lower mid-market in traditional industries. The firm was founded earlier this year by Erik Krieger, former chairman of Pacific Crest Securities, and Jim Lawson, founder of Lincoln Partners.
PrivateEquityCentral 28.5.03

Lighthouse Capital closes fifth venture debt fund
Menlo Park-based Lighthouse Capital Partners has closed its latest fund at $366m, LCP V is the fifth in the firm's series of funds focusing on the technology and life science sectors. Lighthouse makes investments in the form of secured loans to early and expansion-stage companies that have received equity financing from mainstream venture capital firms. Lighthouse invests across a range of sectors including communications, enterprise computing, storage, biotechnology and medical devices.
AltAssets 28.5.03

Angelo Gordon & Co closes below target
New York-based Angelo Gordon & Co has closed AG Private Equity Partners II at $100m, short of the original $150m target. The fund will focus on acquisitions of small subsidiaries being shed by larger corporations. The firm will invest $10m to $30m in deals with total transaction values of $20m to $150m. The firm has invested over $350m in buy-out deals since 1996.
The Private Equity Analyst May 2003

Altira closes fourth energy technology fund
Colorado-based early-stage venture firm, Altira Group, has closed its latest fund at $64m. Altira Technology Fund IV will invest in technology opportunities in oil and gas, information technology for the energy industry, power generation, transmission and distribution and renewable energy. The firm typically invests between $1m and $3m in North American companies.
AltAssets 28.5.03

MMC Capital launches third financial services fund
Greenwich, Conn-based MMC Capital, the private equity arm of Marsh & McLennan Cos has launched Trident Fund III, a $1.5bn insurance and financial services fund. The firm plans to invest around $50m in equity per transaction in both growth financings and buy-outs. MMC closed its last Trident fund in 1999 at $1.4bn.
The Private Equity Analyst May 2003

US army launches non-profit venture fund
The US is setting up a $25m non-profit venture fund to spur private sector development of lighter more efficient power sources for troops in the field. The Venture Capital Initiative aims to promote the innovation of portable power and energy technologies to lighten soldiers' loads. The enterprise will be modelled on the CIA's initiative, In-Q-Tel, which was launched in 1999 to invest in technologies designed to boost US intelligence capabilities.
AltAssets 9.5.03

Evercore Partners closes second LBO fund
New York-based Evercore Partners has closed Evercore Capital Partners II at $665m, short of the $700m target. The fund was launched in 2001 and secured commitments from AMR Investment Services, Deutsche Bank, Daimler Chrysler Corp and Illinois State Teachers' Retirement System. Evercore invests in buy-outs of media, energy and business services companies with valuations of $100m to $1 billion.
The Private Equity Analyst May 2003

Charterhouse Group holds first close at over $300m
Charterhouse Group International has held a first close on its latest fund, Charterhouse Equity Partners IV. The fund has currently raised $300m, 40 per cent of its $750m target. Charterhouse launched the fund in November last year and expects to hold a final close at the end of 2003. The fund has a hard cap of $1bn.
AltAssets 16.5.03

Leeds Weld & Co holds first close
New York-based Leeds Weld & Co has held a $200m first close for Leeds Weld Equity Partners IV after nearly one year in the market. The final target is $500m. The firm's strategy is to acquire corporate training companies, for-profit schools and other education-related companies.
The Private Equity Analyst May 2003

KLM and Asian Investors form $50m fund
US-based KLM Capital has joined forces with several Asian investors to form a $50m venture fund to invest in companies with a focus on China. The Global Synertech Fund will invest in both foreign companies with plans to move into China and Chinese enterprises looking to expand into the global market. The other two members of the alliance are Singapore-based real estate firm Ascendas and Tsinghua Science Park Development Centre, the commercial arm of Beijing's Tsinghua University. The three partners will make equity investments in early and late-stage companies working in IT, materials, energy and environmental technologies.
AltAssets 9.5.03

Adams Street closes multi-stage venture fund
Chicago-based Adams Street Partners has closed its first multi-stage venture fund since spinning out of Brinson Partners in 2000. Adams Street V raised $164m from investors including the Evangelical Lutheran Church pension Board and US Army NAF Retirement Plan. Adams Street plans to invest the fund in 30 to 40 technology and healthcare companies.
The Private Equity Analyst May 2003

Thomas McNerney closes inaugural healthcare fund
New-York based healthcare specialist Thomas, McNerney & Partners has closed its debut fund on $216m for investment in medical device, biotechnology and pharmaceutical sectors. The newly formed private equity firm has a broad mandate to invest in companies at all stages of development, investing between $10m and $20m per company.
AltAssets 16.5.03

Alameda Capital secures lead investor for new fund
Alameda Capital, a firm formed last year to invest in seed-stage IT companies has secured Eastman Chemical as a lead investor for its SBIC fund. The firm's four partners are seeking $33m from corporations and private investors, making the fund up to $100m with SBIC funding. Alameda Capital plans to invest in microfluids, micro electro mechanical systems and nanotechnology.
The Private Equity Analyst May 2003

Hispania Capital Partners launches first Hispanic venture capital fund
Chicago-based Hispania Capital Partners has launched the first national venture capital fund investing exclusively in Hispanic businesses. The fund is seeking to invest in excess of $70m. The private equity fund evolved from a 2000 alliance of the US Hispanic Chamber of Commerce and America's sixth largest bank, Bank One. Hispania is seeking to invest between $4m and $8m in manufacturing, service and technology businesses that Hispanics own or manage or that serve Hispanic communities.
AltAssets 16.5.03

Middle East

Fund targets $100m for investment in Iraq
A Bahrain-based financial services company is launching a $100m private equity fund for investment in post-Saddam Iraq, rebuilding the nation's tourism trade, real estate, telecom services and oil and gas infrastructure. The fund will be managed by a firm named Amwal (‘money' in Arabic), which was founded two years ago by Yousef Al-Essa and Mohamed Sarhan.
Reuters 7.5.05