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Funds: April 2003

Permira launches new E4.5bn mega-fund, Nmas1 closes latest Iberian mid-market fund above target, B&S Group exceeds fundraising target in only seven months, Blackstone forms healthcare group, Graham Partners launches second fund, Sequoia closes eleventh fund…

UK Duke Street closes second CDO fund
The debt fund management division of UK private equity firm Duke Street Capital has held a final close of Duchess II, the firm's second collateralised debt obligation (CDO) fund. The fund has raised E550m, less than the E1bn raised by its predecessor, Duchess I. The fund, which invests in both sterling and euro dominated senior secured debt and mezzanine, predominantly used in Western European leveraged buy-outs, is already 80 per cent invested. It is expected to be fully invested within three months.
AltAssets 25.4.03

UK Hutton Collins debut mezzanine fund may settle for lower target
Hutton Collins, the UK-based mezzanine specialist, looks set to join the growing list of firms in the market settling for a lower closing total on its fund than the initial target. The firm's debut fund was originally targeting E500m but may now close on just E250m.
AltAssets 4.4.03

French postal service launches E50m venture fund
The French postal service launched a E50m venture fund to invest in opportunities within the postal industry. XAnge Capital will invest between E500,000 and E1m for first-round funding and up to E3m for follow-on rounds. Sofiposte, La Poste's holding company, will be the lead investor.
eFinancial News 8.4.03

Graphite Capital UK buy-out fund reaches £375m
London-based Graphite Capital Management, the former private equity unit of Foreign & Colonial Management, has raised £375m for UK buy-out investments, exceeding its £300m target. Graphite invests in companies to the value of £100m.
AltAssets 11.4.03

Wales Fund Managers launches new fund to address equity gap
Wales fund Managers (WFM) is planning to launch a new fund, which will invest between £750,000 and £2m in growth businesses in Wales. The firm intends to raise between £15m and £20m. WFM was set up in 1987 and has invested over £50m in 50 transactions and currently has four funds under management.
AltAssets 24.4.03

Austrian Lead Equities holds final close at E49m on debut fund
Austrian Lead Equities I, the late-stage investor, has reached its final closing at E49m. The firm has exceeded its E40m target with the help of cornerstone investors Deutsche Asset Management and ACTIVEST. Lead Equities has also announced that it has entered into a cooperation with AUCTUS, the Munich-based fund manger, in order to provide both firms' portfolio companies with easier access to new markets.
AltAssets 23.4.03

Gamma capital partners holds initial close for Austrian tech VC fund
Austrian gamma capital partners has announced an initial close of E10m for its technology venture fund gamma II. The fund, which was launched six months ago, will target high-tech companies in a variety of sectors including life sciences and electronics in Austria and in neighbouring countries. Cornerstone investors Investkerdit Bank and Raiffeisen Landesbank Upper Austria have been joined by several Austrian insurers and development bank AWS.
AltAssets 16.4.03

3i closes Irish office citing general economic slowdown
Europe's largest private equity firm 3i is closing its Dublin office. ‘The reason is due to slower than expected development of the Irish private equity market, which has been impacted by the general economic slowdown,' the firm said in a statement. 3i said it would continue to monitor developments in Ireland and to make investments but did not expect the quantity of deal flow would be sufficient to justify a permanent office.
AltAssets 9.4.03

Italy sees record in buy-out activity in 2002 while early-stage declines
Italian buy-out activity reached record levels in 2002 both by value and number of deals, while seed and early-stage investments witnessed a steep decline, according to figures just released by the Italian private equity association AIFI. Buy-out deals worth E1.6bn accounted for a record 59 per cent of Italy's private equity activity in 2002.
AltAssets 15.4.03

Italy's Opera to launch second fund
Italy's Opera fund, the private equity unit of Italian luxury goods manufacturer Bulgari, is reportedly planning to raise a second fund targeting mid-market investment opportunities in the Italian luxury goods and services sector. Opera, headed by former Morgan Grenfell Private Equity director Renato Preti, is said to be targeting E250m for its second fund with a final close pencilled in for the start of next year.
AltAssets 11.4.03

Lion Capital Advisers to launch $75m fund
UK-based Lion Capital Advisers is set to launch its second fund with a target size of $75m. The fund will have a similar focus to the firm's first fund, which followed a generalist strategy and invested $55m in 16 companies. The firm is chaired by George Magan, a founder of JO Hambro Magan merchant bank.
Financial News 17.4.03

UK's ICG announces profits rise on back of strong European mezzanine demand
Intermediate Capital Group, the listed UK-based mezzanine specialist, has announced a 28 per cent increase in pre-tax profits for the year ended 31 January on the back of what it described as attractive conditions for its brand of subordinated debt. The firm's core income rose 18 per cent to £45.9m over the last year and the value of its loan book increased 25 per cent to a record £876m.
AltAssets 8.4.03

LBO France launches new fund Hexagone
LBO France has launched a new fund, Hexagone, which will target small buy-outs in France with an enterprise value of between E10m and E50m. The French private equity firm's existing investors have already committed to half of Hexagone's undisclosed target. The LBO France team will manage the Hexagone fund alongside the White Knight mid-market MBO fund.
AltAssets 9.4.03

First closing for Swiss Lombard Odier fund of funds
Zurich-based Lombard Odier Private Equity has held a first close for its latest fund, LO Private Equity Euro Choice II. The firm secured E100m from its parent company, Lombard Odier & Cie, putting it on track towards its E200m target. The firm plans to hold a second close in 2003 for US investors.
Private Equity Analyst April 2003

Spanish Nmas1 exceeds target with E175m close on Iberian mid-market fund
Nmas 1, the Madrid-based private equity firm, is reported to have raised E175m for its new mid-market buy-out fund, exceeding its original E150m target by 16 per cent. Key investors include the pension funds of companies such as Daimler Chrysler and General Electric, fund managers such as Cologne Asset Management and Martin Currie Capital Return Trust, and fund of fund managers such as Access Capital and LGT Capital Partners.
AltAssets 8.4.03

BML launches E150m life sciences fund
Bioscience Managers Limited, (BML), has announced the launch of its fund management business focused on the life sciences sector. The E150m debut fund will be managed by a six strong team and will invest in European mid-stage life science companies. BML was formed in 2001 with £1m backing from City of London finance professionals and business angels.
AltAssets 23.4.03

Second closing for Italian B&S Group exceeds E500m target in just seven months
Italian B&S Private Equity Group has defied a tough fundraising climate by announcing a second close on its fourth fund just seven months after its launch and surpassing its initial E500m target. IPEF IV's hard cap of E550m means the firm expects to hold a final closing within the next couple of months. The fund held a closing at the beginning of 2003 at approximately E400m.
AltAssets 4.4.03

New BVCA survey finds confidence among UK private equity firms fragile
Tough fundraising conditions have badly bruised confidence among UK private equity firms but many of them still expect to increase their investment activity over the next few months, according to a new quarterly survey of its members published today by the British Venture Capital Association (BVCA). The survey found that 85 per cent of respondents, who together represented more than a third of the BVCA's 170 member companies, thought fundraising conditions over the last three months had been unfavourable or very unfavourable.
AltAssets 4.4.03

Venture philanthropy fund Impetus launched
UK-based Impetus Trust has been launched by ECI managing director Stephen Dawson. The fund will invest in charities that focus on helping people and have income between £250,000 and £10m. The fund, which is targeting £4m, has already received commitments from charities such as World in Need, the Gatsby Foundation and the Esmee Fairbairn Foundation.
Venturedome 24.4.03

Pan-European buy-out firm Permira targets E4.5bn with new mega-fund
UK-based Pan-European buy-out firm Permira is targeting E4.5bn with its new fund. If successful, Permira III will surpass its E3.5bn predecessor and will create Europe's biggest ever leveraged buy-out fund. The new fund, which will focus on European buy-outs across a range of industry sectors, has a cap at E4.95bn.
Bloomberg 2.4.03

North America

Wellspring Capital Management closes third buyout fund
New York-based Wellspring Capital Management has closed its latest fund, Wellspring Capital Partners Fund III at $665m. The fund is twice the size of its predecessor, giving the firm in excess of $1bn of private equity under management.
The firm invests in US and Canadian ‘old economy' companies with strong brand names.
AltAssets 30.4.03

Graham Partners targets $350m plus for second fund
Wayne-based Graham Partners is planning to raise between $350m to $400m for Graham Partners Investments II. The fund will most likely acquire manufacturing firms with sales of $30m to $500m. Graham Partners last raised funds in 1999 and 2000, previous limited partners have included BancBoston Capital, Bank of Nova Scotia, CIBC and Mellon Bank.
Private Equity Analyst April 2003

Blackstone forms healthcare group
New York-based Blackstone Group has hired three healthcare industry veterans to form Blackstone Healthcare Partners. Lodewijk de Vink, former chairman, president and chief executive of Warner-Lambert, Aleksander Erdeljan, former chairman, president and chief executive officer of RP Scherer, and Doug Rogers, a managing director at Donaldson, Lufkin & Jenrette's healthcare merchant banking group will make up the new pharmaceutical and medical products group.
AltAssets 22.4.03

RockRidge Capital Partners launch debut fund
Stamford-based RockRidge Capital Partners has begun raising a $200m growth capital fund. The firm was set up by two former venture capitalists from VantagePoint Venture partners and Pequot Capital Management and will aim to help technology and software service companies expand their businesses.
Private Equity Analyst April 2003

Bain and Tenaska form power generation partnership
Boston-based Bain Capital has joined forces with Tenaska, an independent power company, to jointly sponsor a $550m partnership that will target power generation assets in North America. The partnership will employ Bain Capital's acquisition skill with Tenaska's power industry knowledge to make investments. No outside capital has been employed in the fund.
AltAssets 16.4.03

Gores Technology Group launches first fund
Los Angeles-based Gores Technology Group has a $600m target for Gores Capital Partners, its first fund open to institutional investors. Founder, Alec Gores is likely to commit $100m of his own fortune to the fund which will pursue turnaround investments in technology and telecommunications companies.
Private Equity Analyst April 2003

Accel slashes venture fund for the second time
California-based venture capital firm Accel Partners has reduced the size of its Fund VIII for the second time. Accel plans to reduce the fund, which closed with commitments of $1.4bn in 2000, by an additional 29 per cent to $680m. Accel first reduced the fund size to $952m in May 2002, but the firm has since only invested in six deals. Over the last year, at least 27 funds have downsized their funds by a combined total of around $5bn.
AltAssets 9.4.03

WL Ross receives CalPERS commitment
New York-based Rothschild spin-out WL Ross & Co has received a $200m commitment from The California Public Employees' Retirement System (CalPERS). The fund will target small, distressed Japanese companies and is hoping to raise a total of $1bn and begin making investments in May. WL Ross manages around $1.6bn of investments in Japan, including three private equity funds.
PrivateEquityCentral 14.4.03

W Capital Partners launches $150m fund
W Capital Partners has begun raising a $150m fund to purchase portfolios of start up companies from corporations pulling out of the venture business. The firm plans to invest from $10m to $50m per secondary deal. W Capital will take an active role in managing the investments and will make follow on investments where necessary.
Private Equity Analyst April 2003

Warburg Pincus launches Energy acquisition company
New York-based Warburg Pincus & Co has committed an undisclosed sum to energy sector acquisition vehicle Targa Resources. Texas-based Targa will target energy opportunities in the Gulf Coast, Mid-Continent and Rocky Mountain regions. Warburg Pincus has invested around $700m in early-stage energy companies since the late 1980s.
PrivateEquityCentral 29.4.03

Aurora nears close early-stage IT and life science fund
Durham-based Aurora Funds is expected to announce the close of Aurora Fund IV with commitments of $85m. New investors include GoldenLEAF, Jones Investment Fund, Comercia Capital Advisors, Montagu Newhall and RBC Centura. The fund will invest in life sciences and IT opportunities.
VentureWire 22.4.03

Sequoia Capital closes eleventh fund on target
Menlo Park-based Sequoia Capital has closed its eleventh venture fund on $395m. Reports suggest the firm had little trouble raising capital, with a large number of previous limited partners investing in this latest fund. Sequoia was founded in 1971 and was an early investor in firms such as Apple Computer Co, Cisco Systems and Yahoo Inc.
Private Equity Analyst April 2003

Crest Communications Holdings axes venture activity
New York-based Crest Communications Holdings has ended its venture investment programme to focus on advisory activities. The firm raised its last fund in April 2001 and manages a total of $175m. Crest's advisory business includes merger and acquisition services and private equity placements in mid-market companies.
VentureWire 29.4.03

Experienced venture partners form Icon Ventures
Former partners of Mayfield, Technology Crossover Ventures and US Venture Partners have launched Icon Ventures, a mid-stage venture firm currently raising a $200m fund aiming to take advantage of the shortage of capital available to fund series B and C venture rounds. The fund will invest in enterprise and systems software, communications, internet infrastructure and semiconductors.
Private Equity Analyst April 2003

Genesis Capital Management launches seed fund
Genesis Capital Management, a seed-stage investment firm, is raising $50m for its first fund. Genesis Fund is expected to close by the end of June and will invest in optics, electronics, IT, biotech, bio informatics, semiconductors, nanotechnology, infotronics and medical devices. The firm will focus on firms in upstate New York.
VentureWire 1.4.03

PA Early Stage holds first close on venture fund
Wayne-based PA Early Stage has held a first close at $68m for PA Early Stage Partners III. The healthcare and technology fund has a target of $100m Limited partners so far include Pennsylvania State Employees Retirement System and West Virginia Economic Development Authority.
Private Equity Analyst April 2003

GrowthWorks raises labour-sponsored investment fund
Vancouver-based venture capital manager GrowthWorks has raised C$68m for its managed labour-sponsored investment funds. The Working Opportunity Fund and Working Ventures Canadian Fund invest in companies involved in emerging technologies such as biotech.
VentureWire 17.4.03

Israel

Israeli Vitalife fund closes at $50m
The Israeli life sciences firm, Vitalife Life Sciences Ventures, has held a $50m final close for its inaugural fund. The fund held a $30m first closing in April 2002 but has since received a significant commitment from US fund of funds manager HarbourVest Partners. Vitalife targets small start-ups in the life sciences sector, specifically medical device companies.
AltAssets 14.4.03

Australasia

GRIC founder launches China-US private equity venture
The founder and chairman of GRIC Communications Hong Chen has launched an advisory and private equity investment firm. The newly formed Hina Group will focus on cross-border M&A advisory services and private equity investments in communications and technology companies in China and the US. Hina Group is raising two funds. The first fund will focus on investment opportunities emerging from the restructuring process of Chinese state owned enterprises. The second fund has been created to acquire or invest in publicly traded US telecom equipment and software companies with depressed stock market valuations but with the potential to tap emerging market opportunities in Asia.
AltAssets 15.4.03

Henderson launches energy fund
Australia-based Henderson Private Capital, the private equity arm of AMP Henderson Global Investors, is planning an $800m utilities fund focusing on the Australian energy market. The fund's launch is dependent on a complex restructuring deal. The fund will be launched with initial investments comprising a 66 per cent stake in UEL's Victorian electricity distribution business, an 80 per cent stake in Multinet's gas distribution arm and a 25 per cent stake in Alinta's gas distribution business in Western Australia.
AltAssets 24.4.03