Click here for printer friendly page

Western Europe & Israel: April 2003

Credit Suisse scales back private equity operation, Swedish Euroventures and Nordico join forces, Permira targets E4.5bn with new mega-fund, UK pension funds taking private equity more seriously…

UK Pension schemes warming to private equity but many still unconvinced
Many UK pension schemes are taking private equity investment increasingly seriously, but a significant number remain unconvinced and are reluctant to take the risk, according to a survey by JP Morgan Fleming Asset Management. The survey showed that 44 per cent of the largest 350 UK pension schemes are currently investing an average of 4.4 per cent of funds in private equity. Out of the balance of 56 per cent, some 16 per cent said they had previously invested but are no longer doing so.
AltAssets 1.4.03

Swedish Bure Equity secures credit facility
Troubled Swedish private equity firm Bure Equity has arranged a long-term credit agreement through a rights issue. The agreement totals E82m, before issue and guarantee costs, and removes the immediate risk of an acute liquidity crisis or destruction of asset value. The firm will raise additional cash from the divestment of non-core assets.
Real Deals 24.4.03

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. Hutton Collins is a first-time fund, which may be compounding the effects of the broader conditions afflicting the private equity industry. Hutton Collins has raised E160m so far and has already made a handful of investments.
AltAssets 4.4.03

UK Advent struggles to keep investments afloat
Advent 2, a venture capital trust managed by Advent Ventures, the UK private equity firm, suffered three write-offs last year and saw net asset value per share plummet 40 per cent, highlighting the troubled state of technology investment. The trust struggled to secure follow-on funding for its existing investments or find exits, thereby doubling the unrealized loss on the valuation of its investments from £3.4m last year to £6.5m this year.
eFinancial News 9.4.03

Vivendi Universal picks US venture capitalist Global
International media and communications company, Vivendi Universal, has selected US-based venture capital firm Global Asset Capital to take over the its private equity operation,Viventures Partners, as part of major financial restructuring. Global's bid, backed by US fund Hamilton Lane, was unexpectedly accepted in favour of the offer submitted by Belgium's Compagnie Nationale à Portefeuille. The successful bid is thought to have been in the region of E9m.
AltAssets 7.4.03

Irish Dolmen Securities launches Fourth Level Ventures
Irish financial services firm Dolmen Securities has set up venture fund Fourth Level Ventures. The fund will invest in seed and later stage university spin-outs in Ireland and internationally. The team, lead by two business angels Ray Noughton and Dennis Jennings, is looking to raise a total of E50m split between a seed fund and a main fund.
EVCJ April 2003

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 thought fundraising conditions over the last three months had been unfavourable or very unfavourable. Some 13 per cent expected it to get worse over the next three months, outnumbering the five per cent who predicted an improvement. Investment activity, however, looks set to accelerate despite the mounting gloom. Some 38 per cent of respondents said they planned to increase activity over the next three months and five per cent said they expected a decrease, producing a positive net balance of 33 per cent.
AltAssets 4.4.03

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. Jean-Marie Leroy has been recruited to focus specifically on Hexagone investments. He was previously with Paribas and Dome Close Brothers, where he specialised in small transactions.
AltAssets 9.4.03

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. Permira is competing for funds with a cluster of other European firms such as Doughty Hanson, Terra Firma and Charterhouse. Several major US private equity houses are also raising funds, some of which will be directed at the European market.
AltAssets 2.4.03

Bank of Scotland and Braveheart join forces
Bank of Scotland and Braveheart Ventures, a Scottish business angel network, have teamed up to fund technology spin-outs from the University of Edinburgh. The pair will invest in spin-outs that qualify for the Scottish Executive's SMART Support Scheme for companies developing new technologies. Braveheart will manage the fund and Bank of Scotland will match Braveheart's equity investment.
Real Deals 24.4.03

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

Venture philanthropy arrives in Britain
UK venture capital is set to follow in the steps of the US with the launch of Impetus Trust, which will help medium-sized charities facing difficulties or seeking to expand. The fund, which will act in a similar way to a traditional venture capital fund, has already raised £1.7m of a targeted £4m. Impetus will aim to provide long-term funding and management skills to people orientated charities with incomes between £250,000 and £10m.
AltAssets 15.4.03

UK mid-market buy-outs grow in Q1, partially offsetting fall in larger deals
A jump in the number of mid-market buy-outs helped to partially offset a big fall in the value of larger deals in the first quarter, according to new figures from the Centre for Management Buy-Out Research. The total value of MBOs fell to £3.1bn in the first quarter from £4bn in the fourth quarter of last year but the number of deals increased.
AltAssets 1.4.03

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. Previous acquisitions include the Jane Norman fashion retail chain for £70m, Napier Industries for £25m and the Range Cooker Company for £25m.
AltAssets 11.4.03

Bulgarian government narrows search for private equity managers
The Bulgarian government has short-listed seven private equity firms to manage its E100m partially state-sponsored investment fund. The fund will be run for a term of ten years and will make investments of between E1m and E10m. The Bulgarian government will provide up to 50 per cent of the total capital. The short-listed firms are: Eastern European TBIF working with venture capital firm eQuest Partners; Raiffeisen Private Equity Management, a Krakow-based private equity group; Bulgarian-American Investment Fund; EPIC Bulgaria; GED Capital Development, a Spanish fund manager backed by Bank Austria; and Time Capital Partners in conjunction with Bulgaria's Bank for Agricultural Credit.
AltAssets 7.4.03

Caledonia Investments acquires stake in Nova capital
Caledonia Investments has acquired a 33 per cent stake in Nova Capital Group, a portfolio management company targeting under-performing and under managed portfolios run by private equity and venture capital firms. Nova's first acquisition was Lica Development Capital, a £70m portfolio of 20 investments targeting early and mid-stage investments. The firm is already involved in a second fund and is in discussions to take over management of a further three.
EVCJ April 2003

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. As with Opera I, Bulgari, which controls 50 per cent of the management company, will be a cornerstone investor in the fund.
AltAssets 11.4.03

Credit Suisse scales back private equity operation
Credit Suisse has cut five of its Swiss private equity firm's seven investment professionals and suspended any further investment becoming the latest bank to scale back from the private equity market. The private equity operation affected, known as Innoventure Capital, aimed to invest the bank's own capital in early-stage Swiss companies. Credit Suisse will retain its existing portfolio, which will be managed by the two remaining professionals.
AltAssets 14.4.03

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. Permira is competing for funds with a cluster of other European firms such as Doughty Hanson, Terra Firma and Charterhouse. Several major US private equity houses are also raising funds, some of which will be directed at the European market.
AltAssets 2.4.03

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. HarbourVest joins Vitalife's existing investors, which include Discount Capital Markets and Investments, SCP Private Equity Partners, Boston Scientific and Evergreen.
AltAssets 14.4.03

Israeli VC funds raise net negative $128m in 2002, highlighting squeeze on funds
The squeeze on Israeli venture capital funds is growing tighter and will seriously damage local technology companies looking for finance this year, according to new figures from IVC Research. The amount of capital handed back to investors actually outpaced funds raised in 2002 to produce a net negative inflow of $128m. Israeli firms raised $1.35bn in 2001 and a record $3.33bn in 2000. But they managed just $63m in 2002 and handed back another $191m.
AltAssets 1.4.03

Swiss LogiSpring seeks E150m for early-stage ventures
LogiSpring Management Company, a Swiss early-stage venture capital investor, is set to complete a second closing of its first fund, LogiSpring Venture Fund. The fund has a target of between E150m and E175m. Fund-raising was stopped in the aftermath of September 11th, with a first closing of E103m, but was restarted earlier this year.
Real Deals 24.4.03

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. By contrast, the value of capital invested in seed and start up deals fell dramatically from E291m in 2001 to just E65m last year.
AltAssets 15.4.03

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. Gamma will remain open for a further six months with a cap at E25m.
AltAssets 16.4.03

UK Rothschild buys mezzanine portfolio
Rothschild, the UK financial services group, has completed the acquisition of a portfolio of mezzanine investments from ABN Amro for an undisclosed sum. The firm has also recruited John Sealy from ABN Amro Capital, to establish its new mezzanine finance team. ABN Amro's disposal is in line with its announcement early in 2002 that it will focus exclusively on private equity funding.
Real Deals 24.4.03

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. In addition to the mid-stage fund, BML is also planning its return to the early stage venture capital arena in the UK.
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. Previous investors HarbourVest Partners, Adams Street Partners, Liberty Mutual and AXA were all key contributors but several new firms made significant commitments. Danske Private Equity, NIB Capital Private Equity and the State Teachers' Retirement System of California have all invested in the fund.
AltAssets 4.4.03

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

Spanish Nmas 1 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

Wales Fund Managers launches new fund to address equity gap
Wales fund Managers 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. The Cardiff-based firm believes that whilst smaller sums of around £500,000 can be obtained from financial institutions such as Finance Wales and investments in excess of £2m can be sourced from mainstream venture capitalists, an equity gap exists between the two.
AltAssets 24.4.03

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 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

Eurazeo attempts first French LBO Securitisation
French investment company Eurazeo will become the first to use securitisation to fund a French leveraged buy-out when it refinances its E805m acquisition of Fraikin, the French truck rental group. Eurazeo bid jointly with private equity fund, Pragma-Capital, and UI, a subsidiary of Credit Agricole.
eFinancial News 7.4.03

UK Lion Capital Advisers to launch $75m private equity fund
Lion Capital Advisers, the private equity firm chaired by City of London veteran George Magan, is set to launch its second fund on a target of $75m despite a tough fundraising environment. The firm hopes to build on its first fund, which has invested a total of $55m in 16 opportunities that range from early-stage investments to buy-outs.
eFinancial News 17.4.03

VCR and OLBAN form London angel alliance
Business angel network Venture Capital Report has joined forces Greater London enterprise's oneLondon Business Angel Network. The alliance creates a network of 500 business angels, investing in start-up and early-stage companies in the South East of England.
Real Deals 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. Permira is competing for funds with a cluster of other European firms such as Doughty Hanson, Terra Firma and Charterhouse. Several major US private equity houses are also raising funds, some of which will be directed at the European market.
AltAssets 2.4.03

Royal London Private Equity makes first closing on debut fund
Royal London Private Equity has made a closing on its debut fund at £64m, including a £20m cornerstone investment from the firm's parent company, life insurer Royal London. Fund managers Scottish Widows and Morley Fund Managers are among those who have also committed to the fund. The fund is targeting up to £200m and will invest in small to mid-market UK companies with an enterprise value of between £25m and £70m. The firm is currently working on several deals and is hoping to complete its first within the next two months.
AltAssets 30.4.03

La Poste launches E50m venture capital fund
La Poste, the French postal service, has launched XAnge Capital, a E50m venture capital fund dedicated to developing opportunities in the postal industry. Through its holding company Sofiposte, La Poste will be the lead investor in the new venture with a 34 per cent stake. The fund's other investors include a consortium of eight industrial partners, including AGF, the French insurance group, CDC, the state-owned financial and industrial group, and CNP Assurances, France's largest life assurer.
eFinancial News 8.4.03

Banexi Capital seeks independence from French banking giant BNP Paribas
Banexi Capital, the French mid-market private equity fund, is set to spin out of BNP Paribas as the bank continues to scale down its exposure to the asset class. The move follows independence of fellow captive fund PAI Management last year. Banexi is planning to raise a successor to the E175m fund it raised in 1999. The target will be in the region of E250m and will focus on mid-market LBOs, according to French business paper L'Agefi. BNP is expected to commit up to 25 per cent of the capital
AltAssets 7.4.03

Italian banking foundation plans private equity push
The Turin banking foundation, Compagnia di San Paolo, is planning to invest in the region of E300m next year. The foundation, which has E5.5bn in assets, had delayed the finalisation of its asset allocation while the Italian government has been preparing new regulations concerning the investment returns of foundations. The private equity mandate will be funded from the foundation's E1.8bn cash reserves.
Institutional Investor 10.4.03