European Venture Capital Journal articles from December 2008

European Venture Capital Journal archives from December 2008

Haunted by the past: the end of the year closes a dramatic chapter in the history of global finance, as the private equity industry prepares for bargain basement prices, the legacy of the banking crisis remains.(EDITOR'S NOTE)
December 1, 2008... As the days shorten and the nights lengthen, as autumn gives way to winter and the year staggers to a close, a man's thoughts become reflective in nature as he ponders upon the year's events. For those operating in the world of high...

SVG to ease-off Permira.(LONDON)
December 1, 2008... UK-based private equity firm SVG Capital has begun talks to scale back payments to Permira. The Times reported that SVG has asked Permira, a private equity firm that specialises in large leveraged buyouts, to renegotiate contracts that...

EU proposals in time for Christmas.(STRASBOURG)
December 1, 2008... The European Commission will make controversial proposals on hedge funds and private in December, the EU executive's president has stated. "About actions relating to hedge funds and private equity, Commissioner Charlie McCreevy has told me...

Iberian firm leads 1.2bn [euro] wind deal.(LISBON)
December 1, 2008... Iberian private equity firm Magnum Capital led a group of investors in the buyout of Portugal's largest wind power business, Enersis, from Australian investment company Babcock Brown for 1.2bn [euro]. The private equity firm stated it was...

Swedish firm beats target.(STOCKHOLM)(EQT Partners AB)(Brief article)
December 1, 2008... Swedish-based buyout firm EQT Partners has closed its first infrastructure fund, EQT Infrastructure, at 1.2bn [euro]. The firm beat its initial target of 1bn [euro]. EQT Infrastructure will invest primarily in existing infrastructure in...

Russian private equity firm stakes-out grocery giant.(MOSCOW)
December 1, 2008... Russian private equity firm Baring Vostok Capital Partners (BVCP) is a potential buyer of Seventh Continent, Moscow's largest grocery chain. Alexander Zanadvorov, the owner of the grocery chain is considering selling the company after...

Largest ever consumer sector LBO in CEE.(WARSAW)
December 1, 2008... Warsaw-headquartered Enterprise Investors has taken a 43% stake in non-alcoholic beverage company Kofala-Hoop for 127.8m [euro]. The fund made the investment through its Polish Enterprise Fund VI. The transaction is said to be the...

Investitori Associati scraps fundraising.(MILAN)(Brief article)
December 1, 2008... Italian buyouts house Investitori Associati has pulled the fundraising for its fifth fund citing the current turmoil afflicting the world's financial markets. The firm, which raised 700m [euro] for its fourth fund in 2004, was looking to...

Looking for opportunities: in these dark times, senior figures from across the industry are clamouring to tell all who will listen what a fantastic time this is to be investing. Aimee Donnellan reports on what the smart fund managers are up to.(NEWS ANALYSIS)
December 1, 2008... [ILLUSTRATION OMITTED] It just wouldn't be a downturn if the word 'opportunity' wasn't bandied around by every private equity GP in the business. GPs throughout the world are responding to the economic crisis by focusing on potential...

Entrepreneurs feeling the pinch: as investors close their wallets, UK start-ups are faced with a shrinking investor base. Tom Allchorne reports on the challenges facing early-stage companies.(NEWS ANALYSIS)
December 1, 2008... [ILLUSTRATION OMITTED] Starting a business is never but starting one during the first few rounds of a recession is a task bordering on sadistic. However, there is a school of thought that claims that economic downturns actually produce...

Recession hits carbon trading: European businesses are looking to make money anyway they can, and many are turning to carbon trading, which has seen prices plummet. Amanda Palmer reports on how private equity is reacting.(NEWS ANALYSIS)
December 1, 2008... As the global recession hits, industrial companies are busy selling surplus EU Carbon Allocations (EUAs) in order to raise short-term cash and smelters such as Arcelor Mittal have shut down across Europe flooding the market with cheap carbon...

Death knell for captive model: the worlds' investment banks are struggling to keep their heads above water, leading many private equity teams to seek independence. Aimee Donnellan reports on a growing trend.(NEWS ANALYSIS)
December 1, 2008... The private equity captive model is on death's doorstep as banks struggle to keep afloat in the current turbulent market. Private equity, an industry founded on the captive model, is now a sector full of GPs who are keen to spin out on their...

TMT shows signs of life: across the world, sectors of all shapes and sizes are being buffeted by the global economic storm. The mood is grim, the outlook bleak. Except, that is, for those operating in the technology, media and telecoms (TMT) sector.(NEWS ANALYSIS)
December 1, 2008... [ILLUSTRATION OMITTED] Every year, the global business consultancy Ernst & Young conducts a review of the top ten risk factors across range of industry sectors. Time and time again the number one answer thrown back was the financial crisis...

Towerbrook raises US$2.8bn.(CLOSE)(TowerBmok Capital Partners)(Brief article)
December 1, 2008... Buyouts house TowerBmok Capital Partners has raised US$2.8bn for its third fund, TowerBrook Investors III. The firm, which owns London based luxury shoemaker Jimmy Choo, will continue to pursue an investment strategy which targets large and...

Infracapital raises 900m [pounds sterling].(INFRASTRUCTURE)
December 1, 2008... London-based Infracapital Partners has closed on 900m [pounds sterling]. The firm invests in European companies active in core infrastructure sectors, including regulated gas and electricity transmission and distribution, water, essential...

Horizon smashes target.(CEE)(Horizon Capital Corp.)(Brief article)
December 1, 2008... Ukraine-headquartered Horizon Capital has closed its second fund on US$390m. Emerging Europe Growth Fund II exceeded its US$300m target, with commitments from existing investors such as The Church Pension Fund, Amanda Capital, CV Starr and...

Small-cap firm closes.(FRANCE)
December 1, 2008... French private equity firm Pechel Industries Partenaires has reached a final close on its third fund, Pechel Industries III, with a total of 165m [pounds sterling] raised.

CEE fund raises 320m [euro].(MID-MARKET)
December 1, 2008... Abris Capital Partners, a Poland-based private equity firm, has raises 320m [euro] for its maiden fund. The Warsaw-headquartered outfit exceeded its 300m [euro] target and will now target mid-market opportunities in Central and Eastern...

EQT closes on 1.2bn [euro]: Stockholm-headquartered firm builds infrastructure warchest.(NORDIC)(EQT Partners AB)
December 1, 2008... [ILLUSTRATION OMITTED] Nordic buyout outfit EQT Partners has smashed its initial 1bn [euro] target for the firm's first infrastructure fund, EQT Infrastructure, with a close of 1.2bn [euro]. EQT Infrastmcatre will invest primarily in...

Carlyle beats target for second tech fund: new vehicle raises over 500m [euro] and makes first acquisition.(GROWTH)(The Carlyle Group)(L Gardner Group PLC)(Brief article)
December 1, 2008... US private equity house the Carlyle Group has raised 530m [euro] for its second European technology fund, beating its 500m [euro] target and completing its first transaction in the process. Carlyle Europe Technology Partners (CETP) II has...

Lucite sold by Charterhouse: Japanese group pays US$1.6bn for UK acrylic business.(TRADE SALE)
December 1, 2008... The long-running saga of the sale of Lucite by owners Charterhouse Capital Partners has reached a conclusion with the acrylic specialist acquired by Japanese group Mitsubishi Rayon for US$1.6bn. London-based Charterhouse had tried to sell...

ABN AMRO sells portfolio: AAC Capital to manage investments now owned by Goldman Sachs.(BANK SPIN-OFF)
December 1, 2008... [ILLUSTRATION OMITTED] Dutch investment bank ABN AMRO has sold a 20-strong portfolio of buyout investments to a consortium led by Goldman Sachs Asset Management (GSAM). AAC Capital, the former private equity arm of the banking giant,...

Cheesy for inflexion: sale of dairy products company earns firm a 2x return.(EXITS)
December 1, 2008... UK small-cap investor Inflexion Private Equity has sold Ilchester Cheese, a producer of speciality cheeses, to Tine, a Norwegian milk co-operative, for an undisclosed sum. The exit generated a 2x return, with an IRR in the mid-20s, from an...

Ready for the rollercoaster: with tough years ahead full of ups and downs, David Currie, CEO of fund-of-funds manager SL Capital, is optimistic private equity can exploit the opportunities offered by the recession.(PROFILE)(Interview)
December 1, 2008... [ILLUSTRATION OMITTED] In recessions of the past, private equity has often proved itself capable of adapting to market environs. This recession will test the industry in an unprecedented manger, but SL Capital isn't worried--quite the...

Mezzanine strikes back: mezzanine was so out of favour in the boom years that some thought the industry was dead. Now debt markets have frozen, it looks as though the next two years could prove to be among the best ever for the asset class.(FEATURE: MEZZANINE)
December 1, 2008... [ILLUSTRATION OMITTED] What a difference a few months can make. Before the summer of 2007, mezzanine was being squeezed so hard it looked as though the industry was in terminal decline. With debt markets so liquid and banks and...

Trading places: with deal flow down to a trickle, investors are turning their attention to the secondaries debt market.(FEATURE: MEZZANINE)
December 1, 2008... New deals are likely to be thin on the ground for some time l yet as market participants work out what the longer term effect I of the crisis will be and as banks rein in their lending. Yet there are other types of deal to be had. The...

Investors braced for pricing crash: LPs are hoping for more stable financial markets in 2009, but there are fears about portfolio companies' valuations given the global economic slowdown. On the other hand, falling valuations offer opportunities for investors with cash.(LP ANALYSIS)
December 1, 2008... The credit crisis and turmoil in financial markets made this year an extremely challenging one for private equity and venture capital. The outlook for 2009 is also challenging, with the prospect of a global economic slowdown, continued credit...

Land of the rising fund: Japan has proved resistant to the global spread of private equity, but, as Rob Stokes reports, this is starting to change.(FEATURE: JAPAN)(Industry overview)
December 1, 2008... [ILLUSTRATION OMITTED] Fundraising for Japanese buyouts has ahead in anticipation of the country's hitherto cool attitude towards private equity warming up, even if economic uncertainty keeps the gas on low for a while longer. ...

The three stages of Japan: Advent International closed a [yen] 60bn Japanese fund in September following 14 years of investment in the country. EVCJ talks to private equity legend and Advent managing partner John Singer about the firm's hopes and plans.(FEATURE: JAPAN)(Advent International Corp.)(Interview)
December 1, 2008... Shakespeare defined seven ages of man. John Singer reflects on three phases of private equity evolution in Japan--which has spanned little more than a decade but must feels like a lifetime, such is the pace of change. The much quoted...

Limited partnership reform: the UK government has issued a reform order for consultation aimed at modernising and clarifying the limited partnership law. Tom Allchorne looks at the proposals.(LEGAL AND REGULATORY)
December 1, 2008... [ILLUSTRATION OMITTED] In less than a year's time the new look limited partnership law is set to come into force in the UK. Peter Mandelson's new charge, the Department for Business, Enterprise & Regulatory Reform (BERR), published a...

LPs braced for lower returns: but investors are confident in the long-term prospect.(DATA ROOM)
December 1, 2008... [GRAPHIC OMITTED] Limited Partners are realistic but fundamentally optimistic in their return expectations according to an investor survey undertaken by Private Equity Intelligence (Preqin). The survey revealed that most LPs expect...

Loan breaches double: ratings agency predicts situation to worsen over next two to three years.(DATA ROOM)
December 1, 2008... Loan breaches by highly leveraged European companies have doubled in the past year according to a research report by Standard & Poors'. The report revealed that financing difficulties experienced by speculative-grade companies are likely...

Turnaround demand.(RESTRUCTURING)
December 1, 2008... M&A advisers are bulking up their restructuring teams according to research published by EVCJ sister publication Acquisitions Monthly on behalf of Merril DataSite, the business technology company. Of the 200 dealmakers surveyed, 54%...

Private banks upbeat.(CONFIDENCE)
December 1, 2008... Private banks are optimistic about private equity. A survey by investor network Hotbed found that 42% of private banks will continue to recommend that clients increase their allocation to alternative assets, and 58% replied their suggested...

North West slowdown.(UK REGIONS)(Brief article)
December 1, 2008... Private equity activity in the North West of England has been hit by the global economic slowdown, reveals the Centre for Management Buyout Research (CMBOR). In the third quarter of the year, just 12 deals were completed, with a combined...

Early-stage on the up.(VENTURE)(Brief article)
December 1, 2008... European venture capital is proving surprisingly resilient in the face of the global economic conditions with UK data provider Library House revealing that activity in the third quarter of the year is 30% up on Q2. In Q3, over 750...

Returns dip.(DISTRIBUTIONS)(Brief article)
December 1, 2008... European private equity returns have dropped in the opening half of 2008 according to preliminary figures released by Thomson Reuters. The statistics--which are on a pooled average basis--show that the industry as a whole returned 11.3%,...

LBO syndications arranged.(BUYOUTS)
December 1, 2008... Biomnis TARGET NATION: FRANCE DATE ANNOUNCED: 28/10/08 ACQUIRER: DUKE STREET TOTAL VALUE: 217M [EURO] ARRANGER: FORTIS FINANCING: UNKNOWN French medical diagnostics group Biomnis has been acquired by Duke Street...

Restructuring.(BUYOUTS)
December 1, 2008... Autodistribution TARGET NATION: FRANCE DATE ANNOUNCED: 08/11/08 SPONSOR: INVESTCORP ARRANGER: UNKNOWN FINANCING: UNKNOWN In France, Investcorp-owned Groupe Autodistribution is understood to be in talks with lenders...

New partner at Astorg.(PEOPLE)(Astorg Partners has appointed Christian Couturier )(Brief article)
December 1, 2008... French private equity firm Astorg Partners has appointed Christian Couturier as partner. Couturier joined Astorg as a director of investments in 2001 and has since been involved in numerous transactions including Pasteur Cerba,...

PwC expands TMT team.(PEOPLE)
December 1, 2008... Auditing giant PricewaterhouseCoopers has appointed two new telecommunications specialists to its TMT practice. Gary Taylor has been appointed director and Henrik Buss has been made senior manager. The two recruits will be responsible for...

Pinsent makes PE hire.(PEOPLE)
December 1, 2008... International law firm Pinsent Mason has appointed Gregg Davison as corporate partner in the UK-based private equity team. He will be based in the Manchester office. Davison joins Pinsent Mason from Hammonds where he was a partner.

Ransford joins Elysian.(PEOPLE)
December 1, 2008... Mid-market private equity player Elysian Capital has appointed John Ransford to its Special Advisors Council and to the board of Elysian Capital's first investment, English Landscapes. Ransford is currently deputy chief executive of the...

Pension Corp names finance partner.(PEOPLE)
December 1, 2008... Pension Corporation, a provider and underwriter of pension solutions appointed Philip Moore as group finance partner. Prior to this appointment, Moore was chief executive and group finance director of Friends Provident and more recently...

Silverfleet hires.(PEOPLE)
December 1, 2008... European mid-market private a equity house Silverfleet Capital f has appointed Johannes a Huttunen as an executive. Huttunen joins the team from European Capital where he worked as an associate, investing in buy-outs of UK mid-market...

Shake up in Argos.(PEOPLE)
December 1, 2008... [ILLUSTRATIONS OMITTED] Independent private equity group Argos Soditic has announced that Matteo Carlotti, head of Italian operations in Argos Soditic, will leave the group. The departure is said to be due to strategic disagreements about...

Truffle appointments.(PEOPLE)
December 1, 2008... Independent European private equity firm Truffle Capital has hired Gwen Chapman as chief financial officer. Chapman most recently worked for Mentor Corp. Prior to this she worked for KCI International Division as general finance manager and...

Close Bros opens in Zurich.(PEOPLE)
December 1, 2008... Independent corporate finance house Close Brothers has opened an office in Zurich, Switzerland and has appointed a new managing director to head its Swiss operations. Jurg Glesti joins Close Brothers from BNP Paribas where he was a global...

EVCA appoints tax chair.(PEOPLE)(European Private Equity and Venture Capital Association has appointed Fabio Brunelli )(Brief article)
December 1, 2008... [ILLUSTRATION OMITTED] The European Private Equity and Venture Capital Association (EVCA) has appointed Fabio Brunelli as the new chairman of EVCA's Tax & Legal Committee. Brunelli is a partner at Italian accountancy firm Di Tanno e...

KKR names senior adviser.(PEOPLE)
December 1, 2008... US buyout giant Kohlberg Kravis Roberts & Co. (KKR) has appointed Gianemilio Osculati as a senior advisor to the firm. Osculati, who will be based in Italy, will work closely with KKR Director Mattia Caprioli with a view to further...

Celerant adds three.(PEOPLE)
December 1, 2008... [ILLUSTRATION OMITTED] Management consultancy Celerant Consulting (Celerant), has made three new appointments to its private equity and M&A team. Ian Turner, Sandy MacPherson and Peter Smith all join as directors to support David Axon and...

Octopus hires.(PEOPLE)
December 1, 2008... [ILLUSTRATION OMITTED] UK-based alternative investment specialists Octopus investments has appointed Karl E. Jentoft as marketing director. Jentoft will be responsible for overseeing the development of Octopus's marketing and brand...

HgCapital promotes.(PEOPLE)
December 1, 2008... [ILLUSTRATION OMITTED] UK mid-market firm HgCapital has promoted Justin von Simson to partner. Von Simson joined the business as an associate in 2003, having previously worked for Goldman Sachs and Deloitte. In 2005 he was promoted to...

Permira expands financial services team.(PEOPLE)(appointment of James Fraser )(Brief article)
December 1, 2008... [ILLUSTRATION OMITTED] UK LBO giant Permira has appointed James Fraser as head of financial services. Fraser will lead Permira's global financial services team and be responsible for identifying investment opportunities in the sector....

KKR appoints European infrastructure head.(PEOPLE)(Kohlberg Kravis Roberts and Co. has appointed Jesus Olmos Clavijo)(Brief article)
December 1, 2008... [ILLUSTRATION OMITTED] Buyout giant Kohleberg Kravis Roberts & Co has hired Jesus Olmos Clavijo as managing director and head of infrastructure in Europe. Olmos will be based in London and joins KKR from Endesa where he held the...

Deloitte adds to debt advisory team.(PEOPLE)
December 1, 2008... Business advisory firm Deloitte has made two senior appointments to its debt advisory team. Tim Armstrong, formerly of Morgan Stanley, joins as a director, and Floris Hovingh joins as an associate director. During his tenure at Morgan...

Foresight expands MBO team.(PEOPLE)
December 1, 2008... [ILLUSTRATION OMITTED] Alternative asset manager, Foresight Group has appointed Sonia Powar as an investment director. A chartered accountant, Powar joins Foresight following eight years at 3i, where she was an investment manager in...

Hogan & Hartson makes key hire.(PEOPLE)
December 1, 2008... Hogan & Hartson announced that Philip Watkins has joined the firm's London office as Partner in the corporate group. Watkins focus his practice on private and public corporate law, domestic and cross-border mergers and acquisitions and private...

EW Baird hires.(PEOPLE)
December 1, 2008... Employee-owned international private equity firm EW Baird has appointed Steve Holt as director. Holt, who joins from Lehman Brothers, will be a director in Baird's Institutional Equity Sales group, based in London, and will manage buy-side...

Stirling Square recruits.(PEOPLE)
December 1, 2008... Pan-European private equity firm Stifling Square Capital Partners has announced the appointment of Christopher Black as head of finance. Black is a qualified chartered accountant and graduate in business management from King's College,...

Advent teams up with car veteran.(PEOPLE)
December 1, 2008... Global private equity firm Advent International has announced that Paolo Cantarella has joined the firm's Operating Partner Programme with a particular focus on investment opportunities in the industrial sector. Prior to joining Advent,...

Fidequity expands in London and New York.(PEOPLE)
December 1, 2008... Private equity financial advisory group Fidequity has recruited Ian Schuler to the company as partner. He will be based in the firm's newly created New York office. Puru Trivedi has also joined the firm as associate in the firm's London office....

RJD planning turnaround with new appointment.(PEOPLE)(RJD Partners has appointed Paul Woodley)(Brief article)
December 1, 2008... [ILLUSTRATION OMITTED] UK mid-market private equity firm RJD Partners has appointed turnaround specialist Paul Woodley as a consultant. He will work with RJD on sourcing, assessing and managing turnaround opportunities. Woodley has...

PKF adds to corporate finance team.(PEOPLE)(appointment of Andrew Lock)(Brief article)
December 1, 2008... [ILLUSTRATION OMITTED] Accountancy & business advisory firm PKF has appointed Andrew Lock as director of corporate finance to the Guildford office. Lock has over 18 years in corporate finance, gained from both private equity houses as...

Duke Street appoints.(PEOPLE)
December 1, 2008... Duke Street, the independent European mid-market private equity firm, announced the hiring of Miles Cresswell-Turner as Partner, specialising in financial services. Cresswell-Turner joins from Palamon Capital Partners, where over a...

Seeking buyers.(Public notice)
December 1, 2008... SEEKING BUYERS Seeking buyers includes listings of all European companies that have announced plans since October 15, 2008 to November 14, 2008 to sell divisions, stakes or their entire company. It also includes purported sales efforts...

Announced deals.
December 1, 2008... ANNOUNCED DEALS Announced deals includes listings of private equity and venture capital transactions involving European targets announced between October 14, 2008 and November 14, 2008. The listings are ordered by target nation, and...

Unto the breach: loan breaches by highly leveraged European companies have doubled as recession fears grow. Taron Wade, leverage finance and recovery analyst at Standard & Poor's (S&P) discusses the findings of a recent survey into the financing of speculative grade European companies.(COMMENT)
December 1, 2008... The incidence of covenant breaches, requests for waivers, and related restructurings of loans to highly-leveraged companies in Europe has accelerated over the past year. And as much of Europe enters into recession and private equity companies...