European Venture Capital Journal articles from July 2008

European Venture Capital Journal archives from July 2008

Credit crunch? What a load of bull: mid-market players dismiss the economic turmoil in Madrid.(EDITOR'S NOTE)(Editorial)
July 1, 2008... [ILLUSTRATION OMITTED] It was a very subdued audience that attended this year's EVCA Symposium in Madrid, despite the fact that very few, if any, private equity professionals seemed willing to admit that their firm or the wider industry...

Tommy Hilfiger IPO off.(AMSTERDAM)
July 1, 2008... Tommy Hilfiger, the US fashion brand owned by Apax Partners, has shelved plans to list on the Euronext Amsterdam citing market conditions. The business, which has its European headquarters in the Dutch capital, was expected to launch a US$3bn...

Coller buys venture portfolio.(LONDON)(Coller Capital Ltd.)(Brief article)
July 1, 2008... Secondaries investor Coller Capital has teamed up with UK VC DFJ Esprit to support early-stage technology businesses. Coller has acquired the portfolio of the Prelude Trust, the listed vehicle previously owned by Esprit, for 24.2m [pounds...

PAI takes Atos stake.(PARIS)(Atos Origin)(Brief article)
July 1, 2008... Atos Origin, the French IT services giant, has received investment from French buyouts firm PAI, which has taken a 17.9% stake in the 2.7bn [euro] valued company. The future of Atos has been the topic of much debate of late as two hedge...

3i buyouts chief named EVCA chairman.(MADRID)
July 1, 2008... Jonathan Russell, the global head of buyouts at UK firm 3i, has been named as Helmut Schuhsler's replacement as chairman of the European Venture Capital and Private Equity Association The move was officially announced at the EVCA's annual...

CapMan makes Russian move.(MOSCOW)(Norum)(Brief article)
July 1, 2008... Nordic buyouts house CapMan is to acquire Russian private equity house Norum as the firm looks to expand its operations East. Norum was jointy owned by Norways' largest financial service group DnB NOR Bank ASA, and Sitra Management of...

JC Flowers bags Hypo.(MUNICH)
July 1, 2008... US private equity firm JC Flowers has led a consortium to acquire German real estate investor Hypo Real Estate Holdings, paying around 1.1bn [euro] for a 24.9% stake. The private equity syndicate has offered 22.50 [euro] per share, and is...

Weather stake sold for 1.1 bn [euro].(ROME)
July 1, 2008... Weather Investments, the Italian telecoms company, has sold part of its equity for 1.1bn [euro] Apax Partners, Madison Dearborn Partners and TA Associates. The consortium has acquired a 10% stake in the group, which is owned by Egyptian...

Real estate investors ignore credit crunch: Irish firm Ouinlan Private raises 725m [euro] for its latest property fund as the sector continues to attract capital despite wider fears over the future of the housing market.(NEWS ANALYSIS)(Company overview)
July 1, 2008... [ILLUSTRATION OMITTED] Dublin-based Quinlan Private took a different tack earlier this year. For more than 15 years the property investment group had focused on putting together syndicates of wealthy individuals to invest in properties...

The buy-back backlash: with debt buy-backs the latest trend to hit the private equity industry, a nervous Loan Market Association has reacted by issuing guidance designed to address concerns about conflicts of interest.(NEWS ANALYSIS)
July 1, 2008... Bridgepoint's purchase in May of a small portion of the debt used for its Fat Face deal was just one in a series of debt buy-backs by private equity houses. The firm bought about 10m [pounds sterling] of debt, which was being discounted by...

The Greek gateway: as Carlyle invests in chemical group Neochimiki, LBO firms look to use Greece as a springboard for their investment ambitions in South East Europe.(NEWS ANALYSIS)
July 1, 2008... [ILLUSTRATION OMITTED] International private equity investors are increasingly looking to make acquisitions in Greece, not just for its above average GDP growth of 3.6% in the first quarter compared to the rest of Europe, but also because...

Dutch tax assault: proposals by the Dutch government could make the country one of the most unattractive locations for private equity and venture capital in Europe as taxation on carried interest threatens to reach 52%.(NEWS ANALYSIS)
July 1, 2008... In May the Netherlands' minister of finance presented a new taxation bill, which has significant implications for private equity and venture capital. The bill proposes that carried interest or similar rewards, such as 'sweet equity', will be...

Going to seed: the migration of many UK VCs to the more predictable climes of later stage investment has placed pressure on seed and early stage investors in recent years. But for those who remain, there is a growing stable of entrepreneurial wannabes just waiting to be discovered.(NEWS ANALYSIS)
July 1, 2008... The well-charted migration by many in early stage UK venture to the more predictable returns of later stage investments has certainly placed pressure on seed and early stage investors in recent years. But for those who remain, bringing to...

Germany leads the way in cleantech: global venture capital study identifies Europe's strengths.(SURVEY)
July 1, 2008... Germany, the world's third largest economy, is the home of clean technology in Europe according to the world's venture capitalists. In a study by business consultants Deloitte and the US National Venture Capital Association, 43% of the...

Calling all SMEs: UK businesses asked to give evidence to Glover Comitee.(PUBLIC PROCUREMENT)
July 1, 2008... The committee set-up to tackle the problem of small and medium-sized UK enterprises (SMEs) failing to secure public sector contracts has called on businesses, public purchasers and industry groups to submit evidence of their experiences of...

Wellington books a place with online event organizer: German start-up closes first funding round.(INTERNET)(Conference news)
July 1, 2008... German venture capital firm Wellington Partners has led a first funding round for Munich-based internet company amiando. Amiando is an event organization website--it is a one-stop shop do-it-yourself ticketshop, allowing users to send...

Entrepreneurs manifesto launched: UK venture specialist looks to spur start-up culture in Europe.(INNOVATION)
July 1, 2008... Ariadne Capital, the UK early stage investor and advisory firm, has launched 'Entrepreneur Country', a manifesto it hopes will influence and help entrepreneurs across Europe. Julie Meyer, CEO of Ariadne and founder of First Tuesday, the...

Ashmore raising fifth fund.(EMERGING MARKETS)(Ashmore Investment Management Ltd.)(Brief article)
July 1, 2008... Emerging markets fund manager Ashmore has launched Global Special Situations Fund Five (GSSFS) aimed at private equity investment as well as distressed and other debt instruments in emerging markets. Ashmore is a London-headquartered firm...

H.I.G. closes on 2bn [euro].(DISTRESSED)
July 1, 2008... US firm H.I.G. Capital has held a first and final closing on its H.I.G. Bayside II fund with total commitments of US$3bn (2bn [euro]). The fund will target stressed and distressed middle market and lower middle market investment...

New fund chasing 50m [euro].(CLEANTECH)
July 1, 2008... Amplio Partners, a new venture capital firm focused on green tech, is to launch a 50m [euro] fund for investment in early-stage companies operating in a host of clean tech sectors such as renewable energy, alternative fuels and recycling in...

3i Infrastructure after 115m [pounds sterling].(EQUITY RAISING)(Brief article)
July 1, 2008... Publicly listed vehicle 3i Infrastructure is seeking to raise 115m [euro] in new equity following its first set of annual results. The fund is ahead of schedule to achieve full investment within two years of IPO, with 88% of net IPO...

EIF launches FoF.(PORTUGAL)
July 1, 2008... The European Investment Fund (ELF), together with the leading financial institutions of Portugal and the Portuguese State, have raised 111,3m [euro] for the Portugal Venture Capital Initiative (PVCi). The purpose of the fund is to support...

Waterland doubles fund size: buy-and-build specialist raises 800m [euro] in three months.(NETHERLANDS)(Waterland Private Equity Investments B.V.)
July 1, 2008... Dutch mid-market firm Waterland Private Equity Investments has closed its fourth fund on its hard cap of 800m [euro] just three months after launch and twice the size of its previous offering in 2006. Waterland Private Equity Fund IV (WPEF...

Real estate fund seeking 500m [euro]: European firms looking to take advantage of troubled market.(OPPORTUNISTIC)
July 1, 2008... Real estate fund manager AErium Finance Limited and alternative asset manager Fairfield Greenwich Group have teamed up and launched a 1.8bn [euro] pan-European property fund. Cannily named the AErium Fairfield Special Opportunities Fund, a...

Carlyle closes door on Europe's largest real estate fund: US firm raises 2.2bn [euro] and takes funds under management to US$10.8bn.(PROPERTY)
July 1, 2008... US private equity outfit the Carlyle Group has closed its third European real estate fund, raising 2.2bn [euro] and smashing its original target size of 1.5bn [euro] Combined with leverage, the London-headquartered team will have around...

Adveq targets special US opportunities: Zurich-headquartered investor raises almost US$500m for latest fund.(FUND OF FUNDS)(Brief article)
July 1, 2008... Swiss fund of funds Adveq has closed its second US opportunity fund on US$457.5m, exceeding its original target, and over two and a half times larger than the fund's predecessor. Adveq's Opportunity Program was established in May 2005 to...

Danske raises 521m [euro] for first close: fund of funds manager looking to 600m [euro] for fourth vehicle.(DENMARK)
July 1, 2008... Danske Private Equity, the Copenhagen-headquartered captive of Danske Bank Group, has raised 521m [euro] at first close for its fourth fund of funds. The fund is split into two, geographical-specific parts. Half of the money raised so far...

ISIS sells SLR for 100m [pounds sterling]: UK mid-market firm makes 6x cash in exit to 3i.(SECONDARY BUYOUT)
July 1, 2008... London-based private equity firm 3i has bought a stake in SLR Holdings in a deal worth approximately 100m [euro] from ISIS Equity Partners. The sale to 3i has yielded a 6x multiple and an IRR of 72%. for ISIS. SLR is a...

Social shopping sale for European venture firms: earlybird and 3i among sellers of German website company dooyoo.de.(E-COMMERCE)
July 1, 2008... [ILLUSTRATION OMITTED] Dooyoo.de, a German online shopping guide, has been sold by its venture capital backers to LeGuide.com, a French rival. Dooyoo provides consumer reports for online shopping with websites in Germany, United...

Lion sells Hiestand stake in IAWS merger: consumer specialist investor lands shares and a board seat in new company.(FOOD)
July 1, 2008... London-headquartered buyouts house Lion Capital has sold its 32% equity interest in Hiestand Holding, a Swiss convenience deepfrozen bakery products company, to IAWS Group, an Irish food group. Lion only acquired its stake in February,...

Warburg trebles money on Euromedic sale: Ares Life Sciences and Merrill Lynch in 800m [euro] deal for Hungarian healthcare group.(SECONDARY BUYOUT)
July 1, 2008... US private equity firm Warburg Pincus has made a 3x return on its original investment in Budapest-headquartered healthcare business Euromedic International. The group's new owners, Ares Life Sciences (ALS) and Merrill Lynch Global Private...

MTI returns investment in Apatech: specialist orthopedics business raises development capital.(VENTURE CAPITAL)
July 1, 2008... UK venture capital firm MTI has returned its investment in ApaTech, a UK specialist in bone graft technology, in a deal which sees the Herfordshire-based company raise US$45m in a development capital round led by 3i and US investor HealthCor....

Silverfleet sells Jost in 525m [euro] secondary buyout: Cinven acquires German vehicle parts maker.(MANUFACTURING)
July 1, 2008... Silverfleet Capital, the new name for buy and build specialist PPM Capital, has sold Jost World, a German manufacturer commercial vehicles components, to UK buyout house Cinven for a reported 525m [euro]. Silverfleet has made a 3.1x return...

The turnaround comeback: fears of a global economic recession has led to talk of rising defaults and distressed business. David Nicholson investigates how restructuring specialists are looking to take advantage.(TURNAROUNDS)
July 1, 2008... [ILLUSTRATION OMITTED] By common consent, the European and global economy is on the verge of recession, if not already tipped into it. According to which report you read, it is as bad as it was in 2000 to 2002--in the wake of the dot.com...

Rebuilding companies: the distressed market is set to see a lot more activity in the coming months and years. Here are some examples of successful restructuring deals in the UK and Europe.(FEATURE: TURNAROUNDS)
July 1, 2008... Europe has been mercifully free of major, large-scale restructurings for several years, with the exception of the long-running saga of Eurotunnel, which finally seems to have reached calmer waters after years of financial engineering. Of the...

Going down the food chain: with the large buyouts market closed for business, firms active in the Benelux region are concentrating on their portfolio companies and heading downstream in the hunt for deals.(FEATURE: BENELUX)
July 1, 2008... The Belgian market has been less affected by the credit crunch than some other countries, largely due to the fact that it has traditionally been focused on the midmarket or smaller deals. In the Netherlands, where larger deals were more common,...

Public support: public sector programmes are seeking to encourage venture capital investment in the Benelux area, but have not been able to prevent a shake out of VC funds focusing on the region.(BENELUX)
July 1, 2008... There are significant opportunities for VC investment in the Benelux, according to funds active in the region. But opinion is divided over the efficacy of public sector attempts to stimulate start-ups. "We're seeing quite high levels of...

Coming to Europe: Paul Canning managing director, UK, at H.I.G. Europe, the European arm of US small to medium cap investor H.I.G. Capital, speaks about the challenges of a new market and whether there is anything to fear from the mega funds fishing in smaller waters.(PROFILE)
July 1, 2008... [ILLUSTRATION OMITTED] In september last year H.I.G. Capital became the latest US buyouts house to launch a European fund. Reaching its hard cap of 600m [euro], the fund's focus is on lower end of the middle market, an area which has...

Defending private equity: the industry may be out of the spotlight for the moment, but there is every likelihood that the kind of attacks seen last year will return. GPs may be better equipped to deflect the criticism, but what role should LPs play in the PR battle?(LP ANALYSIS)
July 1, 2008... [ILLUSTRATION OMITTED] It's only just over a year since the UK's Treasury Select Committee grilled some of private equity's most senior figures about the way they conduct their business, accusing them of tax dodging and destroying jobs in...

Conflicting interests: the second half of the Companies Act is poised to come into effect in October, with legislative changes that will affect all private equity-backed companies.(LEGAL AND REGULATORY)
July 1, 2008... [ILLUSTRATION OMITTED] Of the brief list of provisions of the Companies Act 2006 that will come into force in the UK on October 1, 2008, the items that stand out in relevance for privately owned companies are provisions relating to the...

Duke Street boosts consumer knowledge.(ADVISOR)(Duke Street Capital )(Brief article)
July 1, 2008... UK mid-market house Duke Street Capital has added Drummond Hall, the deputy chairman of pub chain operator Mitchells & Butlers, as an operating partner. The firm is hoping to use his 36 year experience in the consumer sector to assist it...

Zeus appoints leveraged expert to team.(PEOPLE)(Zeus Private Equity)(Brief article)
July 1, 2008... Zeus Private Equity (ZPE), the UK regional private equity firm, has made its first appointment following its office move to larger premises at Lowry House, Marble Street in Manchester city centre. [ILLUSTRATION OMITTED] James...

Close Brothers adds banker to Paris office.(PEOPLE)(Brief article)
July 1, 2008... Corporate finance house Close Brothers has added to its French team with the recruitment of Gwenae1 de Sagazan, who will cover a number of advisory areas including the coverage of the financial sponsors community; and the transport and...

Synova Capital names committee chairman.(PEOPLE)
July 1, 2008... Lower mid-market specialist Synova Capital has appointed Paul Myners as investment committee chairman. Myners is chairman of Land Securities, a member of the court of the Bank of England and a director of GLG Partners. He also chairs the...

Gresham makes E&Y secondee permanent.(PEOPLE)
July 1, 2008... London-based private equity house Gresham has appointed Dan Hatcher as a partner in its investment team. [ILLUSTRATION OMITTED] Hatcher has been working with Gresham on secondment from Ernst & Young since May 2007. He was part of the...

Tech and services firm hires business development chief.(PEOPLE)
July 1, 2008... London-based Fusion Alternative Investment Partners (FusionAI), a private investment firm set-up last year specialising in technology and services, has added a new partner to its ranks with the recruitment of Kim Holloway, who will take day to...

Global Private Equity hires partner from Nordic Mezz.(PEOPLE)(appointment of Veera Somersalmi)(Brief article)
July 1, 2008... Placement agent Global Private Equity has appointed Veera Somersalmi as a partner. She comes from Nordic Mezzanine where she an associate director, and before that she was an investment director at Standard Life Investments Private Equity. ...

Impaxadds.(PEOPLE)(Impax Asset Management)(appointment of Lee Clements )(Brief article)
July 1, 2008... UK environmental investment business Impax has appointed Lee Clements as investment manager. Clements will take a lead role in research and analysis for Impax's listed equity funds, Impax Environmental Markets, Impax Environmental Markets...

Babson Capital recruits distribution head.(PEOPLE)
July 1, 2008... Babson Capital Europe, the London-headquartered CDO manager, has named Andrew Godson as head of distribution, which will make him responsible for the firm's global sales and distribution activities as well as distributing Babson products to...

CD&R hires former ADD head as partner.(PEOPLE)(Clayton, Dubilier & Rice Ltd. appoints Fred Kindle)(Brief article)
July 1, 2008... Fred Kindle, former president and chief executive officer of ABB, a UK supplier of electrical and automation equipment, has been made a partner in the private equity firm Clayton, Dubilier & Rice (CD&R). His portfolio includes four years...

Rutland promotes one and loses another.(PEOPLE)
July 1, 2008... Small-cap mid-market firm Rutland Partners has promoted Ben Slatter promoted to partner after seven years at the firm. He joined the London-based outfit from the corporate finance team at Arthur Andersen, where he qualified as a chartered...

Hermes adds two to team.(PEOPLE)
July 1, 2008... Hermes Private Equity, the private equity arm of Hermes Pensions Management, has made a double appointment with Peter Gissel joining as a partner and Mark Nunny as investment manager. Gissel joins from Nikko Principal Investments where he...

Merrill appoints SWF head.(PEOPLE)
July 1, 2008... US banking giant Merrill Lynch has appointed Fares Noujaim as global head of sovereign wealth funds and president of Middle East and North Africa, reports EVCJ sister publication IFR. Joining from Bear Stearns, Noujaim will be based in New York...

FSA adds bonds expert.(PEOPLE)(appointments at Financial Services Authority)(Brief article)
July 1, 2008... The UK's Financial Services Authority has named Sam Theodore as manager of the banking sector team, reports IFR. He joins from bond rating agency DBRS, where he headed the European financial institutions business. He left the company when the...

Industri Kapital becomes IK Investment Partners.(REBRANDING)(Brief article)
July 1, 2008... After almost twenty years as Industri Kapital, the Nordic private equity firm, is changing its name to IK Investment Partners (IK) as the firm looks to underline its shift in focus from the Scandinavian markets to Europe as a whole. ...

Tax changes add to SME gloom: GE report reveals managers expecting growth slowdown.(DATA ROOM)
July 1, 2008... The business plans of small and medium-sized UK companies will be significantly affected by the changes made to the capital gains tax (CGT) according to a survey by GE Commercial Finance. GE Commercial Finance, which is the business to...

UK M&A slumps: deal numbers drop to 115, the lowest since 2003.(DATA ROOM)
July 1, 2008... The M&A scene in the UK had a mixed start to the year according to UK law firm Freshfields Bruckhaus Deringer which has published a report into the state of the market. The findings reveal that whilst deal volume in the UK for the first...

LBO syndications arranged.(BUYOUTS)
July 1, 2008... Alliance Boots TARGET NATION: UK DATE ANNOUNCED: 25/04/07 DEAL TYPE: LBO ACQUIRER: KKR TOTAL VALUE: 10.0BN [pounds sterling] ARRANGERS: DEUTSCHE BANKAND OTHERS FINANCING: 9.02BN [pounds sterling] The initial...

EU competition law.(BUYOUTS)
July 1, 2008... ConvaTec BACKER: NORDIC CAPITAL BUSINESS DESCRIPTION: WOUND THERAPEUTICS DEAL VALUE: UNDISCLOSED NOTIFIED: 27/05/08 PROVISIONAL DEADLINE: 01/07/08 Nordic Capital Fund VII and Avista Capital Partners are to acquire...

Seeking buyers.(Table)
July 1, 2008... SEEKING BUYS Seeking buyers includes listings of all European companies that have announced plans since May 21, 2008 to June 16, 2008 to sell divisions, stakes or their entire company. It also includes purported sales efforts that have...

Announced deals.(Table)
July 1, 2008... Announced deals includes listings of private equity and venture capital transactions involving European targets announced between May 21, 2008 and June 16, 2008. The listings are ordered by target nation, and alphabetically and have been...

The growth challenge: Scott Pinfield, managing director at global turnaround specialist firm Alvarez & Marsal, explains how driving value from operational improvements is the way to achieve value creation growth in the current market.(COMMENT)
July 1, 2008... What a difference a year makes. Just 12 months ago available financing was still outpacing opportunities and private equity firms were enjoying a market where financial engineering in conjunction with operational improvements enabled them to...