European Venture Capital Journal articles from June 2007

European Venture Capital Journal archives from June 2007

Australia for sale: capital destined for Asia heads down under.(EDITOR'S NOTE)(Editorial)
June 1, 2007... Private equity houses are planning to invest an estimated 25bn [pounds sterling] in Asia but some have found it difficult to do major transactions in China and India. These two countries have largely restricted groups to minority stakes in...

CDC group: in the money.(LONDON)(Brief article)
June 1, 2007... Last year, the CDC Group, the UK-government backed private equity emerging market fund of funds committed to investing 50% of new investments into sub-Saharan Africa and South Asia; and 70% into the poorer countries of the world (defined as...

PE boosts UK pension returns.(LONDON)
June 1, 2007... Private equity returns are significantly higher than the UK stockmarket over three, five and 10 years, according to a BVCA survey. The private equity industry in the UK recorded 10 year returns of 18.7% compared with 7.9% for the FTSE All-Share...

1bn [pounds sterling] available for ABL in the UK.(LONDON)
June 1, 2007... A group of 16 financial institutions operating in the UK have joined forces to highlight the value and strength of the UK's asset based lending (ABL) community by publicising their joint funding capability of 1bn [pounds sterling] for UK and...

Venture-backed companies lack women.(LONDON)
June 1, 2007... According to the most recent research by Library House, a UK-based venture capital data provider, companies run by women outperform those run by men. The research shows that the average company run by a woman had annual revenues of 12.5m...

87% of LPs expect to invest in Russia by 2012.(MOSCOW)(Brief article)
June 1, 2007... LPs indicated plans to ramp up investments across all emerging markets over the next five years, according to a survey released by the Emerging Markets Private Equity Association. Asia, the CEE and Russia are the destination markets of greatest...

Latvian government funds three venture capitalists.(RIGA)
June 1, 2007... The Latvian Guarantee Agency, a state-owned entity implementing the national program of venture capital development, is providing 14.4m [euro] to three VC funds targeting early-stage and growth SMEs in Latvia. The funds are the ZGI Fund...

Germany's change of heart.(BERLIN)(Brief article)
June 1, 2007... The initial reaction in Germany following the very public comparison of Anglo-Saxon private equity financiers to swarms of "locusts" by Franz Muntefering, now Germany's vice-chancellor, was one of deep suspicion and disdain for an investment...

Advent and AIG in Bulgarias largest transaction ever.(SOFIA)(AIG Capital Partners)(Advent International)(Brief article)
June 1, 2007... Advent International, the 10bn [euro] private equity house, has sold its 65% ownership stake in The Bulgarian Telecommunications Company to AIG Capital Partners for 1.08bn [euro]. This is one of Bulgaria's largest ever transactions and values...

The UK's poisonous pension pill: whopping pension deficits, coupled with new funding guidelines are another poisonous pill for buyout houses to swallow in an already unpopular UK market.(NEWS ANALYSIS)
June 1, 2007... The trustees of the Alliance Boots pension fund, led by former Boots director John Watson are demanding a 1bn [pounds sterling] injection into the scheme from KKR and Boots executive Stefano Pessina--the proposed buyers of the UK-based...

Doing good--well: the vintages are ripening but how will European venture philanthropists exit charities?(NEWS ANALYSIS)
June 1, 2007... In the 1990s wealthy American dot.com entrepreneurs turned 'do-gooders' cottoned on to the idea of venture philanthropy (VP), which applies the principles of venture capital and private equity investing to charities. Many of the 90s breed...

Welsh in on the deal: as the British market overheats, less obvious areas of the country are being mined for investments. Tom Allchorne looks at private equity activity in Wales.(NEWS ANALYSIS)
June 1, 2007... As a private equity market, Wales may not spring to everyone's mind as a place to go asset-hunting, but two successful exits in the last month have demonstrated that significant returns can be made in a country that is promising to become a...

Firms to stub out public resistance: as Apollo increases its offer to Countrywide's shareholders, Tom Allchorne explores the future of stub equity in public-to-private deals.(NEWS ANALYSIS)
June 1, 2007... The US buyouts giant Apollo Management has offered shareholders of listed UK estate agent Countrywide 55% of the stub equity as it attempts to fend off a rival bid, reportedly from 3i. The offer of such a large stake in the 1bn [pounds...

Open to all: as private equity's profile grows, so does retail investor interest in the asset class. Could this be a large, untapped source of capital for the industry? Or more trouble than it's worth?(LP ANALYSIS)
June 1, 2007... Private equity has long been the preserve of institutional investors. With the exception of a few listed vehicles that have been around almost as long as private equity itself, such as Pantheon International Participations and 3i, the industry...

Earlybird catches 65m [euro] worm.(CLOSURE)
June 1, 2007... German VC Earlybird has raised C65m at the first closing of it latest fund, Earlybird IV. The fund will invest in first and second funding rounds of European technology companies, specifically targeting those that operate in embedded software,...

Mithras secures cornerstone.(FUNDING)(Brief article)
June 1, 2007... New London-headquartered private equity fund-of-funds manager Mithras Capital has landed 120m [pounds sterling] for its maiden fund from Mithras Investment Trust and Legal & General Assurance Society. The firm is aiming to raise 250m [pounds...

PIP looks for 100m [pounds sterling].(SHARE OFFER)(Pantheon International Participations )(Brief article)
June 1, 2007... Pantheon International Participations (PIP), the listed private equity investment trust, is to raise up to 100m [pounds sterling] through a placing and ordinary share offer. PIP wants to increase its purchasing capacity for its secondary...

Venture debt firm raises 200m [euro].(FUND RAISING)
June 1, 2007... European Venture Partners (EVP), the UK venture debt firm, has raised 200m [euro] for its third fund and renamed itself Kreos III. The fund has equity capital of 200m [euro] that can be recycled multiple times and offers individual financings...

SE Europe sees 5.19bn [euro] fund: Greek investment firm targets private equity.(LAUNCH)
June 1, 2007... The investment arm of Greek bank Marfin Popular is to raise 5.1bn [euro] via a rights offering for investments in South East Europe, the largest fund of its kind in the region. Marfin Investment Group (MIG), formerly Martin Financial Group,...

Graphite solid on 475m [pounds sterling]: mid-market house raises seventh fund from 39 investors.(LAUNCH)(Graphite Capital Management Ltd.)(Brief article)
June 1, 2007... Graphite Capital, the UK mid-market firm, has closed Graphite Capital Partners VII on 475m [pounds sterling], alongside a co-investment fund of 80m [pounds sterling] to be used for larger transactions. Following in the steps of its six...

Park Square launches largest credit fund: UK firm attracts 315m [euro] of equity for debt and equity investing.(FUND RAISING)
June 1, 2007... Park Square Capital, the credit investment house launched by the former head of Goldman Sachs' European mezzanine business Robin Doumar, has raised 315m [euro] for its latest vehicle, the Credit Opportunities Fund. It is the largest credit...

SVG Diamond twinkles with 700m [euro]: UK firm raises new CFO of private equity funds.(FUND RAISING)
June 1, 2007... SVG Advisers, the fund management business of UK investor SVG Capital, has raised 700m [euro] through its third collaterised fund obligation (CFO) of private equity funds, SVG Diamond III. The fund will focus on large and mid-market buyouts...

Forbion adds seven LPs.(SYNDICATION)
June 1, 2007... Coller Capital, the UK secondaries investor, has syndicated an undisclosed part of its 75% holding in Forbion Capital Fund I, the first fund of the ABN AMRO Capital life sciences spin-out. Coller and Forbion's other cornerstone investor, ABN...

Hellman raises US$8.4bn.(CLOSURE)
June 1, 2007... San Francisco-headquartered firm Hellman & Friedman has closed its sixth fund on US$8.4bn (6.2bn [euro]). HFCP VI will make investments of between US$250m and US$1bn, primarily in the US and Europe. While the firm's exposure to Europe has...

Energy fund raises US$181m.(CLOSURE)
June 1, 2007... 4D Global Energy Advisors, Paris-based investment company specialising in the energy sector, has raised US$181m (134m [euro] for its second fund,[[ Global Energy Development Capital Fund II. The fund will provide investment to private small and...

Austrian VC's third fund.(LAUNCH)
June 1, 2007... Gamma Capital Partners, an Austrian technology VC, is on course to raise 30m [euro] for the first closing of GAMMA III, a fund focussing on technology and growth investments in Austria, Germany, Switzerland and Eastern Europe. Between 12 and 20...

Cinven sells for 1.3bn [euro]: Blackstone acquires German market of rigid plastic films.(EXITS)(Brief article)
June 1, 2007... UK private equity powerhouse Cinven has ended its six year investment in Germany's Klockner Pentaplast (kp) by selling the manufacturer of rigid plastic films to US buyouts giant Blackstone in a 1.3bn [euro] deal. The sale price is an 8x...

A safe exit for Electra: Capital Safety Group sold to Candover.(EXITS)
June 1, 2007... Electra Private Equity, the listed UK investment trust, has sold Capital Safety Group (CSG), a maker of height safety and fall protection equipment, to mid-market private equity firm Candover for 415m [euro]. The sale has made Electra 127m...

Advent hangs up BTC: Bulgarian Telecommunications Company sold to AIG Capital Partners.(EXITS)
June 1, 2007... Viva Ventures, the consortium which owns the Bulgarian Telecommunications Company (BTC), has sold its 65% stake to AIG Capital Partners for 1.08bn [euro], the largest M&A deal in Bulgaria to date. AIG plans to take the company private and...

ABN Amro's fifth buyout this year: Hermes stays invested too.(SECONDARY)
June 1, 2007... ABN Amro Capital's London-based partner Paul Southwell and Amsterdam-based partner Marc Staal have been busy this year, chalking up five buyouts between them. The latest investment from the UK stable of 163m [pounds sterling] in...

Gresham sells Penn and Alstec.(SECONDARY)
June 1, 2007... Gresham Private Equity, the London-based, mid-market specialists, has exited Penn Pharmaceuticals in a deal worth 67m [pounds sterling] with Lloyds Development Capital generating a return on investment of 12x. Gresham originally backed the 12m...

Electra buys Nuaire.(SECONDARY)(Brief article)
June 1, 2007... In an extremely competitive auction process conducted over the past two months, Electra, the London-based, publicly-listed asset management house, acquired Nuaire from rival private equity house, ECI partners, for 80m [pounds sterling]. ECI...

Fourth exit for the Capital Fund.(TRADE SALE)
June 1, 2007... The Capital Fund, a 50m [pounds sterling] London-based VC fund, achieved its fourth profitable exit from an investee company following the US$60m acquisition of Touch Clarity, one of the Fund's portfolio companies, by Omniture, an American...

Aberdeen's waste managers.(BIMBO)(Aberdeen Asset Managers Growth Capital )(Brief article)
June 1, 2007... Aberdeen Asset Managers Growth Capital backed the buy-in management buy-out (bimbo) of MS Industrial Services in a 6m [pounds sterling] deal in which Aberdeen invested 2.5m [pounds sterling]. MSIS, an industrial cleaning company, is based in...

Going global: historically, much venture capital investing focused on the advantages of being local. Venture firms believed that the needs of fledgling companies meant it was important to be geographically close. But a mind shift is taking hold, at least among some later-stage firms, in which a global approach becomes more attractive.(VENTURE CAPITAL)(Company overview)
June 1, 2007... Silicon Valley, the heart of the US venture capital industry, is said to have a "20-minute rule", in which any start-up company not within 20 minutes' drive of the venture firm is unlikely to be funded. This claim is perhaps an exaggeration,...

Global private equity: the industry's behemoth houses have large footprints.(VENTURE CAPITAL)(Industry overview)
June 1, 2007... In many respects a global approach to private equity investing is more developed than for venture and the trend is particularly visible among the very large buyout houses. It could be argued, however, that these houses are taking more of an...

Money magnet: volume and fundraising records were set and reset in the secondaries market last year. And '07 should eclipse the success of '06 but what are the real reasons behind its new found popularity?(SECONDARIES)
June 1, 2007... Last year was, according to most industry experts, the best ever year for the global secondaries market, 2007 looking set to be even more exceptional. The volume of deals soared, with over US$10bn worth of deals transacted globally, 65% to 70%...

Venture buyouts: US market on the rise while Europe remains in the doldrums.(SECONDARIES)
June 1, 2007... Although traditional LP partnership interests in buyout portfolios continue to dominate secondary volumes, venture secondaries are attracting increasing interest from investors. In addition, both the number and volume of directs (where equity...

Buffalo hunters: Robert Stokes reports on the challenges of setting up an emerging market private equity fund and how despite the rigamarole managers want to be on the hunting ground. But will their herd mentality make the big prize ever more elusive?(LEGAL AND REGULATORY)
June 1, 2007... Salute it as zeitgeist, or damn it as hubris: raising private equity funds for emerging markets currently looks as simple as shooting fish in a barrel. One hundred and sixty-two funds managed it last year, according to data from the Emerging...

So sue me: the first state treasurer to take a PE house to court over poor returns speaks out about executive compensation, unemployment and shareholder activism.(PROFILE)
June 1, 2007... Denise Nappier hates to lose. And in her more than eight years as Connecticut State Treasurer and sole fiduciary of the state's US$24.5bn pension fund, the Connecticut Retirement Plans and Trust Funds, she's pitched a lot of battles. One...

Aberdeen strengthens PE team.(MANAGEMENT)(private equity )(appointments)(Brief article)
June 1, 2007... The 257.2m [pounds sterling] private equity arm, Aberdeen Asset Managers Growth Capital, has made four appointments: Andrew Symmonds joins as a portfolio manager; Atul Devani joins as a consultant to the South East Growth Capital team and Ned...

Mid Europa loses its founder.(MANAGEMENT)(Brief article)
June 1, 2007... Colin Hewett, a founding partner of Mid Europa Partners, has resigned from the firm and will step down from the investment and management committees. He has been with the firm for eight years, and wishes to pursue other interests but his...

Martin and Martin head up Macfarlanes.(MANAGEMENT)(Brief article)
June 1, 2007... Robert Sutton and Paul Phippen will step down as senior partner and managing partner respectively of UK law firm Macfarlanes on May 1, 2008, after nine years in these roles. Sutton is to be succeeded by Charles Martin, who specialises in...

Phoenix makes double appointment.(MANAGEMENT)
June 1, 2007... Mid-market firm Phoenix Equity Partners has increased its investment team to 18 with the addition of Louise Lawson and Mark Sargeant, who both take up roles as investment managers. Lawson joins from the corporate finance group at Lazard,...

Bryan Garnier adds to London team.(MANAGEMENT)(Brief article)
June 1, 2007... Bryan, Gamier & Co, the London-headquartered investment bank focused on growth companies, has moved Bruno Tourme head of the firm's technology group in Paris to London. Tourme was promoted to partner at Bryan Gamier in 2006 after two years...

Euraleo names head.(MANAGEMENT)
June 1, 2007... The joint venture between Eurazeo and Banca Leonardo, Euraleo, has named its CEO as Alessandro Foti, the former managing director and vice-chairman of UBS Corporate Finance Italia. The 44-year old will be based with his team in Milan, a team...

SJ Berwin promotes sweet sixteen.(MANAGEMENT)(Brief article)
June 1, 2007... UK law firm SJ Berwin has made 16 promotions in the latest round, nine in London and seven in Continental Europe. In London, Nigel van Zyl, Ed Harris and Nick Plant have all been promoted in the corporate department, Joanne Footitt and Pat Ryan...

Ingenious additions.(MANAGEMENT)
June 1, 2007... Ingenious, the media investment and advisory group, has made two senior appointments with the recruitment of Adam Joy (above) and David Curley as managing directors. Both arrive from UBS Investment Bank where Joy was head of European media...

Advent Venture makes EiR appointment.(MANAGEMENT)
June 1, 2007... London-based venture firm Advent Venture Partners has appointed Richard Mason as executive-in-residence. In this role Mason will provide expertise, experience and leadership skills to key companies in the portfolio. He joins Advent...

ICG hires.(MANAGEMENT)
June 1, 2007... Mezzanine investor Intermediate Capital Group has recruited Garland G. Hansmann as portfolio manager for its fund management subsidiary Intermediate Capital Management Limited. He spent November 2001 to the end of 2006 as a portfolio...

Travers promotes nine.(MANAGEMENT)(appointments)(Brief article)
June 1, 2007... Travers Smith has promoted nine lawyers to partner level, taking the total number of partners up to 65. The new partners are Matthew Ayre (banking), Tim Lewis (financial services), Steve McNab (environment and planning), Dan Reavill (IP/IT),...

Truell's PIC picks admin chief.(MANAGEMENT)
June 1, 2007... Pension Insurance Corporation (PIC), the pensions insurer head by ex-Duke Street Capital chair Ed Truell, has hired Matt Gore, formerly head of bulk annuity operations at Prudential, as chief administration officer. In his new role, Gore will...

Dunedin adds four to professionals team.(MANAGEMENT)
June 1, 2007... Dunedin, the UK mid-market private equity house, has appointed Oliver Bevan as an associate and Nicholas Hoare, Jonathan Ma and Jenny Jeffrey as analysts. Bevan joins Dunedin from the group strategy and corporate development office at...

KPMG appoints Main.(MANAGEMENT)
June 1, 2007... KPMG Transaction Services has announced the appointment of Linda Main as head of the UK Capital Markets Group. Main has been a Partner for six years in Transaction Services and has extensive capital markets experience. She has advised on due...

CAM goes to Switzerland.(MANAGEMENT)
June 1, 2007... CAM Private Equity, a private equity fund of funds, has established a Swiss subsidiary based in Zurich. CAM Private Equity Schweiz AG is run by Benedickt Brenninkmeijer, who joined the CAM Private Equity Management Team as a partner on May 1,...

Rzesnitzek joins OC&C.(MANAGEMENT)(OC&C Strategy Consultants appointments Michael Rzesnitzek )(Brief article)
June 1, 2007... OC&C Strategy Consultants is making an addition to its management team. Starting 1 October 2007, Michael Rzesnitzek, a publishing expert will join OC&C. In addition to providing counsel for the firm's international private equity clients,...

SEP adds two.(MANAGEMENT)
June 1, 2007... UK venture capital firm Scottish Equity Partners (SEP) has made new two appointments to its investment team in the form of Sriram Srinivasan and Mark Gracey, both of whom will be based in the London office. Srinivasan joins the healthcare...

Heatons makes partner promotions.(MANAGEMENT)(appointments)(Brief article)
June 1, 2007... Growth continues at Manchester law firm Heatons with the appointments of Mary Erb and Jim Truscott to equity partners. The move takes Heatons' total partner count to six and comes as the firm celebrates its first anniversary after...

Salans appoints head of international arbitration.(MANAGEMENT)(Salans' International Arbitration Practice Group)(Brief article)
June 1, 2007... George Burn has joined Salans' International Arbitration Practice Group as Head of International Arbitration London. George is recognised as a rising star in the London arbitration market and joins from Denton Wilde Sapte. His particular...

Bear Stearns hires Arlett Tygesen.(MANAGEMENT)
June 1, 2007... Bear Stearns Asset Management hired Arlett Tygesen as managing director of the Private Funds Group Tygesen will concentrate on fund manager origination. Given her unique industry experience, Tygesen is expected to add to the group's research...

Franco-American business relations set to improve: with the recent election of market reformer Nicholas Sarkozy as President of France, can investors anticipate an increase in French merger activity?(DATA ROOM)
June 1, 2007... From the perspective of European targets, based on dollar proceeds, France has ranked as high as the second most active nation no less than five times from 1997 to 2006. Conversely, over that same period, French M&A, among European M&A, slumped...

LBO syndications arranged May.(BUYOUTS)
June 1, 2007... Alliance Boots TARGET NATION: UK DATE ANNOUNCED: 14/05/07 DEAL TYPE: LBO ACQUIRER (S): KKR OR TERRA FIRMA TOTAL VALUE: UNKNOWN MANDATED ARRANGER (S): FOR KKR: BANK OF AMERICA, BARCLAYS, UNICREDIT (THROUGH HVB),...

Refinancing.(BUYOUTS)
June 1, 2007... Refinancings continue apace in the private equity world as sponsors cash in on the generous credit market. The biggest of the May bunch is Rexel, the French electronic parts distributor. The recapitalisation will see owners Clayton Dubilier...

Private equity-backed takeovers subject to EU competition law.(BUYOUTS)
June 1, 2007... Alliance Boots PRIVATE EQUITY BACKER (S): KKR BUSINESS DESCRIPTION: PHARMACY-LED HEALTH AND BEAUTY GROUP DEAL VALUE: 11BN [pounds sterling] NOTIFIED: 08/05/07 PROVISIONAL DEADLINE: 18/06/07 CLEARED: N/A KKR is...

Buyouts with European targets March 23 to May 16 2007.(BUYOUTS)(Table)
June 1, 2007... BUYOUTS WITH EUROPEAN TARGETS MARCH 23 TO MAY 16 2007 Date announced Target name Target industry 27/04/07 All Metal Services Ltd Wholesale trade-durable goods 20/04/07 Alliance Boots PLC Drugs...

Seeking buyers.(Table)
June 1, 2007... SEEKING BUYERS Seeking buyers includes listings of all European companies that have announced plans since 22 April, 2007 until 17 May, 2007 to sell divisions, stakes or their entire company. It also includes purported sales efforts...

Calendar.(Brief article)(Calendar)
June 1, 2007... JUNE 4-6 JUNE Pension Plan Financial Risk London www.terrapin n.com/2007/ppfr 5-7 JUNE Private Equity World Latin America 2007 Miami, USA http//www.terrapinn.com/2007/pelatam/ 12-14 JUNE Hedge...

Announced deals.
June 1, 2007... ANNOUNCED DEALS Announced deals includes listing of private equity and venture capital transactions involving European targets announced between April 20, 2007 to May 16, 2007. The listings are ordered by target nation, and...

To list or not to list? Private equity firms 'steal' value from public markets. Baird's David Silver disagrees.(COMMENT)
June 1, 2007... Private equity has been the subject of extensive debate in recent months. In particular, much has been made of the tussle between the unions and the large buyout funds. Little of the criticism is justified although there is widespread...