European Venture Capital Journal articles from June 2009

European Venture Capital Journal archives from June 2009

Calling for European unity: national markets are too small and fragmented--Europe needs a unified market.(EDITOR'S NOTE)
June 1, 2009... [ILLUSTRATION OMITTED] The British venture capital and private equity trade association, the BVCA, published some new research this month comparing the UK venture capital market with its historically more successful brothers in the US and...

Receiverships takes lion's share in UK buyouts: latest statistics highlight the plight of industry, but the situation is not as bad as feared.(LEADER COMMENT)
June 1, 2009... The first quarter of 2009 shows the UK buyout market has a long road of recovery ahead as only three deals were completed valuing over 100m [pounds sterling], according to the Centre for Management Buyout Research (CMBOR). The latest...

The shipping news: outlook choppy as private equity rides out the wave.(LEADER COMMENT)
June 1, 2009... The chatter about economic recovery may very well be true. One of the largest indicators of the state of global trade, the Baltic Dry index, has regained some of the losses seen earlier this year and has been at a historically healthy level of...

PE chair makes bid for Eircom.(DUBLIN)(Powerscourt Investments)(Brief article)
June 1, 2009... Sean Melly, chairman of Dublin-based private equity firm Powerscourt Investments, has tabled a bid for telecom provider Eircom. Melly is said to be in advanced talks with investment bank JPMorgan regarding a package of finance to...

SVG breaks glass ceiling.(LONDON)
June 1, 2009... UK private equity and fund management business SVG has appointed Lynn Fordham as chief executive, making her the most prominent female chief executive in the industry. Fordham was promoted from finance director, having joined the firm in...

Boots capitalises on distressed debt market.(LONDON)
June 1, 2009... KKR-backed Alliance Boots has bought back 400m [pounds sterling] in debt. The retailer that was taken over in the largest European buyout of all time bought the debt back at nearly half of the trading value. Finance director George...

Aurora launches Russian fund.(MOSCOW)
June 1, 2009... Mid-sized private equity firm Aurora Investment Advisors has launched a new Russian-focused fund with a target value of 50m [pounds sterling]. Aurora II will invest in Aurora Russia's shares and make direct investments in private, growth...

RHJ to make bid for Opel.(FRANKFURT)
June 1, 2009... Private equity investor RHJ is planning to make an offer for General Motors car manufacturer Opel. The offer will give GM a substantial stake in the business. Italian carmaker Fiat and Canadian autoparts maker Magna International are...

Chrysler gives Cerebrus wide berth.(MILAN)
June 1, 2009... Ailing car giant Chrysler has sought out Fiat chief executive Sergio Marchionne to assume management control of the firm as it attempts to distance itself from private equity-backer Cerebrus Capital Management. As part of a wave of senior...

Sun shines on Spanish solar.(MADRID)
June 1, 2009... UK-based private equity firms are increasingly looking to sunny Spain to invest in solar. UK mid-market firm HgCapital recently acquired a 5.25MWp Spanish solar photovoltaic project from local real estate company Montebalito and...

Aim off target: once the IPO champion of Europe, cancellations are now all the rage on London's junior stock exchange. Aimee Donnellan looks at the trouble with aim.(NEWS ANALYSIS)
June 1, 2009... The UK IPO market couldn't a worse state. In Q1 2009 there wasn't a single IPO brought to the Alternative Investment Market (AIM). Setting a sobering precedent for the London Stock Exchange's younger brother, more firms cancelled their listing...

Finding a cash cow: despite other sectors wilting under the heat of the recession, agriculture is experiencing a growth spurt. Amanda Williams Palmer looks at the opportunities for private equity.(NEWS ANALYSIS)
June 1, 2009... Agriculture is ploughing a lonely furrow in the current economic environment as one of the few to have actually increased in investor appeal. Farming, forestry and fishing were the only non-governmental sectors to have grown during 01 2009...

Funding venture capital: the life of a VC on the fund raising trail has often been a tortuous one, never more so than in the midst of a recession. Tom Allchorne looks at who invests in European venture and what can be done to loosen purse strings.(NEWS ANALYSIS)
June 1, 2009... Fund raising for European venture capital has long been a thankless task for all but a select few. Underperformance in the face of US venture and European buyouts has made it an uphill struggle. Despite this, venture capital fund raising...

Falling down: Central and Eastern European infrastructure projects are stalling as investors flee the region.
June 1, 2009... [ILLUSTRATION OMITTED] During the private equity boom years, Central and Eastern Europe (CEE) was regarded by many private equity infrastructure investors as a near perfect investment destination--debt was cheap, competition was rife and...

First reserve blazes a trail: as institutional investors allocate more and more to 'real assets' like energy and infrastructure, private equity is looking to tap into the investment stream. Amanda Williams Palmer looks at one of the sectors powerhouses.
June 1, 2009... [ILLUSTRATION OMITTED] There is a monumental need infrastructure investments to support the energy sector--the latest forecasts put the cost at US$26trn. The question mark is over where this money is going to go come from. There are...

The sleeping giant: venture capital in China has failed to live up to the hype, with deal flow and fund raisings disproportionately small for one of the world's most powerful economies. Lyndon Driver reports on the slumbering market.(NEWS ANALYSIS)
June 1, 2009... [ILLUSTRATION OMITTED] With a population of 1.3 a GDP that has pushed China above Germany as the third largest economy in the world, the Chinese venture capital industry is disproportionately small. Its lack of size has not prevented...

Merrill sells Kreos III position: venture debt specialist welcomes five new investors.(FUND SALE)
June 1, 2009... Merrill Lynch has sold part of its LP commitment in the third fund of venture debt specialist Kreos Capital in a 150m [euro] deal to five investors. The new backers are Paul Capital, AIG PineStar Capital (the secondaries private equity...

CBPE fund reaches 300m [pounds sterling]: UK firm aims for summer final close.(MID-MARKET)(CBPE Capital)(Brief article)
June 1, 2009... CBPE Capital, the mid-market spin-out from Close Brothers, has received 300m [pounds sterling] in commitments for its eighth UK mid-market private equity fund. CBPE VIII held its first closing on 270m [pounds sterling] and subsequently...

Rockley targets China.(EARLY-STAGE)
June 1, 2009... Technology investor the Rockley Group has joined forces with a Chinese VC to raise a US$100m fund to encourage entrepreneurship in the Shandong Province in China. Rockley will launch and manage the fund, and partners of Rockley i have...

Curzon spins-out.(CLEANTECH)
June 1, 2009... Europe has a new cleantech firm, Curzon Park Capital, a spin-out of E-Synergy, the UK seed investor. The firm will manage the E20m Sustainable Technology Fund (STF), a vehicle launched by E-Synergy in January 2007.

HSBC cashes in on cleantech.(INFRASTRUCTURE)(HSBC Specialist Investments)(Brief article)
June 1, 2009... HSBC Specialist Investments has held its first closing of the HSBC Environment Infrastructure Fund on 117m [euro]. It aims to raise 500m [euro] in total. With a primary regional focus on Europe, the fund invests in the development and...

HarbourVest closes fund.(SECONDARIES)
June 1, 2009... Fund-of-funds manager HarbourVest Partners has raised US$2.9bn for its global secondaries fund, Dover Street VII. Hitting its cap and oversubscribed, the vehicle will invest in venture and leveraged buyouts, as well as other private equity...

DDC Ventures launches.(LIFE SCIENCES)
June 1, 2009... Netherlands-headquartered VC LSP has been awarded the mandate to manage DDC Ventures, a new ClOOm venture capital fund set-up by Max Planck Innovation, the technology transfer arm of German research institute the Max Planck Society.

Wendel completes largest exit of the year: new chief Lemoine oversees 630m [euro] sale of Oranje-Nassau oil arm.(ENERGY)
June 1, 2009... [ILLUSTRATION OMITTED] French LBO giant Wendel has completed the biggest European exit of the year through the sale of the oil and gas activities of Oranje-Nassau in a 630m [euro] deal. Oranje-Nassau Energie has been acquired by a...

Walking with angels: new study reveals almost half of investments generate positive returns.(RESEARCH)
June 1, 2009... Business angels generate an average return of 22% on investments in UK start-ups according to research published by NESTA and the British Business Angels Association. The figure is based on a holding period of four years, and is slightly...

Wood Mackenzie auction attracts bidders.(CANDOVER)
June 1, 2009... Troubled UK buyouts house Candover has received at least 10 indicative bids for British energy consultancy Wood Mackenzie, according to Reuters' sources. The business is valued at 650m [pounds sterling] or more, and reports have linked...

3i receives Franklin bids.(OIL)
June 1, 2009... HSBC Private Equity, Actis Capital and Singapore's Halcyon Investment Corp have all been touted as bidders for 3i's Franklin Offshore International, the South East Asian-based oil services provider. 3i acquired the business in July 2007,...

CapMan sells XLENT.(TECHNOLOGY)
June 1, 2009... Swedestart Tech, the technology fund managed by Nordic firm CapMan, has sold its stake in XLENT Consulting Group, an IT consultancy, to the company's management in an MBO backed by Neqst Partner. Swedestart invested in XLENT in 2002, and...

3i ten down.(SECONDARIES)(Cipio Partners acquired ten companies from 3i Group PLC)(Brief article)
June 1, 2009... Direct secondaries specialist Cipio Partners has acquired ten companies from 3i's venture portfolio. The companies are all late-stage investments across the IT, internet, media and cleantech business. The deal is part of 3i's strategy...

Carlyle sells SmartTrust.(MOBILE)
June 1, 2009... The Carlyle Group has sold its holding in SmartTrust, a UK developer of mobile phone software, to Giesecke & Devrient, a German smart card leader. Carlyle Europe Venture Partners acquired SmartTrust in 2002.

Where VCs fear to tread: as Europe's venture capitalists have swooped away from the seed and early-stage end of the investment landscape, business angels have flocked to the space, as Brigitte Baumann, newly-appointed president of European angel network EBAN, discusses with EVCJ.(PROFILE)(Interview)
June 1, 2009... European business angels, unlike more flamboyant US counterparts, have typically kept a low profile, preferring to operate quietly and behind the scenes, pulling strings and pushing capital into very early-stage businesses and stoically taking...

Stuck in the middle: at the end of last year, mezzanine houses couldn't wait to blast off the starting line for what they thought was going to be a busy--and profitable--2009. In reality, it's proving to be more of a marathon than a sprint.(FEATURE: MEZZANINE)
June 1, 2009... [ILLUSTRATION OMITTED] "If you're looking to invest in new deals right now, you're going to be disappointed--there's almost nothing in the market," says Rolf Nuijens, head of the North European mezzanine investment team at ICG. "The...

Not wanted: as market conditions change and sponsors take control, mezzanine is being pushed out.(FEATURE: MEZZANINE)
June 1, 2009... As economic conditions have deteriorated further over the months since Christmas and the bad news has started to filter through from portfolio companies, mezzanine houses, just like their private equity counterparts, have found some of the...

Divided loyalties: nominee directors have to walk a tightrope of responsibility at the best of times, but even more so when the company is facing financial difficulties. Ian Moore, a partner in the London office of Norton Rose, reviews their duties and liabilities.(LEGAL AND REGULATORY)
June 1, 2009... Directors have to walk a tightrope of responsibility at the best of times. In the current economic climate, where some private equity portfolio companies are facing liquidity challenges, it is crucial that directors who have been nominated by...

Harsh environs: the difficulties investing in developing countries is never so evident than when it comes to conducting due diligence, particularly that of an environmental nature. Here, Patrick McCurry reports on the challenges private equity can face.(FEATURE: ENVIRONMENTAL DUE DILIGENCE)
June 1, 2009... [ILLUSTRATION OMITTED] While Western Europe and North America have an established environmental protection regime, the situation is very different in many emerging markets. Even in parts of Central and Eastern Europe (CEE) that are now...

After communism: years of neglect has left many parts of the former Soviet Union an environmental nightmare.(FEATURE: ENVIRONMENTAL DUE DILIGENCE)
June 1, 2009... In Russia and much of the former Soviet Union (FSU), acquirers of companies may have to deal with the consequences of decades of underinvestment in environmental protection, both under Communism and in the years since. Contaminated land and...

Secondaries boom on hold: buyers are keen, but sellers reluctant.(DATA ROOM)
June 1, 2009... A quarter of private equity LPs plan to exploit the secondaries market to pick up bargains very soon, according to the latest research from industry data providers Preqin. In a survey of 568 institutional investors conducted in the first...

M&A decline eases: private equity transactions down by just 1%.(DATA ROOM)
June 1, 2009... The rate of decline in the sales of UK mid-market companies has slowed in Q1 of 2009. The latest findings from corporate finance advisers BDO Stoy Hayward's Private Company Price Index (PCPI) indicate that although Q1 marked the fifth...

Investors close door on real estate: fund raising at 2004 levels.(DATA ROOM)
June 1, 2009... Private equity real estate funds are feeling the pinch of the economic downturn with research showing 22 funds raising US$13bn globally in Q1 2009, the lowest amount since Q4 2004, when 45 funds raised US$10bn. A report from data providers...

SVG replaces Williams.(PEOPLE)(Andrew Williams)(SVG Advisers)(Brief article)
June 1, 2009... [ILLUSTRATION OMITTED] Following the departure of CEO Andrew Williams, SVG Advisers, the UK private equity and fund management business of SVG Capital, has found a replacement in Tony Dalwood. Dalwood joined SVG Advisors in 2002 as...

Double hire for Osmosis.(PEOPLE)
June 1, 2009... [ILLUSTRATION OMITTED] London-based asset manager Osmosis Capital has appointed Jim Totty as partner and senior investment manager. Totty joins Osmosis from Citi Alternative Investments' Nikko Principal Investments private equity...

IPES chairman makes way for new recruits.(PEOPLE)
June 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] One of Guernsey's most prominent female entrepreneurs, Connie Helyar has resigned her post as chairman of fund administrator International Private Equity Services (IPES) to make way for the...

Alix appoints two.(PEOPLE)(AlixPartners L.L.C.)(Liam Colley)(Steve Ambort)(Brief article)
June 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] Financial advisory and restructuring consultancy AlixPartners has made two new additions to its London office. Liam Colley joins the firm as a managing director in the firm's Financial...

Henderson appoints chief economist to team.(PEOPLE)
June 1, 2009... Following the recent acquisition of New Star Asset Management, Henderson Global Investors has appointed Simon Ward as chief economist. Ward has spent over 20 years as an economist in financial markets, and previously held the dual role of...

No. 13 for Alvarez & Marsal.(PEOPLE)
June 1, 2009... [ILLUSTRATION OMITTED] Turnaround advisory firm Alvarez & Marsal has made its thirteenth new appointment this year with the hire of a new managing director and co-head of the firm's restructuring practice in Germany. Dr Nedim Cen...

Foresight looks to solar.(PEOPLE)(appointment of Pietro Zerauschek)(Brief article)
June 1, 2009... [ILLUSTRATION OMITTED] Foresight Group has appointed a new technical director to its solar team. Pietro Zerauschek will be based in Foresight's Rome office. For the past five years, he has worked for ship classification specialist,...

Octopus appoints director.(PEOPLE)
June 1, 2009... [ILLUSTRATION OMITTED] UK early stage investor Octopus Ventures has appointed Jo Oliver as investor director. As part of his new role, Oliver will be responsible for overseeing management and growth of the Octopus Investor Group,...

Charlemagne appoints property head.(PEOPLE)(Charlemagne Capital)(Michael Russell)(Brief article)
June 1, 2009... [ILLUSTRATION OMITTED] Charlemagne Capital, a private equity firm focused on emerging markets, has appointed a new head of private equity specialising in property. Based in London, Michael Russell will take over from David Curl. As...

Double recruit for August.(PEOPLE)
June 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] UK small cap investment firm August Equity has added Mehul Patel and Ranji Goodwin to its investment team. Patel joins the firm as an associate from PricewaterhouseCoopers corporate...

Further shake-up at 3i.(PEOPLE)(Brief article)
June 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] 3i's German head Stephan Kruemmer has left the firm citing personal reasons. He has been at the UK-headquartered private equity house for four years. He is to be succeeded by Ulfvon...

KKR hires US ambassador to Saudi Arabia.(PEOPLE)
June 1, 2009... Seven days after setting up shop in Dubai, private equity giant Kohlberg Kravis Roberts & Co has appointed Ambassador Ford M. Fraker, the former US Ambassador to Saudi Arabia, as senior advisor to the firm. As part of his new role, Fraker...

123Venture names investor relations director.(PEOPLE)(Sarah Doyle)(Brief article)
June 1, 2009... [ILLUSTRATION OMITTED] Paris-based 123Venture has appointed Sarah Doyle as director and head of institutional investor relations. Prior to 123Venture, Doyle was partner responsible for investor relations at the fund of funds team in...

SEP appoints general counsel Buchan.(PEOPLE)
June 1, 2009... UK VC Scottish Equity Partners (SEP) has appointed Andrew Buchan as general counsel. In his new role, Buchan will be responsible for investment transactions as well as corporate and fund legal issues. He will work alongside company...

Triple hire at UBS.(PEOPLE)
June 1, 2009... Swiss-headquartered banking group UBS has made three appointments in its high-yield and leveraged finance team in London. Vince Gomez joins from Societe Generale, where he was a high-yield trader with 10 years of experience. He will report...

Restructurings.(BUYOUTS)(briefs)
June 1, 2009... Almatis TARGET NATION: GERMANY SPONSOR: DIC DIC-owned Almatis has hired Close Brothers to advise on managing its US$1bn debt burden, Rothschild is advising a group of senior lenders and KPMG has been brought in to do due diligence...

Seeking buyers.(Table)
June 1, 2009... SEEKING BUYERS Seeking buyers includes listings of all European companies that have announced plans since April 16, 2009 to May 19, 2009 to sell divisions, stakes or their entire company. It also includes purported sales efforts that...

Announced deals.
June 1, 2009... ANNOUNCED DEALS Announced deals includes listings of private equity and venture capital transactions involving European targets announced between April 16, 2009 and May 19, 2009. The listings are ordered by target nation, and...

The wealth in waste: what we throw away is now big business. Nigel Aitchison, a partner at Foresight Group looks at the investment opportunities in recycling.(COMMENT)
June 1, 2009... Until now, LPs interested in allocating capital to the cleantech and environmental sectors have had limited choice: technology funds taking high risk, long-term bets on emerging technologies, or buyout funds using leverage to drive returns from...

The great realignment: the private equity model, like any functional business, relies on an alignment of interests. Limited partners commit money to general partners, GPs invest it in standout deals, and all share from profitable exits.
June 1, 2009... [ILLUSTRATION OMITTED] Until recently, that model worked well enough that LPs were largely content to simply hold fund stakes till maturity. While the occasional interest traded hands in the name of portfolio rebalancing, few investors...

The state of secondary fundraising.
June 1, 2009... Excitement for the secondary market has been building for a while, and judging by the number of firms currently raising secondary funds, a good number of private equity professionals see opportunity there, and anticipate ample interest from...

Where the money came from in 2008.(FUNDRAISING STATISTICS)(Statistical table)(Brief article)
June 1, 2009... Where The Money Came From In 2008 Source of Capital by Investor Type Other Investors 10.07% Public Pension Funds 27.87% Corporate Pension Funds 9.62% Endowments/Foundations 7.35% Banks/Finance Companies 12.44%...

Where the money is going in 2008.(FUNDRAISING STATISTICS)(Statistical table)(Brief article)
June 1, 2009... Where The Money Is Going In 2008 U.S. Buyout and Mezzanine Fundraising 2008 ($Mil) Mezzanine Funds Buyout Funds 1996 $28,438.0 1997 $46,747.3 1998 $70,368.5 1999 $49,062.5 2000 $93.879.9 2001 ...

Guide to placement agents.(Directory)
June 1, 2009... ACANTHUS ADVISERS LLP MAIN OFFICE Acanthus Advisers 7 Cavendish Square London W1G OPE United Kingdom Email: info@acanthus.eu.com Phone: +44-20-7612-9570 Fax: +44-20-7612-9571 URL: www.acanthus.eu.com...