European Venture Capital Journal articles from March 2009

European Venture Capital Journal archives from March 2009

The private equity scrimmage: LPs and GPs are battling it out for territorial domination now the economy has been drop-kicked.(EDITOR'S NOTE)
March 1, 2009... [ILLUSTRATION OMITTED] It's already become clear that two themes are set to dominate the new, subdued private equity industry for the foreseeable future--consolidation and investor relations. As such, this month's issue of EVCJ is stuffed...

Waterford sale imminent.(WATERFORD)(KPS Capital Partners)(Waterford Wedgwood PLC)(Brief article)
March 1, 2009... Troubled Ireland-headquartered Waterford Wedgewood is one step closer to being sold to US private equity fund KPS Capital Partners for an undisclosed sum. The Times cited a source close to the deal that said KPS and Deloitte were close to...

Shake-up at 3i.(LONDON)(Brief article)
March 1, 2009... 3i, Britain's oldest private equity firm, has had a rocky start to 2009. Philip Yea, group chief executive, stepped down and was replaced by Michael Queen. Cressida Hogg replaced Queen as managing partner of infrastructure. Shortly after...

Bridgepoint pushes cash into Fatface.(LONDON)
March 1, 2009... In a bid to stop the clothing chain from breaching its covenant agreement, UK mid-market private equity firm Bridgepoint is to inject an 'equity cure' into fashion chain Fat Face. Fat Face has more than 140 stores across the UK and was...

Altor rescues bank.(STOCKHOLM)
March 1, 2009... Altor Fund III and Bure Equity have acquired Swedish investment bank Carnegie and its insurance brokerage Max Matthiesen from the Swedish government for SEK2.28bn (US$280m). The Sweden's National Debt Office has been searching for buyers...

Losses for NIBC.(AMSTERDAM)
March 1, 2009... Owned by US private equity firm JC Flowers, Dutch merchant bank NIBC announced it had a 61m [euro] loss in the fourth quarter of 2008. The loss has been attributed to writedowns on assets and has already resulted in the departure of 13% of...

LPEQ welcomes Dinamia.(MADRID)(Dinamia Capital Privado SCR S.A.)(Brief article)
March 1, 2009... LPEQ the group formerly known as iPEIT, has its first Spanish member with the addition of Dinamia Capital. Listed on the Madrid Stock Exchange since December 1997, Dinamia is the fourteenth member of LPEQ the group established in 2006 to...

Private equity to the rescue.(MILAN)
March 1, 2009... Italian-based private equity firm Sator Private Equity has made a 110m [euro] investment in Italian bank Banco Profilo. The board of directors of Banco Profilio has approved a wider restructuring plan of the Bank's activities, reviewing the...

The importance of leadership: turnaround situations call for tough decision-making and a strong management team can make all the difference between success and failure.(NEWS ANALYSIS)
March 1, 2009... [ILLUSTRATION OMITTED] It's all about leadership during times like this. The world needs people to stand up and be counted, people willing to inspire and take charge, to lead the way and never falter, to be absolutely determined and to...

Only the strong will survive: the risk of buyout firms collapsing is higher than it has ever been. Aimee Donnellan reports on the coming shakeout of the European private equity industry.(NEWS ANALYSIS)(Industry overview)
March 1, 2009... [ILLUSTRATION OMITTED] The private equity industry is bracing itself for a move towards consolidation. Despite the lack of precedent, four-fifths of private equity executives believe their industry will consolidate this year, according to...

Cleantech hit by global cooling: the golden child of the global venture capital industry, cleantech is starting to feel the heat from the recession.(NEWS ANALYSIS)(Industry overview)
March 1, 2009... Clean technology had another record breaking year in 2008. Investments in North America, Europe, China and India reached a staggering US$8.4bn in 2008, up 38% from 2007, according to US-based research firm The Cleantech Group. But despite...

The time is right for venture: whilst the European VC industry worries over its portfolio companies, one investor is confident that pressure on prices is creating opportunity.(NEWS ANALYSIS)(Industry overview)
March 1, 2009... One of European venture capital's most consistent sources of LP funds has painted a morale boosting view of the future despite recent fears that VC portfolio companies could soon run out of cash as fundraising becomes harder. John Gripton,...

Trouble in America: the fate of the US venture capital market is bleak. With investments down, exits negligible and the fund raising environment diabolical, industry consolidation looms.(NEWS ANALYSIS)
March 1, 2009... The US venture capital industry is likely to shrink significantly over the coming two years. Exit opportunities have disappeared, with just six IPOs registered in 2008. Trade sales are equally scarce, as corporates lick their wounded balance...

Vision Capital closes fund seven.(SECONDARIES)
March 1, 2009... Direct secondaries specialist Vision Capital has raised 680m [euro] for its seventh fund after almost a year on the road. Vision Capital Partners (VCP) VII was launched in March 2008 and has attracted investment from Goldman Sachs Asset...

Siemens launches venture fund-of-funds.(VENTURE CAPITAL)
March 1, 2009... Siemens Venture Capital (SVC), the early-stage investment arm of the German engineering and electronics giant, has launched its first fund-of-funds product. Siemens Global Innovation Partners I GmbH & Co. KG (SGIP I)will target venture...

Paul Capital raises US$455m after almost two years on the road.(FUND-OF-FUNDS)
March 1, 2009... US-headquartered fund-of-funds manager Paul Capital has closed its fourth fund on target at US$455m. The fund, called Paul Capital Top Tier Investments IV, is backed by 19 investors, including Florida Retirement System Trust Fund and Ohio...

Danske hits target.(MID-MARKET)
March 1, 2009... Danske Private Equity, the Copenhagen-headquartered captive of Danske Bank Group and mid-market firm, has held a second closing on Danske Private Equity Partners IV on target at 600m [euro]. The target was raised from institutions in the...

NextStage raises 61m [euro] for second fund.(FRANCE)
March 1, 2009... French growth equity specialist NextStage has raised 61m [euro] at the first closing of its latest fund, Champion Small Cap II. The firm is aiming to raise 120m [euro], and has reached the halfway mark less than six months after launch.

Benson raises 500m [euro] for real estate: property investor closes third vehicle above target.(CLOSE)
March 1, 2009... [ILLUSTRATION OMITTED] Private equity real estate firm Benson Elliot Capital Management has closed its second pan European fund Benson Elliot Real Estate Partners III on 510m [euro], against a target of 500m [euro]. Benson Elliot...

Irish fund targets life science: Seroba Kernel raises 75m [euro] under Enterprise Ireland programme.(EARLY-STAGE)
March 1, 2009... An Irish life sciences venture capital fund has launched with a first closing of 75m [euro]. Seroba Kernel Life Sciences Fund II will target opportunities in both Ireland and the UK, and becomes the seventh fund to receive support from...

Double exit for 3i: UK buyouts house ends troubled month with sales of DIAB and Insensys.(BUYOUTS)
March 1, 2009... [ILLUSTRATION OMITTED] 3i, the London-headquartered private equity outfit, has sold its stakes in Swedish materials specialist DIAB and UK wind energy technology provider Insensys. Despite revealing in an interim management statement...

Lyceum sells SPI: Npower buys social housing maintenance business.(TRADE SALE)
March 1, 2009... UK private equity firm Lyceum Capital has sold SPI Group to energy company npower for an undisclosed sum. SPI provides mechanical and electrical installation and repair and maintenance services primarily to the social housing and public...

Inflexion sells CHKS.(HEALTHCARE)(Inflexion Private Equity)(Brief article)
March 1, 2009... UK mid-market player inflexion Private Equity has sold CH KS Limited, a provider of healthcare intelligence and quality improvement services, to professional services group Capita for 11.6m [pounds sterling]. CHKS was the UK division of...

Enterprise Ventures sells fibre optic specialists.(TECHNOLOGY)
March 1, 2009... Enterprise Ventures (EV), a North of England-based VC house, has made a 3.6x return on the sale of H20 Networks Limited. The sale brings to an end an investment period which began when EVacquired H20 in September 2006 via its Coalfields...

Euro VCs exit Purple Labs.(SOFTWARE)
March 1, 2009... Purple Labs, a French mobile software company that has received around 35m [euro] of venture capital financing, has been acquired by Swiss rival Esmertec. The new entity will be renamed Myriad and retain Esmertec's listing on the Swiss...

Preparing for change: it is a time of great turmoil in the world of private equity, and Bruno E. Raschle, CEO of fund-of-funds manager Adveq, is expecting new opportunities and new challenges as the industry undergoes significant change.(PROFILE)(Interview)
March 1, 2009... Sitting in the fund-of-funds space a very privileged view of the private equity landscape. On the one hand, it allows the manager to observe from on high the comings and goings of the GP world, currently one infused with a strange combination...

The balance of power: when private equity ruled the world, investors had to abide by the diktats of the GP. Now, with the industry facing its toughest test, received wisdom says LPs will wrest back control. But, as Vicky Meek reports, the reality is more complicated.(FEATURE: LP-GP RELATIONS)
March 1, 2009... [ILLUSTRATION OMITTED] When the titans of the buyout world start admitting they are no longer in the driving seat when it comes to discussions with their investors, we know the private equity industry is facing more than a few issues....

New conditions, new terms: the fund raising environment is so tough that LPs are advising GPs not to bother, and those that do have better be prepared for some tough talking.(FEATURE: LP-GP RELATIONS)
March 1, 2009... With many LPs facing overallocation and/or liquidity issues (see main text), the prospects for new fund raisings don't look I great. "Fund raising will be extremely tough this year, particularly for those looking to raise anything above 1bn...

The long road ahead: the fund raising trail has never been a more challenging environment as placement agents prepare for a hard trek and expect to lose some along the way as consolidation beckons.(FEATURE: PLACEMENT AGENTS)(Industry overview)
March 1, 2009... [ILLUSTRATION OMITTED] It is not just private equity (PE) houses that are facing an uncertain year, but also the placement agents that support them on fund raising. As LPs face their own pressures, capital for PE funds is scarce, impacting...

Only the best will succeed: while many LPs have cut back or put on hold investments in private equity, high-quality buyout managers are still able to raise new primary funds. So, what are the kinds of buyout funds that placement agents believe are most likely to succeed in the current market?(FEATURE: PLACEMENT AGENTS)
March 1, 2009... With LPs avoiding mega funds that depend on high levels of leverage, there is more demand for mid-market groups with a good track record, says Andrew Bentley, a partner at independent advisory firm Campbell Lutyens. He says: "There may be more...

The day of reckoning: private equity prepares for the EU Commission's open hearing into regulatory reform.(LEGAL AND REGULATORY)
March 1, 2009... In a bid to answer European socialists' deafening calls for reform on hedge funds and private equity, the EU Commission has decided to hold an open hearing on February 26 and 27 in Brussels. The hearing will review national...

Money flocks to emerging markets: over US$60bn raised over course of 2008.(DATA ROOM)
March 1, 2009... Private equity in emerging markets continues to break records with 210 funds raising an all-time high of US$66.5bn in 2008, a 12% increase over the US$59bn raised in 2007. According to the latest research from the Emerging Markets Private...

UK venture capital braced for tough year ahead: new survey reveals affects of recession on British early-stage investment.(DATA ROOM)
March 1, 2009... One in five UK venture capitalists fears their average portfolio company is at risk of collapsing within six months unless they raise more money. In a survey conducted by Populous on behalf of the British Venture Capital Association, 45%...

Administrations skyrocket: recruitment, property and construction sectors take a pummelling.(DATA ROOM)
March 1, 2009... There has been a 20% increase in UK administrations in 2008 compared with 2007, according to business advisory firm Deloitte. The latest analysis of figures for last year revealed the recruitment sector bore the brunt of the downturn, with...

Fund raising tops US$554bn: second biggest haul ever as uncalled capital stands at US$1trn.(DATA ROOM)(Statistical data)
March 1, 2009... The global private equity industry raised US$554bn in 2008, the second highest sum in history, but still less than 2007. The latest data from Preqin reveals 768 funds reached final close last year, the lowest number since 2004. Preqin...

Middle East set for falling returns: firms confident investment activity will hold-up, but predict a decline in exits.(DATA ROOM)
March 1, 2009... Despite early indications that the Middle East would escape the effects of the credit crunch, the shockwaves of economic turmoil in Europe and the US are beginning to be felt. In a survey conducted by research consultancy Arbor Square...

Mega buyouts out in the cold: LPs looking elsewhere for investment opportunities.(DATA ROOM)(limited partnerships)(Survey)(Brief article)
March 1, 2009... Private equity investors will continue to shun mega buyout funds in favour of special situations and small and medium buyouts according to the latest LP allocation survey conducted by Almeida Capital. The survey interviewed over 150 active...

Big changes for 3i.(PEOPLE)(Brief article)
March 1, 2009... UK private equity house 3i has started the New Year with three strategic changes. Group executive Philip Yea is to stand down and be replaced by Michael Queen, and Cressida Hogg is to replace Queen as managing partner of infrastructure. ...

New Nordic head for Doughty Hanson.(PEOPLE)
March 1, 2009... UK buyouts firm Doughty Hanson has appointed Anders Tagt as principal and head of its Nordic team. As a principal and head of the Nordic region, Tagt will originate and lead transactions in these markets. Tagt, who is based in the...

Law firm appoints seven.(PEOPLE)
March 1, 2009... Law firm Paul, Hastings, Janofsky & Walker has appointed seven partners to its London office. The new partners are Michelle Duncan, Justin Jowitt, Christian Parker, Charles Roberts, Karl Clowry, Conor Downey and Tom O'Riordan. The team...

New director for Carlyle.(PEOPLE)
March 1, 2009... US private equity outfit The Carlyle Group named Ian Jackson as director of the London-based Carlyle Strategic Partners. CSP is Carlyle's Global Distressed & Corporate Opportunities group that invests in debt and equity of financially...

Permira appoints senior advisor.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] UK LBO giant Permira has appointed Keith Jones, former CEO of Morley fund Management, as senior advisor. Jones will be responsible for advising Permira's newly-formed financial services team on investment...

Apax promotes four.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] Private equity firm Apax Partners has made four promotions within its investment team based in Paris. The recently promoted...

Phoenix reshuffle.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] Mid-market private equity firm Phoenix Equity Partners has promoted Tom Ashlin and Sam Antrobus to principal. Ashlin joined Phoenix in 2004. Prior to this, he worked for Close Brothers...

Gottlieb enters Hotbed.(PEOPLE)(Julius Gottlieb )(Brief article)
March 1, 2009... [ILLUSTRATION OMITTED] Private investor syndicate Hotbed has appointed Julius Gottlieb as head of property. He previously held the position of chief financial officer at Lend Lease and is a member of Bank of England Property Forum. ...

Baird hires.(PEOPLE)(appointment of Michael Mortensen )(Brief article)
March 1, 2009... Employee-owned international private equity firm Baird has added Michael Mortensen as a director to its European Institutional Equity Services team. Mortensen, who joins Baird from Wachovia (formerly AG Edwards), is based in London and manages...

Goldman's loss is Impetus' gain.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] UK-based venture philanthropy outfit Impetus Trust has appointed former Goldman Sachs executive director Meredith Niles as investment manager. Niles joins the investment team at Impetus to research and assess...

New MD for Close.(PEOPLE)
March 1, 2009... Independent corporate finance house Close Brothers has appointed David Benin as managing director in its French office. [ILLUSTRATION OMITTED] Based in Paris, Benin will jointly lead the French Advanced Manufacturing team with George...

New investment manager for Hermes.(PEOPLE)(Hermes Private Equity appoints Lynsey Register )(Brief article)
March 1, 2009... Hermes Private Equity, the private equity arm of Hermes Pensions Management, has appointed Lynsey Register as investment manager. Prior to joining Hermes, Register spent four years working for private equity fund-of-funds, firstly with...

GMT promotes three.(PEOPLE)
March 1, 2009... GMT Communications Partners, the London-based private equity firm specializing in investments in the communications sector has made three new promotions within its senior team. Jonathan Gillbanks has been promoted to managing director,...

TVM promotes Dr. Peter Neubeck to principal.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] TVM Capital Life Sciences has promoted Dr. Peter Neubeck to principal. He joined the practice in early 2008 as a senior associate, based in Munich. As a principal, he will be involved in investment management,...

Cardano hires.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] Investment consultancy Cardano has announced the appointments of Richard Urban and Pushkin Singh Akhawat to its London-based Investment Management Team. Urban will focus on researching and selecting property...

Advent recruits.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] Global private equity firm, Advent International has announced that Peter Nachtnebel will be joining the firm's Central & Eastern Europe team. He will be based at Advent's Prague office. Nachtnebel joins Advent...

Promotion at Baltic.(PEOPLE)(Baltic Mezzanine appointed Ossi Vasala )(Brief article)
March 1, 2009... Baltic Mezzanine, an affiliation of Nordic Mezzanine, has appointed Ossi Vasala as head of managing a mezzanine fund investing in the Baltic countries and Poland. Vasala will be located in Helsinki. Previously, he worked as a senior...

Pilot launches.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] Pilot Partners, a new firm comprising of executives and researchers, has launched its specialist interim management business. The new firm will be led by Wheeler and Michael who have...

Dubai makes changes.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] [ILLUSTRATION OMITTED] International Capital has two appointments to its equity practice. David Smoot has been appointed CEO of private equity and Eric Kump has been made head of DIC Europe from London. ...

New London rep for Jersey.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] Jersey Finance has announced that Clive Boothman will head up its new representative office in London. The new office, due to open in early 2009, will aim to provide Jersey's finance industry with a permanent...

Infracapital goes for magic number.(PEOPLE)(M&G Investment Management appointments)(Brief article)
March 1, 2009... M&G Investment Management, which manages the infrastructure fund Infracapital Partners has made three new appointments. Milton Fernandes, Kenton Bradbury and Bernd Schumacher have joined the investment team. Fernandes joins the team as a...

HgCapital expands buyout team.(PEOPLE)(Brief article)
March 1, 2009... UK mid-market firm HgCapital is to close its consumer and leisure team and its Amsterdam office. The firm will also be expanding four of its buyout teams. In future, the firm's buyout business and its 45 professionals will be organised...

LDC looks to Manchester.(PEOPLE)
March 1, 2009... Lloyds TSB Development Capital has appointed Catherine Houghton as investment director. She joins the firm from Bank of Scotland Integrated Finance. Houghton previously spent six years with PricewaterhouseCoopers' private equity advisory...

New vp for Gimv.(PEOPLE)
March 1, 2009... Belgian firm Gimv has appointed Peter Maenhout as an executive vice president. He will be responsible for both the XL fund as well as the Belgian buyout and growth capital activities. Maenhout has been running the Benelux office for New...

CDC appoints COO.(PEOPLE)
March 1, 2009... [ILLUSTRATION OMITTED] UK Government-backed emerging market private equity fund-of-funds investor CDC Group has appointed Shonaid Jemmet-Page as Chief Operating Officer. Jemmet-Page joins from Unilever where she had worked since 2001,...

Senior appointments for Augusta.(PEOPLE)(Brief article)
March 1, 2009... Independent merchant bank Augusta & Co has made a number of senior appointments to its debt advisory and restructuring practice as well as its renewable energy advisory business. James Knight is joining the partnership having worked at...

KKR appoints Donohoe.(PEOPLE)
March 1, 2009... Private equity giant Kohlberg Kravis Roberts has appointed Suzanne Donohoe as managing director and global head of the client and partner group for the firm's Global Capital and Asset Management Group. Donohoe, who will be based in New...

LBO syndications.(BUYOUTS)
March 1, 2009... Bodycote TARGET NATION: UK DATE AN NOU NCED: 29/08/08 ACQUIRER: CD&R TOTAL VALUE: 417M [pounds sterling] ARRANGER: BARCLAYS FINANCING: 255M [pounds sterling] Bodycote Testing has been relaunched to syndication....

Restructurings.(BUYOUTS)
March 1, 2009... Ferretti TARGET NATION: ITALY SPONSOR: CANDOVER Luxury speedboat manufacturer Ferretti is understood to be in default of its debt commitments, after missing a scheduled mezzanine interest repayment. Sponsor Candover and the...

Seeking buyers.
March 1, 2009... SEEKING BUYERS Seeking buyers includes listings of all European companies that have announced plans since January 13, 2009 to February 18, 2009 to sell divisions, stakes or their entire company. It also includes purported sales efforts...

Announced deals.
March 1, 2009... ANNOUNCED DEALS Announced deals includes listings of private equity and venture capital transactions involving European targets announced between January 13, 2009 and February 18, 2009. The listings are ordered by target nation, and...

A material concern: as the end of year reports season approaches and worries over portfolio companies rise, Robin Johnson, a corporate partner at international law firm Eversheds, discusses how going concern will impact on directors in 2009.(COMMENT)
March 1, 2009... [ILLUSTRATION OMITTED] The credit crunch, the lack of liquidity and capital of the banks as they battle with Basel II are well documented. Is the next crisis of confidence, however, about to hit corporates and private equity houses as...