European Venture Capital Journal articles from May 2007

European Venture Capital Journal archives from May 2007

Someone's at the gate: corporate financing gets creative.(EDITOR'S NOTE)
May 1, 2007... Listed companies are wising up to the tactics used by private equity managers and applying them to their own business to avoid buyouts. One idea that is being touted by investment bankers to their clients is that of a "multi-layered" or...

KKR's record setting buyout.(LONDON)(Kohlberg Kravis Roberts & Co acquires Boots)(Brief article)
May 1, 2007... KKR won the takeover battle for alliance Boots and set records for Europe's largest buyout with its 12.2bn [pounds sterling] bid. The 11.39 [pounds sterling] per share offer gives Boots an enterprise value of 12.2bn [pounds sterling] and was...

Private equity under attack.(THE HAUGE)
May 1, 2007... Private equity and hedge funds have come under attack in the Netherlands during a session at The Hague. Representatives from a range of firms, including CVC, were grilled by an all-party panel of Dutch MPs. Elly Blanksma of the governing...

JV for Italy.(PARIS/MILAN)
May 1, 2007... French private equity firm Eurazeo and Italian investment boutique Banca Leonardo have launched Euraleo, a 50/50 joint venture exclusively dedicated to the Italian private equity market. The alliance between the two firms is aimed at...

Largest LBO in two years imminent.(MADRID)
May 1, 2007... British Airways is preparing to launch a takeover bid for Spanish airline Iberia with the backing of a consortium private equity firms in what would be Spain's largest LBO since 2005 and second largest of all time. In a statement BA said...

EVCA backs PE.(BRUSSELS)
May 1, 2007... At a private equity conference on 29 March held at the European Parliament by Europe's Social Group (PES), it called for a social market economy rather than a financial market economy. Javier Echari, Secretary General of the European Venture...

Israeli VC fundraising down by 67%.(TEL AVIV)
May 1, 2007... Israeli venture capital funds raised only US$473m in 2006, representing a 67% decline from the US$1.46bn raised in 2005, according to the Annual Survey of Israeli Venture Capital Fund Raising, conducted by IVC Research Center. 1VC estimates...

Show me the dumb money: after Blackstone's planned listing this month on NYSE, other bullish private equity firms such as Apollo will bring to bear listings on global stock markets. But are PE firms just looking for their next cache of dumb money?(NEWS ANALYSIS)
May 1, 2007... With the buzz surrounding private equity houses going public, investors are concerned over where a listed management team's priority lies: with them or with its shareholders. Shawn Wischmeier the CIO of the US$16bn Indiana Public Employees'...

A new bubble to blow: Russia currently boasts Europe's third largest population of internet users and consumer spending is expected to double over the next four years. Private equity managers want a taste but state figures reflect a market which already seems overheated. Are these investors in for the financial ride of their lives or a major crash? Amanda Palmer in London and Denis Samsonov in Moscow investigate.(NEWS ANALYSIS)
May 1, 2007... Cisco systems grabbed headlines this month with its first direct investment in Russia. The California-based tech monolith participated in an investment round for ecommerce site Ozon.ru--the Russian Amazon.com--which nets over 120,000 visitors...

Cash crunch stunts Cleantech's growth: European governments need to attract venture investment says Tom Allchorne.(NEWS ANALYSIS)
May 1, 2007... Cleantech is the fastest growing sector for venture capital in Europe. In 2006 there was over 400m [euro] worth of VC investment in cleantech, a catch-all name which includes alternative energy solutions, solar panels, material innovation and...

Sluggish start for European IPOs: it's been an unwelcoming public market so far in '07.(RESEARCH)
May 1, 2007... The European public markets have gotten off to a slow start for IPOs according to the latest figures from PricewaterhouseCoopers, with a 16% drop in number between the first quarter of 2007 and the same period last year. Where Q1 2006 recorded...

Rise of CLOs increase default risk: debt advisers cast a stark warning.(REPORT)
May 1, 2007... The invasion of the debt market by collateralised loan obligations (CLOs) has fundamentally altered the lender/borrower relationship which could threaten the stability of many private equity-backed companies should the credit cycle take a turn...

Over half of UK SMEs have no plan: accountants warn of impending doom.(SURVEY)
May 1, 2007... Just 45% of British small to medium a business plan opines PKF Accountants, the UK advisory firm. In a survey 46% of respondents claimed to have a strategy but no plan and a further 9% say they have no plan at all, with 25% arguing that...

Buyouts market nosedives: start of 2007 is worst for three years.(INDUSTRY)
May 1, 2007... The opening quarter of this year for the UK buyouts market crashed to just 3.4bn [pounds sterling] following the record 9.3bn [pounds sterling] of deals completed in the closing three months of 2006 according to research house CMBOR. The...

Biotech boom: record levels of cash raised in 2006.(RESEARCH)
May 1, 2007... The European biotechnology sector experienced its greatest year on record in 2006 according to Ernst & Young's annual report into the industry, Beyond Borders. The figures for 2006 confirmed European biotech is back on the road to...

New dawn for New Star: UK asset manager to light up private equity.(LAUNCH)
May 1, 2007... New Star Asset Management is to make its first foray into the private equity market by launching a fund of funds called New Star Private Equity Investment Trust (NSPEIT) formed from the merger of August Equity Trust and the Rutland Trust. ...

ICG's fourth fund hits 2.25bn [euro]; UK mezz investor raises largest ever amount.(CLOSURE)(Intermediate Capital Group)
May 1, 2007... Intermediate Capital Group (ICG), the London-headquartered mezzanine provider, has closed its fourth fund by raising 2.25bn [euro], almost a 1bn [euro] more than its previous fund and one of the largest of its type in Europe. ICG Mezzanine...

AGF aims for 350m [euro] fund of funds; French firm to follow on from 2006 fundraising.(LAUNCH)
May 1, 2007... AGF Private Equity, the Paris-headquartered affiliate of AGF/Groupe Allianz, has launched its fifth offering to private equity investors through AGF Private Equity Holding V-Europe, a 350m [euro] fund of fund aimed at the European mid-market....

F&C on course for 200m [euro] fund of funds: UK asset manager reaches first close on mid-market vehicle.(LAUNCH)(F and C Investment Management Ltd)
May 1, 2007... F&C Investments has held a first closing on its latest private equity fund of funds, one aimed the European mid-market, which expects to close before the end of the year. So far F&C European Capital Partners has accumulated 112m [euro],...

Nanotech fund raises 45m [euro]; NanoDimension backs Crocus Technology.(INVESTMENT)
May 1, 2007... A venture capital firm focused solely on the nanotechnology industry has raised its maiden fund with 45m [euro] of commitments and has already completed its first investment. NanoDimension, registered in the Cayman Islands, operating out of...

Patron Capital collects 895m [euro]: third fund four times oversubscribed.(CLOSURE)
May 1, 2007... Patron Capital, a London-headquartered private equity firm focused on European property assets, has raised 895m [euro] for its third fund. Patron Capital III was officially launched in December 2006, attracting a mix of both existing and...

Alpha cashes in on discount store sale: Advent buys Stokomani.(SECONDARY)
May 1, 2007... The Paris office of Advent International has acquired a majority stake in Stokomani, a French retailer specialising in end-of-line and big brand product stock clearance. The business has been sold by Franco-German mid-market firm Alpha...

AXA powers for FLEX: GSO Capital Partners ends investment in German tool maker.(SECONDARY)
May 1, 2007... French mid-market player AXA Private Equity has backed an MBO of German power tool manufacturer FLEX Group, buying a majority stake from US firm GSO Capital Partners. The management team, led by outgoing managing director Joerg Hempfing...

Duke Street recaps Accantia.(REFINANCING)(Duke Street Capital investments in Accantia Health and Beauty Ltd.)(Brief article)
May 1, 2007... UK mid-market firm Duke Street Capital has refinanced its investment in Accantia Health & Beauty, the owner of the 'Simple' beauty brand it acquired in November 2003. The new package is worth 120m [pounds sterling] and follows its recent 80m...

Warburg oversees emgs float.(IPO)
May 1, 2007... ElectroMagnetic GeoServices, a Norwegian specialist in Seabed Logging (SBL), a technology that enables the detection of hydrocarbons beneath the seabed prior to drilling, has floated on the Oslo Stock Exchange at NOK135 per sham, giving it a...

SHE is the one for Baird.(TRADE SALE)(Specialist Heat Exchangers)(Brief article)
May 1, 2007... Baird Capital Partners Europe has sol Specialist Heat Exchangers (SHE), a UK designer and manufacturer of cooling systems for the automotive and industrial sector, to Dynamic Technologies, part of the Italian RACO Group, for 9m [pounds...

EpiStem on AIM.(IPO)
May 1, 2007... VC-backed biotech company EpiStem has floated on AIM raising 2.6m [pounds sterling] with shares priced at 124p per share. Based in Manchester, the company has received funding from a total of 33 venture capital sources, ranging from Individual...

IK builds housing exit: Prevesta realised.(TRADE SALE)
May 1, 2007... Industri Kapital (IK), the Nordic buyouts firm, has sold its two year investment in Prevesta, a Swedish producer of prefabricated houses, for around 204m [euro] to Norwegian housebuilder Block Watnes Group (BWG). The deal sees Inudstri...

Fat Face for Bridgepoint: Advent sheds clothing retailer in 360m [pounds sterling] deal.(SECONDARY)
May 1, 2007... Active clothing retailer Fat Face has been sold by owner Advent International to buyouts rival Bridgepoint for 360m [pounds sterling]. Bridgepoint is aiming to tap into the growing active lifestyle clothing sector with this acquisition, which...

VCs float cancer specialist: Norway's Algeta make Oslo debut.(IPO)
May 1, 2007... A cancer therapeutics company backed by five European venture firms has listed on the Oslo Stock Exchange raising 30m [euro] with a valuation of around 95m [euro]. The offering, priced at NOK47, was twice oversubscribed. Algeta is a cancer...

HgCapital tunes out of Hirschmann: car antenna maker sold back to management.(MBO)
May 1, 2007... London-headquartered firm HgCapital has completed its exit of the Hirschmann group through the sale of its car communication (HCC) business by selling its stake to the management team. HCC supplies antenna systems for radio and TV...

Charterhouse billed 2.4bn [euro] for ista: CVC sells German metering and billing business.(SECONDARY)
May 1, 2007... UK buyouts giant CVC Capital Partners has sold ista, an Essen-based company specialised in the submetering and billing of energy and water, to mid-market firm Charterhouse Capital Partners for 2.4bn [euro]. Part of CVC's portfolio since...

Sovereign trebles money on insurance sale: CMGL sold to Capita for 32m [pounds sterling].(SECONDARY)
May 1, 2007... UK buy & build specialist Sovereign Capital Partners has made a 3.3x return through the sale of CMGL Group, a provider of outsourced claims and insurance management services, to The Capita Group for 32m [pounds sterling]. The...

ECI sells Anix.(TRADE SALE)(ECI Partners L.L.P. aquires Xploite)(Brief article)
May 1, 2007... UK mid-market firm ECI Partners has sold Anix, a UK reseller of storage hardware and software solutions, to Xploite for 10.45m [pounds sterling]. The firm acquired the Bristol-based business in 1999. Anix supports over 130 organisations across...

SPEF makes colourful exit.(TRADE SALE)(SPEF LBO )
May 1, 2007... French buyouts house SPEF LBO has sold Colorant Chromatics to ColorMatrix for an undisclosed sum. Colorant Chromatics is a French supplier of color and additive concentrates and specialty compounds for high temperature plastics and...

Hotbed health sale.(MBO)(Hotbed aquired Mimosa Healthcare Holdings)(Brief article)
May 1, 2007... Hotbed, the UK's largest business angel network, has made 65 members an IRR of 31% through the sale of Mimosa Healthcare Holdings for 5.15m [pounds sterling] back to management. Hotbed acquired a 25% stake over two tranches, the first and...

Apax sells Cartesis: French business software developer bought by Business Objects.(TRADE SALE)
May 1, 2007... The French arm of buyouts powerhouse Apax has agreed to sell its stake in Cartesis, a provider of business performance management (BPM) software to global corporations, to Business Objects of the US for 225m [euro]. Apax leads a consortium...

Barclays Ventures fuels Bifold sale: secondary buyout of valve maker backed by Bank of Scotland.(MBO)
May 1, 2007... The small mid-market buyouts arm of UK banking giant Barclays Bank has sold its holding it Bifold FluidPower, a Manchester-based oil and gas valve manufacturer, in a 35m [pounds sterling] MBO backed by Bank of Scotland Integrated Finance. ...

Plus ca change: there's a culture shift underway in France, the stage for Continental Europe's most active private equity market. Entrepreneurs and family-owned businesses, after years of suspicion, are now opening up to the idea of selling to buyout funds. Vicky Meek looks at the future of a France not so hung up on its past.(FRANCE)
May 1, 2007... For a country often characterised as resistant to change and anti-capitalist, the success of the private equity market in France is surprising. Leveraged buyouts have been present in the market for nearly 20 years now, but over the last couple...

Striking behaviour: French trade unions quiet on the march of private equity.(FRANCE)
May 1, 2007... It's become a popular hobby among certain parts of the media, the political establishment and unions to demonise private equity in many countries. Germany has famously had Franz Muntefering, at the time chairman of the Social Democratic Party,...

A crowd gathers: in the competitive mid-market, private equity houses want to stand out from the masses. But can being unique really make a difference in winning deals?(MIDMARKET)
May 1, 2007... As the European private equity market matures, competition increases and sourcing deals becomes more difficult, mid-market houses are under pressure to differentiate themselves from the rest of the pack. With the stellar returns from buyouts in...

Closing the deal quickly: speed of execution has become increasingly important in today's auction-driven market. In the past, it could take six to eight weeks to close while today it can be done in a matter of days.(MIDMRKET)
May 1, 2007... One of the most important differentiators for mid-market firms is how quickly they can close a deal, as vendors are more likely to want to do business with people able to move fast. Speed of execution has become increasingly important in...

A look at tax deductibility on interest payments: Denmark, Germany and the UK aim to curb the shortfall in tax revenue from private equity backed companies.(LEGAL AND REGULATORY)
May 1, 2007... Debt issues continue to be at the forefront of top-level debate on private equity in many European countries and proposed legislative change in some northern European countries could result in buyout firms having to rethink deal economics...

Cisco ventures into Russia and Eastern Europe: from San Jose to St. Petersburg, this monolithic investor gets around.(PROFILE)(Interview)
May 1, 2007... In venture capital circles, California-headquartered Cisco Systems is best known as an acquirer of portfolio companies, consistently providing VCs some of the most profitable exits in the industry. This year's standout acquisition--the US$830m...

August unveils promotions: the partnership continues.(EMPLOYMENT)
May 1, 2007... August Equity, the lower-mid market private equity firm, has made a wave of promotions in time for the summer. First up is Sam Watkinson (top left) who has been made a director after joining the firm in August 2005. He is responsible for...

Capital Dynamic promotes trio.(PEOPLE)(Capital Dynamics AG promotes John Gripton as managing director)(Brief article)
May 1, 2007... Private equity asset manager Capital Dynamics has promoted John Gripton to managing director. Gripton has 17 years private equity experience and will also be taking up the role of head of investment management Europe, as well as continuing to...

Matrix' deals team.(PEOPLE)(Matrix Private Equity appoints Guy Blackburn as investment manager)
May 1, 2007... UK small buyout firm Matrix Private Equity Partners has recruited Guy Blackburn as investment manager. He will be a member of the new deals team, working on origination and focusing on establishing and building contacts for the firm. He...

GEM names MD.(PEOPLE)(GEM Private Equity Partners appoints Natalie Yukselen-Alink as managing director)(Brief article)
May 1, 2007... GEM Private Equity Partners, the Turkish-focused private equity firm, appointed Natalie Yukselen-Alink as managing director. She has fourteen years experience mostly in business restructuring and strategic management consulting as a manager at...

Christmas arrives at Gordon Bros.(PEOPLE)(Gordon Brothers Group L.L.C. appoints Fraser Pearce and Paul Christmas)(Brief article)
May 1, 2007... Gordon Brothers International, the retail restructuring specialist and liquidity solutions provider for retail and industry, has hired Fraser Pearce and Paul Christmas as investment directors. Both join from Barclays Bank's business support...

Brooks for BoS.(PEOPLE)(Paul Brooks appointed at Bank of Scotland )(Brief article)
May 1, 2007... Bank of Scotland has recruited Paul Brooks to the management board of its integrated finance division where he will take up a position as a non executive director. Brooks will be working alongside Bank of Scotland Integrated Finance's senior...

Linklaters election round sees PE partners.(PEOPLE)
May 1, 2007... Legal powerhouse Linklaters has elected Nicola Hopkins and Edward Smith to partners in the London private equity team. Both have significant experience in establishing and advising onshore and offshore private equity funds, for clients such as...

Chairman Chinn.(PEOPLE)(Sir Trevor Chinn appointed at Smedvig A/S)(Brief article)
May 1, 2007... Growth capital specialists Smedvig has brought in Sir Trevor Chinn as chairman of portfolio company Streetcar, the UK's largest pay-as-you-go car club. Sir Trevor brings with him a lorry-load of experience as former chairman of the...

Tech head joins Regent.(PEOPLE)(Richard Holway appointed at Regent Partners International)(Brief article)
May 1, 2007... UK technology veteran Richard Holway has joined the board of Regent Partners International (RPI), the parent company of Regent Associates, the financial advisory firm for the technology sector. Holway, who joins as a nonexecutive director,...

Bower at Inflexion.(PEOPLE)(Inflexion Private Equity appoints Anthony Bower)(Brief article)
May 1, 2007... Inflexion Private Equity, the mid-market private equity investor, today announces the addition of Anthony Bower as Assistant Director to strengthen the existing investment team. Bower joins Inflexion after completing an MBA from Rotterdam...

Salans in Spain.(PEOPLE)
May 1, 2007... Salans has acquired the Madrid-based law firm Masons Buxeda Menchen as well as the firm led by Alejandro and Juan Ignacio Alonso, based in both Madrid and Barcelona. The acquisition adds 24 Spanish lawyers to Salans, taking the firm to 550...

Mason and Ashton Penney in it together.(PEOPLE)
May 1, 2007... Ashton Penney, providers of interim management for private equity portfolio companies, has added the Stockholm-based Mason Management AB to its international network, Senior Management International. Mason Management is Scandinavia's leading...

Bol name MD M&A finance arm.(PEOPLE)(Bank of Ireland Group appointed Peter Dunsby as managing director)(Brief article)
May 1, 2007... Bank of Ireland Corporate Banking has appointed Peter Dunsby as UK managing director, global acquisition finance. He joins from CIBC World Markets in London where he was executive director of its European leveraged finance business. Prior to...

Schulman a Choo-in.(PEOPLE)
May 1, 2007... Luxury brand retail veteran Joshua Schulman has been installed as CEO of women's shoe business Jimmy Choo, which is owned by US private equity firm Towerbrook Capital. He will be based at the Jimmy Choo headquarters in London. Schulman has...

PE charity names head.(PEOPLE)
May 1, 2007... The Private Equity Foundation (PEF), the new charity created by a number of leading European private equity firms, has appointed Shaks Ghosh as chief executive. Ghosh was previously Chief Executive of Crisis, the national homelessness charity,...

Carlyle nabs JP Morgan's leveraged finance stalwart.(PEOPLE)(Carlyle European Venture Partners appoints Eric Mason )(Brief article)
May 1, 2007... Private equity behemoth Carlyle has named Eric Mason as managing director in the leveraged finance group. Mason is currently managing director and co-head of JP Morgan syndicated & leveraged finance, Asia Pacific, and in his new role will build...

Lion appoints Coca-Cola vice-president.(PEOPLE)
May 1, 2007... Consumer focused private equity house Lion Capital has appointed Coca-Cola vice president Mary Minnick as a partner. She has been at Coca-Cola for 23 years, having had world-wide responsibilities in general management, strategy, innovation,...

Insensys lands aerospace veteran.(PEOPLE)(John Weston appointed)(Brief article)
May 1, 2007... 3i backed Insensys has appointed John Weston, former CEO of British Aerospace and BAE Systems as chairman of the board. Insensys is a UK business which provides unique fibre optic load measurement technology to the wind energy and aerospace...

Firms freeze recruitment as fund sizes continue to grow: management fees on the rise as GPs call the shots.(DATA ROOM)
May 1, 2007... Despite private equity funds raising more and more cash, the teams to manage that money have remained largely static according to research by Zurich-based advisors SCM. Last year, funds with a size of greater that US$1bn had an average...

Selected terms of recent megafunds: an in depth look at the trends effecting this growing sector of the private equity industry.(DATA ROOM)
May 1, 2007... In the past two years, the number of megafunds raised has increase dramatically as the upper end of the buyouts market chases bigger and bigger deals. Fund sizes at this level are now at least two or three times higher than those of the...

LBO syndications arranged April.(BUYOUTS)
May 1, 2007... AHT TARGET NATION: AUSTRIA DATE ANNOUNCED: 03/12/06 DEAL TYPE: LBO ACQUIRER (S): QUADRIGA CAPITAL TOTAL VALUE: UNDISCLOSED MANDATED ARRANGER(S): DRESDNER KLEINWORT FINANCING: 225M [euro] Dresdner Kleinwort...

Refinancing.(BUYOUTS)(briefs)
May 1, 2007... AA TARGET NATION: UK DATE ANNOUNCED: 16103107 SPONSOR(S): PERMIRA MANDATED ARRANGER(S): BARCLAYS FINANCING: 1.85BN [pounds sterling] The Automobile Association's (AA) has completed the recapitalisation and repricing...

Private equity-backed takeovers subject to EU competition law.(BUYOUTS)(briefs)
May 1, 2007... AZ Electronic Materials PRIVATE EQUITY BACKER(S): CARLYLE AND VESTAR CAPITAL PARTNERS BUSINESS DESCRIPTION: SUPPLIER OF ELECTRONIC MATERIALS DEAL VALUE: UNDISCLOSED NOTIFIED: 22/02/07 PROVISIONAL DEADLINE: N/A ...

Seeking buyers.(Directory)(Table)
May 1, 2007... Seeking buyers includes listings of all European companies that have announced plans since March 22, 2007 until April 19, 2007 to sell divisions, stakes or their entire company. It also includes purported sales efforts that have appeared in the...

Calendar.(Calendar)
May 1, 2007... MAY 2007 20-21 MAY Leveraged Buyout Modelling Dubai www.terrapinnfinancial.com 23-24 MAY 2007 The Wireless Event London www.thewirelessevent.com 23-24 MAY Leveraged Buyout Modelling London ...

Announced deals.
May 1, 2007... Announced deals includes listing of private equity and venture capital transactions involving European targets announced between March 22, 2007 to April 19, 2007. The listings are ordered by target nation, and alphabetically and have been...

Enter the Dragon's Den: fourteen things not to say to a Venture Financier.(COMMENT)
May 1, 2007... Venture finance has long been the catalyst that has helped [mankind] create world changing technologies and businesses. The venture capital industry emerged from the vitality of a disparate group of adventurous investors who gradually grew...