European Venture Capital Journal articles from October 2008

European Venture Capital Journal archives from October 2008

House of cards: as the financial world collapses, it's now time to see what private equity is really made of.(EDITOR'S NOTE)
October 1, 2008... [ILLUSTRATION OMITTED] I was on the Greek island of Lesbos for my annual holiday this month. When I left Gatwick, the grey skies were just beginning to give up some of its rainy baggage whilst I hoped that First Choice wouldn't lose mine....

Lloyds takes over HBOS.(LONDON)
October 1, 2008... Lloyds TSB announced that is had agreed a 12.2bn [pounds sterling] takeover of Edinburgh-based Halifax Bank of Scotland (HBOS). The merger was instigated by HBOS's plummeting shares and if successful will see the creation of a banking giant...

More calls for transparency by MEPs.(BRUSSELS)
October 1, 2008... In a bid to force private equity groups and hedge funds to disclose an unprecedented amount of information European MEPs are meeting in Brussels to enforce further disclosure. The call for transparency follows a similar demand from Unite,...

Credit Suisse take Ahold.(AMSTERDAM)
October 1, 2008... The alternative investments business of Credit Suisse in the Benelux has been awarded a 140mn [euro] private equity fired-of-funds investment mandate by the 2.2bn [euro] pension fund of Dutch retailer Ahold. The mandate will enable Ahold...

ONEXIM take half of Renaissance.(MOSCOW)
October 1, 2008... Private investment fund ONEXIM Group will pay US$500m for a 50% stake in the Russian investment bank Renaissance Capital. The transaction is said to be subject to regulatory approval and will see Renaissance Group maintain management...

German market largest in continental Europe.(BERLIN)(Brief article)
October 1, 2008... In continental Europe Germany is the most active market in terms of its number of buyouts and the value of the market according to the latest half year report from the Nottingham-based University Centre for Management Buy-out Research (CMBOR)....

The day Lehman died.(NEW YORK)
October 1, 2008... September has proved to be one of the most gripping months in stock market history. Lehman Brothers filed for bankruptcy protection, Merrill Lynch sold itself to Bank of America for US$S0bn and Fannie Mae and Freddie Mac followed by AIG were...

Healthy buyouts: Aimee Donnellan reports on one of this years largest deals.(NEWS ANALYSIS)
October 1, 2008... [ILLUSTRATION OMITTED] The sale of ConvaTec earlier this year highlighted a growing trend of private equity buyout firms that are turning their interest to the healthcare sector. Seeking out higher cash flows and more stable...

How to start again: after a month where the sky fell in on global financial markets, Aimee Donnellan listens to what Jon Moulton has to say about what private equity can do.(NEWS ANALYSIS)
October 1, 2008... Many could be forgiven for thinking that Lehman Brothers was indestructible. In an unprecedented event, a company that had managed to make it through 158 years on Wall Street, weathered the 1929 Crash, and most recently managed to get back...

Building a social capital market: venture philanthropy has proven to be even more popular that its originators envisioned, but they aren't stopping now. Anthony O'Connor reports on the third sector's quest for new pools of capital.(NEWS ANALYSIS)
October 1, 2008... Just over three years ago the European Venture Philanthropy Association (EVPA) devised a five-year plan to build its membership to 50, but by August this year the association had grown to more than 100 members spanning 21 countries across...

Euro venture capital hit by lack of listings: Aimee Donnellan reports on the IPO drought.(NEWS ANALYSIS)
October 1, 2008... For the first time in 30 years there wasn't a single venture-backed Initial Public Offering (IPO) in Q2 of 2008 in the US, according to the Exit Poll report by the National Venture Capital Association (NVCA) and Thomson Reuters. With only...

No way out: exits are faltering as secondaries subside, trade buyers turn cool, and IPOs flat-line in Europe's slowing, credit-crunched economies. Rob Stokes reports on the choices facing buyout houses looking to sell.(NEWS ANALYSIS)
October 1, 2008... The divestment statistics for last year make for happy reading: 408 exits in the UK alone, with Continental Europe pitching it with a respectable 277, according to the Centre for Management Buyout Research (CMBOR). The story for 2008 is...

Biotech hit by funding drought: tough times loom for the European biotech sector as finance becomes increasingly hard to come by. Patrick McCurry reports on the grave threat the industry faces over the next 12 months.(NEWS ANALYSIS)(Industry overview)
October 1, 2008... [ILLUSTRATION OMITTED] The collapse of Scottish biotech company Ardana this summer was just one example of the problems affecting the European biotech and life science industry. Although the company had a number of drugs in development,...

ARCIS closes largest fund: secondaries specialist looks to take advantage of the credit crunch.(SECONDARIES)
October 1, 2008... Anglo-French secondary investor ARCIS Group has reached a final closing of ESD Fund W after raising 354m [euro]. The fourth fund that focused exclusively on the European market is more than twice the size of its previous fired. ARCIS...

Fortis targets clean energy: French firm looks to raise 400m [euro].(RENEWABLES)(Fortis Investment Management N.V./S.A.)(Brief article)
October 1, 2008... France-headquartered asset management company Fortis Investments has launched a clean energy fund with a 400m [euro] target. Parent bank Fortis has invested 50m [euro] as a cornerstone investor in the London-based fund. The fund will...

Pentech closes on 45m [pounds sterling].(VENTURE)
October 1, 2008... UK software venture capital company Pentech Ventures has raised 45m [euro] for its latest fund, Pentech Fund II. The fund is targeting businesses in the UK and Ireland in the enterprise software, telecommunications software, Internet,...

Altor reaches 2bn [euro].(MID-MARKET)
October 1, 2008... Nordic buyouts house Altor has closed its third fund at its hard-cap of 2bn [euro], with 50 investors, 95% of which were existing ones. LPs include Harvard Management Company, Pantheon Ventures, Skandia Liv, AlpInvest Partners, Goldman...

Aberdeen Spirit's away.(NAME CHANGE)(Brief article)
October 1, 2008... The senior executives of the former private equity team of Aberdeen Asset Management have completed an MBO of the business and created Spirit Capital. The new firm has been created by Francesco Santinon, supported by fellow partners Andy...

Odin raises 200m [euro].(NORDIC)(Odin Equity Partners )(Brief article)
October 1, 2008... Danish buyouts firm Odin Equity Partners has closed its second fund on 220m [euro], surpassing its target by 20m [euro] but falling short of its 250m [euro] hard cap. The fund was launched in January and attracted commitments from 15...

Advent aims big in Japan: mid-market firm becomes first international investor to target country.(BUYOUTS)(Advent International Corp.)(Brief article)
October 1, 2008... Buyouts giant Advent International has closed a US$550m ([yen]60m) aimed at investments in Japan. Advent Japan Private Equity Fund is the first mid-market private equity fund aimed solely at the country raised by a non-Japanese firm. ...

Cape and Helio to raise 70m [euro].(SOLAR)
October 1, 2008... Italian mid-market private equity firm Cape Natixis has launched a 70m [euro] fund which will build 100MW of solar plants in Italy. The SME specialist is teaming up with energy specialist Hello Partners on the fund, called Cape Helio. ...

Darwin raises 217m [pounds sterling].(MAIDEN FUND)
October 1, 2008... Small-cap UK investor Darwin Private Equity has closed its first fund on 217m [pounds sterling]. Investors include AIG Investments, Goldman Sachs, LGT Capital Partners, OXIP, Pantheon Ventures and RIT Capital Partners. The firm invests...

Credit Agricole targets co-investment.(LAUNCH)
October 1, 2008... Credit Agricole Private Equity has established a co-investment fund to take minority stakes alongside European and North American investment funds. The fund has an opening allocation of 100m [euro] which will be used to invest in mid to...

Enterprise Investors raises first venture fund: Polish firm to target technology companies in need of expansion capital.(VC)
October 1, 2008... [ILLUSTRATION OMITTED] Warsaw-headquartered Enterprise Investors (EI) has raised 100m [euro] for its first venture capital fund. The firm is aimed at providing financing for small and medium-sized companies specialising in technology....

Egeria makes yacht sale: LVMH pays 300m [euro] for Royal van Lent.(LUXURY GOODS)
October 1, 2008... [ILLUSTRATION OMITTED] Dutch private equity firm Egeria is to sell Royal van Lent, a luxury mega yacht designer and builder, to LVMH Moet Hennessy--Louis Vuitton, the luxury products group, for a reported 300m [euro]. Based in the...

LDC takes over the Leasedrive wheel: Lyceum Capital sells fleet management business in secondary buyout.(TRANSPORTATION)
October 1, 2008... British vehicle management group Leasedrive Velo has changed private equity owners in an 80m [pounds sterling] secondary deal between vendor Lyceum Capital and buyer LDC. The Wokingham-based business provides fleet management, contract...

Double exit for German small cap specialist.(SMEs)
October 1, 2008... Auctus sells furnace specialist ZPF and chemicals outfit Abieta Chemie German buyouts firm Auctus has completed two exits this month with the sales of ZPF, an industrial furnace maker, and Abieta Chemie, a chemical company. Transaction...

All Change at Jil Sander: UK buyouts firm sells German fashion brand for 167m [euro].(CONSUMER)
October 1, 2008... Retail and consumer specialist firm Change Capital Partners is to sell Jil Sander, a German fashion house, to Onward Holdings, a Tokyo-listed clothing group and its European subsidiary, GIBO, for an equity value of 167m [euro]. Change took...

HgCapital makes 3.7x return: German business software company sold.(IT)
October 1, 2008... UK mid-market firm HgCapital has sold Addison Software, a German provider of business-critical solutions to accountancy practices and SMEs, to Wolters Kluwer, a multimedia group. The sale generated a 55% IRR and a return of 3.7x on a...

Storm clouds gathering: with recession looming and a private equity market that punches well beneath its weight, Germany does not appear the most attractive destination for foreign investment, Ian Fraser finds out how the credit crunch is affecting Europe's largest economy.(FEATURE: GERMANY)
October 1, 2008... [ILLUSTRATION OMITTED] It would be easy to dismiss Germany as being of little interest to private equity and venture capital investors right now. After all, the official data suggests that its economy shrank by 0.5% in Q2 versus Q1. And...

Earlybird missess the worm: when the Hamburg and Munich-based venture capital manager Earlybird missed the fundraising target on its latest fund in August, it seemed to speak volumes about investors' scepticism towards venture capital in Germany.(FEATURE: GERMANY)
October 1, 2008... Earlybird, one of a handful of German venture capital houses with an international reputation, closed its fourth fund--and the first it had managed to raise since 2000--at 127 million [euro] on August 12, despite having initially targeted 200m...

Fading light: historically home to one of Europe's most buoyant venture capital communities, the Nordic region is now facing the same shortage of funding as elsewhere on the Continent as limited partners rein in their commitments. Vicky Meek investigates.(FEATURE: NORDIC VENTURE)
October 1, 2008... [ILLUSTRATION OMITTED] When Nordic Venture Partners (NVP) invested in mobile address book business Zyb in 2006, it knew it was on to a good thing. The company was becoming the preferred back-up system in the industry and was adding social...

The green agenda: the Nordic region has been a leader in the cleantech sector, and VCs are hoping global interest can revive the area's flagging venture industry.(FEATURE: NORDIC VENTURE)
October 1, 2008... With a rush of international firms raising cleantech funds, this sector has become one of the most popular areas for investment almost overnight. Globally, the amount of venture capital invested in this up and coming sector in just Q2, 2008 was...

Top of the asset class: falling returns from US and European private equity are inevitable. Mike Powell, head of alternative assets at pension fund Universities Superannuation Scheme, is still optimistic.(PROFILE)
October 1, 2008... As the main pension fired for academic and senior non-academic staff of the UK universities, the Universities Superannuation Scheme (USS) has a lot of responsibility to bear. It is the second-largest pension fund in the country, and one of the...

Emerging investors: the traditional views is that money flows from foreign coffers into emerging markets, but as Nick Skrekas discovers, emerging economies are raising substantial funds locally, investing domestically and reaching overseas.(LP ANALYSIS)
October 1, 2008... [ILLUSTRATION OMITTED] The last two years has seen an of investors emerge in places that once upon a time weren't regarded as natural homes of finance. Now, following years of international money pouring into developing markets, domestic...

Locust protection: the fear of foreign infestation is again top of the political agenda in Germany as the government looks to clamp down on sovereign wealth funds.(LEGAL AND REGULATORY)
October 1, 2008... [ILLUSTRATION OMITTED] Germany has provoked a storm of controversy with its latest legislative changes. A new law will allow the government to block any unwanted foreign investors from buying 25% or more in a German company when "public...

Turn and face the changes.(PEOPLE)
October 1, 2008... [ILLUSTRATION OMITTED] UK private equity house 3i Group has made series of changes to its management team. Julia Wilson, the Group's Deputy Finance Director has been appointed to the Board and will succeed Simon Ball who has resigned as...

Aurora replaces chairman.(PEOPLE)
October 1, 2008... Mid-sized private equity firm Aurora Russia has promoted Dan Collinson Koch to Chairman of the board. Koch previously held the position of Non Executive Director of Aurora Russia. Dan Koch will assume the chairmanship from Sir Trevor Chinn....

A smart move.(PEOPLE)(Franklin/Templeton Investor Services Inc. has appointed David E. Smart)(Brief article)
October 1, 2008... [ILLUSTRATION OMITTED] Franklin Templeton Investments, the US investment management company, has named David E. Smart as global head of sovereign funds and supranationals. He will be responsible for managing existing fund relationships as...

Three's a magic number.(PEOPLE)
October 1, 2008... [ILLUSTRATION OMITTED] Private equity fund-of-funds investor Pantheon has made a triple appointment to its Hong Kong investment team. Alex Wilmerding has joined Pantheon as a principal from Citigroup Private Bank in Boston where he...

New recruits.(PEOPLE)
October 1, 2008... [ILLUSTRATION OMITTED] Small-cap mid-market firm Rutland Partners announced that David Wardrop and Tristan Craddock have joined the investment team. Wardrop joins Rutland as an investment manager from Close Brothers Corporate Finance...

Senior recruits.(PEOPLE)(Elysian Capital has appointed Phil Greves and Jack Jacovou)(Brief article)
October 1, 2008... Mid-market private equity player Elysian Capital has announced two senior appointments. [ILLUSTRATION OMITTED] Phil Greves joined Elysian as investment director and partner. He was previously employed by 3i where, from 2004, he was the...

VPs reach summit.(PEOPLE)
October 1, 2008... [ILLUSTRATIONS OMITTED] Summit Partners the US private equity and venture capital firm that has raised almost US$11bn since its inception has made four new vice presidents. Recently appointed Amit Chaturvedy (left) and Chris Crawford...

Mourant moves Harland.(PEOPLE)(Mourant International Finance Administration has appointed Richard Harland as business manager)(Brief article)
October 1, 2008... [ILLUSTRATION OMITTED] Fund administration specialists Mourant International Finance Administration have appointed Richard Harland as business manager. He will be relocated from Guernsey to London and will be responsible for private equity...

Ramery joins Cavendish.(PEOPLE)
October 1, 2008... [ILLUSTRATION OMITTED] Cavendish Capital Advisors, the refinancing arm of Cavendish Corporate Finance has appointed Simon Ramery as partner. Ramery will be responsible for leading the team at Cavendish Capital and developing the...

CVC creates financial sector team.(PEOPLE)(CVC Capital Partners Ltd.)(Brief article)
October 1, 2008... UK LBO powerhouse CVC has created a global financial institutions sector team to be led by managing partner Jonathan Feuer. Feuer, who has been with the firm for 20 years, is joined by director Peter Rutland, and will I now begin the job of...

Troika makes senior hire.(PEOPLE)
October 1, 2008... Troika Capital Partners, the private equity arm of Russian bank Troika Dialog, has named Kanako Sekine as managing director, COO and CFO. Sekine's main task will be to increase the amount of investment from investors outside of Russia for...

Alvarez & Marsal builds EMEAteam.(PEOPLE)
October 1, 2008... Turnaround advisory firm Alvarez & Marsal (A&M) has made a series of appointments in I Europe, the Middle East and Asia. The new faces include Ann Cairns, a managing director, who joins from ABN AMRO to lead the firm's financial industry...

Close Bros builds Manchester office.(PEOPLE)(Close Brothers Group PLC has appointed Ben Thompson and James Hurrell)(Brief article)
October 1, 2008... London-headquartered corporate finance adviser Close Brothers has made a double addition to its Manchester team with the appointment of Ben Thompson and James Hurrell. Thompson joins as an associate, having previously worked at Zeus...

Changes at CapMan.(PEOPLE)(appointment of Jorma Lehtonen, Pirjo Ojanpera and Jan Mattlin )(Brief article)
October 1, 2008... Nordic buyouts house CapMan has made a series of promotions and one appointment with Jorma Lehtonen appointed senior partner, Pirjo Ojanpera becomes head of the Real Estate Hotel Fund, Jan Mattlin is named as partner and Sebastian Schanman is...

Deloitte adds PE partner.(PEOPLE)
October 1, 2008... Deloitte, the business advisory firm, has appointed Liam Camburn as director to its private equity transaction services team. He joins from private equity house Rutland Partners and will be concentrating primarily on the mid market. Whilst...

KKR to open office in Middle East.(PEOPLE)
October 1, 2008... [ILLUSTRATION OMITTED] US buyouts giant KKR has made its first steps into establishing a presence in the Middle East and North Africa by recruiting sovereign wealth fund specialist Makram Azar from Lehman Brothers. Azar has joined as...

Esprit adds venture partner.(PEOPLE)
October 1, 2008... [ILLUSTRATION OMITTED] UK VC DFJ Esprit has recruited William Reeve as venture partner. A serial entrepreneur, Reeve joins to support DFJ Esprit's existing portfolio as well as to seek out new investment opportunities across Europe. He...

Dunedin names analyst.(PEOPLE)(Dunedin Capital Partners Ltd. has appointed Simon Rowan)(Brief article)
October 1, 2008... UK mid-market firm Dunedin has added Simon Rowan as an analyst, the fourth hire by the outfit this year. Rowan will be responsible for transacting deals across the UK. He graduated from the University of Edinburgh in 2003 with an MA...

LBO syndications.(BUYOUTS)
October 1, 2008... Advang Holding TARGET NATION: NETHERLANDS DATE ANNOUNCED: 17/07/08 ACQUIRER: LION CAPITAL TOTAL VALUE: UNDISCLOSED ARRANGER: RABOBANK FINANCING: 190M [euro] Bank of Ireland, Barclays and ING are close to wrapping...

Seeking buyers.(Public notice)
October 1, 2008... SEEKING BUYERS Seeking buyers includes listings of all European companies that have announced plans since August 20, 2008 to September 23, 2008 to sell divisions, stakes or their entire company. It also includes purported sales...

Announced deals.
October 1, 2008... ANNOUNCED DEALS Announced deals includes listings of private equity and venture capital transactions involving European targets announced between August 21, 2008 and September 19, 2008. The listings are ordered by target nation, and...

Growing opportunity: Scott Collins, managing director Summit Partners, makes the case for growth equity.(COMMENT)
October 1, 2008... Since the credit crunch hit in the second half of 2007, large leveraged buyout (LBO) deals have all but dried up, as evidenced by the 76% drop in private equity deal volumes globally during the first half of 2008. According to Thomson Reuters'...

Arrive aware: your guide to the current trends in the Middle East.(EDITOR'S NOTE)(Editorial)
October 1, 2008... [ILLUSTRATION OMITTED] The heads of family offices and sovereign wealth funds (SWFs) in the Middle East are extremely savvy and have been educated at the world's best institutions. It would be naive to turn-up to the region in search of...

Demanding returns: David Nicholson investigates how to attract and retain Middle Eastern investors.(FUNDRAISING)
October 1, 2008... [ILLUSTRATION OMITTED] "A huge transition has taken place in the Middle East," says Mounir Guen, CEO of private equity advisors MVision. "The heads of family investment groups and the sovereign wealth funds are extremely savvy individuals...

Emulating endowments: SWFs need not be scary and controlling.(SOVEREIGN WEALTH FUNDS)
October 1, 2008... [ILLUSTRATION OMITTED] When former US Treasury secretary Larry Summers stirred the hornets nest on sovereign wealth funds (SWFs) on their intention to have controlling stakes, it initiated a serious debate amongst market participants on...

Citadel Capital: local footprint, regional insight, world class expertise.(SPONSORED PROFILE)
October 1, 2008... [ILLUSTRATION OMITTED] Long ignored by global business players, the MENA region abounds with highly lucrative investment opportunities--if you know where to find them. Citadel Capital carefully selects opportunities that allow it to create...

Inside Citadel: Ahmed Heikal, Citadel Capital's chairman, talks to EVCJ about the region building greenfield businesses and co-investing.(SPONSORED PROFILE)(Ahmed Heikal)
October 1, 2008... Citadel Capital launched May 2004 with 2m [pounds sterling] by two former directors of EFG-Hermes Ahmed Hisham El-Khazindar. The idea of the firm was to focus solely on private equity, with no advisory or broking services. Citadel buys...

Going downstream: petrochemicals and energy support businesses prove interesting investments for PE firms. And the deal values match those further upstream.(OIL&GAS)
October 1, 2008... [ILLUSTRATION OMITTED] Despite higher capital budgets, MENA energy investments appear to be losing momentum. It is estimated that these countries require additional investment of US$500bn to bring their energy networks to a level that can...

Feeding the three hundred and fifty million: as liquidity in the Middle East continues to increase, it splashes out over the MENA borders. Sub-Saharan Africa's agricultural potential is drawing the attention of Middle Eastern governments. Should investors that followed liquidity to the Gulf continue the caravan as it leaves to hunt for food?(AGRICULTURE)
October 1, 2008... Large price increases in staple foods such as rice and wheat have combined with a surging population to cause Middle Eastern governments to look abroad for locations to produce food. Saudi Arabia's Agriculture Minister has announced plans for a...

More than money: is there a place for private investors in the infrastructure sector too, and if so, what are already cash-rich governments looking for in a PE partner?(INFRASTRUCTURE)
October 1, 2008... [ILLUSTRATION OMITTED] The scale of infrastructure development in the Middle East, and particularly of course the Gulf, continues to astound. Dubai Waterfront, set to be the largest manmade development in the world, is to be seven times...

Ithmar Capital: the leading regional private equity firm in terms of conduct and return.(SPONSORED PROFILE)(Company overview)
October 1, 2008... Managed by a team of highly experienced professionals, Ithmar Capital is a private equity specialist with local and international expertise, connectivity and industry insight. With offices in Dubai and London, Ithmar Capital targets exceptional...

Catalysing diversification: private equity and the GCC.(SPONSORED ARTICLE)
October 1, 2008... The Middle East has traditionally been a source of investment capital, rather than its target. As a result, local private equity activity is still a relatively new concept for GCC economies and much remains to be understood about its role,...

MENASA region enjoys prime conditions: the new acronym in PE investing.(MENASA)
October 1, 2008... [ILLUSTRATION OMITTED] First there was the Middle East (ME), then there was Europe, the Middle East and Africa (EMEA), then there was the Middle East and North Africa (MENA) and now, in the most recently-coined acronym, South Asia has been...

Kingdom of opportunities: exposure to the KSA makes PE funds more attractive to investors.(SAUDI ARABIA)
October 1, 2008... Without doubt Saudi Arabia could rank as the most underrated and under-discovered country in the emerging markets for investment opportunities. And more so for private equity managers. It is well known that the country is blessed with huge...

Turkish target: these days reasonable predictions can be made about inflation and interest rates making the country attractive to PE.(TURKEY)
October 1, 2008... [ILLUSTRATION OMITTED] Government enthusiasm for FDI, a modernising economy, a banking sector little touched by the credit crisis, family-owned businesses keen to sell, a country rapidly integrating with its European partners... these are...

Egyptian opportunities: North Africa becomes the new source of upside profit.(EGYPT)
October 1, 2008... Ever alert to the untapped potential of regions and countries that have not so far enjoyed dramatic periods of growth, the international investment community has lately turned to North Africa as a new source of upside profit, and to Egypt in...

Leverage rises to the MENA challenge: cash flow lending comes into its own.(DEBT)(Middle East and North Africa)
October 1, 2008... [ILLUSTRATION OMITTED] The Middle East is seeing a new level of debt market sophistication, especially in the long under served mid market, creating new demand for acquisition finance and even winning the support of traditional corporate...

What doom and gloom? For Arif Masood Naqvi, Founder and CEO of Abraaj Capital the future for MENASA looks bright.(COMMENT)(Middle East North Africa and South Asia)(Viewpoint essay)
October 1, 2008... With all of the bad news that one is hearing about the rest of the world and that markets are going to continue to be both volatile and reasonably negative over the course of the next few months. What I am telling you is that there is a part of...