AltAssets Private Equity News

Health Evolution Partners acquires majority stake in Freedom Innovations

ben — Wed, 22 Feb 2012 17:21:09 +0000

Health Evolution Partners (HEP) has acquired a majority interest in high-tech prosthetic limb maker Freedom Innovations.

Part of the deal saw HEP facilitating new senior credit facilities for the company to help finance further growth opportunities.

Freedom’s senior management team will continue to lead the company and will remain significant shareholders, the company said.

HEP investment partner Ned Brown said, “Freedom develops, manufactures, and has successfully commercialized, a broad and attractive portfolio of proprietary lower limb prosthetic devices.

“The company provides a tremendous platform for expansion in a dynamic and growing market, and has a robust pipeline of new products.

“We have been impressed with Freedom’s strong management team and employees – they have an outstanding track record of innovation and development, along with superior commercial execution and customer service.

“We look forward to working with them.”

Freedom is the ninth growth fund investment for HEP, which focuses on creating strong partnerships with high-growth companies and exceptional management teams in the healthcare industry.

Maynard Carkhuff, Freedom CEO, said, “Health Evolution Partners is an ideal partner for Freedom.

“Their extensive background in the medical device industry, combined with their strategic insight, and the firm’s total-systems approach to healthcare investing will be extremely valuable to Freedom as we continue to execute our growth strategy.

“We believe that Health Evolution Partners will be able to help accelerate Freedom’s growth through their broad-scale healthcare systems, strategic, operational, reimbursement, and commercial sales and marketing experience.

“Furthermore, their strong relationships with key decision-makers in the healthcare industry, both in the U.S. and internationally, will be highly valuable.”

F&C Investment Trust secures £50m credit facility from RBS

alec — Wed, 22 Feb 2012 17:09:53 +0000

London-listed private equity investor F&C Investment Trust has entered into a new £50m unsecured committed multi-currency revolving credit facility with RBS.

The new facility will expire on 21 February 2016 and contains similar covenants to the trust’s previous £40m facility with the state-backed banking major, which was due to expire on 30 April this year and has subsequently been cancelled.

“The board believes that this larger facility will provide greater flexibility for the company to fund its investment activity,” the firm said in a statement.

“In addition, the board is pleased to have secured a facility which, subject to compliance with covenants, will be more than sufficient to repay the group’s zero dividend preference shares on their maturity date in December 2014 and which extends comfortably beyond that maturity date.”

The trust began making commitments to private equity funds of funds in 2002. In 2006 the firm increased its exposure to the asset class to five per cent of its total assets, with the aim of reaching a minimum exposure of ten per cent by 2013.

Baird Private Equity adds Gordon Pan as managing director

ben — Wed, 22 Feb 2012 16:55:35 +0000

Baird Private Equity (BPE) has appointed Gordon G Pan as managing director after his predecessor moved to The Pritzker Group.

Pan has more than 20 years experience in finance and private equity, including seven years with Baird Capital Partners and three with Baird Venture Partners.

His appointment follows former managing partner Paul Carbone’s move to The Pritzker Group to lead its private investments after 18 years at Baird.

Scott Skie has also been promoted to chief operating officer and Aaron Rudberg to partner at BPE.

Baird chairman, president and CEO Paul Purcell said, “I have great confidence in Gordon and the rest of the BPE leadership team, and our private equity business has never been better positioned.

“In fact, 2011 was one of the group’s best years ever, and the leadership is in place to continue its record of success.”

BPE, which focuses investments on the lower mid-market, reported 27 new and follow-on investments in 2011 and realised approximately $217m of investor proceeds from six exits.

Longitude Capital, Skyline Ventures lead $22.5m financing of Collegium Pharmaceutical

ben — Wed, 22 Feb 2012 15:58:51 +0000

Longitude Capital and Skyline Ventures have led a $22.5m Series B financing round for Collegium Pharmaceutical.

They were joined by Series A investors Frazier Healthcare Ventures and Boston Millennia Partners.

Following the financing deal Longitude managing director David Hirsch and Skyline managing director Stephen Hoffman will join the Collegium board.

The Series B funding will support the company’s development of a tamper-resistant delivery systems for chronic pain medication.

Longitude Capital uses its $325m inaugural fund to back investments in medical devices, biotechnology and pharmaceutical development, as well as diagnostics and research and development tools.

Skyline is currently targeting investments of between $15m and $35m from its $350 Skyline V fund, which closed in 2007.

Pritzker Group hires Paul Carbone from Baird Private Equity

ben — Wed, 22 Feb 2012 15:56:13 +0000

The Pritzker Group has hired Baird Private Equity’s director and managing partner Paul Carbone to lead its investment activities.

During an 18-year career at Baird Carbone helped spearhead growth of the company’s private equity business from $23m raised and managed in 1994 to a total of $2.8bn this year.

He said, “The Pritzker Group’s long-term investment approach, permanent capital base and outstanding reputation create a rare opportunity for me to help build long-term value and grow the Pritzkers’ businesses in the years ahead.

“I wasn’t looking to leave Baird, which I love, but this was a chance I couldn’t pass up.”

Specialising in mid-market investing, Carbone has extensive experience in buy-outs and growth equity in high-potential companies across the US, Europe and Asia.

He is also a member of the Baird Foundation Committee and active with various civic and charitable organisations.

JB Pritzker, managing partner at The Pritzker Group, said, “Paul has an outstanding track record growing and scaling a strong investment group at Baird, and he understands how to help company management teams build long term value, which is what we’re all about at The Pritzker Group.

“His experience will play a crucial role as we execute our own strategic growth plans in the years ahead.”

Swiss private equity firm Zurmont Madison to launch €200m fund

alec — Wed, 22 Feb 2012 15:44:56 +0000

Zurich-based private equity firm Zurmont Madison has begun marketing its second fund with institutional investors, and aims to reach a first close by the middle of this year.

Zurmont Madison Private Equity II (ZMPE II), which has an equal CHF250m (€207m) target to its predecessor, will continue the firm’s strategy of investing in the lower mid-market and financing succession situations.

The fund will also continue to invest across different industries in the DACH region, which comprises Germany, Austria and Switzerland. It will focus mainly on manufacturing companies with branded industrial or consumer products and business service companies, leveraging the operational expertise of its investment team.

All five partners at the firm have an operational background as CEOs or CFOs from different industries, and the firm also has a large network of industrial advisors to support it, enabling the team to source and execute deals on a proprietary basis.

Although primarily focused on Switzerland, the firm will also continue to build its deal sourcing network in Germany, where it is seeing increasing opportunities and has invested in the past, Andreas Ziegler, a partner at Zurmont Madison, told AltAssets.

“We are expecting a competitive environment in terms of number of funds that are on the road. We see that there is good interest for quality, operationally-focused lower mid-market buyout funds investing in the DACH-region, and especially in Switzerland, where competition between private equity players is limited.”

Ziegler said that the investor base for ZMPE II will consist mainly of European funds of funds – which accounted for 70 per cent of the previous fund – that are interested in co-investing with the firm. Zurmont will also target family offices and larger institutional investors such as pension funds and insurance companies.

“The investment period for ZMPE II will start with the first closing. We are building a pipeline of potential deals for the new fund from the current deal flow as the investment period for the current fund is coming to an end by midyear,” he added.

Last year Zurmont bought Adaxys, a local provider of electronic engineering and manufacturing services, which it is merging with portfolio company CCS Group to create the Swiss market leader in the sector.

The merged company will have a combined turnover of CHF160m (€130.9m), making it the largest electronic engineering and manufactruring services company in Switzerland, and the seventh-largest in the DACH region.

Ziegler added that given the limited exit environment during the second half of last year on the back of the European debt crisis, the firm is in no hurry to exit the current investment portfolio from ZMPE I.

“We are currently refraining from going to the market with our current portfolio companies. Instead we are focusing on developing them by fostering growth and innovation initiatives, implementing operational improvements and pursuing buy & build opportunities where feasible.”

Switzerland and Germany rank among the world’s most competitive economies, according the World Economic Forum’s Global Competitiveness Report 2011, and have one of the highest ratings in the attractiveness index for private equity investments according to a recent study by Ernst & Young.

Canada Pension Plan Investment Board reiterates India investment focus

ben — Wed, 22 Feb 2012 15:18:54 +0000

VSG Capital Advisors have been retained as senior advisors by the Canada Pension Plan Investment Board (CPPIB) to focus on the pension fund’s investments in India.

Based out of India and Hong Kong, and headed by Vikram Gandhi, VSG will provide strategic advice and help facilitate investment in the Indian sub-continent, a region CPPIB said it believes has “significant long-term investment opportunities”.

The pension plan has a growing presence in the Asia-Pacific region, with C$13.1bn in public equity, real estate, infrastructure and private investments in the region at the start of 2012.

That investment accounts for 8.5 per cent of the plan’s C$152.8bn global assets, which was up C$520m at the end of the second quarter last September.

CPPIB executive vice president Mark Wiseman said, “Vikram and his firm bring exceptional market knowledge and relationships across the Indian sub-continent.

“India is an increasingly important market, and we are very pleased to have Vikram and his firm as strategic advisors as we continue to explore investment opportunities in this very promising region of the world.”

Prior to founding VSG Gandhi was the global head of Credit Suisse’s financial institutions group and vice chairman of its investment banking department in New York and Hong Kong.

He also spent 16 years at Morgan Stanley in various roles globally, including president and country head of Morgan Stanley India.

He said, “I’m delighted to have the opportunity to partner with an organization with the stature of CPPIB.

“VSG and I look forward to working with CPPIB in further building its presence, relationships and opportunities in the Indian sub-continent.”

Naxos Capital, Sofinnova lead $30m funding round for chemicals company BioAmber

ben — Wed, 22 Feb 2012 14:55:39 +0000

Naxos Capital and Sofinnova were among investors who helped close a $30m Series C funding round for chemicals company BioAmber.

Both backers were joined by fellow existing investors Mitsui and Co and the Cliffton Group in the first $20m tranche last November, while specialist chemicals company Lanxess completed the second $10m tranche earlier this month.

Naxos focuses on small and lower mid-market companies in the technology, media and communications, services and manufacturing sectors.

Sofinnova’s last big investment was as leader in a $44m series B financing round closure for medical technology company SARcode Bioscience.

BioAmber chief executive Jean-Francois Huc said, “BioAmber is fortunate to have a strong, committed group of investors and we welcome Jorge Nogueira, a dynamic and experienced chemical industry executive to our board.”

CME, Omani sovereign wealth fund up stake in Saudi energy bourse DME

alec — Wed, 22 Feb 2012 14:45:03 +0000

The Oman Investment Fund, a sovereign wealth fund of the Sultanate of Oman, and the Chicago Mercantiles Exchange have increased their stake in the Dubai Mercantile Exchange (DME) to enable it to continue growing its business.

The DME is the largest international energy futures and commodities exchange in the Middle East. Last year the exchange delivered more than 145 million barrels of crude oil – a year-on-year trading volume growth of 19 per cent.

As part of the restructuring of the DME’s equity shareholding, a recapitalisation arrangement will increase the stake in DME held by CME Group’s NYMEX division from 25 per cent to 50 per cent.

The Oman Investment Fund will increase its holding to 29 per cent; a subsidiary of Dubai Holding will retain nine per cent, and 12 per cent will be held on a non-voting basis by strategic investors, including Vitol, Shell, JP Morgan, Morgan Stanley, Goldman Sachs and Concord Energy.

Hassan Al Nabhani, CEO of Oman Investment Fund, said, “DME’s development into a prominent venue for price discovery will prove to be of significant strategic and financial value for the oil markets. The exchange continues to attract customers from among the key participants in the global energy industry. Our long-standing partnership with CME Group, the world’s leading derivatives marketplace, is building the platform for the next phase in DME’s development.”

Ahmad Sharaf, chairman of the DME, added, “With liquidity in the flagship Oman crude oil futures contract steadily growing and physical delivery reaching new heights in 2011, this recapitalisation positions the DME to enter the next phase of development for existing and future customers seeking to manage price risk for crude oil markets East of Suez.”

Interwest leads $10m series A investment in Integrated Diagnostics

ben — Wed, 22 Feb 2012 14:31:50 +0000

Interwest Partners has led investors in a $10m tranche of series A financing for medical technology company Integrated Diagnostics (ID).

The Silicon Valley-based venture capital company is currently investing its $650m Interwest X fund focused on technology and life sciences.

ID said it plans to use the funds to complete clinical development on its lab-based protein diagnostic programmes and prepare them for the commercial market.

The company raised a $30m series A round of financing in September 2009, and the current tranche marks the completion of the funding round.

Interwest was joined in the investment by The Wellcome Trust and the Grand Duchy of Luxembourg.

ID chief executive Al Luderer said, “It’s rare that a start-up can hit all of its objectives – even rarer when the bar has been set so high.

“Our success speaks to the vision of our founders, the support of our investors, the hard work our employees, and finally, the support of our expanded network of collaborators that continue to assist us in realizing of our vision.”

Earlier this month Interwest was part of a group which invested $23m in unified storage and computer appliance company Pivot3.