News Archive: November 2003

Hays continues divestment program with sale of logistics firm to US Platinum Equity
27/11/2003. US private equity firm Platinum Equity has agreed to pay around £100m for the logistics unit of UK-listed business services group Hays. It is Platinum’s second major European acquisition.

EVCA warns against dangers of IAS 27
27/11/2003. The European Private Equity and Venture Capital Association has warned that International Accounting Standard 27 could be applied to private equity funds in Europe, even though it has been ruled that all investment companies in the US will be exempt from similar measures, with serious and damaging consequences.

Discovery Capital Management holds first close on Mexican fund at $50m
26/11/2003. Discovery Capital Management and Mexican investment bank, Protego Asesores, have held a first close on a new private equity fund at $50m. The fund will focus on investing in Mexican businesses with sales of between $20m and $500m.

Japanese JAFCO Ventures announces $100m close
25/11/2003. Japanese JAFCO Ventures, a venture capital firm that invests in technology-related, early expansion-stage companies, has announced the final close on JAFCO Technology Partners I fund at $100m.

German Sal Oppenheim and CAM Private Equity to merge private equity fund investment activities
25/11/2003. Sal Oppenheim and CAM Private Equity Consulting are to merge their private equity fund investment activities. CAM will take over management of Oppenheim Private Equity Manager and, in turn, Sal Oppenheim will acquire a 15 per cent shareholding in CAM.

Two US firms join forces to raise $200m venture fund
25/11/2003. US venture firms Birchmere Ventures and Bay City Capital are joining forces to raise an early-stage life sciences fund. The firms will act as co-general partners in the fund, which is targeting between $150m and $200m.

University of Texas changes reporting of private equity performance data
24/11/2003. The University of Texas’ investment arm has changed the way in which it reports overall performance data for its two private equity portfolios in order to reflect the long-term nature of the asset class.

OPIC calls for $100m private equity fund for investment in Central and Eastern Europe
24/11/2003. The Overseas Private Investment Corporation (OPIC) has issued a call for proposals to manage a $100m private equity fund intended to increase investments in businesses in Central and Eastern Europe.

Claus Stenbaek joins Keyhaven Capital Partners from Danske Private Equity
24/11/2003. Claus Stenbaek has joined Keyhaven Capital Partners as a managing director. Stenbaek previously worked at Danske Private Equity where he served as executive director and partner.

KKR to acquire UniSource Energy for $850m
24/11/2003. US private equity firm Kohlberg Kravis Roberts (KKR) is in advanced talks to acquire US utility company UniSource Energy for around $850m. The transaction will also include the assumption of $2bn in debt.

Duke Street Capital acquires Accantia for £225m
24/11/2003. European private equity firm Duke Street Capital has bought UK-based health and beauty company Accantia from ABN Amro for £225m. ABN Amro acquired the company in a management buy-out from Smith & Nephew in June 2000.

European Proventure to take over management of Pohjola-Suomi’s private equity portfolios
24/11/2003. Proventure has signed an asset management agreement with Suomi Group and Pohjola to take over the management of their private equity portfolios. The agreement will take effect from the beginning of 2004.

3i emerges as frontrunner for Durex manufacturer’s medical division
21/11/2003. 3i has emerged as the frontrunner in the bidding for the medical division of UK-based SSL International, the manufacturer of Durex condoms.

KKR moves in on US drugstore chain Eckerd
21/11/2003. European buy-out firm CVC and US private equity firm Kohlberg Kravis Roberts (KKR) are to make an initial indication of interest for Eckerd, the US drugstore chain that is part of JP Penney. The sale is expected to raise somewhere between $3.5bn and $5bn.

Providence Equity and Thomas H Lee bid $2.55bn for Time Warner’s music business
20/11/2003. A private equity consortium, which includes Providence Equity Partners and Thomas H Lee Partners, has made an unexpectedly high bid of $2.55bn for Time Warner’s music operations. The offer includes provisions for Time Warner to retain a 20 per cent stake in the business.

Private equity firms circle E2.5bn German chemicals unit
20/11/2003. A number of private equity firms including Kohlberg Kravis Roberts, Blackstone Group, CVC Capital, Permira, BC Partners, Cinven and Advent International are reported to be circling chemical manufacturer Dinamit Nobel.

Seasonal slowdown hits European venture investment in the third quarter
20/11/2003. The value of venture capital investment in European companies fell by 20 per cent in the third quarter of 2003 compared to the previous quarter, according to the Ernst & Young/Venture One global venture capital survey. The volume of investments fell by 25 per cent in the same period.

Carlyle and JP Morgan to sell South Korean Koram Bank
19/11/2003. Private equity firms Carlyle Group and JP Morgan Partners are to sell their stake in the South Korean lender Koram Bank. Citigroup, Standard Chartered and Temasek have emerged as front-runners in the bidding.

US Hicks Muse acquires Weetabix in £642m deal
19/11/2003. US private equity firm Hicks, Muse, Tate & Furst is to acquire UK breakfast cereal manufacturer Weetabix in a £642m take-private transaction.

GIMV announces first close on debut German fund at E78m
19/11/2003. The Halder-Gimv fund, which was launched earlier this year by German mid-market buy-out firm Halder and its controlling shareholder, Belgian private equity house Gimv, has announced a first close on its debut fund at E78m. The fund is targeting E150m and expects to hold a final close next year.

Nordic EQT to float Dometic in first Swedish IPO for 18 months
19/11/2003. Nordic buy-out firm EQT is to float Swedish domestic appliance manufacturer Dometic in Sweden’s first initial public offering in 18 months. The IPO is expected to raise in the region of E434m.

Texas Pacific Group is to buy Portland General Electric from Enron for $2.35bn
19/11/2003. An investment consortium led by Texas Pacific Group is to acquire Portland General Electric from Enron for $2.35bn. The transaction value includes $1.1bn of assumed debt.

Gores Technology Group closes debut fund at $400m
18/11/2003. Gores Technology Group has announced a final close on its debut fund at $400m. The fund will focus on buy-out investments in the technology and telecommunication sectors.

US Thomas H Lee buys mattress maker in $1.1bn deal
18/11/2003. US private equity firm Thomas H Lee Partners has acquired mattress maker Simmons from Fenway Partners in a $1.1bn secondary buy-out. Fenway bought the company in 1998 from Investcorp, another buy-out group, for approximately $513m.

US Blueprint Ventures recruits Joy Weiss as executive-in-residence
18/11/2003. Blueprint Ventures, a Silicon Valley-based venture firm focused on seed and early-stage IT infrastructure, has recruited Joy Weiss as executive-in-residence. Weiss has over 20 years’ experience in the mobility, software and telecom sectors.

PPM Ventures announces £152m sale of Oasis
17/11/2003. Mid-market private equity firm PPM Ventures has announced the sale of Sierra Group, the holding company for high street fashion chains, Oasis and Coast. Icelandic retail group and investment company, Baugur Group, is to acquire the company for £152m.

IFC to increase investment in India to $1bn over two years
17/11/2003. The International Finance Corporation (IFC), the World Bank’s private equity arm, is to increase its investments in Indian private companies to $1bn over the next two years. The organisation will place a particular emphasis on the country’s technology sector.

European private equity M&A almost double that in US since 2000
17/11/2003. European private equity M&A targets have accounted for 63 per cent of global activity by volume since 2000. US targets accounted for just 32 per cent of the total, according to new research carried out by JP Morgan.

French Innovacom announces final close on fifth venture fund at E120m
14/11/2003. French Innovacom has announced the final close of its fifth venture fund at E120m. The fund, which specialises in early-stage telecommunications and information technology start-ups, was initially targeting E100m.

Simon Jennings to join Hermes Private Equity investment team
13/11/2003. Simon Jennings is to join the Hermes Private Equity investment team. Jennings previously worked as an external consultant to a number of Swiss and UK-based private equity fund of funds groups, advising on a combination of investment and strategic issues.

Larry Schloss quits as head of CSFB Private Equity
13/11/2003. Larry Schloss, global head of Credit Suisse First Boston’s (CSFB) private equity operations, is to leave the firm in March 2004. Schloss is leaving ‘to explore new entrepreneurial opportunities in the private equity and asset management businesses,’ according to John Mack, CSFB’s co-chief executive.

Private equity firms getting more involved in management of portfolios, research shows
12/11/2003. Private equity firms are becoming increasingly active in the management of their underlying portfolio companies in order to counteract falling returns, according to research carried out by Ernst & Young in Europe.

Investors to up private equity allocation despite lower return expectations, survey says
12/11/2003. Institutional investors in Europe and the US intend to increase their average strategic allocation to alternative assets such as private equity, hedge funds and real estate, despite predicting a further decline in returns, according to the 2003 Goldman Sachs and Russell Global Report on Alternative Investing by Institutions.

Four private equity firms vie for Tussauds Group
12/11/2003. Pan-European buy-out firms Permira and PAI, and US firm Kohlberg Kravis Roberts are all reported to be vying for Charterhouse Development Capital's Tussauds Group. BC Partners is also thought to be considering an offer for the company.

Canadian Ventures West holds first close of eighth fund
12/11/2003. Canadian Ventures West has announced the first close of its eighth venture capital fund at $158m. The fund will invest in early-stage biotechnology, communications, energy technology and IT companies across Canada.

Canadian venture industry may be over the worst, new figures suggest
11/11/2003. Investment activity in Canada's venture capital industry increased in the third quarter of 2003 compared to the two previous quarters, according to the latest industry statistics released by Macdonald & Associates and the Canadian Venture Capital and Private Equity Association (CVCA).

Texas Pacific Group to acquire chemical company from Ripplewood in $770m deal
11/11/2003. Texas Pacific Group is to acquire chemical manufacturer Kraton Polymers from Ripplewood Holdings in a $770m deal. Ripplewood acquired the company from Shell in 2001 for $520m.

US turnaround specialist Alvarez & Marsal launches German office
11/11/2003. US turnaround specialist Alvarez & Marsal (A&M) has expanded its European presence with the opening of a new office in Germany. A&M has appointed four new investment professionals to work in the firm's third European office.

US Carlyle Group to open China office in 2004
10/11/2003. US private equity firm, Carlyle Group, is to open an office in Shanghai in the first quarter of 2004. The firm is already scaling up its search for investment opportunities in mainland China ahead of its official move into the region.

US Axiom Venture hires William Wilcoxson as partner
10/11/2003. US Axiom Venture Partners has hired William Wilcoxson as partner. Wilcoxson joins Axiom from Claflin Capital Management where he served as general partner, specialising in early-stage information technology companies.

US GTCR Golder Rauner closes eighth fund on $1.85bn
10/11/2003. US private equity firm GTCR Golder Rauner has held a final close on its eighth fund on $1.85bn, making it the fourth largest fund closed in the US so far this year. Only five funds have raised more than $1bn so far this year, reflecting the sharp deterioration in market conditions since last year.

HarbourVest completes major secondary funds transaction with UBS
07/11/2003. HarbourVest Partners, the global private equity firm, has completed one of the biggest ever secondary fund transactions in conjunction with investment bank UBS. The deal involves structuring the UBS fund portfolio, composed of more than 50 limited partnerships, into a joint venture in which both organisations have an interest.

Italian buy-out firm Investitori Associati on course to raise new E600m fund
07/11/2003. Italian buy-out firm Investitori Associati is in the process of raising a new fund with a target of E600m. Existing investors are expected to contribute around E400m, with an additional E200m coming from around ten new non-Italian institutions as part of an ambition to broaden the firm's investor base.

3i European barometer suggests business confidence recovering; results turnaround
06/11/2003. Private companies' confidence in the economy and general business environment is continuing to recover strongly from the trough of the last two years. The 3i barometer, which measures firms' optimism about the business, political, and economic climate clawed its way into positive territory for the first time in three years in the latest quarter.

UK firm Dunedin backs £37m buy-out of Caledonian Building Systems
06/11/2003. UK buy-out specialist Dunedin Capital Partners has backed the £37m buy-out of Caledonian Building Systems.

US firm CMEA Ventures holds first close on fund VI with $70m in commitments
06/11/2003. US early-stage investor CMEA Ventures has announced a first close on its latest fund with commitments of $70m. Fund VI has a target of $250m and will invest across the IT and life sciences sectors.

Canadian buy-out firm Edgestone closes fund on C$361m
05/11/2003. Edgestone Capital Partners, a Canadian firm focusing on mid-market buy-outs, has reached a final close on its second fund with commitments of C$361m. Swander Pace Capital, a US private equity group specialising in consumer goods businesses, has also reported reached a final close on $325m.

KKR wins exclusivity for DaimlerChrysler's MTU aero-engine unit sale
05/11/2003. US private equity giant KKR is closing in on another big European buy-out deal by winning the right to exclusive talks with DaimlerChrysler about the sale of its MTU aero-engines business. The unit is expected to be valued at around E1.5bn and a successful close would confirm KKR as a major player in the European market.

Canada's CPP Investment Board commits $75m to mainly Canadian funds
04/11/2003. The CPP Investment Board has announced two new large fund commitments to groups that will focus on Canadian investments. It has committed $25m to mid-market buy-out group CAI Capital Partners & Company and $50m to venture firm Ventures West.

ViaNova launches new European fund of funds with novel fee structure
04/11/2003. ViaNova Capital, an independent fund manager, has launched a new E500m European fund of funds into a crowded market confident that its novel fee structure will differentiate it from the competition. The fund will not charge any establishment costs, annual management fee or carried interest.

Candover exits Pandrol with sale to trade buyer
04/11/2003. European buy-out firm Candover has announced the sale of specialist engineering business Pandrol to French firm Delachaux for £165m. The sale provides further, albeit sketchy, evidence that exit conditions are gently improving across Europe with the reappearance of trade buyers.

Hicks Muse portfolio company buys two food brands from Unilever
03/11/2003. US buy-out firm Hicks Muse Tate & Furst has picked up two food brands from Unilever to add to its portfolio company Premier Foods. The firm has not published an acquisition price but Ambrosia and Polson generated combined sales of £60m in 2002.

Electra backs E135m buy-out of European chemicals firm Azelis
03/11/2003. European buy-out firm Electra Partners has backed the E135m buy-out of European chemicals distributor Azelis. Electra is paying E45m to acquire a 57 per cent stake from the current institutional investors in the firm Permira, Interbanca and Centrobanca and has set aside another E40m to finance acquisitions.

Survey: 60 per cent of Nordic pension funds invest in hedge funds or private equity
03/11/2003. More than 60 per cent of Nordic pension funds, life insurers, and foundations are currently invested in hedge funds or private equity and a significant proportion plan to increase their allocations over the next two years, according to the Nordic Alternative Investments Survey by Prospera Research.