News Archive: December 2002 
UK government finally abolishes 20-partner limit
23/12/2002. The UK government has finally abolished the limit on the number of partnership members that has been the source of frustration for private equity firms for years. 
PPM Ventures acquires Prezioso from Barclays Private Equity France
20/12/2002. Further evidence of the increasing tendency towards secondary buy-out deals: UK mid-market private equity specialist PPM Ventures has acquired French anti-corrosion coatings company Prezioso from Barclays Private Equity France, in a transaction with total funding in excess of E170m.
Permira on track to acquire German TV firm Premiere
20/12/2002. European buy-out firm Permira has agreed to take over struggling German pay-TV business Premiere, part of the collapsed Kirch empire.
Value of European private equity-backed buy-outs plummets to E37.6bn
19/12/2002. The continuing slowdown in the private equity industry has been further borne out by new research.
CalPERS to release fund performance data but not portfolio company information
19/12/2002. After weeks of uncertainty, California Public Employees' Retirement System has announced the settlement of its lawsuit with San Jose Mercury News, agreeing to release IRR performance data quarterly, but not portfolio company information.
Ex-head of Alliance Capital to launch $500m Eastern Europe fund
18/12/2002. Dave Williams, until last year the head of US asset management giant Alliance Capital, is to launch a $500m fund targeting Central and Eastern Europe.
Latest Deals: 11-17 December 2002
18/12/2002. The AltAssets weekly round up of deals done in Europe and North America. This week there were 165 active investors in 61 deals and three exits across 15 sectors…
Permira agrees to pay Compass £712m for UK Travelodge and Little Chef
18/12/2002. Pan-European buy-out firm Permira has conditionally agreed to pay £712m to UK catering group Compass for its Travelodge and Little Chef businesses.
Deals update: Activity picks up before the holiday slowdown
18/12/2002. Private equity investment activity in the latest week recorded a modest increase over the previous week as firms scrambled to conclude business ahead of the prolonged holiday period.
Apax backs Van Heusen in $700m buy-out of Calvin Klein
18/12/2002. Global private equity firm Apax Partners has backed Phillips-Van Heusen Corporation in a buy-out of clothing brand Calvin Klein that values the company at around $700m.
UK buy-out market value falls by more than 25 per cent in 2002
17/12/2002. The value of the UK buy-out market has tumbled to £14.3bn from £19.5bn in 2001, according to new figures released by the Centre for Management Buy-Out Research.
Candover expands team with appointment of new director
17/12/2002. European buy-out giant Candover has appointed John Arney, previously of JP Morgan Partners, as a director.
Atlas Venture cuts fund by 38 per cent to $600m and closes two US offices
17/12/2002. Early-stage UK/US venture capital firm Atlas Venture has joined a growing wave of venture capital firms to hand back money to release their limited partners.
Washington State Pension Fund and Oregon Investment Council pull out of KKR deal
17/12/2002. Washington State Pension Fund and Oregon Investment Council have decided to pull out of a deal to invest up to $1bn in a direct stake in US buy-out giant Kohlberg Kravis Roberts & Co, according to Bloomberg.
Global M&A activity still dropping in 2002 but private equity cushioning fall, says KPMG
16/12/2002. Global merger and acquisition activity had another dismal year so far in 2002 and there is little sign that much will improve in the short-term, according to KPMG Corporate Finance.
Hicks, Muse, Tate & Furst announces promotions
16/12/2002. US-based private equity firm Hicks, Muse, Tate & Furst has promoted two of its principals to partner and five of its investment professionals to principal.
UK's M&S chairman Luc Vandevelde to launch £300m buy-out fund
16/12/2002. Marks & Spencer chairman Luc Vandevelde is to launch a £300m buy-out fund called Change Capital Partners when he steps down from his executive role at the retailer in January.
Canada's CPP to expand disclosure of private equity fund investments
16/12/2002. The Canada Pension Plan Investment Board has joined a growing queue of pension funds making their private equity fund performance data freely available. CPP is producing a quarterly release that discloses fund commitment and capital drawn, as well as the reported value by the fund manager and distributions received by the CPP Investment Board.
Banks have lost $10bn on private equity since 2000, FT estimates
13/12/2002. Leading banks have lost around $10bn on their private equity investments since the downturn in markets that started in 2000, according to the Financial Times.
Diageo and Texas Pacific agree $1.5bn Burger King sale
13/12/2002. Drinks giant Diageo and a private equity consortium led by US firm Texas Pacific Group (TPG) have finally agreed a price of $1.5bn for the sale of fast food group Burger Kin'.
US's Oaktree Capital Management closes new mezzanine fund above target on $800m
12/12/2002. Further evidence of the growing popularity of mezzanine financing: Los Angeles-based Oaktree Capital Management has held a final close of its debut mezzanine fund with $800m, more than $100m over its original target of $700m.
UK-based Man Group to take control of Westport Private Equity
12/12/2002. Listed hedge fund manager Man Group has acquired control of UK-based Westport Private Equity, one of the world's oldest-established funds of funds, with the purchase of a majority stake. The sum paid has not been disclosed.
Baring Americas plans to launch second Mexico fund
11/12/2002. New York-based Baring Americas Partners plans to launch its second Mexico fund, Baring Mexico Fund II, in January 2003, with a target of $200m.
Terra Firma makes first independent acquisition
11/12/2002. Guy Hands' new private equity firm Terra Firma Capital Partners has made its first acquisition as an independent, with the purchase of shares currently held by the City of Cologne in Germany, in housing companies GAG Immobilien and Grund und Boden (GruBo), for around E420m.
Latest Deals: 4-10 December 2002
11/12/2002. The AltAssets weekly round up of deals done in Europe and North America. This week there were 138 active investors in 57 deals across 13 sectors…
Deals update: US investment activity shoots up after Thanksgiving
11/12/2002. Deals activity across the globe shot up in the week ending 10 December 2002, as investors looked to complete deals before the end of the year.
US CalSTRS moves to make private equity fund performance data publicly available
10/12/2002. Further developments in the saga of public disclosure that is gripping the US private equity world: CalSTRS, the California State Teachers' Retirement System, has decided to disclose private equity fund performance data following a request filed by the San Jose Mercury News under the Public Records Act in October.
Switzerland's Strategic Capital Management hires Ralph Aerni to lead private equity team
10/12/2002. Strategic Capital Management, a firm based in Zurich providing asset management and investment advisory services, has hired ex-Swiss Life investment manager Ralph Aerni as part of its private equity unit with a view to him leading the team after a transition period.
Switzerland-based Lombard Odier Darier Hentsch & Cie spins out biotech private equity operations
10/12/2002. Asset management firm Lombard Odier Darier Hentsch & Cie is to spin out its biotech private equity operations in the New Year. Ultreia Capital Ltd is to commence operations in January 2003 and will assume the management of LODH's biotech private equity investments – valued at around CHF200m (E136m).
Secondaries specialist Lexington Partners moves towards $2bn fund target
10/12/2002. Lexington Partners, the global private equity secondaries specialist, has signed up two of the largest US pension funds on its way towards a targeted $2bn close on its latest fund.
MPM Capital announces fund close of MPM Bioventures III at $900m
09/12/2002. Healthcare-focused investment management firm MPM Capital has successfully closed its third venture fund, MPM Bioventures III, with $900m of commitments. It is one of the largest-ever biotech-focused funds, and the largest venture capital fund raised this year.
US-based Cerberus offers for South Korean Chohung Bank
09/12/2002. US private equity firm Cerberus is reportedly one of two financial buyers bidding for Chohung Bank, South Korea's oldest lending bank, which has a market capitalisation of about $2.9bn. The other is Shinhan Finance, one of the country's largest financial groups.
Candover appoints Cyrille Chevrillon to executive board with mandate to generate French deal flow
09/12/2002. European private equity giant Candover has underlined its commitment to the French buy-out market with the appointment of Cyrille Chevrillon as a managing director.
Barclays Private Equity holds final close of European fund with E1.25bn
09/12/2002. UK-based Barclays Private Equity has had a final close of its European fund with E1.25bn. The fund will focus on mid-market buy-outs across Europe over the next three or four years.
Carlyle Group offers to take UK-based Firth Rixson plc private for around £50m
06/12/2002. Private equity giant The Carlyle Group has reached agreement with Firth Rixson, an aerospace and automotive components supplier based in Sheffield, on the terms of a cash offer for the company.
Toby Wyles to quit Apax Partners in 2003
06/12/2002. Apax Partners' senior partner Toby Wyles is to leave the firm in May or June 2003, for personal reasons.
JP Morgan to halve capital invested in private equity arm
06/12/2002. Further indications of JP Morgan Chase & Co's wish to withdraw further from the high-risk world of private equity: the firm is reported to be planning to halve the amount it invests in JP Morgan Partners, its venture capital unit.
HSBC Private Equity backs £125m MBO of ventilation and cable management company
05/12/2002. HSBC Private Equity has acquired Smiths Group Plc's ventilation and cable management businesses for £125m. The newly formed company will employ around 1,000 people and had sales of approximately £105m in 2001.
UK's MoD signs up to sell QinetiQ to The Carlyle Group in a deal worth £500m
05/12/2002. The uncertain future of QinetiQ plc, formerly the Defence Evaluation and Research Agency, has moved forward another step. Terms have been agreed under which private equity giant The Carlyle Group will acquire 34 per cent of the company with the MoD retaining a 63 per cent majority share.
UK-based Bancroft Group holds first close on Fund II of E80m
05/12/2002. East European-focused private equity firm Bancroft Group has held a first close of Bancroft II LP with committed capital of E80m, a spokesman for the firm has confirmed.
The fund launched in February 2002 and has a target of E250m. Its cornerstone investor is JP Morgan.
3i Spain backs MBO of Esmalglass in deal worth E250m
05/12/2002. Spain's 3i office has backed its largest ever investment in the country, with its participation in the management buy-out of Spanish ceramic glazes company Esmalglass from its parent Porcelanosa – a deal worth around E250m. 3i paid E80m for a minority stake that equalled ‘almost 50 per cent' of the company.
JP Morgan to hire new partner for European operations
04/12/2002. JP Morgan's private equity arm JP Morgan Partners is to hire Stephen Welton, who formerly served as CEO of TV Travel Shop, as a new partner.
Latest Deals: 27 November - 3 December
04/12/2002. The AltAssets weekly round up of deals done in Europe and North America. This week there were 85 active investors in 36 deals and one exit across 11 sectors…
Deals update: Thanksgiving slows activity in US, but Europe holds steady
04/12/2002. Private equity investment activity has slowed significantly in the week ending 3 December, partly because of the Thanksgiving holiday in the US.
US venture-backed companies' median valuation falls, fundraising plummets
04/12/2002. The median valuation of US venture-backed companies fell back in Q3 2002 after a modest increase in the second quarter.
European private equity investment and fundraising rise in Q3 but exits tough
03/12/2002. European private equity investment activity hit E6.3bn in the third quarter, its highest level this year, driven chiefly by a handful of large buy-out transactions, according to the latest figures from the European Private Equity and Venture Capital Association (EVCA).
BC Partners at front of queue to buy UK's Gala for a reported £1.2bn
03/12/2002. Pan-European private equity firm BC Partners is understood to be in negotiations with Gala, a bingo and casino operator, over the sale of the company, a deal worth more than £1.2bn, according to The Times.
Schneider confirms plan to sell Legrand to KKR consortium
03/12/2002. One of Europe's largest private equity transactions now looks set to proceed after a wobbly few weeks of doubt. French electrical manufacturer Schneider Electric has confirmed it plans to continue with its E3.6bn sale of Legrand to a consortium of private equity buyers led by US firm KKR and French firm Wendel Investissement.
Pomona Capital closes fifth secondaries fund well above target at $582m
03/12/2002. More investor interest in the secondaries market; global private equity firm Pomona Capital has had a final close of its fifth secondaries fund with $582m of commitments. The fund was launched a year ago and has comfortably exceeded its original target of $400m.
Healthcap leads $33m investment in UK biotech Renovo
03/12/2002. Nordic life sciences specialist Healthcap has led a $33m second-round investment in UK biotech firm Renovo, one of the biggest financings in the sector this year.
European private equity activity set to increase in 2003, say investment bankers
02/12/2002. A survey of Europe's leading investment bankers has a rare piece of good news for the private equity industry. Some 78 per cent of European investment bankers expect to see an increase in private equity involvement in the M&A market next year, according to figures from pan-European private equity firm Cinven.
AXA Private Equity plans to raise new $200m fund of funds for 2003
02/12/2002. France-based AXA Private Equity has announced plans to raise a new $200m fund of funds in 2003. It says the fund will focus on the US and Western Europe.
Report warns of mounting pressure on UK private equity industry caused by dismal exit conditions
02/12/2002. There is a growing backlog of exits in the UK private equity market, with the average life span of an investment increasing from three years in 1982 to just over five years in 2001, according to new research from the Centre for Management Buy-Out Research.
| 
