News Archive: May 2005 
German buy-out firm DBAG buys boiler cleaning specialist Clyde Bergemann
31/05/2005. German buy-out firm Deutsche Beteiligungs AG and its co-investment fund DBAG Fund IV have bought boiler cleaning specialist Clyde Bergemann group from the US-based investment group Saw Mill Capital in a 90m transaction. 
Sam Watkinson joins UK mid-market firm Kleinwort Capital
31/05/2005. Kleinwort Capital, the UK lower mid-market specialist, has appointed Sam Watkinson as an investment director. In his new role Watkinson will lead investments in MBOs, MBIs, expansion and replacement capital, focusing on deal origination and advisor relationships in the south of the UK.
Nordic Venture Partners appoints senior advisor Per-Arne Sandstrom
31/05/2005. Nordic Venture Partners, based in Copenhagen, Stockholm and Helsinki, has appointed Per-Arne Sandstrφm as senior advisor to provide guidance and expertise to the firm and its portfolio companies.
US Frazier Healthcare closes $475m venture capital fund
31/05/2005. US group Frazier Healthcare Ventures has closed its latest venture capital fund, Frazier Healthcare V, on $475m. The fund will invest in the biopharma, medical device and healthcare service sectors. Frazier Healthcare employs both an early stage and late stage venture strategy, which includes growth equity investments.
Veronis Suhler Stevenson to sell US Hanley Wood to JPMorgan Partners
27/05/2005. Veronis Suhler Stevenson has agreed to sell Hanley Wood, a Washington, D.C.- based business-to-business media company serving the residential and commercial construction industries, to an investment group led by JPMorgan Partners. The parties said, they expect - when all accounts are settled - that the deal will represent the second largest business-to-business media transaction in the United States. The investment group also includes Wasserstein & Co. and current and former Hanley Wood management.
BC Partners raises more than 5.5bn for latest European buy-out fund
27/05/2005. BC Partners has raised over 5.5bn for its eighth fund, making it the largest European buy-out fund to date. BC European Capital VIII was raised in less than five months and was heavily oversubscribed, the firm said. Existing investors represent 90 per cent of the capital raised for the new fund.
The Sterling Group closes $470m private equity fund, hires Rosenthal and Boots
27/05/2005. Houston-based private equity firm The Sterling Group has closed Sterling Group Partners II, with aggregate capital commitments of $470m. This includes $20m from the principals of Sterling.
UK mid-market firm ISIS Equity Partners to open new office in Leeds
27/05/2005. ISIS Equity Partners is planning to open a new office in Leeds, headed up by Andy Lees. Lees has joined the firm from Aberdeen Murray Johnstone's Manchester office where he was responsible for sourcing and transacting a variety of private equity deals. He will be joined by James Hall from ISISEP's Manchester office.
Blackstone launches record $11bn fund, adding to series of mega funds
26/05/2005. US buy-out giant The Blackstone Group has begun marketing an $11bn fund, which is set to become the largest buy-out fund ever raised, the Financial Times reported. The new vehicle joins a growing list of mega funds in the market that look set to make this year a record for buy-out fundraising in both Europe and the US.
French fund of funds QUARTILIUM hires Pascal Feucher as investment manager
26/05/2005. QUARTILIUM, the fund of funds team of French group FINAMA Private Equity, has appointed Pascal Feucher as investment manager responsible for QUARTILIUM's mezzanine investment programme both in the US and in Europe.
TDR Capital acquires UK's Elliott Group for £166m
26/05/2005. UK-based buy-out firm TDR Capital has acquired the Elliott Group from The Davis Service Group for £166m. Elliott is a major player in the rental and sale of modular buildings.
US venture-backed valuations rise to $15m in Q1, highest for three years
26/05/2005. Overall median pre-money valuations of US venture-backed companies rose to $15m in the first quarter of 2005 from $12.2m in the same period of last year and now stand at the highest level in more than three years, according to VentureOne, the publisher of VentureSource and a unit of Dow Jones Newswires.
AXA Private Equity plans Asian expansion; office opening and new fund of funds
26/05/2005. AXA Private Equity is planning a major expansion of its activities in Asia over the coming 18 months, starting with the opening of a Singapore office in September and the launch of an 200m fund of funds to back groups in the region. The firm says it now considers the Asian markets to be mature enough to merit serious attention.
Exponent reaches final stage in bidding process for BBC Broadcast
25/05/2005. The BBC has invited Exponent Private Equity, Apax Partners, Macquarie Group and Thomson/Technicolor to enter the final stage of the bidding process for BBC Broadcast. The sale is subject to approvals from the BBC Governors and Executive Board and the Secretary of State for Culture, Media and Sport.
Roy Merritt joins European venture firm Amadeus Capital as director
25/05/2005. Roy Merritt has joined European venture capital firm Amadeus Capital Partners as a director. In his new role he will focus on telecommunications and business services investments and, generally, at the later-stage end of the firm's investment spectrum.
CSFB teams up with Mark Qiu to boost its activity in China
24/05/2005. A group led by Credit Suisse First Boston and Dr Mark Qiu, former CFO of Chinese oil company CNOOC, has formed a strategic partnership to focus on private equity investment opportunities in China. The offshore partnership, China Renaissance Capital Investment, will target strategic private equity investment opportunities in Chinese operating companies and is reported to have a target of around $1bn.
Enterprise Private Equity hires Reg Clark and Gordon Power
24/05/2005. Enterprise Private Equity, the newly formed private equity division of corporate finance boutique Enterprise Group, has appointed Reg Clark as director and investment manager following the acquisition of Loxko Venture Managers by Enterprise.
Blackstone buys European theme park operator Merlin Entertainments from Hermes
24/05/2005. US-based private equity giant The Blackstone Group has acquired European theme park operator Merlin Entertainments from UK-based Hermes Private Equity for £102.5m.
Adveq launches new private equity fund of funds focusing on US special opportunities
24/05/2005. European fund of funds investment manager Adveq has launched its third fund of funds investment programme, Private Equity Opportunities, at the same time as announcing a first close with commitments of $130m. It will invest in funds focusing on special investment opportunities in the US, the firm said in a statement.
Baring Private Equity Partners is raising third fund for Asia
24/05/2005. Baring Private Equity Partners has launched a $400m fund for investments in Asia, according to news reports. Half the fund will be invested in China and the other half will be divided between India and other Asian countries. Baring declined to comment.
Industri Kapital backs merger of Wihuri and Tradeka daily goods retail chains
24/05/2005. Industri Kapital, a European private equity firm with Nordic roots, has backed the merger of Tradeka Corporation's daily goods retail business Tradeka Ltd and Wihuri Group's daily goods retail chains within Ruokamarkkinat Oy. The combined group will be the third largest in Finland's daily goods retail industry.
Private equity consortium buys Maytag Corporation for $2.1bn
23/05/2005. A private equity consortium led by US and Asian private equity firm Ripplewood Holdings has agreed to take private US home and commercial appliances producer Maytag Corporation in a deal valued at around $2.1bn.
GI Partners exits its investment in UK Yates bar chain
23/05/2005. GI Partners has sold its investment in the UK wine bar chain Yates Group to the Laurel Pub Company, a portfolio company of the investment vehicle of Robert Tchenguiz, for £202m less than a year after acquiring the business.
JPMorgan Partners and Bancroft Private Equity acquire Nowaco Central Europe
23/05/2005. JPMorgan Partners and Central European private equity firm Bancroft Private Equity have agreed to acquire Nowaco Central Europe from Nowaco Group A/S for a total enterprise value of approximately 90m.
Access Industries, Carlyle and Investor AB to sell Bredbandsbolaget to Telenor
23/05/2005. US-based industrial holding company Access Industries, The Carlyle Group and Nordic industrial holding company Investor AB have signed an agreement to sell Bredbandsbolaget (B2) to Telenor.
VTC Partners acquires German systems supplier RWE Mechatronics
20/05/2005. Munich-based private equity investor VTC Partners has acquired RWE Mechatronics, a subsidiary of RWE Solutions, for an undisclosed amount. The company will be renamed Deutsche Mechatronics.
Paul Capital Partners hires former Battery Ventures general partner Michael Darby
20/05/2005. US secondaries specialist Paul Capital Partners has announced that Michael Darby is joining the Paul Capital Top Tier team as a principal. In his new role Darby will focus on investing in venture capital firms, contributing actively to all aspects of manager selection, due-diligence and structuring of investments.
European VC Atlantic Bridge raises 50m at first closing on new technology fund
19/05/2005. Technology venture capital firm Atlantic Bridge Ventures, founded earlier this year, has held a first closing on its debut fund, the technology-focused ABVEN I. The firm has raised 50m from high-net-worth individuals and institutional investors including International Investment & Underwriting, owned by Dermot Desmond. ABVEN I's target is 75m and the final closing is expected later this year.
Delta Private Equity Partners closes $120m fund for Russia
19/05/2005. Delta Private Equity Partners, formerly known as Delta Capital Management, has closed a $120m fund for Russia following one and a half years of fundraising. The fund will invest in mid-market companies across Russia and focus on the multimedia/telecommunication, consumer goods and financial services sectors. The firm is also exploring opportunities in the Ukraine.
Canada raised more venture capital but invested less in first quarter
18/05/2005. Canada's venture capital firms raised C$1bn in Q1 2005 compared to C$589m in Q1 2004, according to Canada's Venture Capital and Private Equity Association and its statistics-gathering partner Thomson Macdonald. However, the venture capital firms' investments dropped to C$326m in the first quarter from C$458m in the fourth quarter last year 2004 and C$417m in the first quarter 2004.
Bridgepoint sells UK ATM operator Bank Machine to Cardtronics
18/05/2005. Pan-European private equity firm Bridgepoint has sold UK ATM operator Bank Machine to American ATM operator Cardtronics for an undisclosed amount. Bridgepoint had owned 73 per cent of BML after a management buy-out of the UK ATM operations of Euronet Worldwide in January 2003.
Terra Firma's German housing company DAIG acquires Viterra from E.ON for 7bn
18/05/2005. Terra Firma's Deutsche Annington Immobilien Gruppe, based in Dusseldorf, Germany, has acquired Viterra, a private housing company with a portfolio of about 150,000 flats, from E.ON for approximately 7bn.
KKR reveals Asia interest with bid for stake in Samsung Life Insurance
17/05/2005. US buy-out giant KKR has submitted a bid to buy an 18 per cent stake in South Korean firm Samsung Life Insurance for around $800m, according to the Financial Times.
Carlyle hires Horbach from Forstmann Little to head up consumer group
17/05/2005. US private equity giant the Carlyle Group has hired Sandra J Horbach from rival group Forstmann Little as managing director, global partner and head of its newly formed consumer/retail group. She will be based in New York and join from September.
PPM Ventures changes name to PPM Capital and reinforces team
17/05/2005. PPM Ventures, the captive private equity arm of insurance company Prudential, has changed its name to PPM Capital and hired a string of new investment professionals to reinforce its team. The firm's fund investing activities will be renamed PPM Managers.
Blackstone joins the rush to set up in India with hiring of Akhil Gupta
17/05/2005. US-based private equity giant Blackstone has joined the rush of heavyweights to set up teams in India with the hiring of Akhil Gupta as a senior managing director. He joins from Indian corporation Reliance and will be based in Mumbai with a focus on sourcing private equity transactions.
UK and European venture capital investment up 19 per cent in Q1 2005 on year
16/05/2005. Venture capital investment into European companies totalled 880.3m in the first quarter of 2005, a 19 per cent increase over the first quarter of 2004, according to the European Venture Capital Report released by Ernst & Young and VentureOne. The number of deals, however, dropped 27 per cent over the same period.
3i and VSS to sell YBR to consortium led by Macquarie Capital Alliance Group for 1.8bn
16/05/2005. 3i and Veronis Suhler Stevenson have agreed to sell European directory services provider YBR Group to a consortium led by Australia's Macquarie Capital Alliance Group and including Macquarie Bank, Caisse de dιpτt et placement du Quιbec and Nikko Principal Investments for 1.825m.
3TS closes new 100m private equity fund for Central Europe
16/05/2005. 3TS Capital Partners has closed its second fund on 100m. There was only one investor: the existing investor 3i Group. 3TS Central European Fund II will primarily target growth capital investments in technology, media and communications companies in the new European Union member countries and the next wave of accession countries of Central and Eastern Europe.
Carlyle abandons fundraising efforts for Russian fund
13/05/2005. Private equity giant the Carlyle Group has abandoned its Russia-specific fund. The fund with a $300m target was Carlyle's second attempt to raise capital for investments in Russia but has been scrapped because of the depth of investors' concerns about the country's risk profile.
Co-head of strategy and operations Christian Salamon leaves Industri Kapital
13/05/2005. Christian Salamon, the co-head of strategy and operations at Industri Kapital will leave the firm on 1 July 2005.
Veronis Suhler Stevenson and 3i on course to sell YBR to Australia's Macquarie
13/05/2005. Veronis Suhler Stevenson and 3i are in exclusive talks to sell directory business Yellow Brick Road to Australia's Macquarie Capital Alliance for about 2bn, according to the Financial Times. The two private equity groups have invested about 300m of equity in the business.
US debt specialist Oak Hill Advisors opens London office
13/05/2005. New York-based Oak Hill Advisors has opened a London office. This reflects the firm's expectation that the leveraged capital markets in the UK and across Europe will continue to grow, Oak Hill said. Currently registering with UK regulatory authorities, the new office plans to open in London's West End this summer.
Danish fund of funds ATP Private Equity Partners raises new 1bn fund
12/05/2005. European fund-of-funds manager ATP Private Equity Partners has raised its second investment fund, the 1bn ATP PEP II. The new fund has already reached its target but ATP PEP has only announced it as a first closing because they expect a second investor to contribute to the fund.
GSC Partners expands Advisory Board
12/05/2005. GSC Partners, the debt and mezzanine specialist, has announced that investment banker Michael R Lynch, who recently retired from Goldman Sachs, and Clarence V Nalley III, the chairman of Nalley Automotive Group, have joined the firm's Advisory Board.
3i Barometer shows European business confidence up again
12/05/2005. Business confidence among European private companies has risen over the past quarter although there are pronounced differences across the different regions, according to the latest 3i European Enterprise Barometer. The headline index rose six points to +44 in the second quarter and has now been positive for seven consecutive quarters.
UK Sovereign Capital closes second fund at hard cap of £275m
12/05/2005. UK lower mid-market private equity investor Sovereign Capital has closed its second fund, Sovereign Capital Limited Partnership II, at the hard cap of £275m. The original target of the fund was £200m. The firm said that it completed its fundraising only seven months after the launch in late September 2004.
Sanjay Mansukhani hired to boost private equity research at Watson Wyatt
12/05/2005. Sanjay Mansukhani has joined Watson Wyatt to bolster the firm's research into alternative asset classes and to co-ordinate investment manager research in this area. Leading the US team, Mansukhani's remit includes researching alternative investment managers globally, particularly private equity, in conjunction with his Asian and European counterparts, the company said.
Bank of Korea advises government to avoid private equity funds
11/05/2005. A report from the Institute for Monetary and Economic Research, part of the Bank of Korea, has advised the South Korean government to avoid selling its stakes in banks to private equity funds, the Financial Times reported. The report said that private equity firms have had an impact on the stability of the South Korean financial system but have done little to demonstrate that they can improve the country's banking sector.
Advent International acquires US craft product supplier Making Memories from Peterson
11/05/2005. Mid-market buy-out firm Advent International has acquired Making Memories from Salt Lake City-based Peterson Partners, with management retaining a significant ownership stake following the transaction. Utah-headquartered Making Memories supplies proprietary craft products to international retailers and distributors. Financial details have not been disclosed.
Consortium including Apax and Saban Capital wins $972m auction for Israel's Bezeq
10/05/2005. An investor consortium including international private equity firm Apax Partners, media and telecommunications investment firm Saban Capital Group and Israeli investor Mori Arkin has been selected by the state of Israel to acquire a controlling interest in telecoms firm Bezeq for $972m.
UK private equity firm's investment up more than 50 per cent in 2004 to record £9.7bn
10/05/2005. Investment by UK private equity firms hit a new record level last year of £9.7bn, a jump of more than 50 per cent or £3.3bn from £6.4bn in 2003, according to the BVCA's annual Report on Investment Activity.
Three quarters of Australian superannuation funds are investing in private equity
10/05/2005. More than three quarters of Australian pension plans are already investing in private equity, according to some new research. The study by Australian academic John Evans, sponsored by fund of funds manager Adveq, found that of the 78 per cent of superannuation plans with active private equity programmes, some 26 per cent had more than five per cent of total assets in the asset class.
US-based PCG Asset Management increases European activity
10/05/2005. PCG Asset Management, a unit of the California-based investment management and advisory firm Pacific Corporate Group, has established a European office to better serve its growing European client base. The office is located in Geneva in Switzerland and will be run by Michael Russell, the firm's managing director for Europe. Russell has relocated from La Jolla, California.
CPP commits 200m to Apax Europe VI, US$100m to Lone Star Fund V
09/05/2005. The Toronto-based CPP Investment Board has committed 200m to Apax Europe VI, a fund advised by Apax Partners in Europe, and US$100m to Lone Star Fund V, a fund managed by Lone Star Funds.
3i to sell Braes Food Ingredients for 80m to Spanish Natraceutical
09/05/2005. European venture capital group 3i has agreed outline terms to sell the health business Braes Group to Spanish Natraceutical for 80m.
3i sells UK BetterCare Group for £116m to Four Seasons Health Care
06/05/2005. 3i and management have sold UK hospital and care home business BetterCare Group for £116m to Four Seasons Health Care, another private equity-backed owner and operator of UK care homes.
US buy-out firm Apollo targets $6bn with new fund
06/05/2005. US buy-out firm Apollo Management has started fundraising for its latest fund, with a $6bn target, according to LBO Wire. An investor was reported saying that the strength of the group's track record meant the fund 'will close at lightning speed'.
Warburg Pincus acquires UK-based Caradon Plumbing from Montagu
06/05/2005. Global private equity firm Warburg Pincus has acquired the businesses of pan-European heating group Caradon Plumbing from a consortium of private equity investors led by Montagu Private Equity in a transaction that valued the business at £227m.
Cinven joins battle for Spanish telecoms and cable firm Auna
06/05/2005. Cinven has reportedly teamed up with Apax Partners and CVC Capital Partners to win the protracted battle for Auna, the Spanish telecoms and cable firm. The first round of bids is expected to be due on 23 May. The potential value of the transaction, depending on the composition of the assets involved, varies from 7bn and 12bn.
Bridgepoint refinances UK pet products retailer Pets at Home
06/05/2005. Pan-European mid-market private equity firm Bridgepoint has refinanced its investment in Pets at Home, the UK pet products retailer is bought last year after a fiercely competitive auction. The transaction will allow the firm to return around £70m to investors less than a year after the original £230m acquisition.
Joe Aragona of Austin Ventures to serve as chairman of NVCA
05/05/2005. The National Venture Capital Association's Board of Directors has elected Joe Aragona as its new chairman. The general partner of Texas-based Austin Ventures was unanimously elected to the post at the NVCA Annual Meeting. Aragona succeeds Jim Breyer of Accel Partners.
Cinven appoints four new investment executives
05/05/2005. Pan-European buy-out firm Cinven has added four new associates to its London, Frankfurt and Paris teams.
Benchmark Capital raises second Israel fund of $250m
05/05/2005. Early-stage venture capital firm Benchmark Capital has raised a $250m fund, the firm's second fund focused on investments in Israeli high tech. Benchmark Israel II will continue to focus on early stage software, internet, applications and communications companies.
Littlejohn closes US buy-out fund on $650m
05/05/2005. US mid-market buy-out specialist Littlejohn & Co. has completed the final closing of Littlejohn Fund III with capital commitments of $650m. Originally the firm had targeted $600m but when it found the fund oversubscribed it placed a hard cap of $650m on Littlejohn Fund III.
Darby closes Darby-BBVA Latin American Private Equity Fund on $175m
04/05/2005. Global emerging markets investment firm Darby Overseas Investments has closed the Darby-BBVA Latin American Private Equity Fund on $175m. The fund, launched in partnership with Banco Bilbao Vizcaya Argentaria, focuses principally on Mexico, Brazil and the US Hispanic market. Investors include institutions from the United States, Europe, Canada and Mexico.
CVC closes $1.975bn fund Asia Pacific II
04/05/2005. CVC Capital Partners has closed its CVC Capital Partners Asia Pacific II with commitments of $1.975bn. The fund is the biggest ever raised in the Asia Pacific region and underlines investor appetite for investment opportunities in the region, CVC said in a statement.
PAI partners agrees to acquire food ingredients activities of Danish Chr. Hansen
04/05/2005. French buy-out group PAI partners has reached an agreement with Danish firm Chr. Hansen Holding to acquire its food ingredients activities.
Kenneth W Freeman joins KKR as managing director
04/05/2005. Kenneth W Freeman has joined KKR as a managing director in its New York office. In his new role he will work closely with KKR's healthcare team and other industry groups to source new investment opportunities and provide operational counsel and management expertise.
Israeli high-tech companies raised $350m from venture investors in Q1 2005
04/05/2005. A total of 102 Israeli high-tech companies raised $350m from local and foreign venture investors in the first quarter of 2005. The amount was down four per cent from the $366m raised by 113 companies in the previous quarter but it was eight per cent higher than the $323m raised by 111 companies in the first quarter of 2004, according to the Quarterly Survey conducted by the IVC Research Center with the cooperation of the Israel Venture Association.
TPG and Warburg Pincus acquire US luxury retailer Neiman Marcus for $5.1bn
03/05/2005. Warburg Pincus and Texas Pacific Group have agreed to buy luxury retailer Neiman Marcus for $5.1bn. The US private equity giants will acquire all of the outstanding Class A and Class B shares of Neiman Marcus for $100.00 per share in cash. Following the transaction each of the investors will own equal stakes in the company.
EQT sells dental equipment maker Sirona to US firm Madison Dearborn Partners
03/05/2005. EQT together with Sirona management has signed an agreement with Chicago-based Madison Dearborn Partners to sell Bensheim/Germany-headquartered Sirona Group, a manufacturer of dental equipment for clinics and dental laboratories. The value of the transaction is 800m, according to newspaper reports.
Apax Partners France agrees to acquire Heytens and Mondial Tissus for 180m
03/05/2005. Buy-out group Apax Partners France has agreed to acquire Heytens and Mondial Tissus, two French home-decoration retail chains, from a group of investors led by Fonds Partenaires and the CIC group. The 180m buy-out is expected to close before the second half of this year.
Media buy-out group VSS acquires US radio station KEDJ-FM from New Planet Radio
03/05/2005. Transatlantic media specialists Veronis Suhler Stevenson has agreed to acquire KEDJ-FM from New Planet Radio for an undisclosed amount. KEDJ-FM is a radio station serving the Phoenix, Arizona market.
TPG, affiliate pay 265m for France Telecom 27 per cent stake in German mobilcom
03/05/2005. US buy-out firm Texas Pacific Group and its hedge fund affiliate TPG-Axon have paid 265m for France Telecom's 27 per cent stake in German mobile operator mobilcom. France Telecom paid 3.74bn for 28 per cent of the business back in the heady days of 2000.
Advent International acquires UK clothing retailer Fat Face
03/05/2005. Advent International has acquired Fat Face, a multi-channel retailer of branded lifestyle clothing and accessories, for an undisclosed amount from UK group ISIS Equity Partners. Following the transaction company founders Tim Slade and Jules Leaver will continue to hold a substantial stake in Fat Face.
European buy-out activity slows in Q1 on previous quarter
03/05/2005. European buy-out activity has got off to a slow start this year, with the number and value of deals falling on the fourth quarter of 2004, according to new figures published by Incisive Media. The number of first quarter deals fell 32 per cent to 98, while the value fell 14 per cent to 19.3bn.
Union Investment to launch fund of funds to be advised by Unigestion
02/05/2005. Union Investment, the fund manager to the group of Volksbanken Raiffeisenbanken (cooperative banks) in Germany, is to launch a private equity fund of funds to its product range. Swiss alternative assets specialist Unigestion has been selected as the funds adviser.
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