News Archive: July 2005

Pan-European CVC closes €6bn European fund
29/07/2005. Pan-European buy-out firm CVC Capital Partners has held a first and final closing of CVC European Equity Partners IV, on €6bn. This fund not only adds to a growing list of mega buy-out funds raised globally this year but also sets a new record as the largest European private equity fund ever raised.

ISIS Equity Partners appoints Peter Watt to London new investments team
29/07/2005. Peter Watt has joined UK lower mid-market buy-out firm ISIS Equity Partners from NBGI Private Equity. He becomes a member of the London new investments team.

UK buy-out firm Graphite Capital sells UK fashion retailer Jane Norman for £117.4m
29/07/2005. UK buy-out firm Graphite Capital has sold its majority shareholding in UK women's fashion retailer at Jane Norman to an Icelandic investor group comprising Kaupthing Bank and Baugur Group for £117.4m. The transaction provides Graphite with a total return of 2.9 times its investment and an internal rate of return of more than 50 per cent, according to Graphite.

Carlyle to acquire SS&C Technologies for $941m
29/07/2005. US private equity giant The Carlyle Group is to acquire SS&C Technologies through its affiliate Sunshine Acquisition Corporation. The aggregate consideration to be paid to SS&C stockholders and option holders is approximately $941m.

GSC Partners appoints two new managing directors to lead hedge fund move
28/07/2005. GSC Partners, the transatlantic mezzanine and debt specialist, has appointed Drew Doscher and Jeffrey Horan as managing directors to lead the firm's newly created hedge fund.

Venture-backed European companies double IPOs in second quarter from a year ago
28/07/2005. A total of 14 venture-backed European companies completed initial public offerings in the second quarter of 2005, compared to seven in the second quarter of 2004 and seven in the first quarter of 2005. This is the highest number since the second quarter of 2001, which also saw 14 IPOs, according to the European Liquidity Report from VentureOne.

US later stage funding on four-year high in second quarter
27/07/2005. The value of later stage US venture capital funding reached a four-year high of $2.4bn in the second quarter of 2005, new figures from the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association show.

Baring Private Equity Asia appoints William Flanz to Investment Committee
27/07/2005. Baring Private Equity Asia has appointed William W Flanz as a member of the Investment Committee. Flanz has been senior advisor to Baring Asia since January 2003. He was previously chief executive officer of private investment company Sterling Enterprises.

Apollo Management to acquire Cendant's Marketing Services Division for $1.83bn
27/07/2005. US buy-out firm Apollo Management is to acquire Cendant Corporation's Marketing Services Division through its affiliate Affinity Acquisition Holdings for $1.83bn.

US venture investment activity posts quarterly rise in Q2
26/07/2005. The number and value of US venture capital investment activity in the second quarter of this year increased on the previous quarter but was still lower than the same period of last year, according to the Quarterly Venture Capital Report released by Ernst & Young and VentureOne.

CalPERS portfolio reaches record market value of $189.8bn
26/07/2005. The California Public Employees' Retirement System recorded a 12.7 per cent investment return for the one-year period ended 30 June 30 2005, raising its portfolio's market value to a record $189.8bn. The giant pension fund said private equity, real estate and international stocks were the main performance drivers during the year.

Electra Partners Europe closes second pan-European fund at €1.25bn
25/07/2005. European mid-market private equity specialist Electra Partners Europe has closed its second pan-European fund, Electra European Fund II, with commitments of €1.25bn. The fund will continue to specialise in European buy-outs in the support services, healthcare, leisure, financial services and industrial sectors in Western Europe.

German Wellington Partners closes €150m venture capital fund
25/07/2005. Munich-based venture firm Wellington Partners has held a final closing of its latest venture capital fund, Wellington Partners III Technology Fund, at €150m. The fund has exceeded its original target of €120m and reached its hard cap, according to the firm.

Bridgepoint sells UK parcel carrier Lynx Express to UPS for £55.5m
25/07/2005. Pan-European private equity firm Bridgepoint has sold its majority ownership of UK parcel carrier Lynx Express to the global carrier UPS for £55.5m.

ABN AMRO Capital, Montagu, PPM, 3i all reportedly bidding for Britax Childcare
22/07/2005. ABN AMRO Capital, Montagu, PPM and 3i are understood to have submitted first-round bids for children's car seat and pushchair maker Britax Childcare, the Financial Times reported. Offers are in the range of £200-230m.

First closing of Tech Capital Partners' second venture technology fund on Can$50m
22/07/2005. Canadian venture capital firm Tech Capital Partners has completed a first closing of its second venture capital fund, Tech Capital II, on Can$50m. The fund has a target of Can$60m and is expected to close in the fourth quarter of this year. It will focus on seed and early-stage technology company investments in the Waterloo, Ontario region.

Capital Z and Reservoir Capital form private equity joint venture
21/07/2005. Capital Z Investment Partners, a $2.25bn investment firm focused on making sponsorship investments in private equity funds and hedge funds, and Reservoir Capital Group have formed a joint venture to collaborate on new fund sponsorships and related co-investment opportunities in the global private equity market.

IDG and Accel launch venture capital fund for China
21/07/2005. 

Denver-based KRG Capital Partners closes $715m buy-out fund
21/07/2005. Denver-based buy-out firm KRG Capital Partners has announced the final closing of its third fund, KRG Capital Fund III, on the self-imposed cap of $715m.

3i acquires European ground handler Aviapartner for reported £160m
20/07/2005. 3i has bought European ground handler Aviapartner for a reported £160m. Brussels-headquartered Aviapartner offers a range of ground handling services via its international network of 31 airports across five European countries.

Advent sells German electronics group Moeller to Doughty Hanson for €1.1bn
20/07/2005. Advent International has sold its industrial electronics firm Moeller Group to UK-based private equity firm Doughty Hanson & Co for a purchase price of €1.1bn including pension liabilities and financial debt. Having overseen a major turnaround in the firm's performance since buying it in 2003, Advent said it would consider reinvesting some of its sales proceeds in Moeller once the transaction had closed.

European venture firm Alta Berkeley sells stake in Siliquent to Broadcom
20/07/2005. London-based venture capital firm Alta Berkeley has sold its investment in Siliquent Technologies to Broadcom Corporation, a specialist in wired and wireless broadband communications semiconductors. Financial terms of the transaction have not been disclosed but Alta Berkeley said the third exit from its current fund had 'made a very attractive multiple and an extremely good IRR.'

IPO of Doughty Hanson's RHM successful
19/07/2005. Pan-European buy-out group Doughty Hanson has successfully floated its portfolio company RHM (formerly known as Rank Hovis McDougall), a UK food producer, a business it first attempted to list in 2002. The offer price of the initial public offering of RHM shares was 275 pence per ordinary share, and it went up within hours as demand on the stock market was good.

MidOcean Partners acquires UK health and fitness chain LA Fitness
19/07/2005. Middle-market private equity firm MidOcean Partners has completed the acquisition of LA Fitness, the UK health and fitness chain with 67 clubs throughout the UK, for a reported £150m.

IK acquires tensioning products provider DSI from WALTER BAU for €168m
18/07/2005. Industri Kapital, the European buy-out firm with Nordic roots, has entered into an agreement to acquire Germany-headquartered DYWIDAG-Systems International, a provider of tensioning products used in bridge building, slope stabilisation and mining, from the insolvent German construction company WALTER BAU for a purchase price of €168m.

UK buy-outs break £8bn mark for the first time in Q2 2005
18/07/2005. The UK buy-out market was stronger than ever in the second quarter of 2005, breaking the £8bn mark for the first time. The total value of buy-out transactions was £8.33bn, according to figures released by KPMG's Private Equity Group, which tracks UK buy-outs with value over £10m.

Apax and Tele2 planning Dutch telecom firm Versatel acquisition for €1.3bn
18/07/2005. Global private equity firm Apax Partners and Swedish alternative telecom operator Tele2 are planning to buy Dutch telecommunications provider Versatel. Their €2.20-a-share in cash offer values Versatel at €1.3bn.

Emerging markets investor CDC commits $100m to four funds in Africa
18/07/2005. Emerging markets investor CDC has committed over $100m to four funds in Africa. The commitments include $40m to the Canada Investment Fund for Africa, $50m to the Actis Africa Empowerment Fund to invest in black empowered businesses in South Africa, $15m to the Emerging Markets Partnerships' second Africa fund aimed at larger businesses, and $3m to Grofin, a fund sponsored by the Shell Foundation and endorsed by Tony Blair in his capacity as chairman of the Commission for Africa.

German BayTech Venture Capital closes €86m fund
18/07/2005. Munich, Germany-based early-stage venture capital firm BayTech Venture Capital has closed its second fund, BayTech Venture Capital II, on €86m. The fund will make investments in Western Europe with a primary focus on Germany and France. Its target sectors are technology - communications, software, semiconductors, electronics - and life sciences.

San Francisco Equity Partners officially launches operations, appoints Cameron Steele
18/07/2005. Expansion-stage private equity firm San Francisco Equity Partners has officially launched its operations. SFEP was founded in partnership with LMS Capital, the investment arm of London Merchant Securities, and focuses on investments within the information technology, media, consumer and service industries.

Permira to open Tokyo office, Tomoya Shiraishi to head operations
15/07/2005. Buy-out firm Permira will open an office in Tokyo to cover the Japanese market. The firm says that it is strongly committed to Japan's private equity market, and that it sees significant opportunities in the country.

Bridgepoint sells Molton Brown to Kao of Japan for £170m
15/07/2005. Pan-European private equity firm Bridgepoint has sold Molton Brown, the luxury goods brand focusing on bath and body care, skin and hair care, to Tokyo-based Kao Corporation of Japan in a transaction totalling £170m.

ABN AMRO Capital acquires IMCD from AlpInvest Partners
15/07/2005. ABN AMRO Capital has acquired specialty chemicals distributor IMCD in a secondary buy-out from AlpInvest Partners. AlpInvest bought the company in 2001. Following the transaction, management will remain an important shareholder in the company. Financial terms of the transaction have not been disclosed.

Israeli high-tech companies raised $387m in venture capital in Q2, up 11 per cent from first quarter
14/07/2005. In the second quarter of 2005, a total of 98 Israeli high-tech companies raised $387m from both local and foreign venture investors. The amount represents an 11 per cent increase from the $350m raised by 102 companies in the first quarter and a 14 per cent increase from the $338m raised by 91 companies in the second quarter of 2004, according to the Quarterly Survey conducted by the IVC Research Center with the cooperation of the Israel Venture Association.

Carlyle strengthens US Venture and Growth Capital team
14/07/2005. US private equity giant The Carlyle Group has appointed three senior professionals to its US Venture and Growth Capital group: managing director Stephen W Bailey, principal Charles C Moore and vice president David Lam. They join a team of 22 investment professionals based in San Francisco and Washington, DC.

GS Capital Partners and Kelso & Company acquire Coffeyville Resources
14/07/2005. New York-headquartered GS Capital Partners, the private equity arm of the Goldman Sachs Group, and private equity investment firm Kelso & Company, also headquartered in New York, have acquired Coffeyville Resources through their acquisition vehicle, Coffeyville Acquisitions. Financial terms of the transaction have not been disclosed.

Former US secretary of state Colin Powell joins Kleiner Perkins Caufield & Byers
14/07/2005. Colin Powell, the former US secretary of state, has been named strategic limited partner at Kleiner Perkins Caufield & Byers. He served in the military for 35 years and rose to the rank of four-star general.

US Blackstone acquires LEGOLAND Parks for €375m
14/07/2005. US-based The Blackstone Group has acquired LEGOLAND Parks for €375m. The deal includes LEGOLAND's four family theme parks in the UK, Germany, California and Denmark.

AIG Highstar Capital II closes on $800m
13/07/2005. US-based AIG Global Investment Group has announced the final closing of AIG Highstar Capital II and its affiliated funds with capital commitments of $800m. Highstar II is a group of private equity buy-out funds formed to invest in infrastructure (including energy) and related assets and businesses.

VSS acquires and merges recruitment services providers Qwiz and ePredix
13/07/2005. Media and information private equity firm Veronis Suhler Stevenson has signed a definitive agreement to become the majority shareholder in a new entity created by the merger of Atlanta-based online job-related skills testing and candidate selection strategy provider Qwiz and Minneapolis-based ePredix, a provider of online personality, behavioural and cognitive pre-employment assessment and employee development tools.

The Founders Fund closes $50m venture fund
13/07/2005. The Founders Fund, founder of successful start-ups such as PayPal, has launched a venture fund with initial subscriptions of $50m.

Montagu III closes on €2.26bn
12/07/2005. UK-based pan-European buy-out firm Montagu Private Equity has closed its third fund, Montagu III, on €2.26bn. Fund III has been Montagu's first major fundraising effort since its spin-out from HSBC.

Australia's Macquarie Funds Management establishes new US team
12/07/2005. Australian firm Macquarie Funds Management has strengthened its Alternative Investments team with the appointment of Peter Martenson, Eric Becker and Rick Fratus. Together they will form a new team, based in Southern California. They will primarily focus on Macquarie Funds Management's private equity investment opportunities in North America, Europe and Asia.

3i to acquire UK car park operator NCP from Cinven for £555m
12/07/2005. European private equity company 3i has agreed to acquire UK parking services and traffic management company NCP for £555m from Cinven, which bought the company from Cendant Corporation in 2002.

Duke Street and Englefield acquire UK Cox Insurance for £390.8m
11/07/2005. European buy-out firms Duke Street Capital and Englefield Capital have declared their offer for Cox Insurance unconditional in all respects as of 24 June 2005.

Swiss SCM Strategic Capital Management hires AXA Private Equity's Suen Yan Leung
11/07/2005. Suen Yan Leung has joined SCM Strategic Capital Management's due diligence department as a senior analyst. He will be responsible for the due diligence and the negotiation of client investments in private equity and real estate programmes.

ABN AMRO Capital acquires holiday parks operator Roompot from Bencis Capital Partners
11/07/2005. ABN AMRO Capital has acquired holiday parks operator Roompot in a secondary buy-out from Dutch private equity firm Bencis Capital Partners.

Hi-tech companies founded by Indians in the US raise $300m in second quarter
11/07/2005. Hi-tech companies founded by Indians in the US raised about $300m in venture capital/private equity financing during the quarter ended June 2005.

GW Capital Partners closes India Value Fund II on $150m
08/07/2005. Indian private equity firm GW Capital has closed its second fund with commitments of $150m. India Value Fund II attracted capital from all of the investors in its predecessor fund as well as a string of blue chip international institutions.

Strong rise in Q2 venture-backed M&A activity helps power first half to highest since 2000
08/07/2005. A strong rise in the value of US venture-backed M&A in the second quarter of this year helped push the total for the year to date to its highest since 2000, according to figures from VentureOne. The aggregate amount paid in the second quarter was $6.8bn, up 14 per cent from the same period last year, although the number of deals was lower.

French luxury goods group Taittinger attracts string of private equity bidders
08/07/2005. Private equity bidders are eagerly circling French luxury goods group Taittinger after the decision by its owner to examine options for the business. The potential suitors include Carlyle, Cinven, PAI and Blackstone.

Danish buy-out firm Axcel has a first close of its third fund with €350m of commitments
07/07/2005. Danish buy-out firm Axcel has had a first close of its third fund slightly ahead of target with commitments of €350m just three months after its formal launch in March.

Charterhouse agrees to buy washroom services firm PHS for £600m
07/07/2005. Charterhouse, the UK-based pan-European buy-out firm, has agreed to pay £600m for the washroom services firm PHS Group Plc. The acquisition is the third for Charterhouse in less than a month.

Carlyle opens third Chinese office in Beijing, taking Asian staffing to 57
06/07/2005. The Carlyle Group has opened its third Chinese office in Beijing and staffed it with four investment professionals, two from the growth capital team, one from the buy-out team and one from the real estate team. The new opening takes the number of Carlyle investment professionals in Asia to 57.

French Weinberg Capital Partners raises €380m for first close of debut fund
06/07/2005. Weinberg Capital Partners, the French buy-out firm set up by Serge Weinberg. Has held a first close on its debut fund with commitments of €380m, on course for its target of €500m.

Barclays Private Equity backs £46m MBO of shoe retailer Kurt Geiger from Harrods
06/07/2005. Barclays Private Equity, the pan-European mid-market specialist, has backed the £46m MBO of luxury show retailer Kurt Geiger from the Harrods Group. Barclays has taken a 72 per cent stake in the business alongside the management.

PPM Capital buys German BST Safety Textiles in deal worth €125m
05/07/2005. PPM Capital, the mid-market buy-out arm of the Prudential insurance company, has bought BST Safety Textiles from Johann Berger in a deal worth around €125m. BST makes fabrics for automotive airbags and seatbelts and commercial webbing.

Euroventures announces final closing of Euroventures Hungary III on €51m
05/07/2005. Euroventures has announced the final closing of Euroventures Hungary III with commitments of €51m. Investors include ABN Amro, the European Bank for Reconstruction and Development, Lombard Odier and an investor in the Middle East.

Doughty Hanson sells Priory Group to ABN Amro for £875m
05/07/2005. Pan-European buy-out group Doughty Hanson has made a substantial return on its investment in healthcare services firm Priory Group. It has sold the firm to ABN Amro for £875m, having paid £306m for the business in 2002.

Duke Street Capital founder Truell to step back ahead of next fundraising
05/07/2005. Edmund Truell, the founder of European buy-out firm Duke Street Capital, has told investors he will not be involved in the firm's next fund. Instead, he plans to establish a new business that will focus on investments related to the pensions industry.

Apax closes sixth buy-out fund with €4.3bn of commitments
04/07/2005. Global private equity firm Apax has finally closed its sixth buy-out fund with commitments of €4.3bn. The closing exceeded the fund's target of €4bn but was short of the hard cap of €4.5bn.

AXA Private Equity buys French food firm Benedicta from Barclays and ABN Amro
04/07/2005. AXA Private Equity has bought French food manufacturer Benedicta in a secondary transaction from Barclays Private Equity and ABN Amro Capital France.

EQT names Marcus Brennecke as new German head
04/07/2005. EQT, the Northern European buy-out firm, has named Marcus Brennecke as the new head of its German business. He will take over from Bjorn Hoi Jensen, who will remain in the Munich office. The firm has also announced the departure from the German team of Hans Moock.

French buy-out firm Butler Capital closes third fund with €320m commitments
01/07/2005. French buy-out firm Butler Capital has reportedly closed its latest fund with commitments of €320m. France Private Equity III was launched in April this year with a target of €300m.

Value of US venture-backed IPO activity drops to lowest level since 2003
01/07/2005. The value of US venture-backed IPOs dropped to its lowest level in the second quarter since 2003, according to new figures from the NVCA and Thomson Venture Economics. There were just ten VC-backed IPOs worth $714m, compared with 29 floats worth $2.1bn in the same period last year.

US buy-out activity in first half of year hits new record of $77bn
01/07/2005. The value of US buy-out deals hit a new record of $77bn in the first half of this year, an increase of 44 per cent on the same period in 2004, according to figures published by Thomson Financial.

3i sells minority stake in UK vehicle leasing firm Zenith to Dunedin
01/07/2005. Listed private equity firm 3i has sold its minority stake in UK vehicle leasing firm Zenith to Dunedin Capital Partners in a deal worth £27m. 3i said the sale would generate it proceeds of £12m and an internal rate of return of 80 per cent.