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SVG Capital defeats second Coller-led revolt in 12 months

28 Mar 2013

ballot box vote shareholderFTSE 250-listed SVG Capital has fought off the second shareholder revolt led by Coller Capital in 12 months after the latter reportedly tried to stop chief executive Lynn Fordham’s re-election to the board.

Coller, which owns 20.4 per cent of SVG Capital, also tried to lower Fordham’s remuneration and was successful in a third motion related to share issuances without pre-emptive rights, the FT reported.

The firm managed to defeat a Coller-led revolt last March over SVG deciding to ditch the firm’s exclusive tie-up with private equity partner Permira and to return 15 per cent of capital to shareholders rather than give them the chance of a full exit.

SVG hit trouble in 2008 during the financial crisis when it was only able to pay Permira half of the €2.4bn it had committed to its 2008 fund.

Its embarrassing lack of liquidity saw its payment powers frozen and led to a huge share placement, which allowed Coller Capital to take a one-fifth share in the firm.

Fordham has since spearheaded the firm’s recovery strategy, which has seen the SVG Capital’s share jump 46 per cent to 406.9p in the last 12 months.

SVG made its first investment outside of Permira last month by committing €100m to fellow European buyout house Cinven.

Cinven has since closed its fifth private equity fund on €5bn, while Permira has been forced to scale back its own fundraise from its €6.5bn target.

The firm is now eyeing between €4bn and €5bn for Permira V.

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