Managing directors Michael Elias, David Carratt and Javier Rojas have led a management buy-out of Kennet Venture Partners from global M&A adviser Broadview.
Kennet has joined a recent spate of private equity spin-outs seeking independence from their institutional owners.
Kennet focuses on investment in technology and telecommunication firms and currently manages $280m in two funds. Kennet’s key investors include Bank of America, Swiss Life and Allianz.
‘There is a strong tradition of successful venture capital firms attaining independence from their institutional owners,’ commented Elias, ‘We believe that becoming independent is a logical step in developing the firm.
Tough market conditions have made spin-outs an increasingly attractive option for both captive firms and their institutional parent companies. The parent benefits from the removal of a volatile asset from its balance sheet. The spin-out gains independence and the chance to source third party capital.
HSBC, for example, finalised the management buy-out earlier this month of its private equity business, now called Montagu Private Equity.
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