Small mercies
Less reliant on debt than their big deal counterparts, and with the promise of forced sellers and genuine growth, the lower mid-market should be well positioned to weather the downturn. But inexperienced management, resilient pricing and companies vulnerable to economic distress mean there is trouble brewing for small cap investors too.
Tuesday, 25th November 2008
LATEST NEWS
Apitope receives €10m investment
LRM and Vesalius Biocapital have led a €10m first round of funding for Apitope International, a developer of therapeutics for autoimmune diseases and allergies.
Friday, 24th October 2008FRM backs Beechbrook Capital fund
Beechbrook Capital has launched its debut mezzanine fund with a major commitment from FRM Capital Advisors.
Wednesday, 22nd October 2008Smac Partners closes third secondaries fund
German firm Smac Partners has closed its new venture capital and secondaries vehicle, Smac Partners Fund III, which will be advised by UK-based Headway Capital Partners.
Wednesday, 22nd October 2008Pallinghurst in gem miner takeover bid
Pallinghurst Resources has launched a takeover bid for AIM-listed gem miner Tanzanite One.
Wednesday, 22nd October 2008CP Eaton bolsters London team
Placement agent CP Eaton Partners has hired Christophe Pietersen and Stephanie Brendel to boost its presence in London.
Wednesday, 22nd October 2008Miura takes stake in Grupo Atrezzo in €30m deal
Barcelona-based Miura Private Equity has taken a majority stake in mannequin and accessories business Grupo Atrezzo, in a deal which will see the firm invest €30m into the company over the next two years.
Wednesday, 22nd October 2008Alchemy eyes distressed debt fund
Alchemy Partners is considering launching a second distressed debt and special opportunities fund targeting up to £1bn (€1.27bn).
Tuesday, 21st October 2008Arx hold first closing
Arx Equity Partners has completed a €83m first close on its third lower mid-market fund focused on Central and Eastern Europe. The fund has a target of €125m.
Tuesday, 21st October 2008Duo make $14m investment in Movidia
Celtic House Venture Partners and Capital-E have co-led a $14m (€10.5m) first round of funding for Ireland-based fabless semiconductor and software company Movidia.
Tuesday, 21st October 2008Ventech and Serena participate in €8m Augure investment
Ventech and Serena Capital have participated in an €8m fourth round of funding for software business Augure.
Tuesday, 21st October 2008QUOTES OF THE WEEK
I think what's happened is that the concept of risk-adjusted rate of return has been replaced by what I would call risk-ignored rate of return, and people are substituting yield for credit judgement.
Wilbur RossPrivate equity companies have targeted car parks as a cash cow, taking over £1 billion out of the industry in the last few years
Rob Kelsall, GMB, responsible for car park workers Queen fails to save Northern Rock
18, 18
Oct 2007 May the Esprit be with you
18, 18
Oct 2007 Flat tax haven
18, 18
Oct 2007 The deer-hunter
18, 18
Oct 2007
Talking tacheback Alan Greenberg of Invex Capital talks about his involvement with the Everyman Male Cancer Campaign and the inaugural Private Equity TacheBack challenge.
Q&A with Graham Hallworth The new chairman of Clearwater Corporate Finance and front man for the biggest turnaround that never was talks about the curse of a weak government, a bank-inflicted recession and how to get restructurings right.
Chris Gradel: Pacific Alliance The co-founder of a six-year-old Asian investment group, with $4.5bn under management, talks about the Chinese consumer, the first-ever Chinese LBO and being thrown in at the deep end.
Karsten Langer Karsten Langer, deal origination partner at global private equity house Riverside, describes the firm’s plans for international domination of the lower mid-market.
LATEST ISSUE
Leader
No news is good news
Two weeks ago, Real Deals attempted to host a good news breakfast for the private equity industry. Even cynical journalists tire of unrelenting gloom. Improbable, but true.
Top Story
Small mercies
Less reliant on debt than their big deal counterparts, and with the promise of forced sellers and genuine growth, the lower mid-market should be well positioned to weather the downturn. But inexperienced management, resilient pricing and companies vulnerable to economic distress mean there is trouble brewing for small cap investors too.
Feature
Fair value for money
As the brakes are applied to the global economy, the way in which private equity firms value their portfolios is increasingly being called into question.
Comment
How do you solve a problem like sharia?
As Islamic financial products become increasingly popular, Kai Schneider of Latham & Watkins explains how to make a fund Sharia-compliant.
News Analysis
Amadeus’s twin symphonies
Amadeus has a proven eye for a winner, so its latest big investments have been causing a commotion in the venture community.
