Toby Mitchenall
British Chancellor Alistair Darling announced plans for a £750m Strategic Investment Fund in today’s budget, which the UK’s private equity and venture capital trade body says is 'reminiscent of the 1970s'.
The London-listed fund of funds has decided it will continue life as a listed investment trust, but will not be making any meaningful new fund commitments for up to two years.
The troubled buyout firm has created the position of general counsel. Philip Price, who fills the role, was formerly the head of operations for SRM Global, a hedge fund group that sued the UK government over the Northern Rock crisis.
Terra Firma is splitting its chairman and CEO roles, with Terra Firma veteran Tim Pryce taking on the day-to-day running of the business. Hands’ responsibility will cover investors, investments and strategy as the group’s chairman and CIO.
The listed Permira investor, which is now 20%-owned by Coller Capital, saw two-thirds of the book value wiped off its portfolio during 2008. Chief executive Andrew Williams has stepped down.
The UK buyout house has booked a €1.3bn impairment – half the value of the equity investment – on the 2007 deal. It will also return €80m of carry to investors, because according to chief executive Guy Hands, 'our investors have suffered and therefore our rewards should suffer'.
The long-standing fixture of the UK buyout landscape has told its new teams in Asia and Eastern Europe to either raise their own funds or face closure, as the firm seeks to slash costs.
Europe’s private equity industry has submitted a 300-page document to the European Parliament to begin a debate on industry regulation without ‘political colour’. An enforced code of conduct has become a necessary step, according to EVCA secretary general Javier Echarri.
Guy Hands’ firm has avoided shrinking its €5.4bn third fund by buying out three cash-strapped LPs at ‘a small premium’.
The firm is revising its investment strategy for the fund as well as allowing investors to slash their commitments. Before any reductions the fund stands at €3bn.