For the second straight summer, limited partners’ views on private equity as an asset class continued to brighten, according to a Coller Capital report released Monday. They’re looking to increase target allocation in greater numbers and LPs say debt markets are functioning well and that dividend recaps are a sign of strength. Nearly one quarter [...]
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As the influx of China’s companies to American exchanges continues to boost valuations in the East’s top growing economy, PE dealmakers still approach Asian investment opportunities with trepidation, citing the old axiom that there is too much money chasing too few deals. “China is a place we’re getting to know,” Apollo Global Management Founder and [...]
Coller Capital expects limited partners to reduce their exposure to funds of funds over the next three years, according to the London-based firm’s latest Global Private Equity Barometer. Coller also expects LPs to diversify their GP relationships.
We’d like those distributions, thank you very much. But we’d also like to hear from fewer of you.
That pretty much sums up LPs’ feelings toward private equity firms lately. The winter 2011 edition of Coller Capital‘s Global Private Equity Barometer, based on a survey of LPs, indicates confidence is growing that returns will improve. One-third of respondents said they’re expecting double-digit percentage returns.
However, more LPs, rejecting re-ups, are looking to take their capital to new talent this year. A whopping 81% of Coller’s respondents said that they—many, consistent with existing mandates to seek out new GP relationships—will explore new firms and that they expect to buy into funds with which they have not before invested. And 60% of respondents said this year, they’ll speed up their rate of commitments to funds.
Deutsche Bank plans to begin marketing soon for a new secondaries fund that is expected to reach $750 million to $800 million, sources say.
Deutsche Bank has been showing the deal to clients of its private bank, one person says. Fundraising is to begin “imminently,” another source says.
While Deutsche Bank has been in the secondaries market for some time, it has only publicly acknowledged one fund. In 2007, the bank announced the final close of its DB Secondary Opportunities Private Equity Fund, which raised $775 million.
Buyout shop Doughty Hanson plans to buy Britain’s Vue Entertainment for 450 million pounds ($725.6 million), Reuters reported, citing an article in Monday’s Financial Times. The founders of Vue Entertainment – which runs Britain’s largest cinema chain – own 51% of the company. Private equity firm Coller Capital and New York-based hedge fund Och-Ziff own the remaining shares, which they both plan to sell to London-based Doughty Hanson, Reuters reported.
Swiss drug maker Nycomed has acquired a majority stake in the Chinese pharmaceutical company Guangdong Techpool Bio-Pharma, Reuters reported. Nycomed paid roughly $210 million for a 51.34% stake in the Guangdong-based company. Zurich-based Nycomed is owned by four private equity firms: Nordic Capital, Credit Suisse’s DLJ Merchant Banking, Coller International Partners and New York-based Avista Capital Partners.
LONDON (Reuters) – Bailed-out lender Lloyds Banking Group (LLOY.L) has agreed to sell its private equity business to buyout firm Coller Capital, accelerating its plan to offload peripheral units and refocus on its core lending activities. Lloyds will get 332 million pounds ($513.5 million) in cash for transferring the 40 investments held by its Integrated [...]
Ah, the cognitive dissonance of limited partners…
A few months back, I moderated a Columbia University panel at which LPs said: (a) The best returns come from investments made during economic trouble; and (b) We’re not going to invest much until 2011. No, it wasn’t an argument in support of a double-dip recession. It was cowardice trumping intellect.
Today we have a new example, courtesy of the Private Equity Barometer, a bi-annual survey of limited partners conducted by Coller Capital (download full study here).
It finds that more than half of all limited partners have lifetime returns from private equity of 10% or less. At the same time, more LPs plan to increase their exposure to private equity (20%) than plan to decrease their exposure (13%).
LONDON (Reuters) – Private equity investors are planning to commit more to the asset class over the next 18 months despite most having seen weak returns from their investments, according to a new study. Nearly two-thirds of investors plan to accelerate new commitments to private equity funds over the remainder of 2010 and 2011, private [...]