Coller Pays $389.92M for Credit Agricole PE Unit

Credit Agricole is selling its private equity unit to UK-based buyout shop Coller Capital for roughly 300 million euros ($389.92 million), Reuters reported Friday. The deal will reduce the risk-weighted assets of Credit Agricole by 900 million euros, Reuters wrote. Coller Capital specializes in buying secondary private equity assets.

Investors Remain Loyal to PE, Study Finds, But LPs Will Be More Demanding on Terms

Despite a shell-shocked global economy, a strong majority of limited partners plan to continue their steadfast commitments to private equity, with 83 percent saying they will maintain or increase their allocations to the asset class in the coming year, according to a closely watched study by Coller Capital on investors’ attitudes and plans. And, in […]

The Mood Among LPs? Much Better, Thank You, Survey Says

For all the private equity firms waiting – patiently and impatiently – for limited partners’ moods to improve, the wait is over. According to a new LP survey by Preqin, the private equity data firm, LPs are moving squarely off neutral and into high-gear in terms of committing new funds.

More than three times as many LPs, about 46 percent of Preqin’s respondents, said they planned to increase the amount of capital that they commit to private equity during 2011, as compared to 13 percent who said they planned to reduce their commitment levels. And of those LPs who planned to commit more in 2011, about two in every five said they said they planned to increase their commitments “significantly.”

The Preqin results echo another recent study – this one by Coller Capital – which reported that more than twice as many LPs planned to increase their target allocations to private equity in 2011, as compared to those who planned to decrease their allocations. The Preqin results were more profound, revealing that more than three times as many LPs planned to increase their target allocations to PE over the next 12 months as those that planned to decrease them.

Coller Capital: LPs Views on PE Brighten, But Hard Landings Are Expected

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 […]

Facing Chinese Boom, PE Pros Preach Caution

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 LPs to Reduce Exposure to Funds of Funds

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.

Funds Feeling the Heat from LPs in ‘11

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 to Raise $750M To $800M Secondaries Fund

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.

Doughty Hanson Pays $725.6M For British Cinema Chain

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.

PE-Backed Nycomed Buys China’s Techpool

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.

Lloyds Selling PE Unit to Coller Capital

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 […]


Survey Says: LPs Are Confusing

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%).

Study: Investors Back Buyout Funds Despite Weak Returns

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 […]


So What Is It- Do LPs Love or Hate Private Equity?

In the last week, two firms have released surveys gauging LP interest in private equity. I imagine they each looked something like this:

To: LPs
Do you like me? Circle one: YES NO
From: GPs

In one study, the LPs circled “no,” and in another, they circled “yes.” So which is it? Will investors back buyout firms next year or not?

Get Ready For Some Tough Fundraising Times

When your existing LPs refuse to commit capital, you know you’re in for a rough ride. Coller Capital’s latest survey of LPs shows that more than three fourths of LPs will refuse re-ups in 2010 over terms and conditions. It’s not shocking but it means things have gotten worse in the last year, where just 57% said the same thing. Read more details on the survey below.

3i Group Sells Its Venture Portfolio

Coller Capital, HarbourVest Partners and DFJ Esprit — part of the global network of the Menlo Park-based VC, Draper Fisher Jurvetson — paid around $217 million (130 million pounds) for the portfolio, which includes stakes in telecom, media, healthcare and technology companies in Europe. Coller and HarbourVest were reported last April to be considering bids. […]

3i Sells Piece of European VC Portfolio

LONDON (Reuters) – British private equity group 3i (III.L) has agreed to sell a portfolio of investments in small European companies to a consortium of rivals for around 130 million pounds ($217 million). 3i said on Sunday it had sold the assets to a consortium including fellow private equity and venture capital firms Coller Capital, […]

LPs Say “No Mas” To Future Funds, But What About Existing Ones?

Twenty percent of institutional investors plan to decrease their target allocation to private equity over the coming year, according to the latest results of a bi-annual survey conducted by Coller Capital. This is the largest percentage of expectant downsizers since Coller began the survey in 2004, with the group usually representing between just 3% and 6% of respondents.

It’s worth noting that another 15% or so plan to actually increase their target allocations, although that figure has dropped precipitously over the past two years (it had approached 50% in the summer of 2007).

One reason for the decrease is simply that there will be fewer private equity firms in which to invest. LPs expect 28% of today’s VC firms and 23% of today’s buyout firms will fail to raise a new fund over the next seven years. Those are pretty heady numbers, particularly for a VC industry that already experienced a minor shakeout earlier this decade. Moreover, 84% of LPs report having chosen not to reinvest with an existing GP relationship, compared to just 45% three years ago.

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