Advent International Opens French Operation

France is the one major European market where Advent International had neither a wholly-owned office or a local affiliate. Now, in response to an increase in investment opportunities in France, the firm has opened a Paris office and recruited Eric Adjoubel to head its French operation.

Massimo Prelz, managing director of Advent International’s Continental European business said the group “had not found the French market that interesting for a number of years” but that it now judged it to be more promising, given the disappearance of a number of domestic private equity houses and the increasing awareness of the importance of shareholder value.

The search for the right person to spearhead operations in France had been continuing for some time, Massimo Prelz said. In Eric Adjoubel, Advent International has recruited an individual with extensive experience of the French private equity market, gained during ten years as head of technology investments at Apax Partners & Cie in Paris. Since leaving Apax four years ago, Adjoubel has worked with Advent International as a consultant on a number of deals.

To date, Advent International has had little direct exposure to France, with only one French investment, Pandiere, in its portfolio before this September, when the group led the high-profile FFr 2.8 billion (ecu 423 million) LBO of HRC with Bercy Management (EVCJ, October/November 1997, page 24).

From this platform, Advent aims to build a portfolio of later-stage investments, encompassing MBOs, MBIs, restructurings and privatisations; Massimo Prelz said the HRC deal provided Advent with a strong platform on which to build in the service sector, but stressed that the group will also target industrial and retail investments.

While the French buyout market is currently flourishing, Advent believes that there are also significant opportunities for later-stage development capital, particularly among French companies seeking to make cross-border acquisitions, a constituency which the group, with 17 offices and affiliates throughout Europe, is well placed to address.

Following the completion of its $1 billion (ecu 900 billion) Global Private Equity III fund (story, page 16), Advent International is aiming to increase its investment levels on the Continent. A direct presence in France should substantially enhance the group’s deal flow. Massimo Prelz concluded: “We are confident that Advent International will soon become one of the leading private equity investors in France as, with the economic and social impacts of EMU, French businesses are looking to new sources of equity finance to help them restructure and expand internationally”.

Eric Adjoubel will be supported by Newton Aguiarr, who moves from Advent’s London office, and the recruitment of a third investment executive will be announced shortly. Advent is aiming to build a team of five investment professionals by the middle of next year.