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In its role as a forum for industry awareness and advancement, EMPEA gives its member organizations the opportunity to share their recent achievements.
If you are having success in fundraising, have made a successful exit, or are achieving an especially high rate of return, please submit your information to EMPEA at empea@empea.net. These “Member Milestones” will be posted on the EMPEA website and may appear in a special section in the next issue of the Emerging Markets Private Equity Quarterly Review. Send your milestones to empea@empea.net
April 2008
The Sabre Abraaj India Private Equity Fund I, a joint venture between Sabre Capital Worldwide and Abraaj Capital, invested US $25 million in Hyderabad-based Engineering and Construction Company (ECI) through a private placement. ECI plans to expand a number of its infrastructure projects.
CDC reported strong financial results for the year ending December 12, 2007, with after-tax returns rising 79% to £672 million. The value of CDC’s African portfolio increased 50% and commitments to Asia more than doubled.
Darby Overseas Investments has hired Sean Glodek to source and execute investment opportunities for its US $391 million Converging Europe Mezzanine Fund. Mr. Glodek, formerly of Lehman Brothers, will join Darby as a Senior Vice President in the firm’s Warsaw office.
Darby Overseas Investments’ Asia Mezzanine Fund II invested US $25 million in Amalgamated Bean Coffee Trading Company, one of the largest integrated coffee firms in India. This is Darby’s third investment in India in the last year.
Swicorp’s portfolio company, Creative Energy Resources Corporation, made a strategic investment in a thermal and renewable power plant in Pakistan. The deal follows Swicorp’s investment in Saudi Arabia’s Chemical Development Corporation (CDC) last month, representing the firm’s expanding presence in the Middle Eastern energy sector.
March 2008
Actis, with over US $1.5 billion invested in 19 African countries, was named 2007 African Private Equity Firm of the Year by Private Equity International magazine.
Aureos invested US $3.7 million in Eurotech Engineering International, a Thailand-based steel fabrication company through its Aureos South-East Asia Fund.
Aureos has launched an HIV/AIDS risk management program for its East African portfolio companies. The US $1 million dollar pilot program, financed by Norfund, is aimed to reduce the cost of HIV/AIDS treatment for companies and communities.
Baring Private Equity Asia invested US $74 million in Asian American Gas co-investing with local venture capital firm, Chengwei Ventures, who contributed an additional US $14 million. Asian American Gas extracts coal bed methane as a clean energy source.
DEG completed two equity transactions in India, including US $20.4 million in Electrotherm, a leading steel and engineering company, and US $10.5 million in Calcom Cement India Limited. Both investments support capital expenditure plans for these companies.
Emerging Capital Partners invested US $20 million in West African mobile telecommunications company, Cellcom Telecommunications Limited. The funds are aimed to expand the network to new markets in the region.
Henderson Equity Partners invested US $21.5 million in Sharda Worldwide Exports, an agrochemical company based in Mumbai. The deal represents one of Henderson’s multiple growth equity investments in India.
IDFC made the first known private equity investment in an Indian carbon credit advisory firm. The investment is aimed to expand Emerging Ventures India’s capabilities in the growing field.
Mekong Capital invested approximately $14 million dollars in INTRESCO, Investment and Trading of Real Estate Joint Stock Company, through its Vietnam Azalea Fund.
Swicorp has partnered with Saudi Arabia’s Chemical Development Corporation (CDC) and Norway’s NorSun to invest in the construction of a polysilicon plant in eastern Saudi Arabia. NorSun will initially hold 50% of the company, with Swicorp and CDC owning the balance.
SGAM Alternative Investments has bought a controlling interest in Polish security company, Agencya Ochrony Skorpion Security, for an undisclosed sum.
February 2008
Brazil saw a 128% increase in the number of transactions involving private equity firms over the last two years. Advent International and GP Investments were the leaders in fundraising. In 2007, US $30 billion was raised through 64 Brazilian IPOs, indicating favorable exit and capital-raising opportunities.
AIG Capital sold its stake in Turkey’s leading cinema and entertainment company, AFM Cinemas, to A1 Group Limited. Prior to the sale, AFM Cinemas was listed on the Istanbul Stock Exchange.
Aureos Capital launched a US $400 fund aimed at unlisted mid-cap companies in Africa.
CDC Group announced its commitment, totaling US $ 180 million, to four private equity funds in Latin America: Actis Latin American Private Equity Fund III, Advent Latin American Private Equity Fund IV, Aureos Latin America Fund, and Patria’s Brazilian Private Equity Fund III.
Baring Private Equity Asia’s affiliate invested US $2.4 billion in the Amsino Medical Group (Amsino). Founded in 1993, Amsino produces disposable medical devices.
DEG announced that its 2007 investments have exceeded €1 billion. At €1.2 billion, DEG’s investments in emerging markets rose 30% from the previous year.
Euroventures Ukraine Fund II completed three investments in 2007. The Fund now holds investments in real estate developer Korsando Limites, pharmacy chain Vitalux, fast food chain Food Master, and family entertainment center company Star Galaxy.
Franklin Templeton Investments has acquired a 49% stake in Vietcombank Fund Management, an investment management firm active in Vietnam private equity.
Global Investment House launched a Global Egypt Fund with a target of US $400, dedicated to investment opportunities in the Egyptian capital market.
Lombard Investments invested $18.9 million toward the expansion of one of Thailand’s leading home builders, Krungthep Land Public Company Limited. The deal was completed on January 31st, 2008.
Omidyar Network, the Soros Economic Development Fund, and Google.org have created an investment fund for small-and-medium enterprises in India. The aims of the fund are job creation and greater economic participation in India.
Stratus Group made an investment in Brazil Timber, a timber investment management company, through its Cleantech-Biotech Fund. Brazil Timber intends to expand its assets and attract further investment with this capital inflow.
January 2008
Abraaj Capital acquired a stake in Turkey’s leading healthcare provider, Acibadem Healthcare Services, through its Infrastructure and Growth Capital Fund. In a 50:50 partnership with Acibadem’s CEO, Abraaj purchased half of a 69.6% stake in the Istanbul-listed company.
Aureos Capital held a first close of its Latin America fund at US $140 million. Aureos is anticipating a June, 2008 final closing of US $300 million. The fund will invest between $2 million and $10 million in Mexico, Central America, and the Andean region across multiple sectors.
CDC Group has committed US $750 million to Actis’ new fund, the Actis Infrastructure Fund II. Additionally, CDC Group is seeding US $167 million in infrastructure assets to the fund. The fund will primarily invest in the power sector, but will selectively invest in telecom, transport, and energy in Africa and Asia.
Cordiant Capital invested US $20 million to Real People, a South African credit management specialist. Real People stakeholder, Netherlands Development Finance Company FMO facilitated the loan.
Darby Overseas Investments invested Rs 70 crore in renewable energy in India through its Darby Asia Mezzanine Fund II. Darby’s Indian affiliate, Bhoruka Power Corporation Limited carried out the investment. Bhoruka Power operates hydro-electric and wind power generation projects.
DEG financed a seawater desalination plant to meet drinking water demands in Chennai, India. The long-term loan amounts to €14 million.
EBRD invested €134 million in Russian Railways’ TransContainer freight unit, Russia’s largest freight container operator.
Emerging Capital Partners invested US $35 in Ocean and Oil Investments Limited, an investment holding company based in Nigeria. Ocean and Oil owns 32% of Oando Plc., an oil and gas company in Nigeria. The investment was Emerging Capital Partners’ fifth in Africa’s oil and gas sector.
Emerging Capital Partners invested US $15.2 million in Central African Gold (CAG) through its EMP Africa Fund II. CAG is a gold production firm operating primarily in Ghana and Zimbabwe. Emerging Capital Partners is now CAG’s largest shareholder.
Ethos Private Equity sold a 49.95% stake in Tsebo Outsourcing Group to Absa capital. Tsebo is a leading Southern African hospitality and facilities management company with over 10,500 employees.
Ethos Private Equity acquired Tiger Automotive, a Southern African wheel retailer, for US $145.4 million. Ethos gained shareholder approval to acquire and delist the company from the Johannesburg Securities Exchange. The deal represents the first publicly announced private equity transaction exceeding R1 billion in 2008.
Ethos Private Equity led a consortium investing US $130 million in Oceanic Bank International of Nigeria, a subsidiary of the Old Mutual Group. The investment marks Ethos’ first in West Africa.
Franklin Templeton Investments’ Templeton Strategic Emerging Markets Fund II made a strategic investment of US $9.5 million in Launch Tech, a leader in the automobile after-market, listed on the Hong Kong Exchange.
Franklin Templeton Investments’ Templeton Strategic Emerging Markets Fund II completed a successful exit from the China High Speed Transmission Equipment Group Co., Ltd. The fund purchased a US $7.5 million minority stake in the company in January 2006 and sold it for US $124.4 this month.
ICICI Venture invested Rs 140 crore in Sahyadri Hospitals Ltd. through its holding company IVEN Medicare India Pvt. Ltd. The investment is part of ICICI Venture’s plan to build a pan-India health care provider network.
Mekong Capital made a US $3 million investment in Traphaco Joint Stock Company through its Vietnam Azalea Fund Limited. Traphaco is a pharmaceutical company that focuses on traditional medicine.
Mekong Capital invested US $12 million in Phu Nhuan Jewelry Joint Stock Company (PNJ) through its Vietnam Azalea Fund. Founded in 1988, PNJ is Vietnam’s leading jewelry manufacturer.
SigmaBleyzer closed its fifth fund with US $221 million in committed capital. The fund will focus on investments in Kazakhstan.
Swicorp Joussour completed investments in the Middle East region totaling US $149 million. Principal deals include the purchase of stakes in Eastern Petrochemicals of Saudi Arabia, Ghani Glass of Pakistan, and an Egyptian refining company.
December 2007
Abraaj Capital has announced the sale of Arabtec Holdings PJSC (Arabtec). The investment achieved a 116% IRR and returned 12 times the capital originally invested in 2004. Arabtec is a construction company based in the UAE. The investment was made through the Abraaj Real Estate Fund, and was the fund’s first exit.
Abraaj Capital has sold its stake in Maktoob.com Inc. to Tiger Global Management. The investment achieved an IRR of over 75%. Maktoob.com is headquartered in Amman, Jordan. Maktoob.com’s various services include an auction facility, search engine, marriage website, sports site, and email and chat room sites, all in Arabic.
Actis sold its stake in El-Rashidi El-Mizan, Egypt’s leading producer of tahina and halawa. El-Rashidi El-Mizan’s sales more than doubled between Actis’ 2002 acquisition and 2006.
Advent International has completed the sale of Alexander Mann Solutions (AMS). Advent sold AMS to Graphite Capital for £100 million. AMS provides recruitment process outsourcing services. Founded in 1996, AMS has since grown to have 900 employees.
Advent International has acquired Domestic and General Group (D&G) for £523.9 million. D&G focuses on providing extended warranty plans for electronics in the UK. This acquisition was a public-to-private deal. Currently with 4.2 million customers, mostly in the UK, D&G is expanding to other parts of Europe.
Alpha Capital Partners (ACP) made a significant investment in Yolky-Palky through its private equity fund. Yolky-Palky is a Russian restaurant chain. This chain was created in 1996 and currently has 47 locations in Yolky-Palky and Malenkaya Yaponiya.
Conduit Capital Partners announced the sale of its 70% stake in Inelec’s power plants for US $156 million to Enel Investment Holding, B.V. Inelec is a power plant company based in Mexico.
Conduit Capital Partners has completed the sale of Jamaica Energy Partners (JEP) and Mamonal. Conduit Capital Partners has also entered a binding agreement to sell its stake in Aguaytia. Jamaica Energy Partners, which as fully owned by Conduit Capital between the Latin Power I, Latin Power II, and Latin Power III funds, sold for US $92.4 million, yielding an IRR of 23% for Latin Power I and II and 42% for Latin Power III. Mamonal, called Proelectrica as well, sold for $17.5 million resulting in a 17.5% IRR for Latin Power I. Aguaytia is the last asset held by Latin Power I.
DEG has completed an investment in Milicom Ghana Ltd., a large mobile telephone operator headquartered in Ghana. Milicom will receive a total of US $140 million, with
DEG contributing US $27.5 million as well as acting as the coordinator of a consortium of investors. Milicom will use this investment to strengthen its network in Ghana.
GP Investments invested R$100 million in the merger of three human resources firms in Brazil: Grupo Soma, Top Service, and People Domus. GP Investments will hold 77.5% of the new company in its Capital Partners IV, L.P. Fund, while the original holders of Grupo Soma will hold the remaining shares.
GP Investments announced a US $150 million investment in LA Hotels S.A., a publicly traded company in Brazil.
GP Investments invested an additional US $149 million in Brazil’s BR Properties. GP Investments now owns a 6.14% stake in the company.
GP Investments has completed a US$114 million sale of its stake in Equatorial.
GP Investments completed a partial exit of Tempo Participações, a health care and insurance service provider company in Sau Paulo. Tempo Participações announced an IPO of R$7.00 per share. This will reduce GP Capital Partners III’s stake from 27.3% to 19.1%.
Horizon Capital has announced investments in FinComBank of Moldova and MTB of Belarus. Horizon Capital now has a 25% stake in FinComBank and a 31.5% stake in MTB. After these two investments, the financial institutions sector will comprise 50% of Horizon Capital’s portfolio.
IDFC Private Equity has invested INR 2,600 in Goodearth Maritime, an Indian dry bulk shipping company. The financing will fund the development of a new ship building yard in Tamil Nadu and an on-shore and off-shore oil drilling industry.
Lombard Investments announced a US $18.2 million investment in SNC Former Public Company Limited (SNC). SNC is a Thailand-based company that manufactures air conditioning parts for the housing and automotive industries. SNC has a 70% market share for residential copper piping systems in the region. This investment gives Lombard a 16.6% stake in the company. Lombard will join SNC’s board of directors in 2008.
The Romanian-American Enterprise Fund (RAEF) has completed a joint investment with the Balkan Accession Management Company in CAPA FINANCE, a microfinance firm in Romania. The investment will consist first of the €15 million acquisition of 97% of CAPA’s shares and then a US $15 million senior loan by RAEF.
The Balkan Accession Investment Company, investment manager for the Romanian-American Enterprise Fund, announced that the Balkan Accession Fund has invested € 3.6 million in Industrial Access, obtaining a 90% stake. Industrial Access is an equipment rental company in Romania.
Swicorp, who manages the Intaj Capital Private Equity Fund, announced that Intaj Packaging Limited is changing its name to Altea Packaging.
November 2007
Dubai Financial Group has acquired a 24.62% in EFG-Hermes from Abraaj Capital. Dubai Financial Group achieved the deal through a $1.1 billion acquisition of Abraaj Egypt Limited and Abraaj SPV 26 Limited.
Actis completed a US $528 million sale of Globeleq Ltd. Globeteq was sold to a consortium consisting of Tanjong Energy Holdings and Aljomaih. Globeleq was previously owned by CDC Group plc.
AIC made a US $3 million investment in the construction of an iodated and purified salt plant with Azersun Holding Company.
AIC established a joint venture with the Islamic Corporation for the Development of the Private Sector. The joint venture will be called the Caspian International Investment Company and will invest in Shariah-compliant, non-oil sector companies.
AIC has acquired a 25% stake in charter capital in Davachi Broyler OJSC. Among other things, the funds will finance the reconstruction of 14 farms.
Aureos Capital’s Central Asia Fund achieved a first close of US $50 million. The fund has a target of $100 million and aims to reach this goal by June 2008. Investments will range from $2 million to $10 million in Kazakhstan, Azerbaijan, the Kyrgyz Republic, Georgia, Tajikistan, Turkmenistan, and Uzbekistan. The fund will focus on small to mid-sized companies.
Baring Private Equity Asia, along with ICICI Ventures, completed a $44 acquisition of a large stake in Karvy Stock Broking Limited. Karvy is a financial services firm based in India. The funds will be used by Karvy as both working capital and as a tool for further expansion. This is Baring’s 6th and largest investment in India.
Cordiant Capital has completed a second close of US $250 million of its Cordiant Emerging Loan Fund III. This brings the total capital raised to US $450 million. The fund has drawn institutional investors from both Europe and North America.
Emerging Capital Partners and Truffle Capital have completed a joint 100% acquisition of Compagnie Miniere de Touissit (CMT). CMT is a mining company in Morocco that focuses on silver-bearing lead and silver-bearing zinc. The acquisition was valued at US $53 million. The deal represents Emerging Capital’s third investment in the mining industry.
Foursan Group founded Foursan Capital Partners which will focus on private equity investments in Jordan, Egypt, and other countries in the MENA region. Foursan Capital Partners is hoping to raise US $150 million for investment and has also been approved for a $50 million senior loan from OPIC.
GP Investments sold its remaining stake in Equatorial Energia Holdings to PCP America Power Fund Limited for R$204 million. These shares were held by GP Energia Brasil, L.P., a fund managed by GP Investments III, a fully owned subsidiary of GP Investments. Equatorial owns 65% of Cemar, a large energy distributor. GP Investments originally obtained its stake in 2004 and helped Cemar to increase revenues by 100%.
GP Investments, Ltd. acquired 50% of Laboratório Americano de Farmacoterapia (Farmasa) in an R$241.6 (US$136 million) investment through its GP Capital IV L.P. fund. Farmasa is a pharmaceutical company in Brazil with 80 brands and 150 products. GP Investments expects the pharmaceutical industry in Brazil to grow as their economy continues to gain prosperity.
HBG Holdings achieved the second close of its US $200 million pan-regional investment fund, which will focus on the Middle East and South Asia.
IDFC Private Equity invested Rs 35 crore (US $8.9 million) in Doshion Ltd. through its IDFC Private Equity Fund II. Based in India, Doshion is a water management company that has operated in over 40 countries around the world.
NBK Capital’s Equity Partners Fund has agreed to sell Yudum Foods to Afia International Company for US $70.7 million, subject to regulatory approval. Afia International is a subsidiary of the Savola Group. Yudum is a packaged edible oils company based in Turkey. Swicorp acted as an advisor to Afia International.
The Balkan Accession Investment Company, investment manager for the Romanian-American Accession Fund, has announced its exit from Jet Finance International. Jet Finance International is a consumer finance firm headquartered in Bulgaria. The Balkan Accession Fund saw a 67% IRR on this €3.3 million investment.
SGAM Alternative Investments expanded its buyout team in Central and Eastern Europe. SGAM will work with the existing team to allocate investments from a €156 (US $232) Eastern Europe fund. SGAM also wishes to increase its use of leverage in the CEE region.
Swicorp acted as the sole financial advisor to Advanced Petroleum Services Limited (APSL) in their acquisition of Saudi Arabian Oil Company, Petrolube.
Warburg Pincus has acquired Net Centurm s.r.o. Net Centrum is the second largest internet company in the Czech Republic. It was founded in 1999 and operates Centrum.cz, the leading web portal in the Czech Republic with over 3 million monthly users.
October 2007
Actis has recently completed an investment in LKMR Holdings, a company based in Pakistan. Actis acquired a 49% stake in the company. LKMR is an information services management company that works with petroleum engineering firms. They specifically focus on the exploration and production industry.Actis has joined forces with a consortium of Pine Brook, AES, Temesek, and others to make a US $380 million investment in Asia Pacific Exploration Consolidated LP (APEC). APEC is an exploration company in the oil and gas industry.
Abraaj Capital announced the second closing of the Infrastructure and Capital Growth Fund. This closing was held at US $1.2 billion. This fund will focus on the MENASA region. Five investments have already been completed through the fund. Specifically, the fund will be used to invest in sectors such as education, transportation, ports, health care, power and utilities, oil and gas, petrochemicals, and industrials.
Aureos Capital invested US $5 million in STS Holdings through its Aureos South Asia Fund. STS Holdings is the company that owns Apollo Hospital Dhaka, a high quality private health care services company in Bangladesh.
Aureos Capital held a final close on the Aureos Malaysia Fund at $25 million. The fund will focus specifically on the small and medium enterprise sector in Malaysia. The fund will primarily invest in growth capital and buyouts.
Aureos Capital invested $2.86 million in Senegal-based Compagnie Sahelienne d’Industries, a car dealership and energy equipment company that trades under the name Matforce. Made through the Aureos West Africa Fund, this is the company’s first investment in Senegal.
CDC Group invested $30 million in a microfinance hedge fund called Minlam Microfinance Offshore Fund. The fund will provide credit to microfinance investors.
Conduit Capital Partners, LLC has sold its 81.83% stake in Termotasajero, a coal power plant in Colombia. Conduit achieved a 3X return on this investment, which was originally made in 1998-1999. The plant was bought by multiple firms including an investment fund in Chile, several pension funds in Colombia, and a Colombian investment fund. Termotasajero was valued at $173 million in this sale. This investment was made through Conduit’s Latin Power 1 and Latin Power II Funds.
Ethos Private Equity recently completed the sale of First Lifestyle Holdings, Limited. They first acquired the company in October of 2000 for $70 million. First Lifestyle is a food and household products firm based in South Africa. They experiences a 25% compound growth in operating profits during the time of Ethos’ investment.
Euroventures Ukraine Fund invested US $5 million in Anthoreal Estates Limited, a company formerly known as Food Master, which runs a chain of fast food restaurants in Ukraine. The investment was made though Euroventures Ukraine Fund II, which acquired a 25.86% stake , and the Ukraine Opportunity Trust, PLC., which obtained a 16.31% stake.
Global Investment House has invested US $5 million in Reach (Cargo Movers) Pvt., Ltd. Reach is a ground transportation logistics company based in India. This investment was made through the Global Opportunistic Fund II, which invests primarily in MENA and South Asia. Meanwhile, Global Investment House recently exited two investments from the Global Opportunistic Fund II. They fully exited their investment in Zhaoojin Mining Industry in China after recent increases in Gold prices. They also completed a partial exit from their investment in Reliance Petroleum Limited in India after oil prices increased. The fund profited from both investments. The investment in Reliance Petroleum achieved an IRR of 100% and a 2X absolute return. Global Investment House expects the value of the company to increase and so has not fully exited the deal.
GP Investimentos has announced the close of GP Capital Partners IV, L.P., its new private equity fund. The fund closed at US$1.3 billion, raising more capital than expected.
Great Circle Fund LP has completed an investment in Balnak Logistics Group, a company based in Turkey. Balnak primarily works with freight forwarding, warehouse operations, and international and domestic transportation and distribution. The capital invested by the Great Circle Fund will be used as a part of Balnak’s plan to double company size by investing in more warehouse space and trucks and expanding its operations outside of Turkey.
Lombard Investments invested in Mermaid Maritime, PLC in June, 2004. Mermaid recently completed its IPO on the Singapore Stock Exchange. They sold a total of 158,000,000 shares at $1.56 per share. The capital provided by Lombard has been used to help Mermaid Maritime move into the offshore oil drilling business.
Mekong Capital completed a US$5.4 million investment in Venture International (Vietnam) Joint Stock Company (VIVCO). This investment was made through the Mekong Enterprise Fund II, Ltd. VIVCO produces clothing for both adults and children, which is markets mostly in Europe. Mekong Capital’s investment in VIVCO is its fourth investment through this $50 million fund.
Penton Partners made an investment of US$9.5 million in Pellet-Art, a large pellet production firm based in Poland near the German border. The capital provided by Penton Partners will be used to help Pellet-Art further improve the quality of its environmentally-friendly wooden pellet fuel products and increase production capacity.
The Carlyle Group acquired Arabela from Advent International and Procorp for an undisclosed amount. Mexico-based Arabela sells beauty products door-to-door.
September 2007
Abraaj Capital announced the sale of its majority stake in Septech Holdings Limited. Abraaj achieved a 39% IRR from this investment. They helped Septech Holdings to extend its business beyond the UAE to other countries such as Oman, Qatar, and Saudi Arabia. Abraaj also helped Septech expand from primarily packaged wastewater systems to water and wastewater treatment, landscaping, and pre-cast concrete products and marinas. Abraaj held its stake in the company for three years.
Aureos Capital has invested $4 million in Private Networks Nigeria, Ltd. through its Aureos West Africa Fund. The telecom company hopes to use this capital to expand to a wider variety of business lines as well as to open new retail outlets.
Brait South Africa Limited recently completed an R 1.5 billion acquisition of Premier Foods, a company previously owned by the Foundation for African Business and Consumer Services. Premier Foods specializes in grain products.
The Carlyle Group made a US$20 million investment in NeWorld Education Group, a language institute that focuses on teaching Japanese in China. Japanese and English are the two most popular languages to study in China. This investment is planned to help NeWorld to expand from its current 65 schools in 13 Chinese cities to 120 schools in up to 20 Chinese cities by 2009.
CDC Group completed an investment of US $80 million in two private equity funds in Southeast Asia. This brings their total investments in Southeast Asia to US $275 million. CDC made a US $70 million commitment to Navis Asia Fund V, managed by Navis Capital Partners, and a US $10 million investment in Aureos Malaysia Fund, managed by Aureos Capital.
DEG has invested US $25 million in equity for Energias Renovaveis S.A. (ERSA), a Brazilian holding company that manages projects in renewable energies such as biomass, wind, and hydropower. ERSA is planning 30 new power stations by 2015, an important development in light of Brazil’s constantly increasing energy needs.
Ethos Private Equity, along with black economic empowerment shareholders and Goldman Sachs, has agreed to a $1.3 billion buyout of Gold Reef Resorts, a casino company in South Africa. Gold Reef is receiving 34 Rand per share. This will be the second largest private equity buyout to be completed in South Africa to date.
ICICI Ventures sold its stake in Ace Refractories. They sold their 99% stake to Imerys for Rs 550 crore. Imerys is hoping to use the deal to expand its presence in India.
Navis Capital Partners Limited completed a series of investments in the Asia Pacific region spanning several industries. Navis obtained a 45% stake in Bangkok Ranch/Duck To Holding, a duck production company based in Thailand. They also completed an investment in Hui Lau Shan, a company headquartered in Hong Kong that produces Chinese desserts and drinks that contain fruit. Navis also invested in the engineering firm Profab, which is based in Singapore and Batam. Profab focuses on parts used in oil and gas production.
August 2007
Actis competed a 100% Management Buyout of Mivan Far East for a total of US $75 million. Mivan Far East is the Asian branch of Mivan Limited, a Northern Ireland-based construction company. More specifically, Mivan Far East, headquartered in Malaysia, designs aluminum framework systems used in construction.
Actis and Standard Chartered Private Equity (SCPE) realized their 2004 investment in Unza Holdings Limited, a large South East Asia-based company that produces and markets personal care products. Wipro Limited has acquired Unza for US$ 246 million. Actis and SCPE helped Unza to expand and improve its operations outside of Malaysia.
Aureos Capital is collaborating with the International Finance Corporation (IFC) on an initiative to increase the sustainability of SMEs in emerging markets, known as the SME Sustainable Opportunities Initiative (SSOI). This joint program will aim to improve environmental as well as performance aspects of SMEs in emerging markets. Some issues that will receive special attention are the reduction of carbon emissions, the improvement of water and energy efficiency, the reduction of effluent discharges, and the development of HIV/AIDS and other social sustainability programs.
Aureos Capital’s Southern Africa Fund acquired a 49% stake in South African catering firm Allied Catering Equipment (ACE). The 30-year old company specializes in the manufacture and supply of selected catering equipment to institutional facilities. No financial details were disclosed.
Aureos Capital’s South East Asia Fund invested US$5 million in Philippines-based Cirtek Electronics Corporation, an expanding semiconductor business. Cirtek primarily produces parts that are used in laptops, servers, PCs, mobile phones, satellites, solar panels, and automotive technology.
ChrysCapital has closed a $1.25 billion fund dedicated to India. They received capital from 75 investors around the world. ChrysCapital plans to use this fund to make investments between $30 million and $300 million in companies in the infrastructure, technology, pharmaceuticals, and financial sectors. ChrysCapital has previously invested around $1 billion in Indian companies.
Darby Overseas Investments Ltd. held a final close on its Converging Europe Mezzanine Fund at EUR 300 million (US $411 million). This fund invests in countries in central and eastern Europe that are members of the European Union as well as those that are trying to join the EU. The fund has made 5 investments for a total of EUR 64 million (US$ 88 million
GP Investimentos acquired control of Magnesita S.A. through an R1.24 billion investment. Magnesita produces refractory products and its clients include companies in the steelmaking, cement, and glass industries. Magnesita achieved revenues of R1.1 billion in 2006. The capital invested by GP Investimentos will be used for growth in both local and international markets.
GP Investimentos has purchased Latin American land drilling and E&P services businesses from Pride International, Inc. for around $1 billion. Goldman Sachs is serving as advisor to Pride International for this deal.
Stratus portfolio company Senior Solution acquired Intellectual Capital, a firm that provides investment fund management software. This acquisition is part of Senior Solution’s larger growth strategy and is expected to help the company increase its revenues to around R$30 million this year. Senior Solution’s shareholders, Brazilian National Development Bank and Stratus VC assisted in this acquisition.
July 2007
Actis completed a secondary buyout, purchasing South-African based Fuel Logistics Group. Fuel Logistics Group performs services related to logistics and supply chain issues and spans different industries. Actis has a strong interest in investing in logistics and believes it is especially important in South Africa.
Advent International performed its largest buyout to date with the acquisition of Corporativo Javer S.A. de C.V.’s housing business subsidiaries. Corporativo Javer is a large home building company based in Mexico that was founded in 1973. Advent led a syndicate of investors in the acquisition of 100% of the company and will have majority control.
Advent International reached the final close of their Latin America Private Equity Fund IV at US $1.3 billion. This is the largest private equity fund dedicated to Latin America to date. Advent plans to focus the fund on Mexico, Brazil, and Argentina. The fund has a total of 38 investors.
AIF Capital, Siguler Guff, and Gartmore have acquired a combined 14% stake in Catholic Syrian Bank. The investment cost them a total of Rs 33.3 crore. The bank is based in Thrissur. The three private equity firms paid Rs 190 per share. Rs 180 per share of this was a premium.
Alpha Capital Partners invested $21.1 million in STS Logistics, a company based in Moscow that focuses on freight forwarding, warehousing, and customs services. This investment was made through the Great Circle Fund which is a $180 million private equity fund entirely dedicated to emerging markets. The capital will primarily be used for expansion.
Baring Private Equity competed their first buyout in Japan, acquiring Barclays Vouchers Co., Ltd. Barclays Voutures in a company that specializes in lunch vouchers and meal coupons and serves around 6000 clients. This is one of seven investments in Asia that Baring Private Equity has completed in the passed year.
Baring Private Equity Asia and Citigroup Venture Capital International invested $22.4 million in KS Oils. KS Oils is a producer of both mustard seed oil and rapeseed oil.
Capital International has announced that its new emerging markets fund will have a target of $2 billion. MVision, the fund’s placement agent, has already raised 90% of this target value.
Capital International is currently raising capital for its fifth private equity fund with a goal of $2 billion. They have already secured $1.58 billion in capital. MVision is the placement agent for this fund.
Citigroup Venture Capital International invested $62.5 million in Subhash Projects & Marketing Ltd. Based in Kolkata, Subhash Projects is an engineering, construction, and project management company. This investment is consistent with CVCI’s interest in infrastructure companies.
Clearwater Capital Partners completed the final close of the Clearwater Capital Partners Fund III, LP. This Asia-focused fund was closed at $900,000,000.
GP Investimentos, Ltd. achieved a final closing of GP Capital Partners IV L.P., a new private equity fund. The fund closed at $1.025 billion, $400 million of which was committed by GP Investments. The remaining $625 million was committed by limited partners.
ICICI Ventures invested $17 million in India-based zinc-oxide producer, Rubamin Group. This gained ICICI Ventures a 14% stake in the company.
IL&FS Investment Managers and Evolvence Capital made a $32.88 million investment in engineering firm, RSB Group. RSB Group focuses primarily on automotive parts.
Siguler Guff is launching a fund-of-funds focusing on Brazil, Russia, India, and China. Siguler Guff expects to finish raising the target $1 billion for the Siguler Guff BRIC Opportunities Fund II. Siguler Guff plans to dedicate around 80% of the fund to India and China.
May 2007
Actis invested US$40M in Shunda Holdings Co. Ltd., a leading Chinese manufacturer of mono-crystalline silicon ingots and wafers. Local investors Jolmo and Waichun added another US$42M to the financing. Shunda is a supplier to Suntech, another Actis portfolio company.
AIG Capital Partners outbid several US private equity firms to purchase the majority stake in Bulgarian telecom company BTC for €1.08B. BTC is the dominant telecom operator in Bulgaria and also controls the third largest mobile phone operator in the country.
Baring Private Equity Asia made two investments in the Chinese steel industry, totaling US$100M. The first investment was a management buyout of Yingde Gases Investment Limited, an industrial gas business that supplies the steel industry, and the second was a US$50M investment in Sichuan Hidili Industry Co. Ltd., a coking coal and coke company in Chengdu.
CDC Group committed €10M to Vantage Mezzanine Fund, the first independent mezzanine fund to be raised in South Africa.
AIG-GE Capital Latin American Infrastructure Fund (LAIF), advised by EMP Global and its Latin American team, sold 68.2% of its stake Ultrapetrol, a diversified marine transportation company with operations throughout South America, for US$121M. LAIF’s remaining stake is worth approximately US$68.1M.
Hedge fund Eton Park Capital Management joined a consortium led by Bear Stearns to bail out Puerto Rico’s Doral Financial Corp, parent company of the country’s seventh largest bank. The consortium purchased a 90% stake in the company for US$610M.
Horizon Capital sold its controlling stake in Ukrainian cheese manufacturer Shostka City Milk Plant to French Fromageries Bel S.A., demonstrating a 5.9 times cash-on-cash return and 470% IRR. This is the first full exit for Horizon’s Emerging Europe Growth Fund.
Stratus Group made the first investment from its Clean Tech/Bio Tech fund, providing capital to Ecosorb Environmental Protection Technology, one of Brazil’s largest environmental emergency prevention, management and equipment manufacturing companies.
April 2007
Aureos Capital launched a US$100M Central Asia Fund. The new fund, focused primarily on Kazakhstan and Azerbaijan, has a net target IRR of 20% and will seek to make investments of between US$2M and US$10M.
Aureos Central America Fund (ACAF) has announced a formal investment of US$5M in Aluminio de Panama, S.A. (ALPAN). ALPAN is the leading extrusion manufacturer in Panama and exports its products to the US, Central America and the Caribbean. ACAF is a US$36M private equity fund managed by Aureos Capital, and it invests in Central America and the Dominican Republic.
Aureos Capital launched a new US$300M Latin America Fund. The new pan-regional fund, the Aureos Latin America Fund L.P (ALAF), has a net target IRR (annual internal rate of return) of 20%, and will invest in three main geographical areas: Mexico, the Central America Region, and the Andean Region.
The Carlyle Group invested US$80M for a 49% stake in Yangzhou Chengde Steel Tube, China’s leading supplier of seamless steel pipes to the construction and energy industries. The deal has already received Chinese regulatory approval.
Centras Capital Ltd. announced the first close of US$30M for its Centras Private Equity Fund. The fund has a target size of US$75M and is the first Kazakhstan international private equity fund raised to capitalize on the country’s solid macroeconomic growth. The European Bank for Reconstruction and Development supports the Fund as anchor investor.
ChrysCapital purchased a minority stake in Delhi-based Mankind Pharma, a fast-growing domestic pharmaceutical manufacturer, for US$24M.
Secondaries firm Coller Capital closed Coller International Partners V with commitments of US$4.5B, the largest secondaries fund ever raised.
Dubai-based private equity firm,
Evolvence Capital Ltd, is planning to float three more capital funds before launching a full IPO of the company. The group, which has around US$1B under management, is working on an IPO for its second investment fund of 2007 and plans to float a total of four over the next two years.
ICICI Venture, the Mumbai-based private equity fund, made a partial exit from seven listed companies in its portfolio in March, all through bulk deals with UBS Securities. ICICI Venture sold part of its holdings in Deccan Aviation, Nagarjuna Construction, Sangam India, PVR, Welspun India, Samtel Color and Gateway Distriparks. The fund earned approximately US$37M from these deals.
March 2007
Abraaj Capital became a co-founder shareholder ahead of Air Arabia’s AED2.5B IPO, which opened on March 18, 2007, and closed on March 27, 2007. The IPO is the largest offering in United Arab Emirate history to date. In addition to acquiring a strategic minority stake in the Sharjah-based LCC through its Infrastructure and Growth Capital Fund (IGCF), the firm’s Chief Executive Officer and Managing Director have joined the Board of Directors of Air Arabia.
AIG Global Investment Group announces that AIG Capital Partners, Inc., a member company, held the final close of AIG New Europe Fund II, L.P. (”NEF II”) with capital commitments totaling US$709.5M, exceeding the Fund’s initial target close. NEF II is a second-generation private equity fund directly investing in companies organized or operating in the Central and Eastern Europe countries.
Baring Vostok Capital Partners closed its fourth fund and the largest Russian fund ever, a US$1B buyout fund. The fund is expected to make investments of approximately US$40M per deal, compared to previous funds that invested around US$10M in each deal.
Darby Overseas Investments, Ltd. announced that its Darby Asia Mezzanine Fund II committed US$17M through an affiliate to invest in Escorts Construction Equipment Ltd., the leading Indian material handling equipment manager.
CDC Group announced that it committed US$20M to Nexxus Capital Partners III, a private equity fund focused on mid-market investments in Mexico, which is targeting US$250M. Nexxus Capital Partners III will focus on investments in companies capitalized at between US$50M and US$400M.
Teleset Networks PLC, a leading alternative fixed-line telecom network operator in Russia, announced that Templeton Strategic Emerging Markets Fund II, managed by Templeton Asset Management Ltd, was issued US$10M new Teleset ordinary shares.
Euroventures Ukraine signed a triple partnership agreement with its investee company Furshet and leading retailer The Auchan Group. The agreement enables The Auchan Group to enter the Ukrainian market.
Cordiant announced the launch of the Cordiant Emerging Loan Fund III, which has a target size of US$500M and is comprised of a diversified pool of emerging market private sector loans.
Swicorp Intaj Capital invested nearly US$100M in a joint venture with Lebanese based ceramic tiles manufacturer, Uniceramic SAL, to create a pan-MENA region player. Intaj will own a majority equity in the new entity, Uniceramic Holding.
Swicorp and US real estate developer Pulsar Development Inc. agreed to create Pulsar MENA, a real estate development company aimed at identifying and developing real estate projects across the Middle East and North Africa (MENA) region, with an initial focus on Algeria.
Warburg Pincus agreed to invest US$175M in Titan, an integrated oil logistics firm based in China. The investment was split between Titan and subsidiary China StorageCo.
February 2007
China Pacific, a life insurer, struck a shareholder agreement with The Carlyle Group, paving the way for a US$1B IPO of China Pacific this year. The Carlyle Group acquired a 25% stake in the group’s life insurance arm for $410M in December 2005. Under the new agreement, the Carlyle Group agreed to swap its existing stake in the life insurance arm for a 19.9% holding of the overall group, and to invest an additional sum.
The International Finance Corporation (IFC) and Sequoia Capital invested US$28.2M in Café Coffee Day, India’s largest retail coffee shop chain, which plans to open 19 outlets across Pakistan in the next 12 months. After the success of its first venture, the company is projecting about 30% annual growth to post about US$101.6M for the current fiscal year.
GVFL Limited invested an initial US$ 181,000 in Rapid Radio Solutions Private Ltd, a technology start-up. GVFL will make the seed stage investment from its US$ 270M Gujarat IT Fund.
Oversees Private Investment Corporation committed to provide US$100M in seed financing to International Housing Solutions (IHS), an affiliate of Municipal Mortgage & Equity, LLC. HIS proposes to target supply-constrained primary and secondary housing markets, primarily in Africa and the Middle East, with a particular focus on South Africa and Jordan.
An international consortium led by Actis invested US$130M in Nigeria’s Diamond Bank Plc.
Actis announced that Regal Forest, one of its portfolio companies in Latin America, has successfully completed the acquisition of the Caribbean assets of Courts Plc. The US$370M LBO of the electronic retailer is the largest in the Caribbean.
Swicorp Intaj Capital announced the establishment of Altea Packaging in partnership with Maghreb Private Equity Fund II. Altea Packaging closed its first transaction end 2006 with the acquisition of 50% equity stake in Cogitel, a key flexible packaging player in MENA.
International Finance Corporation has acquired a 15% stake in the capital of MicroCred Mexico. IFC’s original approved investment in MicroCred Mexico is an equity investment of up to US$ 0.8M and a senior debt of the equivalent of up to US$ 4.2 million in Mexican Pesos.
International Finance Corporation will support Indorama International Finance to invest US$155M and acquire a 75% stake in Nigeria’s state-owned Eleme Petrochemical.
GVFL Limited has decided to invest an initial US$ 181,000 in Rapid Radio Solutions Private Ltd, a technology start-up. GVFL will make the seed stage investment from its US$ 270M Gujarat IT Fund.
Oversees Private Investment Corporation committed to provide US$100M in seed financing to International Housing Solutions (IHS), an affiliate of Municipal Mortgage & Equity, LLC. HIS proposes to target supply-constrained primary and secondary housing markets, primarily in Africa and the Middle East, with a particular focus on South Africa and Jordan.
Henderson Equity Partners has announced the final US$1.13B close of its second PFI fund, Henderson PFI Secondary Fund II.
Hunton & Williams LLP acted as legal advisor to Credit-Based Asset Servicing and Securitization LLC (C-BASS) in the acquisition of Fieldstone Investment Corporation.
Oversees Private Investment Corporation announced US$556M investment in projects in Jordan and neighboring countries. The investments will be distributed among three funds in Jordan.
Standard Bank plc. acquires a 67% stake in the Turkish securities and brokerage house Dundas Ünlü Menkul Degerler, a market leader in the areas of M&A advisory, tender offers, distressed debt management and private equity management.
January 2007
The Oversees Private Investment Corporation announced that Alsis Funds was the recipient of US$100M to help with community development projects in Latin America, starting in Mexico and Central America.
EMP Latin America, through its AIG-GE Capital Latin American Infrastructure Fund L.P. (LAIF), sold its entire stake in Cablemas S.A. de C.V. (Cablemas), Mexico’s second largest cable TV operator. LAIF’s stake was valued at US$92M.
Darby Overseas Investments Ltd. invested US$25.2M in BRA Transporteos Aereos (BRA) via its Darby – BBVA Latin America Private Equity Fund. Other investors in the investment vehicle, Brazil Air Partners, that the deal was made through include Bank of America, Development Capital, Gavea Investment Fund, Goldman Sachs & Co., HBK Investments, and Millennium Americas.
EMP Latin America, through its AIG-GE Capital Latin American Infrastructure Fund L.P. (LAIF), sold a substantial portion of its stake in Axtel S.A. de C.V. (Axtel), Mexico’s largest competitive exchange carrier. During a late-2005 IPO, the Fund sold 55% of its share for US$81M. In this sale, the Fund received nearly US$36M for 50% of its remaining stake. It maintains holdings in Axtel worth approximately US$44M.
EMP Latin America, through its AIG-GE Capital Latin American Infrastructure Fund L.P. (LAIF) sold its entire 66.67% stake in UP Offshore (Bahamas) Ltd. to Ultrapetrol (Bahamas) Ltd. (Nasdaq: ULTR) for US$48M. LAIF continues to hold a 34.5% equity stake in Ultrapetrol.
CDC Group has committed US$100M to Citigroup’s first dedicated African private equity fund. The CVCI Africa Fund, managed by Citigroup Venture Capital International (CVCI) expects to invest between US$20M and US$60M in companies in both Sub-Saharan and North Africa. CDC’s commitment to the CVCI Africa Fund brings CDC’s total commitments to Africa to over US$830M since 2004.
Actis has invested US$40M in the TaizinaiGroup (Taizinai), one of the largest lactobacillus drink manufacturers in China. The investment is part of a larger US$73M financing, arranged and led by Actis, with the balance raised through Goldman Sachs and Morgan Stanley.
Istithmar, the private equity arm of government-owned Dubai World, partnered with London & Regional, of the UK, and a black economic-empowerment (BEE) grouping in a successful US$1B bid for the development of the Victor & Alfred waterfront in Cape Town.
Mekong Capital, a Vietnam-focused private equity investment fund manager, is planning to invest up to US$6.25M, of which an initial US$1.91M has already been invested, in Ngo Han Joint Stock Company. The Ho Chi Minh based fund manager expects to invest more capital from the US$50M dollar investment vehicle, Mekong Enterprise Fund II. Since the initial investment in 2004, Ngo Han’s revenues and net profit have grown at rates of 57% and 60% per year respectively. The company plans to list on the Vietnam stock market in 2008.
SigmaBleyzer successfully closed its Southeastern European Fund IV at $326M, making it one of the largest funds in the region.
Technoserve, the Google Foundation and other private sector companies have launched the second Ghana National Business Plan competition in Accra. Known as “Believe, Begin, Become, 2007” (BBB), the competition aims at promoting the development of small- and medium-scale enterprises.
Standard Bank Plc. and a conglomerate of financiers (together the Joint Lead Managers) launched a landmark 3-year US$425M Sukuk al-Ijara issue on behalf of Dar Al Arkan Real Estate Development Company (DAAR), a leading residential real estate developer in the Kingdom of Saudi Arabia.
Azerbaijan Investment Company intends to acquire a 20% stake in Garadagh Cement, the largest cement producer in Azerbaijan.
The European Bank for Reconstruction and Development recently took a 10% equity stake in Garadagh Cement.
ChrysCapital has sold one of its portfolio companies, Global Vantedge, a credit and receivables management BPO to the Essar-owned Aegis Communications for around US$2.6B. ChrysCapital had set up the Global Vantedge in 2001 and owned 75% in the firm.
Teacher’s Private Capital, the private investment arm of the Ontario Teacher’s Pension Plan, and the Canada Pension Plan Investment Board have jointly led the establishment of Actera Partners, a private equity fund exclusively focused on investment opportunities in the Republic of Turkey. As cornerstone investors, the two institutions have committed over US$97M each to the new fund, which expects to have raised approximately US$325M by mid-2007.
CDC Group commits US$20M to Lombard Asia III, and expansion capital fund that will focus on South Asia and Greater China. The fund has a target of US$300 – US$500M.
Abraaj Capital has raised US$500M at the first close of a US$2B infrastructure and growth capital fund. The fund is co-sponsored by Deutsche Bank and Ithmaar Bank.
December 2006
Abraaj Capital made its first investment from the US$300 million Abraaj BMA Pakistan Buyout fund, acquiring an 80% stake in Pakistan’s MS Forgings.
Advent International announced that it acquired 100% of Grupo La Mansion, a leading operator of casual dining restaurants in Mexico—its 6th investment in the Latin American retail sector and 4th buyout in the region this year. Financial terms have not been disclosed. (December 2006)
November 2006
Advent International and Turkven Private Equity have acquired Turkish company, Roma Plastik through a management buy-out that valued the company at €56 million (US$74 million).
Baring Private Equity Asia has made an investment from its recently closed US$490m fund with a 25% equity investment in AirTAC, a Chinese industrial pneumatic components manufacturer. The Baring Private Equity Asia Fund III will focus on investments in China, India, Southeast Asia, and Japan.
Shoprite Holdings, South Africa’s second largest supermarket company, has accepted a ZAR13 billion (US$1.8 billion) takeover bid from a group of investors led by Brait Private Equity, which will own 21% of the company.
Citigroup Venture Capital International has committed to invest US$20 million in KS Oil Ltd, one of India’s oldest edible oil companies.
A consortium of US and international private equity investors, led by Citigroup Venture Capital International (CVCI), Capital International Private Equity Fund IV (CIPEF) and Concord International Investments, have acquired a 93% stake in Amoun Pharmaceutical Co. (Amoun) for US$459 million, one of the largest private equity transactions to occur in Egypt to date.
DEG Invest has provided Argentine pharmaceutical manufacturer, Monte Verde S.A., with a US$13 million long-term loan for the purpose of expanding its facilities.
EMP Global LLC’s IDB Infrastructure Fund has partially exited its US$85M investment in Saudi International Petrochemical Company (”Sipchem”), a diversified petrochemicals company based in the Kingdom of Saudi Arabia.
The Evolvence India Fund, the first independent fund of funds in India, has invested a total of US$100 million in six private equity and infrastructure funds and made four additional investments in high growth companies.
ICICI Venture Fund’s India Advantage Fund VI increased its stake in Arch Pharmalabs to 31%. ICICI Venture Funds reportedly sold roughly a 5% stake or 13.5 lakh of Info Edge (India) through the secondary market to Fidelity for roughly Rs 80 crore (US$17.9 million).
India’s Cabinet Committee of Economic Affairs has approved ICICI Venture Fund’s plans to transfer its domestic holdings in the India Advantage Fund to non-resident Indians and persons of Indian origin, allowing the fund to act as contributory trust to invest in private opportunities.
International Finance Corporation is planning to invest US$13.9 million in Enercon India Infrastructure’s Pvt Ltd’s US$34.9 million wind-park project.
International Finance Corporation will provide US$240 million in loan and equity financing to Bahrain’s Ahli United Bank to support its expansion into frontier and emerging markets of the Middle East and North Africa.
Lombard Investments, Inc. has completed the placement of 71.9 million of its shares in Central Pattana Public Co. Ltd, the leading shopping mall developer and operator in Thailand for consideration of approximately US$40 million, or 4.2 times Lombard’s original cost.
The Mekong Capital Enterprise Fund II announced a US$6 million maiden investment in International Consumption Products Joint Stock Co, a Vietnamese food rinse manufacturer.
NBK Capital has secured commitments totaling US$200 million, completing the first closing of its NBK Capital Equity Partners Fund.
Stratus Corporation invested an undisclosed sum in Grauna Aerospace, a Brazilian parts supplier for the aerospace industry.
October 2006
Advent International acquired the ULTIMO Group from the company’s founders and funds managed by AIG Capital Partners. ULTIMO is the largest Polish debt purchaser and debt collector. No financial terms were disclosed.
Aureos Capital, via its Aureos Southern Africa Fund, acquired a 7% stake in financial services firm Real People Investment Holdings.
ChrysCapital, Providence Equity Partners, and TA Associates invested an undisclosed sum in Idea Cellular, an Indian wireless provider.
Conduit Capital Partners will sell the assets from its first two private equity funds, Latin Power I and Latin Power II. BNP Paribas will serve as an advisor in the sale.
DEG Invest has purchased an 8.24% stake, valued at €11 million (US$14.6 million), in Atlantic Grupa, a leading Croatian maker of neutraceuticals.
Ethos Private Equity closed its Ethos Fund V for ZAR5.5 billion (US$750 million). This is the largest Southern Africa fund to date and the fund has already made three investments in South Africa.
The European Bank for Reconstruction and Development acquired a minority stake in Russian wholesale generating thermal company OGK-5, a part of the power sector that is likely to go through an international public offering.
Euroventures Ukraine profitably sold its 30% shareholding of Laona Limited, the second largest wholesale distributor of pharmaceuticals in Ukraine, which operates under the brand name Alba, to company’s management for an undisclosed amount.
ICICI Venture Funds Management and Kotak SEAF India Fund invested in Home Solutions Retail, an Indian home furnishings retailer and subsidiary of Pantaloon Retail, for Rs 120 crore (US$27 million).
International Finance Corporation will make a US$50 million equity investment in the Avenue Asia Special Situations Fund IV, L.P, which focuses on the disposal or restructuring of nonperforming assets by focusing on individual assets and asset pools.
Istithmar has acquired approximately 2.7% share capital of the Standard Chartered PLC through a US$1 billion structured investment.
Paladin Realty Latin America Mortgage Finance and Paladin Realty Latin America Investors, two OPIC- supported private equity investment funds managed by Paladin Realty Partners, will respectively invest in mortgage financing for affordable housing and low- and middle-income housing development in Latin America.
The Balkan Accession Fund, a joint-venture between the Romanian-American Enterprise Fund and the Bulgarian-American Fund, closed at €110 million (US$146 million).
Stratus VC has acquired a 20% percent stake through its R$5 million (US$2.5 million) investment in Connec, a Brazilian designer and manufacturer of thin client computers and embedded software.
Warburg Pincus closed its 12th fund, Warburg Pincus Real Estate I L.P., at US$1.2 billion. The new fund will invest in real estate all around the world with over half of the investments in Asia and Europe.
September 2006
Abraaj Capital bought 11.8 million shares of Jordan National Bank for US$56 million. The Abraaj Special Opportunities Fund II was the vehicle for the acquisition.
Actis took control of a 71% stake in Sri Lanka’s Ceylon Oxygen Ltd. through Yara International ASA. Actis will make an offer for the rest of the company in the near future.
Conduit Capital Partners invested US$9 million in Benito Juarez and US$8.8 million in SOGAP V via its recently-closed Latin Power III fund. Both investments are energy providers in Mexico.
Henderson Equity Partners closed its €830 million (US$1bn) fund, Henderson PFI Secondary Fund II L.P., an infrastructure fund.
Permira reached a deal to acquire Principal Hotels, a chain of six four-star hotels, from the Royal Bank of Scotland. No financial terms were disclosed.
SHUAA Partners closed its private equity fund, SHUAA Partners Fund I, with US$200 million.
August 2006
Lombard Investments completed the placement of 71.9 million of its shares in Central Pattana Public Company Limited for approximately $40 million. Lombard Investments still holds a significant number of shares in the company, and will remain on the Board of Directors.
Actis raised US$40.37 million through the IPO of Platmin, a South Africa-based mineral exploration company, on London’s AIM and the Toronto Stock Exchange. Actis has provided Platmin US$35 million through four fund raising rounds since October 2003, giving it a 30% stake in the company.
Advent International led a consortium of investors to acquire 100% of Controladora Milano, Mexico’s largest discount clothing seller, for US$200 million from Newbridge Latin America. The consortium included Capital International, BBVA Proyectos Empresariales and FMO. The deal was structured with US$90 million in debt and US$110 million in equity.
On behalf of the AIG Emerging Europe Infrastructure Fund, Mid Europa Partners has sold Karneval Media s.r.o and Forcable s.r.o to Unite Holdco III B.V. for US$410.48 million. From the transaction, US$275 million will be returned to EEIF investors, amounting to 7.7 times Mid Europa’s original investment. Baring Communications Equity, which invests in emerging countries in Europe, also plans to sell its stake in Karneval.
Former sole owner Alfa Capital Partners has sold the remaining 49% of its stake in CB Richard Ellis Noble Gibbons to CB Richard Ellis, a U.S. real estate services firm, giving it full control of its Moscow arm. No financial terms were disclosed.
ALPHA CEE II, a fund of funds managed by private equity firm ALPHA Associates in Switzerland, had its first closing on US$139.905 million. The Central and Eastern Europe focused fund of funds is aiming to raise US$385.028 million for this fund and expects to announce a second closing later in the year.
Aureos and Bangladesh’s Eastern Bank have signed an agreement to set up a joint venture for creating Bangladesh’s first private equity fund. They are considering a fund size of US$15 million. There are also plans to invest in Malaysia, where Aureos and local investors have discussed launching a US$69 million fund to invest in small and medium enterprises. The Aureos South East Asia Fund closed in July with US$91 million, and will be invested in Thailand, Indonesia, the Philippines, and Southeast Vietnam.
According to a filing with the Bombay Stock Exchange, the Carlyle Group has offered to buy a 20% stake, or 3.02 million shares, in Allsec Technologies, an India-listed business outsourcing company. The US$17 million investment will be made from Carlyle Asia Growth Partners III, a fund which closed on US$668 million this past June. Carlyle earlier invested US$20 million in India-based drug maker Claris Lifesciences.
The CDC Group has committed US$104 million to three Indian private equity funds. The three funds include Indian Advantage Series III, managed by ICICI Venture Funds Management Company Ltd.; IDFII, managed by IDFC private equity; and Lok Capital, a regional venture capital fund.
Citigroup’s private equity arm Citigroup Venture Capital International plans to acquire Iqara Technologies, a broadband services company, from BG India. No financial terms were disclosed.
Citigroup Venture Capital International also invested US$15 million into Spentex Netherlands BV, a subsidiary completely owned by Indian company Spentext Industries (SIL). SIL recently acquired Tashkent-To’yetpa Teksil LLC, an Uzbekistan-based company, and will use the capital to help finance the upfront payment of US$20 million.
A consortium of private equity firms including Ashmore Investment Management, Clearwater Capital Partners, and Spinnaker Capital, has concluded a buyout of Asia Netcom, a regional telecoms service provider in Hong Kong, from China Netcom Group. The buyout was worth US$402 million.
Egypt’s EFG-Hermes’ board of directors gave the green-light for Abraaj Capital to increase the capital of the Egyptian investment house by 25% by issuing additional 97 million shares. The investment is valued at US$509.3 million.
IDFC Private Equity invested US$10.74 million into HealthCare Global Enterprises Limited, an India-based institution for oncology care and research via its IDFC Private Equity Fund II. IDFC Private Equity invested US$25 million in Ashoka Buildcon, a construction and civil engineering firm.
Pakistani financial services company Jahangir Siddiqui Group has held its first close on its maiden private equity fund with US$70 million. Institutional investors include DCD Group, Global Investment House of Kuwait, the International Finance Corporation, and SAMBA Financial Group of Saudi Arabia. The fund, called JS Private Equity Fund I, will reportedly target high growth potential companies in the oil, gas, transport, and automobile sectors.
BTS Investment Advisors is raising a US$80 million India growth and expansion capital investment fund for small and mid-sized businesses. The fund’s LPs already include SIFEM, ADB, the Belgian Investment Company for Developing Countries, and the International Cooperation and Development Fund of Taiwan.
US-based Thousand Hills Venture Fund, which targets small and medium-sized companies in Rwanda, has made its first investment. Rocket 2020, a technology and services provider for Rwandan businesses, has received an undisclosed amount of capital from Thousand Hills.
Warburg Pincus has invested a total of US$60.9 million into Lemon Tree Hotels and Red Fox Hotels, both Indian chains.
July 2006
AIG Capital Partners will spend up to US$15M to take a minority interest in Pretoria-based Blue Financial Services, a pan-African micro-finance company. The investment was made from the AIG Global Emerging Markets Fund II. (Private Equity Week Wire, July 6 2006)
Actis is taking a 51% equity stake in Nilgiris Daily Farm of India. (Asian Private Equity News, July 19 2006)
Global IT investor General Atlantic Partners purchased an additional 3 million shares in portfolio company Net 1 UEPS Technologies from Brait International, South African Private Equity Fund III, and South Africa Private Equity Trust for an undisclosed amount. CVCI acquired a 10.37% equity stake in India-based Kinetic Motor for US$20.9 million. (Asia Private Equity Review Review, July 2006)
ChrysCapital invested US$12 million in cardboard box maker Parksons Packaging, a New Delhi-based family-owned business. (Asian Private Equity News, July 6 2006)
Darby Overseas Investments, Ltd. and Hana Bank, one of Korea’s leading financial institutions, announced the closing of the jointly managed Korea Emerging Infrastructure Fund (KEIF) at US$610 million. KEIF will make private equity investments in private companies engaged in a broad range of activities in the Korean infrastructure sector. (Darby Franklin Templeton Investments Press Release, July 26 2006)
Suzlon Energy of India, which is backed by ChrysCapital and CVCI intends to raise US$1.08 billion through the allocation of shares via the Bombay Stock Exchange. As of March, ChrysCapital holds a 2.61% stake and CVCI owns a 7.17% stake in the alternative energy firm. (Asia Private Equity Review Review, July 2006)
The Inter-American Development Bank approved a senior loan of US$60 million to the Central American Mezzanine Infrastructure Fund, managed by Washington, DC-based EMP Global. Among the additional contributors to the proposed US$150 million fund is the Central American Bank for Economic Integration. (Inter-American Development Bank Press-Release, July 19 2006)
IDFC Private Equity and Capital International will reportedly invest US$70 million in for-profit adult education company Manipal Education. Capital International will contribute 40% of the investment. (Asian Private Equity News, July 6 2006)
The IFC intends to invest US$19 million in Maghreb Private Equity Fund II, which will be managed by Tuninvest and is targeted at US$70 million. (Asian Private Equity News, July 6 2006)
Navis Capital Partners acquired Australian ice-cream retail chain, Wendy’s for an undisclosed amount, adding to its growing portfolio of food retailers and manufacturers. (Asian Private Equity News, July 19 2006)
SHUAA Capital plans to raise US$247.7 million by taking 55% of Gulf Navigation Holding shares public. The IPO, scheduled for July 24-August 7, 2006, will consist of listing 910 million shares at an offer price of AED1 (US$0.27) per share. (Zawya, July 18 2006)
Siguler Guff closed its second Distressed Opportunities Fund, a fund of funds with US$1B in capital commitments. The first Distressed Opportunities Fund was launched in July 2002 with US$595M and is almost fully invested. The Carlyle Group reached a final closing of US$1.8 billion for its Carlyle Asia Partners II, LP. The fund focuses on investments in Asian countries outside of Japan. (Asia Private Equity Review, July 17 2006)
The Carlyle Group will acquire 70% of Taiwan-based Eastern Multimedia Co. for US$1.3 billion, of which 70% will be secured through a loan facility. The transaction will allow Carlyle to eventually acquire the remaining 30%. The deal will also give Carlyle a 20% stake in Eastern Broadcasting Company, and Eastern Home Shopping & Leisure Company. (Asia Private Equity Review Review, July 2006)
Warburg Pincus committed US$50 million to Amtek Auto Ltd. by acquiring 8.8 million shares via the Indian stock market. This gives Warburg a 7.4% equity stake in the Indian automotive components manufacturer. (Asia Private Equity Review Review, July 2006)
June 2006
AIC Caribbean Fund, a Caribbean-focused fund managed by AIC International, received a US$80 million commitment from OPIC. The fund has a target of US$250 million. (Venture Equity Latin America, June 15 2006)
The Asian Development Bank will acquire around 5% of Hangzhou City Commercial Bank for an undisclosed amount. (Asia Private Equity Review, June 26 2006)
The Carlyle Group invested US$20 million in India’s Claris Lifesciences, US$25 million in Credit Orienwise and US$27.5 million in Anxin Flooring, both Chinese firms. The three investments were allocated from the Asia Growth Partners III fund. (PrivateEquityOnline.com, June 15 2006)
The Carlyle Group has raised US$668 million for its Asia Growth Partners III fund, which will be invested in expansion stage companies in India, China, Japan and Korea. (Private Equity Week Wire, June 15 2006)
Citigroup Venture Capital, Concord International, and Capital International are intending to purchase 93% of the equity in Egypt’s Amoun Pharmaceutical for US$451 million. (Asian Private Equity News, June 28 2006)
Clearwater Capital, Olympus and Voyager have purchased a 23% stake in India’s Sanghvi Movers. (Asian Private Equity News, June 28 2006)
Conduit Capital Partners sold its remaining 60% stake in Termocabo, a Brazilian power plant. Conduit initial investment was at US$27 million, and it generated a 53% IRR through this exit. (Venture Equity Latin America, June 15 2006)
Darby Overseas Investments is fundraising for Darby ProBanco Fund II, which will invest in Central American countries and with a target of US$90 million. OPIC has already committed US$45 million in the fund. (Venture Equity Latin America, June 15 2006)
GP Investimentos will invest US$115.6 million in its GP Capital Partners III fund. This investment is 41% of the proceed raised from its IPO held in May. The fund will have a total of US$250 million in committed investment. (Venture Equity Latin America, June 15 2006)
The IFC has agreed to invest EUR15 million in the Maghreb Private Equity Fund II LP managed by Tuninvest Finance Group, which will target companies in North Africa. (Private Equity Week Wire, June 28 2006)
Paul Capital Partners’ Royalty Fund, a leading international healthcare fund, has signed a US$27M deal with the U.S. subsidary of India’s Glenmark Pharmaceuticals Ltd. In return for their financing of the devlelopment of 16 dermatological products by Glenmark for the U.S. market, Paul Capital will receive an undisclosed royalty on the net sales of these products, which currently have a total market value of about US$1bn. (The Economic Times, 06/06/2006)
Advent International raised US$104 million through a secondary share offer performed by CSU Cardsystem, Brazil’s largest credit card management company. This brings Advent stake in the company to 5%. (Venture Equity Latin America, June 15 2006)
Warburg Pincus and its Chinese partners performed a buyout transaction by taking a 98% stake in Shandong Deosen Corporation for a value exceeding US$180 million. This is the first buyout for Warburg Pincus in China. (Asia Private Equity Review, June 26 2006)
Warburg Pincus intends to buy GUM, a Chinese producer of food additive, in a leveraged buy out deal valued at US$100 million. (Asia Private Equity Review, June 26 2006)
May 2006
Abraaj Capital announced its corporate partnership with the World Economic Forum (WEF) for its Annual Meeting on the Middle East taking place on May 20-22, 2006 in Sharm El-Sheikh, Egypt. Participants of the meeting will look at the role of business as the engine of job creation. Arif Naqvi, the CEO and Executive Vice Chairman of Abraaj Capital, will introduce the session “Private Equity-Funding the Future?” where he will discuss the role that private equity can play in supporting growth throughout the Middle East. (Abraaj Capital Press Release, 05/17/2006)
AIG Capital Partners acquired a stake in UTI Group, a Romanian provider of security systems and services. The deal is valued at US$19.5M. (PE Week Wire, 05/02/06)
The International Finance Corporation, the private sector arm of the World Bank, agreed to purchase a US$23M stake in Commercial International Bank of Egypt, headquartered in Cairo. The IFC will purchase approximately 2 % of the bank’s capital out of a total of 18.7 percent that was sold in February by National Bank of Egypt to a consortium of investors led by Ripplewood Holdings, a U.S.-based private equity firm. (AVCA Quarterly Newsletter, April 2006)
Thirty percent (€203M) of the Netherlands Development Finance Company’s (FMO) new global investments were concentrated in Africa in 2005. FMO anticipates a continuing strong growth for the region of about 5%, compared to 3% for the rest of the world. (AVCA Quarterly Newsletter, April 2006)
SHUAA Partners, the private equity arm of SHUAA Capital psc, has received a license from the Dubai Financial Services Authority (“DFSA”) to operate as an authorized firm in the Dubai International Financial Centre (“DIFC”). Mr. Raed Kanaan, Vice President at SHUAA Partners stated in the press release: “The private equity industry in the Middle East is growing rapidly and the need to follow standards and abide by certain regulations has become imperative especially at a time when regional fund managers are absorbing a larger share of domestic savings and investments. We believe that the DIFC is the right approach for us”. (SHUAA Partners Press Release, 05/03/06)
Small Enterprise Assistance Funds sold its stake in On.Net, Macedonia’s leading wireless internet provider, to Slovenian Telecom, a regional telecom provider, on March 20, 2006, realizing a 43% IRR. SEAF had provided equity financing and technical assistance to On.Net in 2002, which helped On.Net qualify as a partner in a USAID-funded initiative aimed to provide broadband internet access to schools and communities throughout Macedonia. Service from this internet provider has lowered the average cost of connectivity from $125/month to about $15 to $20/month, making the internet more accesible to the wider public. (SEAF Press Release, 05/19/2006)
ZM Africa Investment Fund (ZMAIF), a fund sponsored by OPIC and managed by Kingdom Zephyr Africa Management has divested its stake in Atio Corporation, a Johannesburg-based communications technology company. The buyer consortium was comprised of Atio’s management, Atio’s Black Economic Empowerment partner Thuthukani, and Ethos Technology Fund. (AVCA Quarterly Newsletter, April 2006)
April 2006
Actis has acquired Thailand’s leading English language magazine business, Distri-Thai, from Malaysia’s Navis Capital Parnters in secondary buyout. Financial terms were not disclosed. Distri-Thai currently distributes 95 percent of English language magazines on sale in Thailand. (PrivateEquityOnline, 04/10/06)
CB Richard Ellis, a Los Angeles-headquartered commercial real estate firm, has acquired a 51% stake in Noble Gibbons, a Russian real estate services firm, from Alfa Capital Partners, a Moscow-based private equity and real estate investment firm. No financial terms were disclosed. (CB Richard Ellis/Alfa Capital Partners Press Release, 04/19/06)
The Wall Street Journal reports that The Carlyle Group has agreed to pay about US$1.3B for the majority stake in Taiwan’s Eastern Multimedia Co., one of the country’s largest cable television operators. Carlyle has reportedly outbid Newbridge Capital and Liberty Global private equity groups in the deal. (WSJ, 04/17/06)
ChrysCapital, a Dehli-based private equity fund, has exited from Gammon India, a construction company by selling its entire stake in the company at around US$95M in the secondary market. The private equity player received 4.75 times its original US$20M investment from 15 months ago. ( The Economic Times Online, 03/31/06)
CIMB and Standard Bank launched the South East Asian Strategic Asset Fund “SEASAF,” a US$250 million private equity fund investing in primarily Malaysia and Indonesia, as well as other Southeast Asian countries. The fund will be investing in infrastructure, energy and natural resource sectors, and associated industries in the region. (Standard Bank Press Release, 03/30/06)
Citigroup Venture Capital International, along with India Value Fund, is providing US$54M in financing to Centurion Bank of Punjab. The Asian Development Bank and International Finance Corporation provided funds to this lender earlier. (Asia Private Equity Review, 04/10/06)
IDFC Private Equity, a Mumbai-based investment management firm, has raised US$430M for its second fund. IDFC Private Equity Fund II focuses on Indian infrastructure. The firm’s portfolio includes GMR Energy, Chalet Hotels and Dehli International Airport. (AltAssets, 04/07/06)
IDFC Private Equity has sold its holdings in Hotel Leela Ventures, a hotel group listed on Bombay stock exchange. IDFC received US$47.6M in proceeds. (Asia Private Equity Review, 04/10/06)
The International Finance Corporation has reportedly sold 16.2 million shares in Central Plaza Hotel to Lombard Capital’s Thailand Equity Fund for about US$15M. (Asian PE News, 04/13/06)
Siguler Guff, an investment advisory and fund of funds manager based in New York, has closed its US$600M BRIC Opportunities Fund LP. The new fund of funds will invest in local private equity GPs, as well as make direct co-investments in Brazil, Russia, India and China. The fund’s original target size was around US$350M and had to be increased to accommodate strong investor demand. (PrivateEquityOnline, 04/18/06)
Warburg Pincus has reportedly acquired a 7% stake in Dainik Bhaskar, a Hindi newspaper, for US$35M. (Asian PE News, 04/06/06)
March 2006
Actis recently announced an investment of US$11.1M in Banro Corporation, a gold exploration company in the Democratic Republic of Congo. It has also launched a pan-African US$162M Canada Investment Fund for Africa in partnership with Cordiant, a Canadian emerging markets asset manager.
CTC Media Inc., a Moscow-based operator of Russian networks, has filed to raise US$175M via an IPO of common stock. It plans to trade on Nasdaq under ticker symbol CTCM. Baring Vostok Capital Partners is among its shareholders. (PE Week Wire, 03/07/06)
The Carlyle Group is raising its third fund dedicated to venture and growth/expansion situations, Asia Growth Partners III, with a pan-Asian focus. CalPERS has recently committed US$30M to the fund’s size. (
Asia
Private Equity Review, March 2006)The Carlyle Group ran into resistance from China’s Ministry of Commerce in getting approval for the purchase of Xuzhou Construction Machinery. The commerce ministry wants Carlyle to pledge not to sell its majority stake to a foreign construction equipment group, which is problematic considering a traditional short-term exit strategy of buyout firms. Originally, Carlyle agreed to pay US$375M for an 85% in Xuzhou Machinery.(FT, 03/29/06)
ChrysCapital has acquired a 11% stake in Redington India Ltd, an India-based provider of supply chain solutions to the IT and telecom markets.
ICICI Venture has acquired 7.5% in Action Construction Equipment, the leading construction equipment manufacturer in India. The investment was made through India Advantage Fund.
Lombard Investments’ Lombard Asia III, a private equity fund dedicated to Asia , has held its first close of US$153M. The new fund is seeking between US$300M and $500M for investments inChina
andSoutheast Asia
. It targets food, tourism, and retail industries along with financial services. The Asian Development Bank and the California Public Employees’ Retirement System have already invested in the vehicle. Reportedly,Taiwan
’s International Cooperation and Development Fund is also considering an investment. (Private Equity Online, 03/03/06)
Swicorp, an investment banking and private equity firm focused on the Middle East and North Africa, will move its group headquarters to Riyadh. The Capital Market Authority of the Kingdom of Saudi Arabia has awarded Swicorp an investment banking license. This will enable Swicorp to engage in several areas of securities activity, including asset management with a particular focus on private equity, in Saudi Arabia. (Swicorp, 03/28/06)
February 2006
Private Equity Online interviewed EMPEA Charter Members Abraaj Capital and Swicorp regarding the growth of the Middle East private equity community. Abraaj Capital’s executive vice chairman and CEO Arif Naqvi says, “In some ways, I think 2005 can be seen as a coming of age for the region.” (Private Equity Online, 2/3/06)
AIF Capital Asia Ltd. is currently raising its AIF Capital Asia III fund. The target is set at US$425M. Asia Private Equity Review reports that AIF Capital Asia already has commitments from a number of investors, including the Swiss-based Partners Group and the US-based Northwestern Mutual Fund. The fund will focus on taking minority or majority stakes in companies with enterprise values of US$50M to US$500M. (Asia Private Equity Review, February 2006)
To expand on the February 17, 2006 report, AXA Private Equity Asia is launching a US$550M fund of funds with partners Axa Group and Caisse de Depot et Placement du Quebec, forming the largest dedicated fund of funds inAsia
. Although a significant portion of the fund has already been allocated, anywhere between US$100M and US$150M is going to direct investment. The focus of the fund is going to be on the buyout and expansion segments. The fund reportedly has commitments to invest US$90M in Australia, China,
and India
and will also make direct investments in those countries, as well as Japan
and South Korea. (Asia Private Equity Review, 02/27/06)
The Carlyle Group’s Mexico office made its third investment, acquiring Hispanic Teleservices Corporation. Financial terms were not disclosed, but sources estimated the deal at US$50M. The transaction also allowed JP Morgan Partners and Citigroup Venture Capital International to exit for multiple times their initial investment. (Venture Equity Latin America, 2/1/06)
Leading Indian private equity fund ChrysCapital has acquired around a 5% stake in Bajaj Auto Finance through the private placement. Reportedly, the ChrysCapital private placement took place at around Rs 450 (US$10) per share last month and netted Rs 40-45 crore (US$9-10M) for Bajaj Auto Finance. (The Economic Times Online, 02/23/06)
ChrysCapital paid 530 million rupees (US$11.8M) for a 12.47% stake in Intas Pharmaceuticals. The private equity firm bought its stake from ICICI Venture Funds Management. (Asia Private Equity Review, 02/13/06)
Law firm Clifford Chance has landed one of the largest finance deals ever conducted under Islamic law, advising the Dubai Port Authority on a US$3.45bn convertible bond issue. If an IPO is successfully completed within two years, the investors will receive both cash and shares, presumably attracting potential investors to a market where the rare IPOs is usually oversubscribed. (Legal Week, 2/2/06)
Conduit Capital Partners will invest in a greenfield gas pipeline in Mexico via its Latin Power III fund. The project will cost US $100M. US $30M will come from the equity financing, the other US $70M from debt financing. The project’s goal is replacing a natural gas pipeline under the city of Queretaro and increasing the pipeline’s capacity. (Venture Equity Latin America, 2/1/06)
Ethos Private Equity portfolio company Dunlop Tyres International and Indian-listed Apollo Tyres agreed to acquire a South Africa-based Dunlop tyre maker for US$65.6M, pending regulatory approval. According to Ethos partner Eugene Stahls, leadership and innovative funding facilitated Dunlop’s restructuring and growth. (Business Day, 1/31/06)
Kingdom Zephyr Africa Management, a pan-African private equity fund manager, invested US$18M on behalf of Pan-African Investment Partners and Pan-Commonwealth African Partners in Ecobank Transnational Incorporated (ETI). ETI is the parent company of the Ecobank Group of banks with operating subsidiaries in 13 countries in West andCentral Africa
. (AVCA Quarterly Newsletter, February 2006)
The Swiss Investment Fund for Emerging Markets (Sifem) has been set up to spin-off the Swiss Confederation’s State Secretariat for Economic Affairs as a part of a long-term strategy of poverty reduction. The goal of the fund it to enlist private sector into investing into emerging markets through the fund’s participation in loan instruments, credit guarantees and direct investments. (AVCA Quarterly Newsletter, February 2006)
The Financial Times is reporting that Warburg Pincus may pick up a 9.71% stake in China’s largest electrical retailer, Gome, any day now. The sale would give Warburg a convertible bond and a seat on the board, raise US$125M for Gome, and enable the company’s founder, Huang Guangyu, to become China’s richest man. The deal is pending final agreement on price and terms, as well as Chinese regulatory approval. (Financial Times, 2/1/06)
Warburg Pincus has committed US$40M to finance new product development and production expansion at Taiwan’s Univision Technology, a manufacturing company that engages in development of organic light emitting diode technology. The transaction is subject to Taiwanese government approval. (Private Equity Online, 02/27/06)
January 2006
Actis has announced successful redemption of its investment in Kenyan Grain Bulk Handlers (GBHL). The investment of US$3 million in mezzanine funds brought 19% IRR and two and a half times money back and a US$7 million senior loan obtained 11% IRR and 1.4 times money back. (http://www.act.is)
Actis continued its buying spree in December, picking up a portion of India-based Sandhar Group for US$23M. The money will be used to finance the auto component manufacturer’s expansion plans. (India Business Standard, 12/30/05)
The Asian Development Bank has agreed to invest US$25M in the pan-Asian ADM Maculus Fund II LP, which plans to provide financial restructuring to distressed companies. The fund is targeting US$300M and will be managed by Hong Kong-based ADM Capital. (Asia Private Equity Review, 01/03/06)
With its recent purchase of a majority stake in Hispanic Teleservices Corporation, The Carlyle Group made its third investment in Mexico-based companies. The Corporation provides customized bilingual call center services. (AltAssets, 1/18/06)
The Global Energy & Power Fund III, co-managed by Carlyle and Riverstone, has raised $1.45 billion in commitments toward its $3.5 billion target. (PE Week Wire, 1/20/06)
Several companies received Indian regulatory approval for their proposed investments recently: UK-based CDC Group plc was okayed to invest US$16.7M in a soon-to-IPO asset reconstruction company and Citigroup Venture Capital of Mauritius’s US$2.6M stake in Spentex Industries was greenlighted. (India Business Standard, 01/06/06)
In addition to the $960m already invested and committed in Africa, CDC Group plc has made an additional $140m in capital contributions to seven funds in Africa. The commitments include:
- $30m to Ethos Fund V
- $2.5m to Sphere Fund I
- $50m to Actis Africa Empowerment Fund
- $20m to the Canada Investment Fund for Africa
- $30m to Emerging Markets Partnerships’ Africa Fund II
- $3m to GroFin’s East Africa SME Fund
- $5m to African Lion II
(AltAssets, 1/10/06)
ChrysCapital reportedly sold its 6.5% stake in MphasiS for approx. US$29.5M via the secondary market in 2005, leaving the company no investment in the IT services firm. (Economic Times, 1/25/06)
Clifford Chance was ranked first in a listing of global rankings for M&A league tables. The value of the firm’s completed deals is $490bn. (www.thelawyer.com, 1/13/06)
Cairo-based EFG-Hermes Private Equity acquired a 20% stake in Lebanon’s Banque Audi for US$450M. This is the Egyptian financial firm’s biggest investment in Lebanon. (Daily Star (Lebanon), 01/06/06)
With Axtel S.A. de C.V.’s going public with a market capitalization of $990 in Mexico in December, the Mexican stock market concluded the year with a total of four IPOs. Shareholders included EMP Global’s AIG-GE Capital LAIF Fund, Blackstone Group, AIG, Soros Group, and other Mexican investors. (Venture Equity Latin America, 1/16/06)
Hong Kong-based private equity firm CCPM Capital Asia acquired Waco International, the South-African building company. Waco will continue to focus on markets in South Africa, Australia and New Zealand and the UK. Ethos Private Equity, one of its previous shareholders, led Waco’s leveraged buyout in September 2000. (http://www.ethos.org.za/news.asp?id=431)
ICICI Ventures has partnered with New York-based Tishman Speyer to form a $1 billion fund for investments in Indian real estate projects. (T&I, Borrell, 1/5/06)
New Jersey-based cancer drug company Onconova Therapeutics Inc. has raised US$14M of a US$16M Series E round from backers including Indian VC firms ICICI Venture and I-Ven Biotech. (PE Week Wire, 01/09/06)
PVR, the first portfolio company of ICICI Venture-managed fund India Advantage Fund Series I, completed its IPO in December 2005. The fund realized US$15.45 million and achieved an IRR of 123% and average MOC of 4.77x on the equity investment. (ICICI Venture, 01/04/06)
Morgan Stanley and the IFC purchased a combined 14.33% stake in Chinese cement firm Anhui Conch Cement Co. Ltd. for more than US$150M. The transaction still requires approval from China regulatory agencies, as the company is a state-owned asset. (Forbes, 01/05/06)
Lombard Investments’ Thailand Equity Fund invested US$11.25M in Bangkok-based Katana Group Public Company Ltd., a TV and film company. (PR Newswire, 01/04/06)
SEAF held a first close of $16 million for the Colombia Transandean Fund. Other investors include USAID, SECO, and BIO. The Fund, which can invest in all sectors of the Colombian economy, hopes to raise $4 million for a second close in January. (Venture Equity Latin America, 1/16/06)
Siguler Guff is now an LP for New Path Ventures’ fund. Patricia Dineen, current manager of Siguler Guff’s BRIC Opportunities Fund, has become a new Board member of New Path. (T&I Asia Watch, Borrell, 1/16/06)
Investment funds managed by
Siguler Guff joined Santa Clara-based VC firm NewPath Ventures as Limited Partners. NewPath Ventures focused on early stage, hybrid Indo-US companies in the systems, silicon, software and services sectors. Siguler Guff director Patricia Dineen will join NewPath’s Board of Directors. (Business Wire, 01/09/06)
Warburg Pincus sold the remaining stakes in cement company Gujarat Ambuja held by its investment vehicles Affinity International and Elm International originally purchased in 2001 for US$38.23M. The company sold the 8 million shares and recorded a US$108M return. (Asian Private Equity Newsflash, 01/03/06)
December 2005
The Carlyle Group purchased a 25 percent stake in China Pacific Life Insurance–this is the largest buy-out deal in the country’s history. David Rubenstein, Carlyle’s co-founder, explains that in order to get control of a former state-owned company in China, his firm had to invest more resources than usual. Rubenstein says, “The growth in private equity activity in Asia has been exponential. China and India are the great new horizons for private equity.” (Financial Times, 12/20/05)
The Carlyle Group sold Taiwan Broadband Communications to Australia’s Macquarie Bank for $880 million, resulting in a return that is four times Carlyle’s original investment. (Financial Times, 12/20/05)
Dubai-based Abraaj Capital announced the final closing of ABOF II, its $500 million second Buyout Fund. This fund is the largest private equity fund ever raised in the Middle East, and the demands were so high that Abraaj pushed up the closing date from Dec. 31 to Nov. 30. Investors include not only high net worth individuals and families, but also international institutional investors, regional state-owned pension funds, and major financial institutions.
Actis has reportedly sold the trading division of Nitrex Chemicals to the Thailand-based Industrial Ingredients business of the EAC Group for an undisclosed amount. The former nitrocellulose manufacturing and trading division of ICI India had been one fo the first ever management buyouts by a private equity investor in India.
AIG Capital Partners announced that it has completed the sale of AIG-Brunswick Millennium Fund’s stake in IBS Group Holding Limited (”IBS”) and received gross proceeds of $84 million. The sale was managed by Troika Dialog and the stake was sold to a number of institutional investors.
Egypt’s largest private bank, Commercial International Bank, has invested an undisclosed amount in Abraaj Capital’s $500 million buyout fund. The fund is expected to close in Mid-December.
Montreal-based Cordiant Capital, Actis’s partner in managing the Canada Investment Fund for Africa (CIFA), closed its second International Finance Participation Trust, a portfolio of emerging markets private sector loans. Investors committed US$370 million, with a minimum investment size of US$10 million.
The December 2005 issue of Private Equity International features a substantial profile of Delta Private Equity’s (and EMPEA Board member) Patricia Cloherty, including details about her background, her current role in the Russian market, and her attitude towards private equity: “Even when I go on vacation in the Caribbean, I look for deals. It’s a habit.”
The European Investment Bank, the International Finance Corporation, and the Asian Development Bank joined other board members to finalize corporate and financial arrangements for the Apia, Samoa-based Samoa Venture Capital Fund<