Preqin’s Q1 2009 Private Equity Spotlight Report

Preqin has just released the latest issue of it’s Private Equity Spotlight report. As always they do a very good job looking at the current state of fundraising. While they point out the dire state of funds looking to raise money, based on their polling of LPs, they predict that Q1 of this year will have been the low-point in fundraising. The report also has features on Sovereign Wealth Funds, and French funds (Preqin estimates that French funds have over €40 billion in available capital at the moment. Interesting).  

Anyway, you can read all that for yourself:

•  Preqin’s Private Equity Spotlight – April, 2009

HEC Alum to Take Reins at Wendel Investissement

Frédéric Lemoine (HEC.1986), non-executive chairman of French nuclear group Areva and a senior adviser at McKinsey, was appointed on Wednesday night by the board of Wendel Investissement to replace Jean-Bernard Lafonta as CEO, putting an end to more than a year of family in-fighting over leadership and investment strategy. Much of the controversy stemmed from the questionable decision to take a 21.5% stake in staid French manufacturer Saint-Gobain. Best of luck Frédéric!

Debevoise & Plimpton Report: New French Bankruptcy Law Fosters Pre-Insolvency Restructuring

Debevoise & Plimpton has just released this client memo discussing a new French bankruptcy law implemented to facilitate pre-insolvency restructurings, an approach previously unknown in France.  The memo refers to a new French bankruptcy law (Ordonnance 2008-1345 of December 18, 2008, and implementing regulation décret 2009-160 of February 12, 2009) that came into force on February 15th of this year. Well worth reading if you have any portfolio firms in France!

• New French Bankruptcy Law Fosters Pre-Insolvency Restructuring – March 18, 2009

Banexi Capital Partenaires Changes Name to Azulis Capital; Acquires Stake in Finag Group

Banexi Capital Partenaires has changed it’s name to…drumroll please…Azulis Capital! And just what, you ask, does Azulis mean?  Off the top of my head I have no clue. But French firms do tend to pick names that sound oddly similar to prescription medications. Adding to the confusion is that when conducting a simple Google search, one can see that apparently an Azulis Capital is already operating in Brazil, and there’s a Belgian internet marketing firm called Azulis.  

The name change coincides with Banexi Capital Partenaires’ management team acquiring 100% of the business six years after it spun-out from BNP Paribas. Banexi Capital Partenaires was established 15 years ago as part of BNP Paribas. It gained independence from the French bank in 2004 when its partners acquired a 51% stake in the business.

Aso, Azulis has backed the acquisition of household products manufacturer Finag group from it’s founder Alain Guiader, alongside the management team. Finag was established in 1990 and has developed in three principal areas of activity: designing and producing bathroom accessories under its Galedo brand; distributing kitchen furniture kits through Bois secs De Bourgogne and Rossignol, two businesses purchased in 1996 and 2006 respectively; and producing and distributing metallic and plastic products aimed at the hygiene sector. The group had a turnover of €50M in 2008.

FCPI Investment Activity in Innovative Enterprises: 1997-2007

A new study released by the AFIC and OSEO looks at the evolution of investment activity of FCPI’s (Fonds Communs de Placement dans l’Innovation) over the first decade of the investment vehicle’s lifespan.  The study found that between 1997 and 2007, €4.4 billion was raised by 35 firms via 216 FCPI. Of that total, €2.2 billion has been invested in 800 innovative companies, with average investment tickets of just over half-a-million euros. France being a highly centralized country is not much of a surprise to see that over 80% of the investments occured in just three regions: Île-de-France, Rhône-Alpes, and PACA.

Here’s the report (in French):

• Activité d’investissement des FCPI dans les entreprises innovantes:  1997-2007

Abénex Capital and L Capital Sell Nutrition & Santé

A deal from France and these days, any deal or exit is news!  Abénex Capital and L Capital (an investment fund that’s sponsored by LVMH) have sold health food producer Nutrition & Santé (fyi, their brand Gerlinéa offers some nice diet cookies) to Otsuka Pharmaceutical Co., a Japanese drug, food and drinks maker.  Abénex and L Capital initially purchased Nutrition & Santé from Novartis in 2006 for €220m. 

Nutrition & Santé was founded in 1972 and is based in the French town of Revel.  Nutrition & Santé generated sales of €260m to 40 countries last year.

This deal continues a spending spree trend from Japan.  Japanese firms, notably in pharma, set a record pace for overseas acquisitions in the past year, thanks to strong cash positions and fairly steady credit markets at home.

Delphine Inesta Joins Crédit Agricole Private Equity (CAPE)

Alumni News: HEC Alumna Delphine Inesta (H.2003) has just joined Crédit Agricole Private Equity (CAPE)’s special situation department as investment manager where she will focus on distressed companies. Congrats!

Ixen Closes Third Fund at €500m

Ixen, a subsidiary of Natixis Private Equity, has closed its third fund on €500m. The firm had previously raised two funds, worth €150m and €300 respectively, and both now fully invested. Natixis is the sole investor to the fund. The vehicle will invest in companies valued at between €30-300m.

Crédit Agricole Private Equity Launches Two FCPI funds

Crédit Agricole Private Equity (CAPE) has launched two new FCPI funds named LCL Innovation 2008 and Crédit Agricole Croissance 2008 respectively.

Both funds will be invested in growth sectors such as electronics, telecoms, software, internet services, biotechnology and cleantech.

An FCPI, which is the acronym for Fonds Communs de Placement dans l’Innovation, is a category of fund that invests in innovative SMEs, is regulated by the French government, and offers certain tax advantages for investors (and in France you need all the help you can get in reducing your taxes).

Here’s CAPE’s press release:

• CAPE Launches Two FCPI’s

New AFIC/Ernst & Young Study on Business Growth and Private Equity Investment in France

The French national private equity association, the AFIC (l’Association Française des Investisseurs en Capital) and Ernst & Young have just released a study concerning how private equity effects business growth in France.  The study found that PE-backed firms outperform the national average as well as the CAC 40.  Here it is for your reading pleasure:

AFIC/Ernst & Young Growth Study for France – November 2008 (in French)

A side note to the AFIC in case anyone there is reading: you all really need to work on the English language version of your site.  I often get asked by people from all over the world for information, studies, reports, etc. in English concerning private equity in France.  There’s some great info on the AFIC site, but it’s all in French which limits the audience which is unfortunate.