Thursday, August 16, 2007

Funds for Buy-Outs

Martin Arnold reports from London than Buy-Out firms are still out on the hunt for funds:

Yet while their activity has slowed, big buy-out firms seem more eager to raise fresh funds in anticipation of a considerable buying opportunity, as the credit market turmoil cuts the price of companies they buy.

People close to several large private equity investors said that in spite of the credit market difficulties, appetite to invest in buy-out funds from longer-term investors, such as pension funds and insurance companies, was increasing.


Carlyle aims to raise €5bn for its third European fund, while Lion Capital and Barclays Private Equity are looking to raise €2bn each. CVC Capital Partners is yet to finalise its fundraising documents but is expected to seek €10bn-€15bn this year.

Nick Arnott, managing director of Private Equity Intelligence, which tracks buy-out fund performance, said: “They seem pretty confident, as some of the mega funds have been raising funds above their targets. Investors are still keen to increase their exposure to private equity.”