Fund Management

Europe appears on the verge of a mezzanine revival.

Exponent Private Equity, a UK mid-market firm founded in 2004, has closed its second fund with commitments of £805 million ( €1 billion; $1.6 billion). The fund is double the amount raised in the first fund in 2004. Investors included funds managed by Pathway, Pantheon Ventures, Danske Private Equity, MassPRIM, OMERS Capital Partners, NYL Capital Partners and Bank of Scotland, as well as substantial US endowment and European private family sources. Hugh Richards, one of the firm's four founding partners, answers PEI's questions.

Editor's letter 2008-02-01 Staff Writer “The reality is we've gone from a raging bull market in credit to a bear market. Now people are worrying about anything and everything.” So said David Brickman, director of credit strategy at Lehman Brothers, in the context of a <italic>Financial Times</italic

The disappearance of mega deals in the European buyout market and a drop of nearly 50 percent in large mid-market volume contrasted to gains for the lower mid-market, growth capital and venture in the fourth quarter.

The disappearance of mega deals in the European buyout market and a drop of nearly 50 percent in large mid-market volume contrasted to gains for the lower mid-market, growth capital and venture in the fourth quarter.

3i, the FTSE 100 investment firm, kept up investing in the last quarter of last year despite the problems in the global credit markets. Chief executive Philip Yea emphasised the group’s mid-market position and international network to explain the steady investment flow.

3i, the FTSE 100 investment firm, kept up investing in the last quarter of last year despite the problems in the global credit markets. Chief executive Philip Yea emphasised the group’s mid-market position and international network to explain the steady investment flow.

The global hedge fund has recruited two bankers from Lloyds TSB after employing the UK bank’s former head of structured finance last year to set up its direct capital team.

The US investment firm is the most prominent interested party in the bidding for UK investment bank Close Brothers and it is reportedly lining up a quick sale of the bank’s assets upon acquisition.

While turmoil in the global credit markets will have and has had serious consequences for lenders during the buyout boom, larger buyouts will resurge in the next year, according to Swiss investment firm Partners Group.