The Brief mergermarket’s Weekly Private Equity Round-Up 18 September 2009 | Issue 30 Editorial 1 The Noticeboard 2 Private Equity Opportunities 3 Deals of the Week 9 Pipeline 17 Statistics 20 League & Activity Tables 23 Top Deals 32 Investor Profile: TA Associates Inc 35 Notes & Contacts 37 The Week That Was..... The last seven days: private equity in review The past week saw significant activity from private equity Significantly, the US$3.87bn worth of private equity funds across the globe with 21 transactions coming to related activity announced over the last seven days the market, collectively worth US$3.87bn. The majority currently stands as the fourth highest weekly figure of of deal flow continued to be centred in Europe and North 2009. Just 12 months on from the collapse of Lehman America with the APAC region witnessing just two Brothers, the deal making environment remains transactions. undoubtedly challenging although it certainly appears on this evidence that financial investors are increasingly Remarkably, the top deal of the week was actually eyeing investment opportunities at the top end of the announced in Asia with The Carlyle Group moving to market. sell a 60% stake in kbro, the Taiwan based cable TV operator. The private equity house sold out to Taiwan By Tom Coughlan, Remark Mobile Company, the listed telecommunications firm, in a transaction valued at US$1.73bn. As part of the deal Carlyle will gain a 15.5% stake in Taiwan Mobile which, if approved by the Taiwan government, will see the buyout house become the second largest shareholder in the company after Taiwan’s Tsai family. Elsewhere, the bulk of activity in terms of deal value was announced in the United States where the top end of the mid-market witnessed significant investment from the asset class. The most notable such deal was seen in the Energy, Mining & Utilities sector where Apollo Management acquired Texas-based Parallel Petroleum Corporation for US$483m. A duo of mid-market exits were also announced in the Pharma, Medical & Biotech sector with American Capital selling out of Axygen Biosciences for US$400m and a consortium of financial investors exiting a 90% stake in Evalve to Abbott Laboratories for a cash consideration of US$320m. The Noticeboard People moves Date Title Story snapshot Source 16-Sep-09 Citi chairman joins Rhode Island-based Providence Equity Partners, a private equity firm focused on the www.provequity.com Providence media industry, has announced that Citigroup chairman Richard Parsons will join the firm as a senior advisor. Parsons will continue to serve as chairman to Citigroup and also as director to Estee Lauder Companies. Parsons is the former chairman and CEO of Time Warner. 16-Sep-09 Norwest adds to Minnesota-based private equity firm Norwest Equity Partners has added Jim Lindner to www.nep.com team of operating its group of operating partners. Lindner will focus on current investments and potential partners opportunities in the technology and business services sectors. He is currently the chairman of NEP portfolio company Mitchell International, a California-based technology company. 15-Sep-09 CVC strengthens CVC Capital Partners has appointed Robert Jenkins and Jim Sutcliffe as Senior Advisors. www.cvc.com FIG team with two They will join CVC’s Global Financial Institutions Advisory Board to support the firm's hires activities in the financial services sector. Jenkins is currently CEO and Managing Partner of Combinatorics Capital. Sutcliffe was most recently Group CEO of Old Mutual. 15-Sep-09 Quad-C China head Kenneth Lee, a managing director at Quad-KAI Capital, the Chinese arm of US-based www.privateequityonline.com retires private equity firm Quad-C, will retire at the end of September due to health reasons. Lee joined the firm in 2008 to set up its Beijing office. He will be replaced by Beijing-based director David Han, who presently oversees the firm’s Chinese investments. 14-Sep-09 CBPE hires The UK-based mid-market private equity group CBPE Capital (CBPE) has appointed Rob www.cbpel.com Investment McCombie as Investment Manager. He joins at the start of the investment period for Manager amid CBPE’s eighth fund, which has already raised just over £300m. McCombie joins CBPE fundraise from BC Partners in London, where he spent three years working on large private equity buyouts across Europe and North America. New funds Date Title Story snapshot Source 14-Sep-09 Oak Hill distressed Oak Hill Advisors, a debt affiliate of US-based mid-market private equity firm Oak Hill www.privateequityonline.com debt fund closes Capital Partners, has closed its distressed debt fund on US$1.1bn, exceededing its initial on US$1.1bn target of US$750m. The new fund will focus primarily on stressed and distressed debt, including loans and bonds. Oak Hill Advisors has over US$11.5bn of commited capital. Miscellaneous Date Title Story snapshot Source 16-Sep-09 Acquiline backs New York-based private equity firm Aquiline Capital Partners will back the launch of Nexar www.altassets.com launch of new Capital Group, a New York-based and Paris-based hedge fund. The management team of hedge fund Nexar will include Arié Assayag, the former global hedge fund head at Société Générale, and Eric Attis, the former CEO of New York Asset Management. 2 The Brief: 18 September 2009 | Issue 30 Private Equity Opportunities - Asia-Pacific Anjani Technoplast would consider stake sale to private equity house, company executive says Date Value Currency Value Sectors Companies Countries Intelligence Grade (M) Description 11-Sep-09 1,000 £ Number of Consumer; Defence; Anjani Technoplast Limited India; USA Confirmed employees Industrial products and services Anjani Technoplast Limited (ATL), an Indian producer of armoured military clothing and tool manufacturing, has been approached by several private equity firms over the last year and would consider selling a stake, an executive director said. ATL would only consider selling a minority stake of around 10%, Rajeev Bhardwaj, executive director of the company's US subsidiary, said, noting that foreign investors have limits on the amounts they can invest in Indian companies. "We have been approached by a number of brokers representing different private equity firms from around the globe over the last 12 months," Bhardwari told this news service on the sidelines of a trade show in London. "It is something we would consider but have yet to fully commit to anything." He would not name any of the private equity houses. Bhardwaj said ATL was not currently looking to acquire any business. The company was established in 1988 and is involved in the field of personal ballistic protection products, armored panels, machine tool manufacturing, thermoplastic, thermoset and precision engineering metal parts. The company comprises armouring, component and machine tools divisions. ATL has four production sites in India as well as an office in Atlanta, US. Bhardwarj would not put a value on the company, which has 1,000 employees. Jilin Trust looking to raise CNY 2.5bn via up to 47% stake sale; Goldman Sachs and JPMorgan among interested suitors, source says Date Value Currency Value Sectors Companies Countries Intelligence Grade (M) Description 15-Sep-09 366 US$ Asking price Financial Services Goldman Sachs; JPMorgan; China; USA Strong evidence Jilin Province Trust and Investment Co. Ltd Jilin Trust [Ji Lin Xin Tuo], a state-owned Chinese investment and trust company, is looking to raise CNY2.5bn (US$366m) by selling up to a 47% stake, a company source said. The source said Changchun-based Jilin Trust was initially approached by a number of domestic and overseas investors in 2008, including Goldman Sachs, JPMorgan and an UK-based private equity firm. The source added that both Goldman Sachs and JPMorgan have since made further inquiries. According to the source, Jilin Trust would prefer working with a domestic investor instead of an overseas one, and will not entertain more approaches from foreign investors at this stage. Part of the reason for this was due to the Chinese government’s rule on overseas investors. “We are a financial company, so overseas investors cannot own over a 20% stake in our company.” The source said that by selling a stake of 20% or lower, Jilin Trust might not be able to raise all of the money it wants. Goldman Sachs China did not reply to phone calls seeking a comment. Repeated phone calls to JPMorgan went unanswered. The proceeds from the investor introduction will be used to increase Jilin Trust’s capital and reinforce its cash reserve, said the source. Jilin Trust had total assets of CNY3bn at the end of 2008. It is managing a trust fund of over CNY30bn. The Jilin Government is the largest shareholder in Jilin Trust with over 97%. A controlling stake is definitely not for sale, as the Jilin Government wants maintain its controlling status, the source said. The source said Jilin Trust has not hired financial advisors to look for buyers, and it would not pursue their services at the stage. “We have received many approaches, and we are in the financial circle. So I do not think we need to turn to an advisor.” The source added that although Jilin Trust could negotiate with investors, the final decision would be made by the Jilin Government. Jilin Trust had wanted to list on China’s A share market through a backdoor listing, and had reached late- stage talks with a listed China-based company in 2008. However, Jilin Trust gave up on the deal because the China Securities Regulatory Commission [CSRC] advised it not to go public. “The CSRC does not want a trust fund company to go public, as it believes that China’s investment environment is not ready yet,” said the source.