22nd May 2015 09:23
LONDON (Alliance News) - A private equity fund chaired by Tim Breedon, a non-executive director at Barclays PLC and the former chief executive of Legal & General Group PLC, is looking to raise the equivalent of EUR250 million in sterling in a planned flotation on the London Stock Exchange.
Apax Global Alpha Ltd plans to acquire Luxembourg-based PCV Lux SCA, a vehicle formed in 2008 for some of the partners and employees of Apax Partners LLP, a private equity and venture capital firm headquartered in London. It wants to raise the funds through a placing, offer for subscription and intermediaries offer, and has already conditionally secured commitments from cornerstone investors for the equivalent of EUR135 million.
PCV Lux's investments had an estimated net asset value of EUR611.1 million at the end of March, although the number provided was unaudited. Its assets include investments, and commitments to make further investments, in four Apax Private Equity Funds as well as investments in debt and equities. The money raised will be used to make "private equity and derived investments".
The company's assets will be managed by Apax Guernsey Managers Ltd, which is advised by Apax Partners.
"It is a great privilege to lead Apax Global Alpha onto the stock market. The vehicle presents a unique opportunity for stock market investors to benefit from exposure to Apax's excellent investment track record, in addition to the attractive investment opportunities that Apax has identified in asset classes that are not accessible to a traditional buyout fund," Tim Breedon said in a statement.
Breedon was appointed as a Barclays non-executive director in November 2012. He was the chief executive of Legal & General Group PLC between January 2006 and June 2012.
The fund's investment objective is to grow shareholders' capital and provide them with dividends. It is targeting an annualised shareholder return, across economic cycles, of between 12% and 15% net of fees and expenses, including a dividend yield of 5% of net asset value, once fully invested.
According to the statement, PCV's investment portfolio has "outperformed broader market indices by approximately 18% per annum since inception in 2008", with an annual internal rate of return of about 30%.
The company's shares are expected to begin trading on the London Stock Exchange on June 15.
By Samuel Agini; [email protected]; @samuelagini
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