Strong increase in Dutch private equity investments

According to the Dutch Private Equity and Venture Capital Association (NVP), 2004 investments by Dutch private equity firms increased by almost 60%. This growth was driven by the developments in the local buyout segment, the focus largely on financing for mature companies such as the deals involving Vendex, PCM Uitgevers and VNU World Directories.Conversely, the seed and start-up sector continued its slump by falling 50%. Reasons for this stated that a number of venture capital funds have pulled out of this market and other funds were almost fully invested and wanted to keep their remaining capital available for their existing portfolios. The NVP hopes that the set of measures drafted by the Ministry of Economic Affairs designed to raise funds for this segment will contribute to the recovery of venture capital financing possibilities.The exit climate is also reported to have improved, rising approximately by 25% in 2004 compared to 2003 figures. Secondary buyouts were considered to be one of the most important forms of exit, partly due to the IPO window remaining shut, although the recent flotation of Netherlands and Belgium-based Galapagos and Blackstone's $200m New Skies Satellites IPO, as well as the introduction of Alternext, an exchange for mid-size companies, might go some way to pushing it back open.Funds also increased by almost 50% when compared to 2003, underlining the confidence in the Dutch private equity industry shown by fund investors. The recent interim close of Egeria's second fund on E358m, and the short amount of time in which this event happened, is a good example of the recent success in attracting fresh capital.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Benelux