IKB and Euromezzanine to market joint fund

Dusseldorf-based IKB Deutsche Industriebank, has announced plans to increase its private equity activity. The bank is currently in talks with Euromezzanine, the Paris-based mezzanine provider, about the launch of a joint mezzanine fund. According to an IKB spokesperson, the fund will have up to €135m of capital and is expected to start making loans in the middle of 2005. IKB also intends to grow the private equity-focused investment portfolio of IKB Private Equity, a stand-alone operation within the bank's product offering. The unit currently manages €300m of direct equity and mezzanine investments. By 2007, the business hopes to be managing a total of €500m of balance sheet money. IKB Private Equity typically invests between €2.5 - 15m in buyouts and development capital situations. Its focus is on established small- to medium-sized companies. Established in 1999, IKB Private Equity originally included venture capital-backed early stage businesses among its target clientele. A series of losses prompted the unit to change direction, and venture capital is no longer part of the offering. According to the IKB spokesperson, IKB Private Equity has since returned to profitability.

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