Global - BC Partners writes up value of 2005 fund by almost 25%

Deborah
28 July 2009

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Private equity firm BC Partners has reportedly marked up its current fund by almost a quarter in the first half, restoring it to face value.

According to Reuters reports, BC wrote the EUR 5.9bn fund up by 22.4% from the end of December to the end of June. It has been said that BC wrote to its investors in a letter, stating that it had written up the value of the fund by 1.3% for the 12 months to the end of June, bringing it back up to cost.

Earlier this month, the private equity house agreed to back the merger of its boiler maker Baxi with Dutch rival De Dietrich Remeha Group. The EUR 1.7bn deal will see BC invest EUR 100m, meaning it will have reached the 60% threshold to put it on course to raise fresh funds. BC raised EUR 5.9bn for its 2005 fund, and its five year investment term expires next November. The merger is expected to help Baxi repay its £445m debt pile.

Other UK investments in BC's portfolio include estate agent Foxtons, which BC acquired at the height of the boom for a price tag thought to be in the region of £390m, the fund's only investment valued at zero; and Fitness First, purchased in 2005 in a deal valued at £800m. Mizuho provided debt to support both transactions.