Wednesday, August 20, 2008

Large European Listed Private Equity Firms

The firms discussed in this post are the European firms among the top 10 in the LPX index. I've already covered (and invested in) 3i - the firm with the largest weight in the index.

Wendel: This French firm seems to be more of a buy and hold investor in the mode of Berkshire Hathaway or Loews than a private equity firm. RoE is less than 10%. So this doesn't look attractive as a LPE investment.

Partners Group: "Is a global alternative asset management firm with over CHF 25 billion in investment programs under management in private equity, private debt, private real estate, listed alternative investments, hedge funds and alternative beta strategies. Partners Group is headquartered in Zug, Switzerland." In other words, investing in this is like investing in BX. You are investing in the management company, not the fund.

Ratos: Is a pure listed private equity firm investing in Scandinavian firms. But its share price is way above book value and its RoE is not very impressive. Analysts are not positive on it.

Eurazeo: Private equity investor that also has significant stakes in listed companies and real estate. Almost all its investments are in France but many of those companies are multinationals. Analysts like it and the financial data I've examined looks pretty positive but erratic over time. It's worth considering.

No comments: