Bear Stearns Private Equity Limited (BSPEL), a London-listed closed end fund, has raised over USD 300 million with its latest share issue.
Bear Stearns Private Equity Limited (BSPEL), a London-listed closed end fund, has raised over USD 300 million with its latest share issue.
The Board of Bear Stearns Private Equity Limited has announced that 201,867,774 new equity shares have been allotted pursuant to the placing announced on 17 April 2007 raising approximately USD 308.86 million of new monies (before expenses).
"We are pleased with the results of this follow-on offering both in terms of its size and its broad acceptance," said Company Chairman Trevor Ash. "The issue has allowed the Company to broaden its investor base further including pension funds, private wealth management groups, and discretionary asset managers. Subscriptions came from investors in the UK, Europe, the Middle East, and Asia. The Company now has aggregate assets in excess of USD 495 million."
Following the issue of the New Shares, the number of Equity Shares in issue is 290,026,246. Application has been made for these New Shares to be admitted to the Official List and to trading on the London Stock Exchange with effect from 8.00 am on 2 May 2007.
Greg Getschow, Senior Managing Director of Bear Stearns Asset Management Inc. said: "This is the third fund raise which is in line with the company’s strategy to reduce or eliminate the standard back-ended returns of private equity (the J-curve) by a) investing in secondaries and b) only raising new money when we can invest it (“just-in-time financing.”). In this case we have already identified a strong pipeline of investments and so will be able to put the money to work very quickly thus avoiding cash drag."
BSPEL offers exposure to a private equity portfolio that consists of over 53 funds and 800 companies, diversified by geography, investment strategy, and vintage year. The portfolio is divided almost equally between Europe and the United States with some exposure to other markets such as Asia and the Middle East. It principally invests in buyout strategies, but also makes selective venture, real estate, and private equity debt/mezzanine investments.
BSPEL offers a liquid exposure to private equity. Instead of being locked-up in ten year private equity partnerships, BSPEL is able to trade everyday on the London Stock Exchange. In addition, to provide additional liquidity, BSPEL offers an annual redemption facility that will purchase up to 15% of outstanding shares from shareholders at net asset value. This facility is offered twice a year.
BSPEL is managed by Bear Stearns Asset Management Limited and Bear Stearns Asset Management Inc, which collectively manage approximately GBP 700 million of private equity assets as of January 2007.
Bear, Stearns International Limited; HSBC Private Bank (UK) Limited; HSBC Private Bank (Suisse) SA (acting through its registered office and its branches in Hong Kong and Singapore); The Hongkong and Shanghai Banking Corporation Limited; JPMorgan Cazenove and Migdal Hitum Ve’Kidum Asakim Ltd acted as placing agents in respect of the New Equity Shares. JPMorgan Cazenove acted as sponsor.
