The management team of Edmond de Rothschild Private Equity Select LLP (Select), led by David Seligman, has acquired the majority interest in Select held by La Compagnie Financière Edmond de Rothschild Banque SA (LCFR). This follows LCFR’s decision to reduce its commitment to private equity sponsorship, largely as a result of changes in the regulatory and market environment.
Select, which has changed its name to Seligman Private Equity Select LLP, will continue to manage private equity funds-of-funds, investing in small European buy-out and growth equity funds. This segment of the private equity market has out-performed historically, due to less competition, a greater emphasis on growth and operational improvement and much less reliance on financial leverage.
Since Select was founded in 2003, the firm has raised two primary funds-of-funds and the final close on its first secondary fund is imminent: aggregate assets are some EUR 200 million. Whilst its two most recent funds are immature, its first fund, which is nearly fully invested, has had full exits from underlying companies realised at an average of 4.7x cost. Select’s investors include a blue-chip list of institutions and family offices from around the world.
Ownership of Select has been devolved to senior members of Select’s team, thereby further strengthening the strong alignment of interests between investors, Select and its shareholders.
Seligman says: “Since our formation, we have developed a strong franchise in an attractive and high-performing segment of the European private equity market. We look forward to continuing to serve our investors as Seligman Private Equity Select and to generating excellent returns for them.”
