| LONDON, March 6
LONDON, March 6 European private equity firm
Candover is considering winding down its existing funds as a
last resort, a source close to the situation said on Friday.
The source said going into run-off -- where a private equity
firm ceases investing and runs its portfolio companies until
they can be sold -- was only one option available, with a number
of other options being considered.
"Run-off is the end game rather than the starting point.
Clearly it is something that would be considered once you have
exhausted other options," the source said.
Market participants have speculated that other options could
include running a smaller version of the planned 5 billion euro
($6.32 billion) 2008 fund, a sale of the business, a
restructuring of the listed vehicle, or a capital-raising to
allow the listed company to continue investing alongside other
Candover Investments Plc (CDI.L), the listed parent of
buyout firm Candover, earlier this week said it would stop
investing in the 2008 Candover fund, having previously pledged 1
billion euros. [ID:nLR493383]
As the credit crunch has made company sales all but
impossible, returns to investors have dried up, severely
restricting the ability of Candover Investments to invest in its
Candover has drafted in Merrill Lynch and Lexicon for
The source said discussions with investors would take weeks,
rather than months, to conclude.
(Editing by Sharon Lindores)