Candover Joins "Shrink To Fit" Crowd
Candover has followed Permira and TPG Capital’s lead in shrinking the size of its fund and letting investors off previous commitments regarding uncalled capital. It is unlikely to be the last. Unlike its peers, Candover has officially signalled a shift away from larger LBOs – investments with an enterprise value of more than €500m traditionally – saying that a restructuring of the fund will also involve a “revised investment strategy, in light of both a smaller fund and the significant changes in the global economy in the last six months”. The likely translation is: Mid-market. Permira has rarely played in the mega LBO space, and while it is known to be looking at smaller deals, especially those involving already indebted businesses, a shift downwards is not expected to be on the cards.
