Doughty Hanson to raise €1bn listed fund

Doughty Hanson is reportedly to follow in the public market footsteps of KKR and Apollo Management and raise a buyout fund on Amsterdam Euronext.

Doughty Hanson, a London-based private equity firm, has hired Citigroup and Goldman Sachs to raise more than €1 billion ($1.27 billion) through listing a buyout fund, according to a report on Financial News Online.
The fund, which may be launched as early as this week, will list on Amsterdam Euronext, as was the case with US private equity firms Kohlberg Kravis Roberts’ and Apollo Management’s listed funds, whose listings were also arranged by Citigroup and Goldman Sachs.

Doughty Hanson, co-founded by CEO Nigel Doughty, declined to comment.

Nigel Doughty: co-founder and CEO of Doughty Hanson

Kohlberg Kravis Roberts raised $4.8 billion for KKR Private Equity Investors in May and has committed $1.6 billion to the private equity firm’s deals and $1.9 billion to its 2006 fund, which is being raised with a target of $15.5 billion, according to results released in August.
Apollo Management’s AP Alternative Assets raised $2 billion in August, around a third more than expected prior to the listing. Bankers familiar with the Apollo listing said its banks worked hard to push Apollo past its target.
Other private equity firms are believed to be mulling listing buyout vehicles in an attempt to tap evergreen sources of capital. Financial News said that CVC Capital Partners is planning to raise a side-car fund to work alongside its fourth European fund, which closed on €6 billion last year, and is considering a listing for the fund. The Blackstone Group, The Carlyle Group and Texas Pacific Group are also reportedly considering raising funds on the public markets.

Private equity firms have favoured Euronext due to restrictive listing rules on the London Stock Exchange, but according to a recent Sunday Telegraph report, changes are due to be discussed as part of the Financial Services Authority’s review of the European Union’s transparency directive.