Western Europe

S&P warns cov-loose may lead to backdoor cov-lite

As the sub-prime debt crisis spreads from the US to Europe, the ratings agency Standard & Poor’s believes covenant-loose contracts, with notional maintenance tests written into contracts, may be covenant-lite “in spirit if not the letter”.

Och-Ziff will be the next to float(2)

Och-Ziff, one of the world’s largest hedge fund managers, will become the latest alternative asset manager to tap the public markets after revealing plans for a possible flotation on the New York Stock exchange.

Carlyle bolsters aerospace and defence portfolio

Transportation communications and systems engineering company ARINC s to be purchased by The Carlyle Group, which this week has been linked with nearly $30 billion in deals and a $300 million Euronext listing.

Centre Partners acquires military headhunter(2)

The New York-based private equity firm predicts that the acquisition of the military recruiting and consulting firm Orion will create synergies with its other portfolio companies.

Union boss sees wife elected Labour deputy leader(3)

Harriet Harman, the wife of trade union boss Jack Dromey, has been elected deputy leader of the UK Labour Party, just days after her husband led the criticism of the private equity industry at a government enquiry.

Select Committee to publish findings this month(2)

The UK Treasury Select Committee will issue its preliminary findings about private equity before the end of the month. Chancellor of the Exchequer Alastair Darling has also hinted at possible changes to the tax rules in the pre-budget report later this year.

Dexia holds second close of infrastructure fund(3)

Belgian bank Dexia has held a second close of its southern European infrastructure fund on €120 million.

New Look auction collapses(3)

UK retailer New Look looks likely to be refinanced rather than sold, after the final consortium targeting the company failed to agree with the vendors’ valuation and withdrew from the auction.

AIGGIG hires in Japan(2)

Former Deutsche pro Stewart Homler will lead AIG’s expansion in the Japanese alternative investments market.

BT pension affirms commitment to buyouts

Hermes Private Equity has secured a £300m commitment for a new direct private equity fund from the BT Pension Scheme.