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HSBC restructures its European private equity business
18 March 2003
HSBC Holdings plc (HSBC) has sold a majority stake in its European private equity business, HSBC Private Equity Limited, to its existing management team.
Under the terms of the agreement, HSBC has reduced its shareholding in HSBC Private Equity Limited from 100 per cent to 19.9 per cent and management has acquired the majority 80.1 per cent stake. HSBC Private Equity Limited had net assets of £304,295 at 17 March 2003.
This change in shareholding structure follows a review by HSBC of its European private equity investment strategy. This concluded that by becoming a minority shareholder HSBC, and HSBC Private Equity Limited, will both obtain greater flexibility in the future development of their respective businesses.
Upon completion of the transaction, HSBC Private Equity Limited changed its name to Montagu Private Equity Limited. It will remain HSBC’s principal vehicle for investing in European private equity opportunities.
Notes
1. Montagu
HSBC Private Equity Limited was previously named Montagu Private Equity Limited between May 1994 and February 1996.
The Montagu name derives from the stockbroker Montagu & Samuel formed in London in 1853 by Samuel Montagu. Midland Bank acquired a one third share in the Montagu Trust in 1967 and 100 per cent ownership in 1973. Midland Bank was subsequently acquired by HSBC Holdings in 1992. HSBC discontinued use of the Montagu brand in October 2000.
2. HSBC Private Equity
HSBC Private Equity has over £1.2 billion under management and offices in London, Manchester, Paris, Düsseldorf and Stockholm. It has supported more than 400 businesses over the last 30 years, and in 2002 arranged four transactions with a total investment of £207 million. In 2002 the company closed a new fund totalling £1.2 billion.
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