FRANKFURT, February 21, 2003 – Deutsche Bank today announced the sale of its late-stage private equity portfolio through a management buy-out. The purchase price is Euro 1.502 billion.
Ted Virtue, Chairman and Chief Executive Officer of DB Capital Partners (DBCP), and Graham Clempson, European Managing Partner of DBCP, are leading the management buy-out team. Their acquisition vehicle, MidOcean Partners, is being financed by a group of private equity investors including NIB Capital Private Equity, Ontario Teachers’ Merchant Bank (Ontario Teachers’ Pension Plan), CPP Investment Board, HarbourVest Partners, Paul Capital Partners, Bregal, Coller Capital, Northwestern Mutual, The Yucaipa Companies and Presidential Life. Deutsche Bank will retain a 20% interest in the portfolio.
The portfolio consists of late-stage private equity investments in the United States and Europe. In Europe the portfolio includes Center Parcs, United Biscuits, Lecta and Jefferson Smurfit. In the United States, principal investments include Jostens, Prestige Brands, Noveon and Jenny Craig.
Josef Ackermann, Chairman of Deutsche Bank’s Group Executive Committee, said, “The sale of the late-stage portfolio is an important step in reducing the bank’s exposure to private equity.”
Ted Virtue remarked, “We are thrilled to have completed the largest secondary purchase of a private equity portfolio and to have formed MidOcean Partners. With the strong support we have received from our investment partners, Deutsche Bank and the management team, we are excited about the opportunity to create value for our stakeholders.” Axel Wieandt, in addition to his role as Head of Corporate Development, will take over from Ted Virtue as Deutsche Bank’s Global Head of Corporate Investments. Following the MBO, Corporate Investments will consist of the bank’s remaining private equity and venture capital assets, its industrial holdings, third-party private equity funds and principal-owned real estate assets.