Buyout
A transaction where a group of investors, including the existing management, purchase 100% of the share capital of a company. Where there is a new management team, it is called a management buy-in.
Co-investment agreement
Candover Investments plc makes almost all of its investments under co-investment agreements with third party funds which are managed by Candover Partners Limited. Candover is currently investing the 2005 Fund to which Candover Investments plc has committed to invest €500 million. Investments will be made on the same basis as those made by the 2005 Fund.
Commitments
Capital committed to a Candover fund by Candover Investments plc and Limited Partners. Commitments are drawn-down by Candover Partners Limited on a deal-by-deal basis.
Continental Europe
Europe, excluding the UK.
Enterprise value
The price paid for a portfolio company.
Exit
The disposal of all the share capital in a portfolio company, either privately via a trade sale or secondary buyout, or via a listing on a Stock Exchange.
Fee income
Fee income arises from investment management and other financial services provided and investment transactions undertaken during the year. It also includes income from investments, and interest receivable, which is accounted for on an accruals basis.
Follow-on investment
Additional investment provided to an existing portfolio company.
IPO
Initial Public Offering or listing on a Stock Exchange.
Limited Partner
An investor in a Candover fund.
Listed company
A company listed on a Stock Exchange following an IPO.
M&A
Mergers and acquisitions.
Net asset value per share
The total net assets of Candover Investments plc divided by the number of ordinary shares.
Portfolio company
A company in which Candover has invested.
Private equity
Private equity is medium to long-term finance provided in return for an equity stake in unquoted companies.
Public to private
When a company is delisted from the Stock Exchange and taken private.
Quoted company
A company listed on a Stock Exchange.
Realisation
The sale of a portfolio company for cash.
Realised profit
The gain over cost made on realisation.
Secondary management buyout
A sale to another buyout fund.
Trade sale
A sale to a trade buyer.
Valuation
This is the value attributed to each portfolio company. Candover values its portfolio companies in accordance with the International Private Equity and Venture Capital Guidelines in June and December each year.