Standard Life has today announced it will be reorganising its private equity business by transferring the activities of Standard Life Investments (Private Equity) Ltd to a new investment vehicle.
All activities of SLI (Private Equity) Ltd will be transferred into new investment vehicle, SL Capital Partners LLP, and the nine mangers of the original partnership will remain on board with a 40% stake.
A spokesman for Standard Life says the move is not related to problems in world credit markets, which has caused two US banks to be lumbered with over $20bn of private equity debt that they cannot sell. Instead, the changes comes following Standard Life’s demutualisation in September 2006.
He says: “With the new structure, if the ownership of Standard Life were to change to someone who is hostile to private equity, then the current limited partners would have a mechanism whereby they can buy-out Standard Life.”
Limited liability partnerships are the most conventional form of private equity vehicles, rather than Plc’s.
In 2006, Standard Life’s private equity business reported a pre-tax profit of £6.6m from revenues of £22m and has gross assets of £11m.
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