Although Mantra group has consolidated and UBS taken an equity holding... I believe.
Here is an update on CVC Asia Funds Titled... "CVC to avoid scrutiny after change in Luxembourg law
CVC, the private equity firm which owns stakes in the AA and Debenhams, has taken steps to reduce transparency in its finances, according to recently-filed documents. "
By Christian Sylt and Caroline Reid Published: 6:48PM GMT 13 Dec 2009
"CVC is based in Luxembourg and in March last year it set up a new holding company to take advantage of a change in the country's legislation which allows it to avoid filing consolidated accounts. Details of its turnover and profit or loss are now no longer open to public scrutiny. CVC is believed to have been hit hard by the economic downturn.
It is now incorporated as a specialised investment fund and this also exempts it from corporate income tax, business tax and net wealth tax. It is likely to give a significant saving. The bulk of CVC's revenue comes from fees levied on the management of its funds which are worth 34.3bn (31bn). In its last set of consolidated accounts to March 31, 2008, CVC reported record fee revenues of 228.2m however, since then its Asian investments have been particularly badly hit.
"In 2008 CVC failed to sell Singapore metal stamping company Amtek Engineering and shoe repair company Minit Asia Pacific which it had put on the market. CVC suffered further disappointment this year when its stake in Japanese restaurant chain Skylark was seized by lenders in August after it failed to repay a loan. One month later CVC lost grip on a high-profile investment when luggage maker Samsonite filed for Chapter 11 bankruptcy.
The only indication of performance from CVC comes from its unconsolidated accounts to December 31, 2008, which reveal its change of holding company. The director's report in the accounts says that "in the period, the fund's investments have traded profitably and as forecasted despite the impact of the downturn in market conditions as a result of the turmoil in global credit markets."
However, data from CALPERS, the largest pension fund in the US, shows that it made heavy losses on several CVC funds it invested in last year.
In 2008 CVC raised the largest fund in the Asia Pacific region with a commitment of 2.6bn, and in July this year an interim close was put on its 10.7bn European Fund V. CALPERS put a total of $124.4m into these funds but, according to its website, it earned a net internal rate of return (IRR) of -44.1pc on the Asia fund and -24.5pc on Fund V. "
