Update and trends on private equity in the Netherlands
Lately it seems that strategic buyers in mid market transactions
have an advantage in attracting acquisition financing compared to
private equity buyers. The latter are confronted with still
hesitant banks. Moreover, there seems to be a trend for the
legislator as well as courts in the Netherlands to restrict or even
ban elements which are typical for private equity transactions.
This can be derived from for example (draft) bills and politicians
trying to address the public opinion which seems to have a negative
connotation about the private equity industry in the Netherlands.
The key topic in this context is remuneration of individuals
involved which is perceived as (too) high also in view of other
stakeholders involved. In relation to the latter reference is made
to last year’s high profile case involving publishing company PCM
and private equity investor Apax in which the Enterprise Chamber in
Amsterdam ruled that for a private equity investor considering to
invest in a Dutch company by making use of typical private equity
transaction structures, it should not only take into account its
own interests but also further interests relating to the target
company.
Moreover, discussions with respect to increased supervision
continues to be a hot topic. The alternative investment funds
directive (AIFM Directive) which was adopted on 11 November 2010
and which needs to be implemented in the Netherlands ultimately at
the beginning of January 2013, is expected to greatly impact the
Dutch regulatory system with respect to alternative investment
funds (ranging from hedge funds, private equity funds to funds of
funds and real estate funds) and its managers in relation to
amongst others license requirements and marketing rules.
For an overview of key issues in private equity and venture
capital transactions as well as fund formation in the Netherlands
we refer to our contributions on these topics in “Getting The Deal
Through 2011 – Private equity”, see our
website or
gettingthedealthrough.com.