Deutsche Bank today announced the sale of its late-stage private equity portfolio through a management buy-out. The purchase price is EUR 1.5 billion. The impact on the 1Q 2003 results is not material.
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.
This Investor Relations Release contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this Investor Relations Release that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a for-ward-looking statement. These statements are based on plans, estimates and projections as they are cur-rently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues; potential defaults of borrowers or trading counterparties; the implementation of our restructuring including the envisaged reduction in headcount; the reliability of our risk manage-ment policies, pro-cedures and methods; and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of March 27, 2002 on pages 9 through 13 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from www.deutsche-bank.com/ir