BC Partners bets on debt as chairman retires

By Simon Meads

LONDON, Jan 8 (Reuters) - Private equity firm BC Partners said on Thursday it is to investigate opportunities to acquire debt as it unveiled a new senior management team.

London-headquartered BC Partners said Jens Reidel is retiring from his position as chairman with immediate effect. He is to be succeeded by Francesco Loredan and Raymond Svider who will be co-chairmen.

Reidel, who has been chairman since 2004, will still serve on a number of company boards as well as advising the firm, which has about 10 billion euros of funds under management.

BC said it has appointed debt expert Jonathan Hosgood to pursue opportunities in credit and has received approval from its investors to invest in debt securities. Hosgood will join BC Partners in February from Barclays Capital.

Corporate debt has been picked out as one of the best bets for 2009 by a series of investment strategists.

As large buyout deals have dried up due to the lack of bank debt, private equity firms have started to show an interest in acquiring senior debt in stable, cash generative firms that offer value and are typically trading at 40 percent to 60 percent of face value. For a related story, see: [ID:nLL158441].

Speaking at a briefing for the press, managing partner Andrew Newington said the firm would principally look to buy debt in its own portfolio companies, but would also consider opportunities to buy debt in other companies.

"We have told our investors we may invest nothing or we may invest and few hundred million," Newington said.