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UBS postpones plans to spin-off private equity arm
UBS announced today that it is postponing its plans to move UBS Capital, its private equity business, to an affiliated status. Challenging short-term conditions for the private equity market make it an inopportune time for the brand-building and fund raising exercises connected with the launch of a new autonomous management company.
UBS is committed to providing best-in-class private equity investment opportunities to its private clients in an open architecture, supplementing the in-house offering provided by UBS Capital with suppliers from outside UBS.
UBS doesn't rule out increased autonomy as an appropriate future direction for its private equity business, in order to best capitalise on the expansion opportunities offered through third-party fund raising.
However, in the current environment, UBS will give top priority to maximising value creation from its existing portfolio, adjusting down the rate of new investment from its own balance sheet in accordance with the more volatile prevailing conditions.
As a result of these changes, and by mutual consent, Pierre de Weck, CEO of UBS Capital, will leave UBS at the end of July to pursue other interests. UBS thanks him for his contribution to the development of the firm in a variety of roles over many years.
UBS Capital will continue to form part of the UBS Warburg business group, headed by Chairman and CEO, Markus Granziol, under whose leadership an interim management team is being appointed.
UBS Capital has a well-diversified portfolio invested primarily in unlisted companies around the world. The portfolio had a book value of CHF 5.7bn at 31 March 2001, the most recent reporting date, with substantial unrealised gains.
Zurich/Basel, 11 July 2001