Virgin Group Said to Wind Down Buyout Unit, Cancel Fund

 

Richard Branson, owner of Virgin Group Ltd. Photographer: Andrew Harrer/Bloomberg

Virgin Group Ltd., the investment group owned by Richard Branson, is to wind down its private-equity unit after canceling plans to raise a new fund, according to three people with knowledge of the matter.

Virgin’s buyout-firm executives dropped plans to raise $200 million to buy energy assets in central and eastern Europe with Russia-based investment firm Rusnano Capital earlier this year following a lack of investor interest, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

The company raised $300 million for its first pool, the Virgin Green Fund, in 2009 with Virgin Group, led by billionaire Branson, 63, contributing about a third of the capital, two people said. Virgin charged a 2.25 percent annual management fee, according to company filings, as the fund invested in renewable energy and resource-efficiency industries in the U.S. and Europe including biofuel maker Gevo Inc. (GEVO:US) Executives are now focused on selling the remaining companies and returning capital to investors, the people said.

Officials at Virgin and Rusnano declined to comment.

 

 

 

 

 

 

 

 

 

 

 Kiel Porter

http://www.businessweek.com/