Monday Papers: US buyout group raises $613m for Africa - bid news and gossip

Financial Times

* US-based private equity fund Emerging Capital Partners has raised $613m for a fund targeting deals in Africa.

* Private equity groups are producing disappointing returns while charging their investors fat fees amid glaring conflicts of interest, a report from the Centre for the Study of Financial Innovation, a London-based think-tank, said.

* Investors are rushing to put money into merger arbitrage funds ahead of an expected recovery in dealmaking in spite of growing fears for the health of western economies; Merger arbitrage specialists have seen $841m in net inflows since January, Hedge Fund Research said.

* Crown Paints Group, the UK’s largest independent decorative coatings manufacturer, posted a £2.8m operating profit in 2009.

* Private equity group Apollo Management will establish a new bank under an obscure provision buried in the US financial regulations signed into law last week; the company has hired a team from Countrywide Financial to run the bank.

* Investment by emerging market funds accounted for a record 26 per cent of private equity activity last year, up from 14 per cent in 2008 and just 7 per cent in 2004, according to Emerging Markets Private Equity Association.

The Daily Telegraph

* Norwegian sovereign fund eyes a stake in Regent Street.

* Russia plans biggest sale of state assets since Yeltsin; Moscow may raise as much as 900bn roubles (£19.2bn) in the next three years from the sale of minority stakes in oil companies, banks and transport groups.

* Robert Tchenguiz has recorded a second straight year of losses at his principal company R20; the business reported an £8m loss, significantly less than the £31m loss last year.

* The world's largest gym chain, Fitness First, has taken a £105m hit on the value of its business due to falling sales in its European division.