City firm takes lead role on Candover Investments wind down after proposed asset sale falls through

Ashurst has taken a lead role on the wind down of listed buyout group Candover, which announced plans to return cash to investors last week (31 August), having failed to conclude a deal to sell its assets to Alberta Investment Management six weeks ago.

Candover Investments said in the announcement of its first half results last week that it was set to conduct a sale of its portfolio in order to distribute value to investors.

The Ashurst team is being led by private equity head Bruce Hanton, who has managed much of the firm's work for the buyout house to date. Ashurst also advised Candover on its €1.2bn (£1.07bn) sale of European disposables manufacturer Ontex in July, as well as its original acquisition of the business in 2003.

Once one of the top buyout firms in Europe, Candover's troubles started in April 2009 when the investment arm was forced to suspend its ‚Ǩ1bn (£833m) commitment to invest in its affiliated buyout managers' latest fund. As the largest investor in Candover Partners' funds, its reduced allocation led other investors to pull out of the majority of their commitments to the firm's latest fund.

In April it appeared that Candover Investments would be bought out by Canadian investment manager Alberta Investment Management; however, the talks fell through over the summer. Hanton took the lead for Candover on that deal, with Adam Signy at Simpson Thacher & Bartlett advising Alberta Investment.

Candover chief operating officer Philip Price commented: "Candover Investments has announced this week that as and when it receives proceeds from its investments it will not re-invest them but will use them to repay debt or return such proceeds to shareholders."

Other previous advisers to the buyout house have included Allen & Overy, SJ Berwin and Weil Gotshal & Manges.