SVG Capital has announced plans to raise £220m from selling a convertible bond and some of its portfolio assets in anticipation of a slowdown in activity at its main investment, Permira, the buy-out firm. SVG, regarded as a listed proxy for Permira, said it had appointed JPMorgan Cazenove to handle a £120m issue of convertible bonds, which it said would strengthen its balance sheet and liquidity position. Andrew Williams, SVG director, said SVG had about £800m of dry powder on its balance sheet from the £250m of loan notes issued in 2006 and 2007 and a €750m (£590m) unused credit facility from Royal Bank of Scotland.
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