WHEN huge killer bees descended on a small US town in the 1970s horror movie The Swarm, they covered everything in sight.
The uncharitable might draw comparisons with the venture capitalists now crawling over the stock market, buzzing around with the scent of honey in their noses.
Of the private equity firms swirling around Debenhams, CVC is also backing the buyout of spread-betting firm IG Index.
It and Texas Pacific are chasing Scottish Newcastle’s 2.3bn pubs estate. Along with Permira, the ubiquitous CVC also backed last month’s 4bn takeover of Italy’s version of the Yellow Pages.
Venture capitalists have raised 480bn in five years, and have 110bn in surplus capital, says the latest industry survey from PricewaterhouseCoopers.
The European Venture Capital Association says that over the past 23 years, private equity investments have averaged 10.8pc annual returns.
Their advantages over the stock market include smart, young and hungry investment managers, tough incentives for bosses they back, and the ability to take the long view.
Critics say the world of private equity lacks transparency and accountability. Top individuals, unlike directors of listed companies, are not obliged to declare their rewards.
But the venture capitalists know that some of the best profits come from buying good companies cheaply in bear markets.
Hence the sudden swarm.
