Monitor
Private Capital Monitor 24/11
29th November 2023
WORTH A READ
Europe
The Financial Times reports that private equity firms are buying back companies they recently listed, as some of these investments have struggled to perform well in the public markets. Alastair Brown, a partner at the law firm Freshfields Bruckhaus Deringer stated that “IPOs sometimes bring their own challenges. There are those examples where the public markets haven’t taken to companies in the way the sponsor would have liked, there has been volatility in the share price or there hasn’t been liquidity for sponsors to sell out.”
Bloomberg reports on this year’s SuperInvestor conference, noting that many industry professionals are concerned that M&A activity will remain low for months to come. Amidst the slowdown, some avenues for activity persist, including continuation funds, take-private deals, and certain larger transactions. While private equity is more affected than credit funds, the latter are still finding alternative avenues, including “buy-and-build capital, refinancings, balance sheet reorganizations, succession transitions, and many other types of transactions,” as remarked by Andreas Klein, head of private debt at Pictet Asset Management.
A group of Premier League clubs are pushing for private equity investment into the Women’s Super League (WSL) in order to bolster its financial sustainability, Bloomberg reports. The proposal seeks commercial backing rather than direct funding contributions from clubs. The aim is to help the WSL stand on its own feet and shield it from the financial extremes seen in men’s football. Many football clubs have been hesitant to back the women’s league since they believe it primarily benefits the small number of top-tier clubs like Manchester City, Arsenal and Chelsea that operate both men’s and women’s squads.
US
Our American friends are celebrating thanksgiving! We are looking forward to receiving our slice of pie in the mail…..
WALL OF MONEY
Germany announces close of €1bn fund of funds to invest in German and European VC
The fund forms a key part of the federal government’s Future Fund, set up in 2021 to bolster the VC industry in Germany. Two-thirds (€650m) of the capital is provided by over 20 institutional investors and the rest is provided by the fund’s anchor investors: Germany’s federal government and KfW Capital, a subsidiary of the state development bank and a major LP in German and European VC funds.
Bain Capital raises $7.1 bln in largest pan-Asia PE fund this year
The final close exceeded its target by 40%. Bain started fundraising in the second half of 2022.
DEAL CHART
| Acquisition Target | Buyer | Seller | Value | Date | Region | Sector |
| Civica | Blackstone | 22-Nov-23 | UK | Public sector software | ||
| Healthcare Business International | Europevents (IPEM) | 22-Nov-23 | UK | Healthcare media | ||
| Sofico | Astorg | 21-Nov-23 | Belgium | Automotive leasing software | ||
| Consilium Safety Group | Antin Infrastructure Partners | Nordic Capital | 21-Nov-23 | Sweden | Flame and gas detection | |
| AB Concessoes | Starboard Capital | R$3.5 billion (≈$700 million) | 17-Nov-23 | Brazil | Transport and logistics | |
| myPOS | Advents | $500 million | 16-Nov-23 | UK | Digital payments | |
| Cloudbreak Health | GTCR | $180 million | 16-Nov-23 | US | Language interpretation | |
| EQS | Thoma Bravo | €400 million | 15-Nov-23 | Germany | Corporate comms | |
| United Malt Group | Malteries Soufflet (KKR) | A$1.4 billion | 15-Nov-23 | Australia | Food products | |
| The Body Shop | Aurelius | Natura | $254 million | 14-Nov-23 | Brazil | Cosmetics |
| Joe & The Juice | General Atlantic | Valedo’s | $600 million | 13-Nov-23 | Denmark | Juice bars |
| Ramsay Sime Darby Health Care | Columbia Asia (TPG) | 5.7 billion ringgit (≈$1.2 billion) | 12-Nov-23 | Malaysia/Australia | Healthcare |
MEDIA OF THE WEEK
Bloomberg: Private Equity Then and Now
Bloomberg Wall Street Week takes a look at the history of private equity and its astounding growth over the years.
MOVERS AND SHAKERS
- Clayton, Dubilier & Rice has named John Stegeman as an operating adviser. He was previously CEO of construction supplies group White Cap.
- Marathon Asset Management has hired Blackstone’s Alex Howell as head of European alternative credit.
- Scott Shleifer, head of Tiger Global’s private equity business, will be stepping down from his current role at the hedge fund at the end of the year.
- Advent International has appointed Morningstar’s Tricia Rothschild as an operating partner to work on investments in wealth and asset management.
HORSE’S MOUTH
“The private markets can be a flexible place to [carve up businesses after taking them private] because they don’t come with the scrutiny of regular reporting to public market investors.” Christopher Sullivan, UK head of private equity, Clifford Chance.
“People are saying that they expect there to be more M&A in 2024, but I think that’s more hope than anything we know for sure at this time,” Richard T. Miller, group managing director and chief investment officer at TCW Group.
“If you want the present to be different from the past, study the past.” Baruch Spinoza, one of the foremost and seminal thinkers of the Enlightenment, born on this day in 1632.
