Monitor
Private Capital Monitor 26/05
26th May 2023
PE Podium
The Financial Times reports that the downfall of Vice Media and the loss of TPG’s $450 million investment exemplifies the clash between Wall Street and the creative industry. The injection of cash was intended to “propel” Vice Media towards a “splashy IPO or a multibillion-dollar sale”, but instead, the opposite happened. Some are blaming TPG for this.
Worth a read
The Financial Times reports buyout firms are selling portfolio shares at a discount to IPO prices, signalling scepticism about a quick stock market recovery. In the US, these private equity-backed ‘follow-ons’ are up 180 per cent year on year, but almost two-thirds of the deals were priced below the companies’ IPO, according to Financial Times analysis.
Bloomberg reports DFL Deutsche Fussball Liga GmbH, Germany’s professional football body, has failed to secure a majority from clubs to sell a stake in its media rights to private equity firms. The plan aimed to tap into the cash and expertise of private equity investors to help German clubs compete in European football.
The Financial Times opines on the potential risks in private markets, as high interest rates are putting the sector to the test. With the gradual deflation of overleveraged assets leading to speculation of a sudden crash, the FT calls for efforts in risk monitoring and assisting investors in evaluating products.
Media of the week
Apollo’s Zelter: Private Credit a Tool to Get Deals Done.
Jim Zelter, co-president at Apollo Global Management speaks with Dani Burger on “Bloomberg Surveillance Early Edition.”
Watch the clip here
Wall of money
Exclusive: Private equity firm GTCR amasses $11.5bn in record fundraise
The new fund, GTCR Fund XIV, initially aimed to raise $9.25 billion but amassed strong support from institutional investors, including from sovereign wealth funds, public and private pension funds, foundations and endowments. An additional $500 million was committed by GTCR employees.
Axa Venture Partners launches €1.5bn late-growth fund
Axa intends to invest €750m in the future fund as a cornerstone investor, a role it has held in previous AVP strategies. The new strategy will seek to invest in late-stage tech companies in Europe and North America, targeting AVP’s existing focus on software, fintech, insurtech, digital health and consumer technologies.
Bregal Milestone closes second tech fund on €770m
Bregal Milestone Fund II represents a 56% increase from its predecessor fund, Fund I, which raised €400m in 2018.
Deal Chart
| Target | Buyer | Seller | Value | Date | Region | Sector |
| NETOPIA Group | Innova Capital | – | – | 25/05/23 | Romania | Payment Services |
| Goodspeed | Enterprise Investors | – | – | 23/05/23 | Poland | Logistics |
| Windar Renovables | Bridgepoint | – | 23/05/23 | Spain | Renewable Energy | |
| International Gemological Institute | Blackstone | – | – | 22/05/23 | Belgium | Gemmological Specialist |
| ECM Industries | nVent Electric plc | Sentinel Capital Partners | $1.1 billion | 19/05/23 | North America | Electrical Solutions Provider |
Movers and Shakers
- KKR has appointed Dan Pietrzak as global head of private credit.
- Permira has hired orthopaedic and neurotechnology veteran David Floyd as a senior adviser to its global healthcare team.
- Keensight Capital has brought in former JP Morgan tech investment banker Rafe Hafeez as M&A Director.
From the Horse’s mouth
“For 10yrs, you were not getting paid much to be a lender, now you’re getting paid north of 10%, depending on the type of company on leverage finance.” – Jim Zeltzer, co-president at Apollo Global Management
“With loan terms tougher and tighter, the option for private credit providers is on steroids”. – Drew Schardt, heads investment strategy at Hamilton Lane
“I’m always thinking about creating. My future starts when I wake up every morning… Every day I find something creative to do with my life” – Miles Davis, American Jazz musician, born on this day 1926
