Monitor
Private Capital Monitor 08/03
14th March 2024
WORTH A READ
Europe
FT Alphaville’s Editor, Robin Wigglesworth examines the investment case for the Norwegian sovereign wealth fund adding the finance industry’s “hottest asset class” (private equity) to its mandate. Wigglesworth reminds readers the Norges Bank Investment Management (which manages the Norwegian Government Pension Fund Global) and other large institutional investors are “buying private equity’s future returns, not its historical record” and notes “there are a lot of indications that returns are going to be much lower in the coming decades.”
Bloomberg reports private credit’s “golden era” may face strain amid a resurgence in the broadly syndicated loan market, as increased competition drives down returns, according to a report from Moody’s Investors Service.
A 2023 PitchBook report highlights the increasing presence of female founders in the funding landscape, with them capturing 25.8% of deal count and 20.5% of deal value, setting records despite a decrease in absolute investment. European female-founded companies experienced rapid growth in deals compared to all-male-founded ones over the past decade. However, only 15.2% of decision-makers at large European VC firms are women, although healthcare-focused investors show better representation.
United States
The Biden administration has taken an interest in evaluating small private equity health care deals, reports Bloomberg’s Leah Nylen. Previously, deals under $119.5 million did not have to be reported to the FTC and largely went undetected and unregulated. This is set to change according to FTC Chair Lina Khan.
At this year’s Bloomberg Power Players, an event focused on global sports investing, key private equity investors and executives gathered to discuss their own strategies for investing in the sports asset class. Hosted by Bloomberg correspondent Jason Kelly, the discussion touched upon several topics, including the emergence of institutional investors buying sports teams and leagues.
According to Private Equity International’s Hannah Zhang, large firms are primed to dominate the fundraising market in 2024, likely because “investors generally take comfort with firms that have greater resources, more data, more information and more analytics,” says Drew Schardt, head of investment strategy and head of direct equity at Hamilton Lane.
WALL OF MONEY
EQT closes second fund in two weeks with €3.6bn pot for Future strategy
EQT has closed its second fund in a fortnight, collecting €3.6bn in total fee-generating commitments, including co-investments, for EQT Future. EQT Future is a private equity strategy that invests in two themes: “climate & nature” and “health & wellbeing”.
GIP gathers over $2.1bn for inaugural emerging markets fund
Global Infrastructure Partners has raised more than $2.1 billion for its initial emerging markets fund. The fund has already deployed over $1 billion across a diversified portfolio of assets.
Amsterdam-based Mews bags €101 million to make hoteliers embrace cloud technology
Mews has raised fresh funding of €101 million in a round led by existing investor Kinnevik, alongside Revaia, Goldman Sachs Asset Management, Notion Capital and new investor LGVP. The new funding values the company at $1.2 billion.
DEAL CHART
| Acquisition Target | Buyer | Seller | Value | Date | Region | Sector |
| CampusParc | Ardian | $850m | 7-Mar-24 | US | Parking | |
| Southend Airport | Carlyle | Esken | 6-Mar-24 | UK | Travel | |
| Vital Energi | Corran Capital | Scottish Equity Partners | 6-Mar-24 | UK | Energy | |
| AmaWaterways | L Catterton | Certares | 5-Mar-24 | US | Cruises | |
| Carrier Industrial Fire Division | Sentinel Capital Partners | Carrier | $1.43bn | 5-Mar-24 | US | Safety Systems |
| Checkmate Fire | IK Partners | YFM Equity Partners | 5-Mar-24 | UK | Safety Systems | |
| Plusgrade | General Atlantic | Novacap | 5-Mar-24 | Canada | Travel | |
| SoftCo | Keensight | Founders | 5-Mar-24 | Ireland | Software | |
| Alter Domus | Cinven | Permira | €4.9bn | 4-Mar-24 | Luxembourg | Asset Management |
| Cyndi Lauper’s Music | Pophouse Entertainment Group | Cyndi Lauper | 1-Mar-24 | Sweden | Entertainment |
MEDIA OF THE WEEK
On X, Robert F. Kennedy Jr, Independent candidate for President of the United States, shares his punchy view on the sector.
MOVERS AND SHAKERS
- Eurazeo has appointed Adrien Pinelli as Managing Director within the Investor Relations team responsible for the Middle East. He will be in charge of the fundraising and investor coverage in the Middle East as well as International Public Affairs.
- Brookfield Asset Management has appointed Anuj Ranjan as CEO of its $140 billion private equity group, replacing the long-serving Cyrus Madon.
- Former Manchester United and England footballer Gary Neville has been hired by global advisory and investing firm, Consello. He joins Tom Brady and Serena Williams at the company.
- CD&R has announced the appointment of Jenny Machida as Managing Director of Portfolio Talent.
FROM THE HORSE’S MOUTH
Britt Harris, who spent more than 10 years as CIO of the Teacher Retirement System of Texas and is currently acting CEO and CIO of the Texas Permanent School Fund (among other posts), expressed his opinion on the energy transition at NEXUS 2024, stating that global plans to decarbonise the planet are ‘too fast and impractical, and lack compassion.’
“Over the last two years the FTC [Federal Trade Commission] has heard an outpouring of concern about the ways that private equity buyouts and health care have worsened outcomes for workers and patients alike. We cannot turn a blind eye to serial acquisitions.” – FTC Chair Lina Khan.
“Common sense is what tells us the earth is flat.” – Stuart Chase, American writer and economist, born on this day in 1888.
