Monitor
Private Capital Monitor 08/09
08th September 2023
Worth a Read
Helen Thomas writes for the Financial Times on The London Stock Exchange’s (LSE) move to introduce an “intermittent trading venue” (ITV) to allow stakeholders in private companies to sell shares without a formal market listing. Driven by the trend of companies remaining private for extended periods, the LSE hopes this initiative bridges the private-public market gap.
The Financial Times’ Lex writes on CVC’s acquisition of a majority stake in Dutch infrastructure fund DIF Capital Partners for around €1bn, reflecting a growing appeal for infrastructure amid heated deal-making. Though renowned for buyouts, CVC’s recent deals like Glendower Capital signify a shift toward a multi-strategy approach. CVC intends to leave DIF largely independent, a strategy that has worked well with Glendower and helped CVC maintain a strong record. Lex believes that the resulting AUM growth could potentially be linked to CVC’s plans for an IPO.
Sharon Lam writes for Reuters on Reese Witherspoon’s sale of a 70% stake in her Draper James clothing line to private equity firm Consortium Brand Partners. Lam believes that while some celebrity brand deals, like George Clooney’s Casamigos tequila acquisition, have paid off, many others have floundered. Despite their fame, Lam notes that A-listers’ business ventures often fail to live up to financial expectations.
Private Equity International reports on NAV lending’s growth in popularity as private equity funds and LPs seek financing secured against portfolio value, using it for capital needs or LP liquidity. Despite turmoil in 2022’s leveraged loan market, NAV loans remained resilient, partly due to innovative hybrid loan structures. These loans support the entire private equity ecosystem, from funds to general partnerships.
Five years removed from the murder of a Washington Post journalist, Saudi Arabia and other Middle East monarchies are taking advantage of cash from an energy boom to play a major role in financing private equity and other fund vehicles. The region has benefitted from higher energy prices following the Russia-Ukraine conflict, and contributes heavily to asset managers in Europe and North America that have seen a fundraising slump from other regions.
It’s too soon to tell if private investments in professional sports franchises will create outsized returns for LPs, PitchBook reports. Artcos, which has invested in several California sports franchises, has yet to exit any of its stakes, and media contracts and broadcasting agreements — which typically last longer than five years — have resulted in longer holding periods for sports investments.
Media of Week
Oaktree’s Panossian sees Private Credit Luring away from PE.
Deal Chart
| Acquisition Target | Buyer | Seller | Value | Date | Region | Sector |
| Grupo CRM | Nestle | 07 Sept-23 | Brazil | Chocolate | ||
| NextGen Healthcare | Thoma Bravo | *P2P* | $1.8 billion | 06-Sept 23 | US | Healthcare |
| Energy Capital Partners | Bridgepoint | £835 million | 06-Sept 23 | UK | Infrastructure investment | |
| Innoliva | Fiera Comox | Cibus Capital | 06-Sept 23 | Spain | Olive Oil | |
| Zenobe | KKR | InfraCapital | £800 million | 05-Sept 23 | UK | Battery storage |
| Saverglass | Orora | Carlyle | A$2.16 billion | 05-Sept 23 | Australia | Glass bottle manufacture |
| Ergomed | Permira | £700 million | 04-Sept 23 | UK | Healthcare | |
| The DataFlow Group | Arcapita Group | EQT | 04-Sept 23 | Dubai | Employment verification | |
| DIF Capital Partners | CVC | €1 billion | 04-Sept 23 | Netherlands | Infrastructure investment | |
| MJM Yachts | Saothair Capital | 31-Aug 23 | US | Luxury Yachts |
Wall of Money
Blackstone’s Flagship Private Credit Fund Lands $2.4 Billion
Capital inflows to Blackstone Private Credit Fund, BCRED, rose 30% to $2.4 billion in the third quarter to date from the prior three months, according to an investor letter on 06 September seen by Bloomberg. Current annualized distribution yield was 10.6% based on net asset value for Class I Common shares, the letter said.
Crosstree raises the largest UK-focused fund of the year
London-based Crosstree Real Estate Partners has reached a final close for its third and largest fund, Crosstree Real Estate Special Situations Fund III, on £481 million, PERE can reveal. The manager exceeded its £450 million target size for the fund and raised an additional £74 million of co-investment capital for the fund’s first two investments, plus a further £45 million in capital via a dedicated sidecar.
Movers and Shakers
- Bregal Investments, a €17bn international private equity platform for direct investment and fund-of-funds teams, has named Delaney Brown as its new Head of Capital Solutions, a newly created position, based in the firm’s London office.
- 26North Partners, the asset management venture of Apollo Global Management’s billionaire co-founder Josh Harris, has been launched. The firm aims to generate compelling returns across asset classes and capital structures for its partners. 26North will initially focus on private equity, credit and insurance solutions. The firm will launch with more than $5 billion in assets under management.
From the Horse’s Mouth
“The need to ‘green’ infrastructure to meet net zero targets also means that there is a lot of demand for private capital in this space.” – Jan Gruter, partner at law firm Addleshaw Goddard
“In a NAV deal, there is no seller, so the investor of record remains the same. These transactions can be done in six to eight weeks, which is unheard of in the secondaries market.” – Fokke Lucas, Partner at 17Capital
“I just want to do what I love and love what I do.” – Patsy Cline, American country singer, born on this day 1932
“Difficult times often bring out the best in people.” – Bernie Sanders, American politician, born on this day 1941
