Private Capital Monitor 02/06
02nd June 2023
Bloomberg reports despite a reduced offer of £4.4 billion, the Swedish private equity firm EQT has reached an agreement to acquire Dechra, a pet medicine and vaccine manufacturer. The company issued a fresh profit warning this morning alongside the announcement of the deal, saying that profits would be “materially below £186 million”.
Worth a read
Stephanie Hui, the head of Goldman Sachs’s private equity business in Asia has said she has stopped trying to raise money in the US because of geopolitical tensions between Washington and Beijing. A spokesperson for the bank said her comments were a reference to wider industry trends.
Colm Walsh, managing director at ICG Enterprise Trust calls for more investor education on the benefits of listed private equity to tackle historical misconceptions about private equity. Walsh argues these misconceptions “play into the discount and the investor sentiment behind it.”
The Financial Times reveals a group of 255 of the UK’s top private equity dealmakers earned £2.7bn in carried interest in a single year. Returns of this mass has drawn scrutiny from politicians and the UK’s Labour party has planned a £440mn tax raid on the industry if it is voted into office at the next general election.
Investors Chronicle reports the UK’s housebuilding sector has attracted the attention of private equity firms as potential targets for investment, as they seek to capitalize on the strong demand for housing and the sector’s potential for growth.
Media of the week
A Beijing-based investment company announced Thur its plan to use #AI for the management of one private equity fund albeit supervised by a human manager, reportedly the first of its kind in China.
How’s “PEbot” for crunching equities!
Wall of money
Adams Street’s Global Secondary Fund 7 manages a range of primary fund and co-investment strategies via funds and managed accounts..
The tech-focused firm has already backed four businesses – USI Insurance Services, Evertree Insurance, Strategic Risk Solutions and MerchantE.
The French mid-market specialist has invested around €220m across five companies from Qualium Fund III
|Dechra Pharmaceuticals||EQT||–||$4.26bn||02/06/2023||United Kingdom||Pharmaceuticals|
|Emerson’s Climate Technologies (Copeland)||Blackstone||–||$14bn||01/06/2023||United Kingdom||Commercial refrigeration|
|JMAN||Baird Capital||–||N/A||01/06/2023||United Kingdom||Data consultancy|
|Linxea Finance Group||IK Partners||–||N/A||31/05/2023||France||Online savings products|
|Messer Industries||–||CVC Capital Partners||N/A||31/05/2023||DACH||Industrial gasses|
|United Living||Apollo Global Management||–||N/A||30/05/2023||United Kingdom||Affordable housing|
|GoodLife Foods||IK Partners||Egeria||N/A||30/05/2023||Benelux||Food manufacturer|
|Elatec||SGT Capital||Summit Partners||€400m||30/05/2023||DACH||Access solutions|
|Gruppo Florence||Permira||Existing shareholders||N/A||26/05/2023||Italy||Luxury goods|
Movers and Shakers
- Pemberton Asset Management has appointed Niamh Whooley as managing director and head of sustainable investing.
- Connection Capital has appointed Michael Mowlem as Chief Investment Officer.
From the Horse’s mouth
“Why? Because there’s more interest in this part of the world, particularly in China, from the countries I just listed. I only go to the States to see my boss . . . not for fundraising.” – Stephanie Hui, Partner, Goldman Sachs.
“Private equity has the benefit of providing accessing opportunities that are simply not available to investors via the public markets.” – Colm Walsh, managing director at ICG Enterprise Trust.
“My idea is that there is music in the air, music all around us; the world is full of it, and you simply take as much as you require.” – Edward Elgar, English composer born on this day in 1857.