Monitor
Private Capital Monitor 05/05
05th May 2023
Worth a read
A PROBLEM SHARED IS A PROBLEM HALVED
The U.S. Securities and Exchange Commission has adopted new disclosure rules for hedge fund and private equity advisors aimed at increasing transparency, competition, and efficiency. SEC chair Gary Gensler argued the additional visibility granted by the regulation “will help protect investors and promote financial stability”.
Private Equity International data reports private equity funds raised $163.9 billion in the first quarter, down nearly 19% from the equivalent period last year and 35% from Q1 2021. Niklas Amundsson, a Hong Kong-based partner at Monument Group argues “The period we are entering at the moment is similar to what we saw following the Global Financial Crisis” commenting that “there was, and now is, a flight to home-markets and a flight to quality.”
Jonathan Guthrie questions the strength of Shadow chancellor Rachel Reeves argument to raise taxation on carried interest to a higher level. Guthrie notes Reeves “courts” private equity groups as “key UK investors”, despite previously accusing them of “asset stripping” and argues if “Reeves went ahead with the reform, she should expect only token resistance from business because “this is not the hill a revived CBI would choose.
Media of the week
Peter Stavros, Co-Head of Global Private Equity at KKR sits down with Senior Editor Jena McGregor to talk about his innovative employee ownership initiative, and the state of the private equity industry.
Wall of money
CVC seeks €7bn for European direct lending fund
CVC Credit Partners is seeking to raise €7 billion for CVC Credit Partners European Direct Lending IV. The move comes shortly after €6.3bn final close of its third direct lending fund in December.
Pictet raises more than $2.5bn across two funds
Pictet Alternative Advisors has closed Monte Rosa VI and Monte Rosa Co-investments V at $1.6 billion and $900 million, respectively. The sixth fund will target North American and European buyout funds whereas the fifth will target minority investments alongside top-tier GPs.
Investindustrial closes mid-market fund above €1.1bn target
Its third lower mid-market fund exceeded its €1 billion target and will target investments with strong internationalisation potential, predominantly headquartered in Southern Europe.
Deal Chart
| Acquisition Target | Buyer | Seller | Value | Date | Region | Sector |
| Aconic Corp | Apollo Global Management | $5.2bn | 04/05 | North America | Aerospace Supplies | |
| Maxar Technologies | Advent International & BCI | – | $6.4bn | 04/05 | North America | Space Technology |
| CoolIT Systems | KKR | – | n/a | 04/05 | North America | Cooling Solutions |
| Johan i Hallen & Bergfalk | Metro FSD Holding | Litornia | n/a | 04/05 | Nordics | Food Provider |
| Liftket Group | Ardian | Afinum | n/a | 04/05 | DACH | Controlled Sytems |
| The Paint Shed | The Brewers Group | BGF | IRR of 22% | 04/05 | UK | Paint Retailer |
| Tracerco | Sullivan Street Partners | – | c. £55m | 03/05 | UK | Diagnostic Services |
| ECA International | Pelican Partners | – | n/a | 03/05 | UK | Software Services |
| Majestic Windows | RDCP Group | – | n/a | 02/05 | UK | Manufacturing |
| Brightspeed | Mubadala | Apollo Global Management | $500m investment | 02/05 | North America | Telecomms |
| Shape | Waterland | – | n/a | 02/05 | Nordics | App development |
| Flexam Asset Mangement | Kartesia | – | n/a | 28/04 | Western Europe | Asset Management |
| Amara Nzero | Cinven | ProA Capital | n/a | 28/04 | Western Europe | Investment Services |
| Inke | Keensight Capital | Neuraxpharm | n/a | 28/04 | Western Europe | Pharma |
Movers and Shakers
- Mayfair Equity Partners has named Paul Reading as the firm’s Chief Strategy Officer, a newly created role by the GP.
- Clayton, Dubilier & Rice, an American buyout firm, has appointed technology executive, Mittu Sridhara, as an Operating Principal in its London office.
From the Horse’s mouth
“We are in the midst of one of the most complex financial markets in recent memory, which is clouding the near-term outlook and impacting market sentiment.” Harvey Schwartz, Carlyle CEO
“I would expect a pick-up in final closes between now and the end of the year, as most of the funds that are currently under fundraising extensions will come up towards their final close deadlines, which again includes a lot of China funds.” Niklas Amundsson, a Hong Kong-based partner at placement firm, Monument Group
“History repeats itself, first as tragedy, second as farce.” Karl Marx, German philosopher, born on this day in 1818.
