Maitland Private Equity Monitor – 11 August 2017

11th August 2017

Worth a read


SoftBank: cargoed cult

The FT’s Lex column argued that any investment into Japanese tech group SoftBank “requires confidence in its founder”, with Mayasashi Son’s decisions seeming to split the crowd. The article suggested that Son has become somewhat of a “personality cult”, while his firm does not sit anywhere in traditional categories such as private equity, venture capital or fund management. Financial Times Lex, 7 August 2017

Why private equity is betting on your online shopping habit

Private equity firms are reportedly sitting on record amounts of cash and are now targeting the online shopping industry in a hunt for returns. This, more specifically, means investing in payment-processing companies to take advantage of the increase in retail e-commerce sales. Recent examples cited by Bloomberg include Blackstone and CVC’s investment in Paysafe. Bloomberg, 9 August 2017

Coller: geopolitical uncertainty spurs attractive opportunities

Jeremy Coller, founder of Coller Capital, has said in the firm’s Annual Report that economic and political uncertainty in the US and the UK are the biggest challenges to investing this year, as well as concerns about growth in emerging markets. However, he argued that broad-based improvements in global fundamentals justify cautious optimism. Private Equity International, 10 August 2017

Blackstone buys billions in Spanish real-estate assets

Blackstone Group has agreed to acquire a majority stake in Banco Popular SA’s real-estate portfolio, deemed a vote of confidence in Spain’s recovering economy. The PE firm confirmed on Tuesday that it will take a 51% stake in a newly created company that will include approximately €30m in real estate assets. The Wall Street Journal, 8 August 2017


Wall of money


Guy Hands seeks $3.4bn for fresh buyout fund

Guy Hands’ Terra Firma is looking to benefit from a buoyant fundraising environment and reassure investors in raising its first buyout fund since before the financial crisis. Hands is targeting $3.4bn and has already filed to raise money from US investors. Financial Times, 8 August 2017

Vision Fund generates almost $1bn in income for SoftBank

SoftBank’s earnings increased by over 50% for the last quarter due to the inclusion of the Vision Fund, which generated almost $1bn in operating profit. Mayasashi Son also expressed interest in Uber and Lyft on the same earnings call. Private Equity International, 8 August 2017

Thoma Bravo seeks $750m for first private credit fund

Private equity house Thoma Bravo is to launch a debut fund in private credit and is seeking $750m for the vehicle, according to an SEC filing. The firm recently raised a $7.6bn buyout fund in September 2016. Private Equity International, 7 August 2017

CapitalSpring raises $725m for restaurant investments

Restaurant investor CapitalSpring has raised $725m for its fifth investment fund, exceeding the $500m target. The amount spans CapitalSpring Investment Partners V and parallel funds. Private Equity News, 8 August 2017

Carlyle closes €464m European CLO fund

The Carlyle Group has closed its latest European CLO fund at €464m, taking it to around $20bn AuM in its structured credit and CLO business. This is the second fund raised by Carlyle in Europe this year. Real Deals, 9 August 2017


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
CSIMML Capital Partners-£36m10/08/2017UKIT Services
Rothesay LifeGIC & BlackstoneGoldman SachsUndisclosed, 32.7% stake10/08/2017UKFinancial Services
RaphaRZC InvestmentsActive Private Equity£200m09/08/2017UKSports & Leisure
Business School24Palamon Capital PartnersIl SoleUndisclosed, 49% stake09/08/2017ItalyEducation
ProalphaIntermediate Capital GroupBregal UnternehmerkapitalUndisclosed09/08/2017DACH regionTechnology
Strix-AAC Capital£190m float08/08/2017UKElectrical Goods
UrsaXella InternationalKKRUndisclosed08/08/2017SpainConstruction
Aeroporto Guglielmo Marconi di BolognaAtlantiaInvestindustrialUndisclosed, 3.2x return08/08/2017ItalyInfrastructure
NetafimMexichemPermira$1.9bn07/08/2017IsraelInfrastructure
Blackrock PMIntermediate Capital GroupDunedin£161.5m, 2.8x return07/08/2017UKConsultancy
HotelturistCDP Equity-€20.4m, 46% stake07/08/2017ItalyTravel & Tourism
GentooTMFDisruptive CapitalUndisclosed, 15x return07/08/2017UKFinancial Services
Koller GroupFosun InternationalHannover FinanzUndisclosed07/08/2017GermanyAutomotive

Movers and Shakers


UK & Europe

Livingbridge has appointed retail investment specialist Susie Stanford as an associate director. She joins the firm from Lewis Trust Group. Link

Mobeus has promoted Greg Blin and Amit Hindocha to investment director and Dominic Draysey to investment executive. Link

Other

CVC Capital Partners has appointed Mohit Goyal, a former senior associate for Carlyle Group, as an investment director in India. The firm is in the process of setting up a Mumbai office as it looks to make its first investment in the country. Link


From the horse’s mouth...

“Geopolitical uncertainty makes decision-making harder, but it also creates attractive investment opportunities.” – Jeremy Coller, Founder and CIO, Coller Capital

“[McDonald’s] sold to Citic really out of a position of weakness. You don’t sell your entire China operation in the fastest consumer growing market because you’re doing well.” – Shaun Rein, the managing director for Shanghai market consultancy CMR China

“A certain type of perfection can only be realised through a limitless accumulation of the imperfect.”
– Haruki Murakami, Kafka on the Shore