Maitland Private Equity Monitor – 11 May 2018

11th May 2018

Worth a read

CalSTRS’s explorations beyond traditional funds highlight turning investor tide

The popularity of traditional private equity funds is fading as investors look for collaborative models that allow a more hands-on role. CalSTRS has renewed its support for options with lower fees that grant it more direct control, highlighting its focus on innovative platforms that give it more social capital. Private Equity News, 10 May 2018

StanChart markets $1.5bn of private equity deals

Standard Chartered is seeking investors to buy its remaining $1.5bn of private equity assets to end its three-year exit efforts. The bank is looking for suitors to set the business up as an independent entity, with the possibility that the current management will buy the assets alongside other companies. Bloomberg, 10 May 2018

Money laundering: a strange bedfellow

The UK’s latest crackdown on money laundering will shed light on the murky identity of investors in offshore private-equity funds. Although this may not significantly affect the industry, greater controls on Scottish limited partnerships could jeopardise the UK’s competitiveness as a time when firms are already uncertain over Brexit. Private Equity News, 8 May 2018

Jitters mount as loans form private equity continue to rise

US companies with junk credit ratings are receiving loans from private equity firms at crisis-era levels. Cheerleaders say these funds can absorb the risks without endangering the financial system, but naysayers have warned that the quality of loans is deteriorating, and private credit funds lack the infrastructure to cope with an economic downturn. Financial Times, 7 May 2018

Wall of money

Logistics giant plants $1.6bn flag in private equity

GLP, an investor in logistics real estate, has raised $1.6bn for a debut fund in private equity through its newly created Hidden Hill Capital. The company told Private Equity International that the decision was made after seeing increased demand from institutional investors for advice and co-investment. Private Equity International, 9 May 2018

Edmond de Rothschild seeks €1bn across multiple strategies

Edmond de Rothschild Private Equity has launched a series of funds seeking at least €1bn across multiple niche asset classes including growth-stage tech, pan-European value-added real estate and a hybrid fund-of-funds. Private Equity International, 4 May 2018

EQT shuts latest Asia fund on $800m

EQT has closed its latest Asian private equity fund on $800m after more than a year in the market. The fund will back mid-market companies based in China and Southeast Asia across a number of sectors including healthcare, consumer and TMT. Private Equity News, 9 May 2018

G Square seeks return to market to raise third fund

Specialist healthcare investor G Square Capital Private Equity is said to be planning a return to the market to raise its third fund, which could raise as much as €450m. The firm closed its second fund at its €350m hard cap. Private Equity News, 8 May 2018

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
ZPGSilver Lake-£2.2bn11/05/2018UKProperty
Alexander Mann SolutionsOmers Private EquityNew Mountain Capital£820m10/05/2018EuropeRecruitment
Core Capital PartnersESO Capital-Undisclosed10/05/2018UKFinancial Services
ADT CapsSK Telecom/Macquarie Infrastructure and Real AssetsCarlyle$2.8bn09/05/2018South KoreaSecurity Services
Cabot Credit ManagementEncore Capital Group-£175.5m09/05/2018UKFinancial Services
Corin OrthopaedicsPermira-Undisclosed09/05/2018UKHealthcare
Oskar NoltePeter Möhrle HoldingAmbienta SGRUndisclosed, 3.5x return08/05/2018GermanyIndustrials
GCI GroupMayfair Equity PartnersBusiness Growth FundUndisclosed08/05/2018UKTMT

Movers and Shakers

UK & Europe

Carlos Santana, former country head of Advent International in Spain, has joined EQT as a Director to lead the firm’s mid-market strategy in Spain and Portugal. Link

Investindustrial has appointed Oscar Rodriguez  as an investment professional for its new office in Madrid. He joins from the London office of Chinese private equity firm XIO Group. Link

Bowmark Capital has named Julian Masters as a Managing Partner in London after ten years with the firm. It has also hired Tom Keen from Lyceum Capital as an Investment Manager. Link

Fledgling buyout firm 8C Capital has hired former Goldman Sachs banker Amit Karna. Link

The recently rebranded TPA Capital has hired Ravi Aujla from Sovereign Capital. Link

North America

A group of senior executives from placement agent MVision Private Equity have launched Meteor5 Capital Advisers, an investment firm to back first-time private equity funds with offices in New York and Madrid. Link

From the horse’s mouth...

“The faster movers will reap exponential benefits. Don’t get left behind.”Changpeng Zhao, CEO of Binance

“There are still far too many unknowns in terms of Brexit and other geopolitical worries for me to say investors have it wrong today.” – Darius McDermott, MD at Chelsea Financial Services

“We’re a better model for governance. We don’t have to deal with all the hassles of the public boards.” – Jonathan Sokoloff, Managing Partner of Leonard Green & Partners