Maitland Private Equity Monitor – 12 January 2018

12th January 2018

Worth a read


Norway’s $1.1tn oil fund seeks to invest in private equity

The world’s largest sovereign wealth fund has recommended it be allowed to invest in private equity, a significant change in strategy. To start with, Norway’s $1.1tn oil fund would consider investing in private equity funds or alongside them as part of a gradual approach. The fund is allowed to invest in listed companies only and buy stakes of less than 10%. According to the advice, it should be given permission to own more than 10% of an unlisted company, as it is allowed to do with unlisted property investments. Financial Times, 10 January 2018

One of the most valued private equity firms isn't on Wall Street

Blackstone, KKR, Apollo and Carlyle are the big names typically associated with private equity; in the tranquil Swiss town of Baar, however, is a firm that by some measures is more highly valued than its big US competitors. It has the third-highest market worth of publicly traded private equity firms worldwide, eclipsing much larger asset managers such as Carlyle. It went public a year before its first US peers and surged more than 10-fold since, while Blackstone trades barely above its 2007 offer price. This firm is Partners Group AG, with about $70bn overseen for clients. Bloomberg, 9 January 2018

PE firms press advantages to snap up tech assets

According to law firm Hogan Lovells, firms are starting to outbid strategic buyers for technology assets. The private equity firms can use their funds as a roll-up vehicle; combined with high levels of dry powder and cheap debt, they have enough of a presence in the tech space to leverage advantages that were once unique to strategic buyers. Private Equity International, 9 January 2018

Lyceum pulls fundraising, switches to deal-by-deal

UK mid-market investor Lyceum Capital has announced it will stop fundraising for Fund IV and switch to a deal-by-deal strategy. Raising capital for the £375m fund proved tougher than expected, with internal issues amongst LPs and Brexit uncertainty cited as contributing factors. Private Equity International, 9 January 2018


Wall of money


Partners Group cements place among biggest buyout firms In Europe

Swiss alternatives firm Partners Group AG said on Thursday that its AuM surged to €62bn last year, a 14% increase on 2016. The growth was largely down to the closing of the firm’s flagship direct investment fund, which raised €6bn. Private Equity News, 11 January 2018

Prudential gathers $1.5bn for latest infrastructure fund

Infracapital, the infrastructure investment arm of life insurance company Prudential PLC, has raised $1.52bn for its third investment vehicle. The fund has a target of $2.5bn and would be the firm’s largest ever fund if this is met. Private Equity News, 9 January 2018

Edelweiss seeks up to $1.5bn for stressed assets fund

Indian financial services company Edelweiss Group has set a fundraising target of up to $1.5bn for its second stressed asset funds and has said it aims to hold a final close in July 2018. If closed on the intended target, the fund will be nearly 20 times larger than its predecessor. Private Equity International, 11 January 2018

Alchemy Partners races to £900m hard cap

Distressed investing specialist Alchemy Partners has closed its fourth fund on the £900m hard cap, with fundraising completed in less than six months. The fund is the largest the firm has ever raised and 50% larger than its predecessor. Private Equity News, 9 January 2018

Mid Europa seeking €800m for latest fund

Mid Europa Partners is rumoured to be back in the market with its fifth flagship fund, which will seek €800m and focus on the CEE region. The target is below that of predecessor Mid Europa Fund IV. Private Equity International, 11 January 2018


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
A-ROSADuke StreetWaterland Private EquityUndisclosed11/01/2018GermanyTravel & Leisure
CandidatorEQTSobroUndisclosed11/01/2018SwedenTechnology
RegasBid EquityMain Capital PartnersUndisclosed11/01/2018BeneluxSoftware
OneSavings Bank-J.C. Flowers£95m, 10% stake10/01/2018UKFinancial Services
Henri SelmerArgos Soditic-Undisclosed10/01/2018FranceManufacturing
CEDBlackFin Capital Partners-Undisclosed10/01/2018NetherlandsFinancial Services
Northgate Public ServicesNEC CorporationCinven£475m09/01/2018UKSoftware
MeinAutoHg-Undisclosed09/01/2018GermanyAutomotive
RGICorsair CapitalArdianUndisclosed09/01/2018ItalySoftware
VälingeKirkbiKKRc. $500m, 49.8% stake08/01/2018SwedenManufacturing
Lintbells Ltd.Inflexion Private Equity-Undisclosed08/01/2018UKPet Services

Movers and Shakers


UK & Europe

Terra Firma has recruited Vivek Ahuja as Group CFO from Standard Chartered, where he was deputy CFO. Link

Danske Bank has hired Adam Saunte, a Director at ATP Private Equity Partners, as a partner. Link

Cinven has promoted Rory Neeson and Christopher Anderson to partner. Link

EQT has promoted three to partner: Bert Janssens in Amsterdam, who previously worked at Warburg Pincus, Johannes Reichel in Munich, who was at Deutsche Bank, and Niklas Ringby in Stockholm, who had a four year stint at Boston Consulting Group. Link

Deutsche Asset Management has hired Daniel Green as its Head of Private Equity Secondaries for the EMEA region. Link

Equistone has recruited Edward Baker from MML Capital Partners as an Investment Manager in its London office. Link

Conor Trendell has joined FPE Capital from Deloitte as an Investment Manager. Link

Aurelius Equity Opportunities has hired Peter Wood as a Principle, after nine years an Investment Director at Next Wave Partners. Link

Other

KKR has disbanded its Africa deal team; four executives and an adviser have left the firm. Link


From the horse’s mouth...

“Bitcoin could turn out to be the winner; it also could turn out to be Betamax” – Glenn Hutchins, Co-Founder of Silver Lake Partners

“It’ll be a movie one day” – Remy Kawkabani, Partner at Coller Capital, describing the deal that marked the ‘birth of the modern secondaries market’: a Coller Capital-led consortium acquiring RBS’s private equity portfolio for £1.1bn in 2000

“If all the economists were laid end to end, they’d never reach a conclusion.” George Bernard Shaw, Irish playwright