Maitland Private Equity Monitor – 14 July 2017

14th July 2017

Worth a read


The private equity arms race is hotting up

FTfm’s John Dizard writes that the current battle between big private equity firms is something of an arms race, with billions of dollars being raised and few good investment prospects on offer. He uses the example of Calpine, currently being bid for by Blackstone and Carlyle, which has sent the share price but still leaves shareholders questioning whether the business can grow without outside support. Financial Times, 8 July 2017

Big Swedish funds want more private equity

Sweden’s biggest national pension funds are cutting their allocation to low-risk bonds in favour of increased exposure to alternatives such as private equity, as they seek to boost returns. Proposed changes by the country’s finance ministry would allow for a larger pot of money to be invested in the asset class. Financial News, 12 July 2017

European private equity groups look beyond EU for deals

European private equity groups are directing twice as much capital at deals outside the EU than at local assets, as they seek to weigh the risks brought about by Brexit and European political instability. Private equity dealmaking outside Europe reached €22.2bn in Q2 compared with €10bn in the EU, according to S&P data. Financial Times, 9 July 2017

Actis builds pan-African higher education platform

Actis, the UK-based PE firm specialising in emerging markets, has created a $275m higher education platform which spans nine African countries. The initiative, branded Honoris United Universities, looks to cater to rapidly growing educational needs, with the company hoping to serve 100,000 students in the next 3-5 years. Financial Times, 11 July 2017

Private equity lower middle market buyouts challenge previous forecasts

New data from research conduced by Lyceum Capital and Cass Business School revealed private equity buyouts in the lower mid market are defying expectations, with the value and number of deals in the first half of 2017 similar to previous periods. City AM, 10 July 2017


Wall of money


HarbourVest raises its largest co-investment fund yet

The Boston firm has held a final close on HarbourVest Partners Co-Investment IV on its revised hard-cap of $1.75bn, $250m higher that its initial celling due to oversubscription. Private Equity International, 13 July 2017

Golub raises at least $1.65bn so far for 11th private-credit fund

The firm collected $927.3m for offshore vehicle Golub Capital Partners International 11 LP and $722.9m for onshore vehicle Golub Capital Partners 11 LP. The US firm intends to use the fund to support companies that generate $10-60m of earnings. Private Equity News, 14 July 2017

CVC VI is nearly 90% invested after $1.4bn deal

Following its $1.4bn acquisition of PDC Brands, the global beauty products company, CVC European Equity Partners VI is almost 90% invested. The deal comes amid a mass of transactions from the €10.9bn fund. Private Equity International, 10 July 2017

BC LPs have 5 weeks to decide on Fund IX tender

Limited partners in BC European Capital IX have until 9 August to decide if they want to sell their stakes in the 2011-vintage fund that has €6.7bn in NAV. The LPs can sell their interest at a 14% premium. Private Equity International, 10 July 2017

Ex-Carlyle heads raise $870m for debut fund

Launched by two former Carlyle executives, Stellex Capital Management has held the final close on its first fund following two years of fundraising; the New York firm beat its target by $120m. Private Equity International, 10 July 2017

STAR Capital closes latest fund at €800m

STAR Capital Partners, focused on asset-based businesses in western Europe, has closed its latest fund at the hard-cap of €800m. This matches the amount raised for its second fund, closed in 2006. Real Deals, 13 July 2017

Portobello returns to market after restructuring

The Madrid-based mid-market firm intends to raise c. €600m for its fourth fund, Portobello Capital Fondo IV, almost two years after it restructured its 2006-vintage fund. Portobello’s current investments include sensory marketing business Trison, frozen seafood manufacturer Iberconsa and care home manager Vitalia Home, all of which are based in Spain. Private Equity International, 11 July 2017

UBS capitalises on private wealth clients’ appetite for impact

UBS has raised $325m from its clients for TPG’s $2bn impact fund, The Rise Fund, which seeks investments with measurable positive social impact and competitive returns in the information, education, finance, energy, agriculture, infrastructure and healthcare sectors. Private Equity International, 11 July 2017


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
CleanMax SolarWarburg Pincus-$100m investment13/07/2017IndiaRenewables
EsmalglassInvestcorpLone StarUndisclosed, 4x return13/07/2017SpainManufacturing
BTI StudiosAltor Equity PartnersCarlyle GroupUndisclosed, 5x return12/07/2017SwedenTMT
AcuntiaVinci EnergiesGPF CapitalUndisclosed, 3x return12/07/2017SpainTMT
EPF PartnersApax France-Undisclosed12/07/2017FranceVenture Capital
BozzettoChequers CapitalSynergoUndisclosed12/07/2017ItalyChemicals
The BunkerPalatine Private Equity-Undisclosed12/07/2017UKCybersecurity
POP TV, Kanal A, Nova TVUnited Group-€230m11/07/2017Croatia/SloveniaTMT
Mowgli Street FoodForesight Group-£33.45m11/07/2017UKFood & Drink
Blackstar Amplification-Foresight GroupUndisclosed, 2x return11/07/2017UKMusic
EngramMain Capital-Undisclosed11/07/2017UKTelevision
PronoviasBC Partners-€550m10/07/2017UKashion/RetailRetail
SafimAmbienta-Undisclosed10/07/2017ItalyAgriculture & Construction
SynGroMaru Group-Undisclosed10/07/2017UKTechnology
EcoOnlineSumma EquityViking VentureUndisclosed, 69% stake10/07/2017NorwayTechnology
Getronics GroupBottega InvestCoAurelius€220m10/07/2017NetherlandsTMT

Movers and Shakers


UK & Europe

Charterhouse Capital Partners has boosted its investor relations and deal teams with three new hires and a promotion. Investment manager Dario Garcia has been promoted to partner, while Haitham Nasri is joining as an investment manager from McKinsey. Gilles Collumbin joins as partner and head of investor relations and Paul Brown as investor relations manager. They join from HSBC and Bridgepoint respectively. Link

KKR has appointed new CFOs for its European and Asian businesses. Paul Horwood, currently a director and member of the finance team, will replace outgoing European CFO Peter Liu, who moves to Hong Kong to take up the new role of CFO for KKR Asia. Link

North America

The Institutional Limited Partners Association has appointed Michael Mazzola as its interim chief executive, following the resignation of Peter Freire in June. He has been a member of the board for five years. Link

Daniel Garant, executive vice president and CIO at the Canadian Public Sector Pension Investment Board, has officially resigned. Link

Other

Old Mutual Alternative Investments has appointed Nabeel Laher as head of international private equity. Laher joined the firm in 2015 and will replace James Regout, who is retiring after 40 years with Old Mutual. Link


From the horse’s mouth...

“There’s always opportunity when there’s disruption” – Stephen Pagliuca, Bain Capital co-chairman in an interview with Bloomberg’s David Gura

“Money is not differentiated. Money with ethics, with skills, with business experience and with human values is differentiated.” – Xavier Moreno, Astorg Founder

“Passion will keep you going when the going gets tough.” – David Copperfield, Fictional Magician