Maitland Private Equity Monitor – 17 March 2017

17th March 2017

Worth a read

Buyout Firm Buys $800 Million of Assets From Itself

Buyout firms face increasing competition from patient investors like sovereign-wealth funds. One has found a way to play them at their own game: Investindustrial, a European buyout firm, is creating a fund to buy €750m ($800m) of assets it already owns. The Wall Street Journal, 13 March 2017

Trump Officials Are Learning How Hard It Is to Sell $1 Billion of Their Assets

Members of Donald Trump’s cabinet are obliged to sell more than $1bn worth of assets to prevent conflicts of interest, a process that is proving difficult and time-consuming. A Wall Street Journal review of those needed sales shows almost three-quarters of the total is held in illiquid assets such as real estate, closely held companies and stakes in private-equity funds, likely extending the time necessary to unwind the positions. The Wall Street Journal, 15 March 2017

More than a quarter of GPs lost to Chinese bidders in 2016

More than a quarter – 29 percent – of GPs say they lost out to a Chinese bidder in auction processes during 2016, according to a report by MVision Private Equity Advisers and the London Business School. The report – Rise of the Rooster: Chinese outbound M&A in 2017 and beyond – surveyed 58 private equity firms across the globe with a combined $440bn of assets under management. Private Equity International, 15 March 2017

Pantheon warns on long-term Trump effect

Donald Trump’s economic policies are likely to provide a boost to private equity in the short-term, but the proposed scrapping of tax deductibility on debt payments, and a wider protectionist approach, may harm private equity and the US economy in the longer-term, according to private equity investor Pantheon. Private Equity International, 16 March 2017

European Pension Giant to Factor ESG Score into Re-Ups

Dutch pension asset manager APG will decide whether to reinvest in private-equity funds based at least partially on how well they score on environmental, social and governance criteria, according to its head of ESG. Private Equity News, 15 March 2017

Wall of money

Vista races to revised $10.5bn hard-cap

Software and tech-focused firm Vista Equity Partners has held a close on its sixth buyout fund above its hard-cap after over a year of fundraising. Filings indicate that $10.5bn has been raised with 136 individual commitments. Private Equity International, 13 March 2017

Platinum raises $6.5bn for Fund IV

Platinum Equity has raised $6.5bn for its fourth fund which was launched with an initial target of only $5.5bn. The fund is considerably larger than its 2011 predecessor and counts numerous US public pensions as limited partners. Private Equity International, 13 March 2017

Blackstone Collects $5bn for Maiden Longer-Life Fund

Blackstone has collected $5bn for its first longer-life fund, though it has not technically reached its final close. The fund will target less than the typical 20% internal rate of return a private-equity fund aims for, according to previous reports. Private Equity News, 16 March 2017

Vista closes third small-cap fund on $2.75bn

Vista Equity Partners has closed its third technology-focused small-cap buyout fund on $2.75bn after it closed above the target of $2.5bn last year. Private Equity International, 14 March 2017

 Apax France hits €1bn hard-cap on Fund IX

Paris-based buyout firm Apax Partners MidMarket, formerly known as Apax Partners France, began marketing it;s ninth fund in September 2015 with an initial target of €750m and a hard-cap of €950m. The fund will look to make between 9 and 12 investments, across TMT, retail and consumer goods, healthcare, and services. Private Equity International,16 March 2017 

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Alinta EnergyChow Tai Fook Enterprises-$3.1 bn16/03/2017AustraliaEnergy
XceptorCBPESVG CapitalUndisclosed16/03/2017UKFintech
Cawood ScientificInflexionNVM Private EquityUndisclosed15/03/2017UKScience
EV-BoxEngineGilde Equity ManagementUndisclosed15/03/2017EuropeTech
Staples' Australia and New Zealand BusinessPlatinum Equity-Undisclosed15/03/2017Australia and New ZealandRetail
DornerEQTIncline CapitalUndisclosed15/03/2017USAManufacturing

Movers and Shakers

Ark Totan Alternative has lost its founding partner and chief executive, Shunsuke Tanahashi, due to management differences. Link

TowerBrook Capital Partners has made three appointments in its London and New York offices. It has hired Walter Weil as a senior principal in New York, Ron van Loo as a senior principal in London and Jeroen Bischops as a principal in London. Link

The Carlyle Group has appointed Dele Babade as an advisor to its dedicated sub-Saharan Africa fund, effective immediately. Link

Elm Capital has promoted Emanuele Musso, Alberto Badino, Bernhard Ellmer and Samantha Page to Partner as it announces the formation of a partnership. Link

From the horse’s mouth...

“The vast majority of the global middle class will reside in Asia, and an ability to link to that market – link to that dynamic – is at the forefront of every entrepreneurial company.” – Mounir Guen, CEO, MVision

“Never waste a crisis.” – Mark Rutte, Dutch Prime Minister, commenting on Eurozone reform in 2011

“Without training, they lacked knowledge. Without knowledge, they lacked confidence. Without confidence, they lacked victory.” – Julius Caesar