Maitland Private Equity Monitor – 6 July 2018

6th July 2018

Worth a read


Fundraising declines amid split between haves and have-nots

As fans of ‘When Harry Met Sally’ will confirm, Sally Albright was always picky about her food. Similar discernment has seeped into the private equity world. With the market increasingly flush with cash, investors are becoming more discerning about where they put their money. But not everyone has such a luxury. Smaller firms have been increasingly squeezed, with some even shutting up shop altogether. But despite the drop in the number of buyout funds and volume of capital raised, the $44.5bn raised was the fourth-highest amount collected in any half year since 2008. Private Equity News, 3 July 2018

Why WeWork does not deserve a $20bn price tag

Flexible workspaces are flavour de jour worldwide. But controversy has arisen as to the recent valuation of WeWork. Its eyewatering $20bn valuation depends on its originality despite competitors muscling their way in on the market. An in-depth article in the FT argues that if the company’s equity value was based on the same multiple of sales as IWG (formerly known as Regus) it would be worth nearer $3bn. Food for thought. Financial Times, 3 July 2018

Private equity's winning run faces late-cycle challenge

Private equity returns may have reached their nadir. Indeed, they have consistently outperformed public equities over the past five to 20 year periods as the number of US listed comapnies has fallen from roughly 8,000 in the mid 1990s to 4,336 according to an analysis by JPMorgan Asset Management. Financial Times 6 July 2018

Wagamama attracts interest of private equity groups

Inhabitants of 103 Wigmore Street are working up quite an appetite. Hot on the heels of acquiring York based Great Rail Journeys from private equity firm, ECI, fellow mid-market private equity firm, Duke Street, is now turning its eye to noodle restaurant chain, Wagamama. But Duke Street is not the only suitor for this author’s favourite noodle joint – KKR and L Catterton are also touting for its business. Financial Times, 2 July 2018

How private equity is shaking up south-east Asia

Good morning, Vietnam! The Socialist Republic has awoken to a glut of private equity firms busying themselves in the country. And you can understand why: Vietnam’s economy is growing exponentially; its government has also cottoned on to opportunities and has plans to privatise many state owned enterprises. All the big names are piling in: Warburg Pincus (promising a whopping $1bn to invest in Vietnamese companies) and fellow US grandee, KKR are both scouting out opportunities. Financial Times, 1 July 2018


Wall of money


CITIC PE closes third China dollar fund above hard-cap

CITIC PE has held a final close above its $2.2bn hard-cap for its third and largest China-focused flagship vehicle. It is currently unclear how much has actually been raised for the fund. Private Equity International, 6 July 2018

Martin Sorrell seeks green light to raise up to £1 billion for new ad venture

The former WPP CEO has sent a letter to shareholders of S4 Capital, seeking their approval to raise up to £1bn to fund acquisitions. Sorrell’s new vehicle, which will target technology, data and content businesses, is already rivalling WPP for Mediamonks. Private Equity News, 4 July 2018

Triton raises nearly €450m for first smaller companies fund

Triton Partners has held a final close for its first lower mid-market fund at €448m. This exceeded the initial target of €350, with the hard cap raised by the company in response to investor demand. Private Equity News, 6 July 2018


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Dispensa EmiliaInvestindustrial-Undisclosed05/07/2018ItalyFood & Drink
AMW GmbHYunfeng Capital-Undisclosed05/07/2018GermanyMedical Equipment
Generali LebenViridium GruppeAssicurazioni GeneraliUndisclosed05/07/2018GermanyPrivate Equity
Titlestone Property FinanceParagon Banking GroupOaktree Capital Management£48m04/07/2018UKFinancial Services
Suse GmbHEQTMicro Focus International> $2.5bn02/07/2018GermanySoftware
Great Rail JourneysDuke Street Private EquityECI PartnersUndisclosed, 3.6x return02/07/2018UKTravel & Leisure
AlbingiaEurazeo-led MBO-Undisclosed02/07/2018FranceFinancial Services
Blue YonderJDA Software Inc.Warburg Pincus & Otto GroupUndisclosed02/07/2018GermanySoftware
NeoviaADMEurazeoUndisclosed02/07/2018FrancePetcare

Movers and Shakers


UK & Europe

CPPIB has hired Dushy Sivanithy, previously Head of Origination at Rede Partners, to its private equity funds team in London. Link

Bregal Investments has brought in three new Managing Partners; ex-Credit Suisse executives Philippe Lautenberg and Cyrus Shey, and Jay Bruennler, formerly of Och-Ziff Capital Management. Link

Epiris has added Pamela Brent to its deal team as an investment manager. She joins after six years working at Linklaters LLP. Link

Antoine Josserand, previously with Citigroup, has joined Pemberton as Head of Business Development. Link

North America

CalSTRS has appointed Julie Underwood as CFO, following eight years as CFO at San Bernardino County Employees’ Retirement AssociationLink

Other

Investcorp has appointed business academic Ann-Kristin Achleitner to its international advisory board. Link


From the horse’s mouth...

“There’s an old saying that goes: if you want to go quickly, go alone; if you want to go far, go together.” – Alfiero Fucelli, President and CEO of Dispensa Emilia

“I just didn’t want to work for other people.” – James Benamor, Founder of Amigo Loans which floated on the LSE last week

“If you’re afraid of losing, then you daren’t win.” – Bjorn Borg, 11-time Grand Slam winning tennis player