Maitland/AMO Private Equity Monitor – 1 April 2021

1st April 2021

Just as the clocks went forward, so too do we leap into spring with a, er, spring in our step. Everything an hour, or even in this context, a day ahead.

It gives us great pleasure to present our first Private Equity Monitor for British Summer Time a little on the early side.

We also bid farewell to Electra Watson, who returns to university after a placement at Maitland/AMO and thank her for her contributions to this monitor.

Have a very good Easter weekend and normal service will resume next Friday.

The Maitland/AMO Private Equity Monitor Team

Worth a read

The battle to reform CGT continues...

Carried interest and its comfortable relationship with the CGT (it’s not really, see?) might be due for a rude awakening, certainly according to the former Treasury Minister, David Gauke. However this is not a move that the one time Lord Chancellor would welcome – he notes the increasing competition within Europe with jurisdictions increasingly wanting to attract private equity managers. Interestingly Gauke is critical of the Chancellor’s decision to raise corporation tax from 17%-25%  warning that “the rise will reduce investment into the UK with negative consequences for productivity, wages and salaries.”

Keeping it in the family?

Private family offices are lifting their eyes towards private equity firms in the hope of poaching some of their talent in order to give them a chance to expand portfolios with a much improved work-life balance. Executive recruiters have said taht searches among family office investors to recruit private equity talent are increasing as more family offices look to deploy increasing amounts of capital directly into private companies rather than solely through funds managed by outside firms.

Fancy a payrise? Don't mind if I do...

Certain private equity groups have raised more than $20bn in America’s leveraged loan market throguh the companies they own. In doing so they are awarding themselves a bumper payday. These dividend deals come, as fears over rising inflation pushing interest rates higher have boosted teh je ne sais quoi of leveraged loans for investors. Plenty of private equity groups have jumped on the bandwagon, taking money out of companies they own and saddling them with fresh debt before the brightening economic outlook vanishes.

Batten down the hatches Ludovic...

Ludovic Phalippou, the ubiquitous professor of finance at Oxford’s Said Business school is one of the industry’s fiercest critics. It seems that his criticism has ruffled a few feathers. The Financial Times reports that Hamilton Lane, the Nasdaq listed alternative investment manager made a “thinly disguised” attack on Phalippou. Hamilton Lane, a prominent champion of private equity presented a spoof dialogue between “Professor Pluto Haddock and an up and coming musician Baylor Slift” in its 2021 private equity report. Denying that the spoof was aimed at Phalippou, the company said simply that Professor Haddock (not Captain mind, Tintin), represented a “generic version of the various academic perspectives against the private markets industry.”

Wall of money

Capital Dynamics closes global secondaries fund

Capital Dynamics has held a final close for its latest secondaries fund at $786m, above the original $700m target, the firm said. The vehicle, Capital Dynamics Global Secondaries V (GSEC V), was launched in 2018 and it is also considerably larger than its predecessor, which closed at $564m in 2016.

Sun Capital seeks funding

Sun Capital Partners is seeking some $2.5bn for its eighth flagship fund, as the private equity firm seeks to continue growing its technology and healthcare portfolios. Sun Capital has shifted its investment focus somewhat in recent years away from the restaurant sector by pushing into healthcare and technology deals, and earlier this year formally pushed into technology as a target sector by hiring Elizabeth de Saint-Aignan as managing director.

BlackRock banks $3bn

BlackRock has raised $3bn to invest in the private equity secondary market, as the world’s largest asset manager seeks to expand its presence in illiquid alternative investments. BlackRock Secondaries & Liquidity Solutions is among the largest debut funds ever raised to buy second-hand private equity stakes.

Kartesia raises €1bn

Kartesia has held the final close on its inaugural senior debt fund at €1bn. Kartesia Senior Opportunities (KSO) I provides senior financing solutions to European small and medium-sized companies in the firm’s key markets – Spain, France, the DACH region, Benelux and the UK.

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Landmark PartnersAres ManagementBrightSphere, Landmark Investment Holdings$1.08bn31/03/2021USPrivate Markets
Pigu, HHGMid EuropaMCI.Euroventures€100m31/03/2021BalticsE-commerce
Cerba HealthCareEQTPartners GroupUndisclosed31/03/2021FranceHealthcare
Carpet & FlooringNestware HoldingsEndlessUndisclosed31/03/2021UKManufacturing
Investis DigitalInvestcorpECI PartnersUndisclosed30/03/2021UKMarketing
CorialisAstorgCVC Capital PartnersUndisclosed30/03/2021BelgiumManufacturing
Opus 2AstorgFAPIUndisclosed30/03/2021UKSoftware
Ultra Premium DirectEurazeo Brands-€68m30/03/2021FrancePet food
EverliVerlinvest-$100m30/03/2021ItalyOnline Grocery
ItivitiBroadridgeNordic Capital€2.14bn29/03/2021SwedenFintech
MFEXEuroclearNordic CapitalUndisclosed26/03/2021SwedenFinancial Services

Movers and Shakers

UK & Europe

Goldman Sachs has appointed Michael Bruun as head of private equity investment in EMEA. Bruun has been with the company since 2004 when he joined as an analyst.

KKR has appointed Vaibhav Piplapure as a managing director in its global private credit team. Previously Piplapure was co-head of specialty  finance at M&G Investments focusing on Europe.

PineBridge Investments has appointed Kate Faraday as global head of corporate responsibility, reporting directly to chief executive, Greg Ehret. Faraday has been at the firm since 2007.

North America

KKR has appointed Jim Lees as a managing director in its global private credit team. Previously, Lees was at Wells Fargo Securities where he was managing director in the ABF business responsible for overseeing new clients.

From the horse’s mouth...

“Articulating your differentiators will help you gain attention from higher quality investors” Alex Di Santo, group head of private equity at Crestbridge. 

A more ambitious agreement could have been made… It stands to reason that if you erect substantial trade barriers with your most important trading partner, thatwill have implications for the amount of trade that you do“- David Gauke, former  Lord Chancellor and Chief Secretary to the Treasury