Maitland/AMO Private Equity Monitor – 10 January 2020

10th January 2020

Worth a read


It just gets bigger and bigger

Salary and bonus payments in private equity: it’s what everyone wants to know. How big are they? Well, the Financial Times might be able provide some insight with the help of a survey by a Chicago-headquartered executive search company. Its findings make for interesting reading: over half of respondents reported an increase in base salary last year, while 77% indicated that their bonus increased in 2018. But despite some managing partners (10) collecting fees of between $112.5-$120m (whose companies run assets between $2bn and $10bn) there was harrumphing about remuneration from lower down the pecking order: nearly 2/3 of associates or senior associates felt underpaid.

2020 is the year to float - but mind how you go

Stepping through the detritus of WeWork’s IPO last year, many other so-called “decacorns” are looking to float but are treading carefully. According to Private Equity News, companies which are eyeing up a stock market are focusing more on profitability as opposed to outright revenue growth and also a greater focus on corporate governance. Similarly industry sources are drawing a distinction between real technological companies and those which are “tech-enabled”.

Let in the light

The private equity industry often gets a poor rep for its cloak and dagger style secrecy. Well, there’s now a push coming form across the pond. The Wall Street Journal reports that Allianz is throwing its substantive weight behind a campaign to ensure that private equity firms standardise how they report performance and fees as well as boosting transparency, in a bid to avoid corruption and the risk of fraud in the cash rich industry.

Climate change: it's even affecting the PE world

Australia’s tragic wildfire outbreak is affecting the way private equity firms do their due diligence. According to Private Equity International, private equity firms in Australia are increasing their due diligence processes as a result of the country’s changing climate. Carlyle Group’s portfolio company, Accolade Wines, has apparently experienced a “limited” impact to its vineyards as a result of the wildfires.


Wall of money


Platinum raises $10bn for buyouts

Platinum Equity Partners has announced that it has raised $10bn for its fifth fund despite, wrote Private Equity News, pressure from the public over its investment in prison phone operator Securus Technologies. The fund has raised more than $7bn by July and is more than 50% bigger than Platinum’s previous flagship fund ($6.5bn).

Rothschild raises latest secondaries fund

Rothschild & Co has raised €1bn for its latest secondaries fund in the European small and mid market – Five Arrows Secondary Opportunities V. The fund exceeded its initial target of €700m.

ICG raises €1bn for mid-market

London-listed Intermediate Capital Group has announced the final close of its Mid-Market fund, which will complement the firm’s flagship vintage. The new strategy is led by Gareth Knight, with support from recently appointed Peter Kirtley and Robin Molvin.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
EcoVadisCVC Capital Partners-$200m09/01/2020FranceBusiness Services
NetriskTA AssociatesMCI Group€55m, 3x return09/01/2020HungaryFinancial Services
RiemserEsteveArdianUndisclosed08/01/2020GermanyPharmaceuticals
LytxPermiraGTCR, Clearlake CapitalUndisclosed08/01/2020USTechnology
Global AttractionsAccent Equity-Undisclosed07/01/2020SwedenTravel & Leisure
KRYOTTP, Index Ventures, Creandum, Accel-€140m07/01/2020SwedenHealthcare
The Dedica Anthology hotelsCovivioVärde PartnersUndisclosed, €600m EV06/01/2020EuropeTravel & Leisure
mthreeJohn Wiley & SonsECI Partners£100m, 2.7x return06/01/2020UKEducation
Allied GlassSun European PartnersCBPE CapitalUndisclosed06/01/2020UKManufacturing
Borealis Hotel GroupThree Hills Capital-Undisclosed06/01/2020NetherlandsTravel & Leisure
Pure Cottages GroupSykes Holiday CottagesLDCUndisclosed06/01/2020UKTravel & Leisure
Metz-Amnéville zooPrudentia Capital-€25m03/01/2020FranceZoology

Movers and Shakers


Europe 

ECI Partners has promoted Suzanne Pike to partner. Suzanne joined ECI in 2011 to work on deal origination and has led the Origination Team for the past two years.

Ares Management Corporation has hired Stephane Etroy as head of European private equity from Caisse de dépôt et placement du Québec.

Intermediate Capital Group (ICG) has appointed Peter Kirtley and Robin Molvin to its mid-market origination team. They join from Beechbrook Capital and Ratos respectively.

Standard Life Private Equity has appointed Alan Gauld as lead manager of the private equity investment trust with immediate effect.

LDC has appointed Oliver Schofield as an investment director in a bid to boost its South West and Welsh teams. He joins from Goldman Sachs.

Matthew Hansen and Miroslav Boublik have set up a new private equity business: Financial Services Capital Partners. The business will invest in financial services companies in Europe.

Michael Whitman has left GSO Capital Partners, the $142bn credit unit of Blackstone Group. Mr Whitman’s departure follows a group of other senior executives who have left the company in recent years.

Barclays has hired Christian de Haaij, as vice chairman for Europe. Previously, de Haaij had been at private equity firm, Cobepa and prior to this, he was co-head of investment banking for France, Belgium and Luxembourg at Goldman Sachs.

North America 

Hamilton Lane has appointed Atul Varma as CFO and treasurer. Mr Varma had been head of business strategy and CFO of wealth management at the Bank of New York Mellon Corporation.


From the horse’s mouth...

2020 will add the uncertainty of a polarised US election which won’t be easy to navigate“- Raymond Svider, chairman of BC Partners shares his insights into challenges in 2020

“Every case over the past four years we underwrote, we assumed a recession.” – Dan Zilberman, Head of Europe at Warburg Pincus

“Judicial Pre-Raphaelites read everything, whereas judicial Impressionist read very little – often just skimming the skeleton arguments. I must … confess to being an Impressionist.” – Lord Neuberger of Abbotsbury, former president of the UK Supreme Court, born on this day in 1948