Maitland/AMO Private Equity Monitor – 10 May 2019

10th May 2019

Worth a read


Roll over private equity funds...

There’s nothing worse than impostor syndrome. Well, actually there is: someone telling you they can do their job better than you. Private Equity News reports that increasingly, activist hedge funds are acting a little like private equity firms. Notably, some commentators believe that there will be an uptick in the number of activists in Europe seeking to take companies private – as opposed to taking a minority stake in a public business. Others feel that having a private equity strategy is a “natural next step” for activist investors who smell blood in a company and capitalise on them. But one sticking point for these hedge fund-cum-private-equity funds is this: how long would you hold your investment for? The holding periods don’t always marry up.

Bolt-on, not buyout

And with Brexit’s uncertainty, comes a spate of bolt-on deals for private equity firms. According to Private Equity News, despite the grim triptych of Brexit, rising prices and a paucity of quality assets, the industry’s gaze has turned to smaller bolt-on transactions in order to, er, keep spending. The amount of cash invested in mid-sized deals has remained fairly even: those with an EV of between £10m and £300m held at about £9.44bn in

Slowdown? What slowdown?

And it’s all systems go according to Real Deals: European private equity investment reached an all-time high last year which confounded the Nostradamus naysayers. According to research, investment in European companies was up 7% in European companies, at a healthy €80.6bn. And insofar as fundraising is concerned, €97.3bn was committed. Full steam ahead!

But in England's green and pleasant land...

Get your passports out: private equity deals in the UK have dropped. Sticking out like a milky tea in a Mediterranean sunset, private equity investments in UK companies fell due to uncertainty surrounding Brexit. According to the Financial Times, last year, the UK became just a little bit too risky for many dealmakers. In real terms that meant that investments in UK based portfolio companies declined 12% to €16.7bn. Ouch.


Wall of money


TA Associates raises $8.5bn

The firm’s 13th private equity fund has exceeded its $7.5bn target and the size of the predecessor fund, which closed on $5.3bn in 2015. The capital for the fund, which will invest in middle-market growth companies, came mainly from existing investors.

TPG raises more than $1.5bn for tech investments

US firm TPG has raised more than $1.57bn for its Tech Adjacencies LP fund, which will be used to assist growing technology companies that don’t plan to IPO. The fund closed above its hard cap of $1.5bn.

TPG takes over Abraaj healthcare fund

The US firm has agreed to manage the $1bn healthcare fund despite criminal fraud cases against Abraaj’s senior executives. The fund will be renamed The Evercare Health Fund.

Saga Private Equity raises latest fund-of-funds

The Copenhagen-based firm has held a final close for its newest fund of €600m. It will invest in buyout funds in the micro, small and mid-markets and also target secondaries and co-investments.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Baltic Classifieds GroupApax Partners-Undisclosed09/05/2019BalticsTMT
SecureLinkOrangeInvestcorpUndisclosed08/05/2019BeneluxTMT
Sky-Futures PartnersICR IntegrityGresham Private EquityUndisclosed08/05/2019UKDrones
EuroParcsWaterland-Undisclosed08/05/2019NetherlandsTravel & Leisure
CadicaHIG CapitalGradienteUndisclosed07/05/2019ItalyRetail
GelitConsilium, Progressio, MMMConagra Brands€80m07/05/2019ItalyFood & Drink
StarfaceMaxberg Capital Partners-Undisclosed07/05/2019GermanyTMT
GPE Plast EngineeringCapiton-Undisclosed03/05/2019GermanyIndustrials
Clyde Veterinary GroupVetPartners-Undisclosed03/05/2019UKVeterinary Services

Movers and Shakers


Europe

Fortino Capital has hired Bert De Leeuw as its new Chief Financial Officer from Ackermans & van Haaren.

Livingbridge has appointed Joseph McGee as an Investment Manager. He joins from PwC.

North America

Blackstone Group has hired Tanya Barnes to lead its new impact investing unit, which will focus on the positive social and environmental outcomes and financial returns. Barnes was previously a Managing Director at Goldman Sachs Group.

 


From the horse’s mouth...

I’m not known to be a person that lets go, especially when I think that the right thing to do is to not let go.” – Andrea Orcel, former CEO designate of Santander articulates his character traits

In the UK the heat has gone off a little bit as a result of Brexit and a broader softening of the economy.” – Michael Collins, CEO of Invest Europe

To be one, to be united is a great thing. But to respect the right to be different is maybe even greater.” Bono, U2 musician born on this day in 1960