Maitland/AMO Private Equity Monitor – 10 September 2021

10th September 2021

Worth a read

IPEM returns in 2021

This week saw the physical return of one of the world’s largest industry conferences, IPEM, where thousands of private capital professionals gathered to network and discuss the latest trends in the perennially blooming alternative assets sector. Maitland/AMO was delighted to be asked to join as one of the partners for the conference, helping to interview leading professionals, such as Mathieu Chabran, Co-Founder of Tikehau Capital, in the link provided.

Petershill and Permanent Capital

Goldman Sachs this week announced that it was planning to list offshoot Petershill Partners in London at a valuation of around $5bn, giving “anyone with a broking account” access to the firm’s strategy of acquiring stakes in private equity and hedge fund GPs. The Financial Times’ Lex column argues that, despite the stock market being an “unfashionable” source of capital, its permanent nature is the holy grail for investors in these markets, with Apollo and Pershing Square among those rapidly growing AuM through permanent capital sources.

Direct lending dominates private debt

According to an article by Private Equity News, private debt strategies are experiencing something of a resurgence in the wake of the coronavirus pandemic (much as they did post-GFC) and, of all the private debt strategies, direct lending is proving by far the most popular for GPs and their investors. In the first half of this year, private debt funds raised nearly $78bn, with 57% going into direct lending strategies.

Hedge funds into the Valley

A Goldman Sachs report has shown that hedge funds are now turning more to private than public investing, in a bid to take advantage of the supposed superior return profile enjoyed by private equity and venture capital firms amid weakening valuations and soaring levels of dry powder. The report found that hedge funds have done 770 deals so far this year, already beating the record number set in the whole of 2020, when 753 deals reached a total of $96bn. Just under 75% of this year’s agreements were “venture” bets on younger companies.

PE eating up VC deals

And if things weren’t bad enough for traditional venture capital funds with hedge funds muscling in on the action, PitchBook has found that private equity firms have ramped up their exposure to startups and are participating in more than half of all US venture capital deals by value, up from 36.9% just two years ago. The article suggests that this is due to a great return environment for VC, but also a blurring of the lines between VC and PE growth investment over recent years.

Wall of money

H.I.G. Capital raises €2bn for Middle Market LBO Fund

H.I.G. Capital raises €2bn for Middle Market LBO Fund. The new fund will look to back larger companies, targeting businesses with values up to €1bn primarily in Western Europe.

Amundi launches private debt impact fund

Amundi has launched the fourth iteration of its senior debt strategy with a first close at €650m. It will offer investors exposure to private senior corporate debt financing for mid-caps in France and wider Europe.

EQT Ventures launches third fund

EQT Ventures has registered its third fund less than two years after the final close of its €600m predecessor. The fund is registered as a Luxembourg domiciled vehicle.

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
HRA PharmaPerrigo CompanyAstorg and Goldman Sachs Asset Management€1.8bn09/09/2021FranceHealthcare
True PotentialCinven-c.£2bn09/09/2021UKWealth management patform
Gravity GlobalElysian Capital-Investment - undisclosed09/09/2021UKDigital marketing
T-Mobile NetherlandsApax Partners and Warburg PincusDeutsche Telekom AG and TEle2 ABUndisclosed07/09/2020UKTelecommunications
European Camping GroupPAICarlyle GroupUndisclosed06/09/2021FranceTravel & Leisure

Movers and Shakers

UK & Europe

Ashim Paun has been appointed head of sustainable investing at Triton. Most recently, he was employed as a managing director at HSBC Global Research.

Perwyn has hired Mike Rothwell as an associate in its growth capital team. Rothwell joins from BDO, where he was a senior manager on the M&A TMT team.

YFM Equity Partners has appointed Gavin Chadwick as portfolio director. Chadwick joins YFM from Ardenton Capital, where he served as director of strategic development.

From the horse’s mouth...

“There’s an ongoing trend of lines blurring in portfolios, asset classes are increasingly converging”Diana Dieckman, Goldman Sachs’ global head of capital introduction in prime services

As poetry is the harmony of words, so music is that of notes” – Henry Purcell, English composer, born on this day in 1659