Maitland/AMO Private Equity Monitor – 11 October 2019

11th October 2019

Worth a read


And we're back! Faster than ever

Tempus fugit. Well, funds are catching up with Virgil’s Georgics: according to Private Equity News, buyout groups are bringing new funds faster than ever much to the immense frustration for limited partners. It’s a challenge for the limited partner world: money is raised quickly and you as a LP need to run along and dedicate the requisite amount of time for due diligence.

What starts off with $400,000 and grows to $60bn?

Blackstone is your answer. Private Equity News interviews co-founder, Stephen Schwarzman, on a recent trip to London and discusses Brexit, that we are not in a private equity bubble – but we were in 2006/2007; and the security blanket that public listing provided for the company. Interestingly, Schwarzman also suggested that the firm’s London operations would continue to grow at the same rate, despite the uncertainty of Brexit and the UK’s unstable government.

Fund managers fees are falling - but not in private equity

It’s not always a good thing to be in trend: feeds fund managers are charging large institutional clients like pension funds are steadily decreasing – but private equity firms are bucking that trend according to a survey in Private Equity News. The general consensus is that private equity firms’ resilience to fee pressure is in large part due to a strong fundraising climate.

The funds that keep on growing

Reuters reports about the seemingly inexorable growth of private equity firms in the first nine months of this year: so far they have raised nearly $191bn which is nearly as much as in the whole of 2018 according to Pitchbook. The article notes that the impressive fundraising demonstrated that investors believed concerns about an economic downturn would create the perfect opportunity for buying opportunities for funds with sufficient cash reserves.


Wall of money


One Equity raises $1.75bn

Mid-market firm One Equity Partners has raised $1.75bn for its second fund since spinning out from JPMorgan Chase. This made it marginally larger than the first fund, which closed on $1.65bn in 2017. This latest fund brings AuM to $6.5bn.

Partners lists private debt fund on ASX

The Switzerland-based private equity firm has raised 550m Australian dollars for a private debt investment trust listed on the Australian Securities Exchange, allowing non-institutional clients the opportunity to invest in global private debt. The fund will invest predominantly in first lien loans, as well as second lien, subordinated and special situations debt.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Scandinavian Cosmetics GroupAccent EquityAurelius Equity Opportunities€60m10/10/2019DenmarkCosmetics
Saal DigitalArdian-Undisclosed10/10/2019GermanySoftware
EOP buildingsVariousBlackstone Group$7bn in profit09/10/2019VariousReal Estate
Nationwide HireLivingbridge-£15m09/10/2019UKIndustrials
Goal SystemsThree Hills Capital Partners-€45m08/10/2019SpainTransport
StaciArdianCobepaUndisclosed08/10/2019BelgiumLogistics
KB AssociatesECI Partners-Undisclosed07/10/2019IrelandProfessional Services
PharmaspectraInflexion Private Equity-Undisclosed07/10/2019USData Analytics
Vermaat GroepBridgepointPartners Group€790m07/10/2019NetherlandsFood & Drink

Movers and Shakers


Europe 

Dr. Sven Harmsen is joining Raymond James’s European banking arm as managing director. Previously, Harmsen was at Robert W. Baird.

Goldman Sachs has hired Melissa Plaza-Marriott from the financial sponsors team at Morgan Stanley to be based in London.

Alex Wilby will join UK buyout firm Epiris as an investment manager. Previously Wilby was with LDC – the private equity arm of Lloyds Banking Group.

Intermediate Capital Group has announced the appointment of Frank Heiss from Swiss Life Infrastructure Investments to originate infra deals in the DACH region.

Maven Capital Partners has hired David Nixon who joins from RG Corporate FinanceNixon will be based across the company’s Newcastle and Durham offices.

Altamar Capital Partners has appointed Carlos Gazulla as managing director of its private equity research and investment team. Previously, Gazulla was a partner of Realza Capital’s investment committee


From the horse’s mouth...

We don’t have a gender pay gap at Blackstone. I have always been a great believer that it’s a merit-based firm, and talent wins” – Stephen Schwarzman talking about the gender pay gap and lack thereof at Blackstone

One of our biggest frustrations is the time between fundraising… we are absolutely seeing groups come back to market very quickly. The ones that have done well are having compressed fund raising timelines… that is a real challenge for us in the limited partner community” – John Dickie, co-head of private equity in the US for Aberdeen Standard Investments explains the problem limited partners face with buyout groups coming to market faster than ever

“No one can make you feel inferior without your consent” – Eleanor Roosevelt, political activist and First Lady of the USA born on this day in 1884