Maitland/AMO Private Equity Monitor – 14 January 2022

14th January 2022

Worth a read

PE may be best option for Boots

The FT’s Cat Rutter Pooley opines on the news that has emerged this week that private equity could be a potential buyer of Boots given the lack of potential strategic trade buyers. She suggests that there are several fixes that need to be made at the business, including a greater focus on e-commerce, which private equity buyout firms may be best suited to resolve, while taking into account the reputational issues that can arise from such a “national treasure”.

Public PE fee shift

The Financial Times reports this week on the “tectonic shift” signalled by TPG’s upcoming IPO in relation to the slice of performance fees given to shareholders. TPG is restructuring its finances as part of the IPO to offer just 20% of its performance-based profits (down from 50%) but more from steadier management fees. According to Saul Goodman, head of alternative asset management at Evercore, “it is the new standard”.

Supermarket sweep on the cards?

A comment piece in the Evening Standard looks at the potential for further M&A activity in the UK supermarket sector after finding out the winners and losers in the Christmas period. According to an analyst, Sainsbury’s presents a “complex” buyout for any private equity firm, but other recent deals in the space could provide a useful blueprint for the merits. The author suggests that private equity ownership is creating more opaque businesses and that they will choose where to buy groceries based on the ownership structure.

Wall of money

Hg targets nearly $15bn

London-based Hg is set to target $14.75bn for two new buyout funds, less than two years after it secured close to $10bn for the same strategies. The firm has a target of $8.5bn for its latest large-company buyout fund, Hg Saturn 3, and $6.25bn for Hg Genesis 10 which focuses on midsize businesses.

Goldman closes Petershill IV

Goldman Sachs Asset Management has made a final close of its Petershill IV fund, the fourth vintage of its GP stakes growth-focused private equity funds. The firm said the fund had been oversubscribed with commitments mostly coming from institutional investors.

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Duvenbeck GroupWaterlandThomas DuvenbeckUndisclosed14/01/2022GermanyLogistics
Capstone PartnersMizuho Americas-Undisclosed12/01/2022The USFinancial Services
Danx; Carousel LogisticsAxcel-Est. DKK 1bn12/01/2022DenmarkLogistics
RedstorBregal MilestoneBeech Tree Private EquityUndisclosed11/01/2022UKData/Software
RoslinCTGHO Capital-Undisclosed11/01/2022UKBiotechnology
Ruf GroupWaterlandNord HoldingUndisclosed10/01/2022GermanyFurnishings
Travel ChapterICGECIUndisclosed10/01/2022UKConsumer and Leisure

Movers and Shakers

North America

KKR has hired Ryan Stork as its new chief operating officer. He has previously spent two decades at BlackRock, where he most recently served as deputy chief operating officer and held senior roles such as chairman of Asia Pacific.

UK & Europe

Palatine has promoted Richard Thomas and James Gregson as new partnersThomas will lead Palatine’s Midlands office and business services sector, and was Palatine’s investment director prior. Previously, Gregson has led the company’s maiden exit from Estio Training. Other promotions of senior executives includes Tom Ross-Jones, now senior portfolio director, and Gareth Wilson as senior strategic growth director.

IK Partners has appointed Pete Wilson to launch its UK mid-cap strategy. Wilson was previously at 3i Group for 15 years, where he became a partner and was head of UK private equity. IK has also promoted 5 individuals to new partners – Thierry Aoun, Maria Brunow, Vincent Elriz, Antoine Jacquemin, and Diki Korniloff.

From the horse’s mouth...

“Fun is everywhere. The non-fun is trying to work out how ESG is BP relative to Shell.” – Crispin Odey, London-based hedge fund manager

“I regret so much. I’ve made mistakes. I’ve hurt people. I’ve done things I’m not proud of. But on the other hand, that way lies madness, you know?”Faye Dunaway, American actor born on this day in 1941