Maitland/AMO Private Equity Monitor – 30 July 2021

30th July 2021

Worth a read


Hybrid work in private equity

Private Equity News features a by-line by Steven Tredget, a partner at Oakley Capital. In the piece, Tredget writes on how hybrid working (bear with) really works in the private equity world. He notes that it is a challenge for the sector to integrate remote and flexible working practices into the more  traditional ways of doing business. However he also sees a clear opportunity for hybrid work model to benefit the sector particularly in terms of efficiency, reach and accessibility. He also makes the point that it could help to make private equity more inclusive and diverse.

Silchester says no

In typically blustering form, This is Money heralds the rejection of Silchester, Morrisons’ largest shareholder of the bid led by Fortress because it was “too low”. Silchester said that Morrisons was already releasing value from its freehold estate and that the core supermarket business is “strong and respected”. The piece notes that Silchester’s move is likely to spark a bidding war with CD&R likely to return with a higher offer before the deadline of 9 August.

Rugby to the private equity scrum

The Financial Times reports that rugby union is looking to capitalise on its increased popularity at the Olympic Games by starting discussions for private equity investment worth hundreds of millions of pounds in order to fund the sport’s global growth. The CEO of World Rugby had begun talks with a range of private equity groups over an investment deal for commercial rights, though cautioned that discussions were at an early stage and they could shunt equity for debt instead.

What to do if you want to remove your GP?

Following the well publicised blow-up between the founders of Novalpina Capita and its potential breakup, Private Equity International takes a look at what steps LPs need to take if they want to remove GPs. Points to note include scouring the LPA agreement for a relevant clause for the removal of a GP; querying whether the GP as structured is the best group to manage the assets; and negotiation a range of points including matters like  the contractual cost of removal, tax, expenses, and of course,  reputational risk


Wall of money


Idinvest closes fifth fund

Eurazeo has held a final close for Idinvest Private Debt V on €1.5bn, exceeding its EUR 1.2bn target. The vehicle was launched in 2019 and went on to hold a first close on €200m in December 2019. Its predecessor, Idinvest Private Debt Fund IV, closed in May 2018 with total commitments of €715m. The piece notes that the Silchester’s move is likely to spark a bidding war with CD&R expected to revert with a higher offer before the deadline of 9 August. We wait and see.

Special sits for Tikehau

Tikehau Capital has closed Tikehau Special Opportunities Fund II (TSO II) on €617m, exceeding its initial target of €500m. TSO II is four times the amount raised by its predecessor and has already deployed more than 50 per cent of its commitments.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
ACTBridgepointTHCPUndisclosed30/07/2021BelgiumEnergy
Restaurant Brands IberiaCinven-€1bn28/07/2021SpainFood & Drink
Reedy IndustriesPartners GroupAudax Private EquityUndisclosed27/07/2021USIndustrials
WonderblyGraphite Capital-Undisclosed27/07/2021UKPublishing
Smile Eyes GroupTrilantic Europe-Undisclosed26/07/2021GermanyHealthcare

Movers and Shakers


UK & Europe 

Alderwood Capital has appointed Olive Darragh and Neil Cochrane as independent chairs.

Bridgepoint has appointed Archie Norman, Chairman of Marks & Spencer, to its board.

 


From the horse’s mouth...

Dry powder in private equity and private debt funds remains at an all-time high, which should further support sponsor-related dealmaking.” – Amanda Lynam, MD and senior credit strategist at Goldman Sachs

It’s early days, we have several more years to go, but suffice it to say that initial feedback is positive. And we very much are focused on the plus of that $130bn-plus target we laid out for you” – Carlyle Group CEO, Kewsong Lee on the firm’s second quarter earnings

“Honest people don’t hide their deeds” – Emily Brontë, English author born on this day in 1818