Maitland/AMO Private Equity Monitor – 31 July 2020

31st July 2020

Worth a read

A taste of their own medicine?

“The barbarians are crying foul”, wrote Sujeet Indeep of the Financial Times this week, and complaining about the actions taken by rival creditors in company restructuring during the coronavirus. The pandemic has led to a “scrambling of traditional roles” which means that private equity groups are increasingly looking to their growing credit arms to lend to distressed companies and that distressed debt investors like Elliott are starting buyout funds.

Passing the baton

The Sunday Telegraph last weekend suggested that “private equity firms must now prove their strength” and pick up where Rishi Sunak’s emergency loans left off. The article stated that buyout groups should draw comparisons with the financial crisis of 2008, where those funds who rushed in to do deals tended to do badly, but those who waited were able to provide vital capital to struggling businesses and, ultimately, provide greater outcomes for investors.

Apollo passes $400bn

The Wall Street Journal yesterday reported that Apollo Global Management’s second quarter earnings rose on the back of rising values in its private equity portfolio compared with a trickier first quarter this year during the coronavirus pandemic. The firm’s corporate credit portfolio also climbed by 7.7% as assets under management exceeded $400bn for the first time.

Investors to "stay on their toes"

The Financial Times wrote on the recent tenth anniversary of the Dodd-Frank Act which, among its lesser-known features, also forced hedge funds and private equity firms to register as investment advisers, subjecting them to the scrutiny of the SEC’s regulation. Then, last month, the SEC’s OCIE published a “risk alert” to help these firms stay on top of regulations and bring investors up to speed on areas of misconduct. While this has not led to increased scrutiny, the risk alert has highlighted the need for continued, improved transparency in fees and expenses, and an enhanced focus on strong fiduciary duties.

Wall of money

Antin closes fourth fund

Antin Infrastructure Partners has closed its largest ever fund on €6.5bn as it seeks to expand into North America. The fund beat its original target of €5.5bn and is almost double the size of the predecessor.

Carlyle goes long

Carlyle Group has collected at least $1.84bn for its latest long-lasting investment fund, according to an SEC filing. It has received commitments from at least 21 investors so far.

Azora raises €680m for hotels

Madrid-based Azora has raised €680m for a new fund focused on hotel investments around the Mediterranean, surpassing its initial target of €600m. The fund has a €750m hard-cap and will predominantly invest in Spanish leisure hotel opportunities.

Ace Management holds first close

Tikehau Capital subsidiary Ace has held a first close of €630m on a new aeronautics fund, which has received a €200m commitment from the French state. The fund is targeting at least €1bn and received €230m from Tikehau Capital.

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Master DKKR-Undisclosed31/07/2020SpainEducation
Porterhouse Medical CommunicationsWaterland Private Equity-Undisclosed31/07/2020UKHealthcare
Education First Kids & TeensPermira-Undisclosed30/07/2020SwitzerlandEducation
FinaxyArdianEquistone PartnersUndisclosed30/07/2020FranceFinancial Services
SOC TelemedShulman Ventures-backed blank cheque companyWarburg PincusUndisclosed30/07/2020USHealthcare
Noden PharmaStanley Capital-Undisclosed30/07/2020IrelandPharmaceuticals
IMABC Partners-Undisclosed, €2.9bn EV29/07/2020ItalyManufacturing
Community FibreWarburg Pincus, DTCP-Undisclosed29/07/2020UKTelecoms
Hornetsecurity GroupProvidence Strategic Growth, Verdane-Undisclosed29/07/2020GermanyCybersecurity
Leupold and SchnellerWaterland Private Equity-Undisclosed29/07/2020GermanyPackaging
Thought MachineEurazeo, British Patient Capital, SEB-$125m28/07/2020UKFintech
AbzenaBiospring Partners-$10m28/07/2020UKPharmaceuticals
AposanSanté Cie GroupIK Investment PartnersUndisclosed, 4x return27/07/2020GermanyPharmaceuticals
TeleClinicZur RoseIdinvest PartnersUndisclosed, 40% IRR24/07/2020GermanyHealthcare

Movers and Shakers


Citigroup has launched a team in London focused on equity raising for private companies and special purpose acquisition companies (or Spacs), which will be made up of five investment bankers.

Edward Green, Nassim Cherchali and Tasilo Arnhold have been promoted to partner at AnaCap and will also join the the investment committee as voting members for private equity and credit.

Placement agency BerchWood Partners has hired Vic Koetcha from Argo Capital to lead the firm’s distribution efforts across EMEA from London. BerchWood also recruited Cory Osetkowski from BNP Paribas as an associate in its New York office.

North America

TPG has hired Michael Woolhouse as a partner to launch a secondaries strategy for the firm in both the US and Europe. Woolhouse joins from CPPIB and will be based in Toronto.

From the horse’s mouth...

“Great brands are built over the long term, but private equity takes a short-term view and to hell with the consequences — running businesses very hot and stripping out costs works near-term, but leaves a hollowed-out husk.” – Peter Williams, co-founder of collapsed fashion brand Jack Wills, criticises the role of private equity in the high street’s demise

“Private equity will come back to the high street. It always does.” – Claire Madden, managing partner at Connection Capital

“The poor are discussed as this homogeneous mash, like porridge. The idea that they might be individuals, and be where they are for very different, diverse reasons, again seems to escape some people.”J.K. Rowling, British author born on this day in 1965