Maitland/AMO Private Equity Monitor – 4 June 2021

4th June 2021

Worth a read

Where Canada leads, the rest should follow

In an environment where both equity and fixed income (even at the riskier junk bond end) markets are delivering smaller returns, the Financial Times suggests that institutional investors should follow the “Canadian model” and hire teams in-house to capitalise on juicier asset classes like private equity and infrastructure. Partners Capital estimates that the five biggest Canadian pension plans have averaged annual returns of almost 10% over the past decade,  well ahead of the 7.3 per cent average for US endowments.

Creative cats

Private Equity News this week featured a profile of Vania Schlogel, the founder of private equity firm Atwater Capital, which is known for its early bets on companies in the creative industries. Private equity has not historically got involved in the media and entertainment sectors but Schlogel, whose previous roles include CIO at Jay-Z’s entertainment agency, saw an underserved industry in which she could specialise and deliver returns for investors. In the article, Schlogel also discusses the difficulties navigating the male-dominated PE industry as an openly gay female.

Take the good with the bad

In an opinion piece for The Daily Telegraph, Ben Wright suggests that critics of private equity should take a long look at the companies buyout firms are snapping up, many of which wouldn’t survive without the capital and leadership the industry provides. He argues that the reduction in the number of public companies has done little to dent the success of the economy in the UK and that private companies are often better managed away from the spotlight of public markets.

The PEI 300

Private Equity International this week released its latest annual PEI 300 list, which showed little impact from the pandemic on fundraising. The 300 firms on the list raised a record $2.25 trillion between them over a five-year period, a 13% rise on last year’s list. The list was once again topped by Blackstone with a five-year fundraising total of $93.2 billion.

Wall of money

TA Associates closes its latest growth fund at $12.5bn

Boston based TA Associates has just completed fundraising for its 14th flagship growth fund at $12.5bn, comfortably above the firm’s $10.5bn target The sum raised is also roughly 47% larger than a predecessor fund which closed two years ago.

Bain Capital Ventures closes two funds at a cool $1.3bn

Bain Capital Ventures, the venture capital arm of Bain Capital has closed two new funds worth a combined $1.3bn that will focus predominantly on early-stage startups, as it continues to do the opposite to TA Associates – and pivots away from growth investments.

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
EmployBridgeApollo Global Management Inc.-Undisclosed03/06/2021USHR
A Bathing ApeCVC Capital PartnersI.T. GroupUndisclosed03/06/2021JapanConsumer Goods
CelonisDurable Capital Partners, T Rowe Price-led round-$1bn02/06/2021USSoftware
Frontier Medical GroupAgilitasKesterUndisclosed, 3.4x return02/06/2021UKHealthcare
PlanetEurazeo, AdventEurazeoUndisclosed, 2.5x return01/06/2021IrelandFintech
ICP EducationOakley Capital-£27m01/06/2021UKEducation

Movers and Shakers

UK & Europe

UK-headquartered Chiltern Capital has made four hires, with Andrew Symmonds and Philip Weston joining as partners and Laura Yell and Zerxis Billimoria as investment associates.

North America

Former State Department Iran envoy Brian Hook has joined private-equity firm Cerberus Capital Management to help oversee international investments.

From the horse’s mouth...

“Over and over again, it’s been shown that if there’s greater diversity, there are greater commercial results. It just shows me that we talk and talk in private equity, but we don’t actually challenge our implicit biases.”Vania Schlogel, founder of Atwater Capital

“In that search for alpha there is a huge amount of liquidity that has driven a lot of focus on private markets. The traditional PE houses… are looking to increase allocations.” – Will Jackson-Moore, global head of private equity at PwC

Consistency for me is everything” – Alexei Navalny, Russian political activist and leader of the Progress Party, born on this day in 1976