Maitland/amo Private Equity Monitor – 5 August 2022

5th August 2022

Worth a read

Buyout debt stuck on Wall Street

The Financial Times reports that Wall Street investment banks have been stuck with tens of billions of dollars of debt for private equity deals which have since stalled due to economic conditions and the slowdown in deals. This has, however, been a great bonus for private credit firms, according to the CEO of Carlyle.

KKR to offer equity research

The Wall Street Journal writes that KKR has agreed to team up with Loop Capital Markets, whose equity-research team will be available to cover the buyout firm’s portfolio companies and other private clients going public. KKR hopes that the partnership will increase the number of new equity-capital assignments it can win outside of its portfolio companies, according to Adam Smith, co-head of credit and capital markets at the firm.

Athene boosts Apollo earnings

Reuters writes that Apollo Global Management Inc reported a 13% rise in second-quarter earnings on Thursday, as income from its annuities provider Athene more than compensated for a decline in asset sales amid a slowdown in dealmaking. Apollo recorded an adjusted net income of $566 million in the three months to June 30, up from $501.8 million a year ago. This missed the average analyst estimate of $655.5 million of adjusted net income, according to Refinitiv data.

Secondaries boom

Institutional Investor reports that the private equity secondary market is booming as investors recalibrate their portfolios. The value of PE secondary transactions reached $57 billion in the first half of 2022, breaking the previous first-half record of $48 billion in 2021, according to the latest global secondary market report by Jefferies. The firm estimated that total PE secondary transaction volume will surpass $120 billion by the end of the year.

Wall of money

Apollo Launches $15 Billion Equity Fund for High Net-Worth Investors

Apollo Global Management is launching an equity fund for high net-worth individuals to invest alongside the firm, aiming to raise $15bn. The fund is designed to replace public equity investments by offering exposure to lower-volatility private ones, targeting returns similar to assets held by its Athene insurance unit. It has also raised $13bn for its flagship buyout fund, stating that the fund has attracted more than half of the $25bn goal it hopes to raise by year end.

ICG closes European Corporate fund on EUR 8.1bn

ICG has raised €8.1bn for the eighth vintage of its flagship European Corporate fund, exceeding its €7bn target and doubling its predecessor from 2018, which raised €4.5bn. The fund will follow its predecessor’s strategy and make debt investments in European midmarket companies. Its tickets will be in the range of €100-700m in 15 to 25 European midmarket companies with enterprise value of €300m to €3bn.

Tikehau holds EUR 3.3bn final close for TDL V

Tikehau Capital has held a final close for Tikehau Direct Lending V on its €3.3bn target, a 57% increase versus its previous vintage. The fund was launched at the end of 2020 to provide bespoke financing options for European SMEs. Its H1 2022 results also shows that net new money for Tikehau’s asset management activities amounted to €3.2bn, a 36% increase compared to the €2.4bn fundraising in H1 2021.

Deal chart

Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Maritime IntelligenceMontaguInformaUndisclosed04/08/2022UKData analytics
Sill OpticsDPEPinovaUndisclosed04/08/2022GermanyElectrical Components
Ashleigh & BurwoodLiteracy Capital-Undisclosed04/08/2022UKRetail/Consumer
TractelAlimak GroupCinven€500m03/08/2022LuxembourgIndustrials
AqualisaFortune Brands Home & SecurityLDC£130m02/08/2022UKConstruction & Materials
Skills AlliancePalatine-Undisclosed02/08/2022UKRecruiter
Agar ScientificMolecular DimensionsForesightUndisclosed02/08/2022UKScience research
Gommatex SpalmatiAksia-Undisclosed02/08/2022ItalyTextiles
AvintyMain CapitalGilde EquityUndisclosed02/08/2022The NetherlandsSoftware/Healthcare
VacanceselectEuropean Camping GroupPermira€1bn01/08/2022FranceTravel/Leisure
FootasylumAureliusJD Sports€45m01/08/2022UKRetail/Consumer

Movers and Shakers

UK & Europe

Carlyle Group has said that Christopher Finn is stepping down as chief operating officer at the end of the year. Finn, who was named COO in March 2019, is also a member of several of the firm’s investment committees and led Carlyle’s European expansion from London. He joined the firm in 1996.

3i has appointed Trevor Russo as vice president for its North America infrastructure team, based in New York. He joins the London-based firm from Ironwood Capital, where he was a director.

Crestbridge has hired Anne Catherine Grave as head of Luxembourg with responsibility for leading the business in the region.

Gautier Martin-Regnier has left Morgan Stanley after nine years at the bank. He was managing director at its global capital markets division covering equity solutions and equity-linked offerings in EMEA. It is understood that Martin-Regnier will be taking a senior role at an unnamed sovereign wealth fund.

Xavier Lagache, head of EMEA equity-linked, has left Deutsche Bank after more than a decade in the role. It is not yet known when a replacement will be announced.

From the horse’s mouth...

“The traditional bank-financing and high-yield markets are effectively shut at the moment, It’s why you’re seeing an even higher demand for private credit than ever before.” – Kewsong Lee, chief executive of Carlyle 

“I believe every human has a finite number of heartbeats. I don’t intend to waste any of mine.” – Neil Armstrong, American astronaut and aeronautical engineer, born on this day in 1930.