Maitland/AMO Private Equity Monitor – 5 October 2018

5th October 2018

Worth a read


Show me the money. And the machines

According to Private Equity News, private equity firms are increasingly turning to data science and algorithms to drive investments and scrutinise strengths and weaknesses in target companies. The challenge for private equity looks to be finding the balance between the traditional human relationship and the obvious benefits of machine learning.

 

Private equity a safer bet than stocks

A recent American study sampled nearly 500 of Blighty’s own private equity backed companies with non private equity backed peers of a similar size and profitability. The reason for the UK’s inclusion? In the heady days of 2008 (the period selected by our American academics) private equity owned assets represented a whopping 11% of GDP. Anyway the upshot was that PE-backed companies recovered more quickly from the financial crisis and also hogged a greater market share than their non PE-backed rivals. Perhaps it’s time to open investment up to retail?

Electra calls it a day

UK based listed investment trust, Electra Private Equity is hanging up its boots and is winding up its portfolio of assets. Reports have circulated that the firm intends to sell its shares in online photo printing company Photobox Ltd and Knight Square Ltd to American peer, Lexington Partners for a premium. The decision to sell up is the final coda to the campaign begun by veteran activist investor, Edward Bramson, who had been on Electra’s board since 2015.

George Soros spins out private equity team

Soros’ family office has said it will spin out the private team, which currently oversees about $2bn of assets, with a pledge to allocate up to $2bn in extra capital, notes Bloomberg. The new firm is yet to be named but plans to raise money from other external investors. The move to offload the private equity business is part of a large refocusing of the business taking place under recently appointed CIO Dawn Fitzpatrick.


Wall of money


Epiris closes first buyout fund

Epiris has closed its first buyout fund since splitting from Electra Private Equity in late 2016, raising £821m in a little less than a year. It has announced four investments from the fund in the past nine months, including the acquisitions of Bonhams and The Club Company.

Keensight targets €750m for next private equity fund

Paris-based Keensight Capital is said to be targeting €750m for its fifth buyout fund, a substantially higher figure than the €450m raised for the previous vehicle. Keensight was spun out of the Rothschild banking group in 2013 and is able to make minority investments for its portfolio.

Guy Hands jumps into the deal raising pool

Guy Hands has created a new fund to make deals as a beneficiary of the flourishing fundraising market. The fund has been launched alongside Metric Capital and Sun Hung Kai, a Hong Kong based investment firm and is called Terra Firma Special Opportunities Fund IV.

Forbion closes fourth fund on €360m

Life sciences venture firm Forbion has announced a final close of €360m for its fourth fund, beating the hard-cap of €350m and almost doubling the size of its predecessor.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
ClarusBlackstone Group-Undisclosed05/10/2018USFinancial Services
Parmaco OyTerra Firma Capital Partners-€400m04/10/2018FinlandReal Estate
Kaarli HambapolikliinikBaltCap-Undisclosed04/10/2018EstoniaHealthcare
Wheelabrator Technologies IncMacquarie Infrastructure PartnersEnergy Capital PartnersUndisclosed03/10/2018USTMT/Infrastructure
DoblaCarlyle-€150m - €200m03/10/2018HollandCatering
Ink LtdThe Stagwell GroupEndless LLP7.7x return03/10/2018UKTravel Media
Inula GroupArdianVendis CapitalUndisclosed03/10/2018BelgiumHealthcare
Ticketer LtdTenzing PE Ltd-Undisclosed03/10/2018UKTransport / TMT
JSB GroupGuritVerdane Capital€69.7m, 4.4x return02/10/2018DenmarkAerospace
Planet OrganicInverleith-Undisclosed02/10/2018UKFood & Drink
Transnorm GroupHoneywell InternationalIK Investment Partners€425m, 6x return01/10/2018GermanyManufacturing
Caris Life SciencesTPG-$150m01/10/2018USHealthcare

Movers and Shakers


UK & Europe

Apollo Global Management has recruited ex-Barings Head of EM Corporates Brigitte Posch to lead its EM Debt business from London.

LDC has announced the hires of Lee Donaldson and Dolores Noriega as Investment Director and Investment Manager from RBS and JP Morgan respectively.

A number of promotions and appointments have been announced by Omnes Capital in its mid and small-cap buyout teams. Frédéric Mimoun has been promoted to Senior Director of the small-cap buyout team and is joined by Victor Versmée from BNP Paribas. Céleste Lauriot-dit-Prévost has joined as an Associate in the mid-cap team.


From the horse’s mouth...

“You’ll have to excuse me if I cough during this speech; I’ve been up all night supergluing the backdrop.” –  Theresa May at the Conservative Party Conference 2018

“It’s a historical mistake to ask people ‘yes’ or ‘no’ on something even the political and business elite only partially grasps.” – David de Rothschild, former chairman of N M Rosthschild & Sons, on David Cameron’s decision to hold the Brexit referendum in 2016

“We must play as if there are no more games, no more tomorrows.” – Jock Stein, football manager in charge of the 1967 “Lisbon Lions” Celtic team that won the European Cup, born on this day in 1922