Maitland/AMO Private Equity Monitor – 8 January 2021

8th January 2021

Good morning,

Happy New Year to you all! We hope that you had a relaxing break despite the restrictions in place worldwide and that you and your families are managing to stay safe.

This week’s private equity monitor covers some of the news from the last few weeks, since we last updated you on the 18th December, so we hope you enjoy! We have also managed to fix the problems with the links, but please do let us know if any issues with these!

Finally, we just wanted to remind you of some of the other monitors produced by the Maitland/AMO on a regular basis, including:

  • Sustain Monitor – an overview of everything that is going on in the world of ESG, sustainability and green finance, led by our Head of Sustain, Zara de Belder
  • Morning Monitor – a daily overview of the financial markets, including company reporting and market moves

You can sign up for either of these at the foot of our homepage, or by emailing monitors@maitland.co.uk.

We wish you all a happy and productive start to the year!

Best wishes,

The Maitland/AMO Private Equity Monitor team

 

Worth a read


Lone Star's lockdown woes

US private equity group Lone Star is reported to have shelved the £3bn sale of its UK residential property company Quintain as a result of the worsening market conditions caused by the announcement of a third lockdown in the country. The Financial Times wrote that formal bids for the owner of the Wembley Park development site were due later this month, but that Lone Star thought it might complete a smoother transaction, for a better price, once the pandemic had eased.

Wall Street slams protests

The chief executives of some of the biggest companies on Wall Street including Goldman Sachs, Citigroup and JPMorgan, have condemned the actions of pro-Trump protestors on Capital Hill this week. According to Private Equity News, finance bosses suggested that the protests are “not who we are as a people or a country” and “squandered” any good will that had been built by the US democratic system.

The value of mental healthcare

Dutch private equity firm Waterland last week announced that it would be acquiring The Priory Group’s set of world-class mental health facilities in the UK and, through combining the business with its existing portfolio company MEDIAN in Germany, “create one of the world’s largest private mental health services providers”. The Guardian reported that Waterland, recently named Europe’s leading private equity firm, would acquire the business from Acadia for approximately £1.1bn.


Wall of money


Ares breaks European private credit records

Ares Management’s latest credit vehicle focused on European investments has smashed through the record for funds of its type. The firm reported collecting almost $11.01bn for the fund so far from 207 investors in a Securities and Exchange Commission filing on Wednesday, 30 December 2020.

AlpInvest raises $9bn

Carlyle’s secondaries and fund of funds investment arm AlpInvest Partners has raised more than $8bn for its seventh secondaries fund, also raising the hard cap to $9bn. The Dutch firm said that it had also raised $1.2bn for co-investment opportunities alongside the fund.

BlackRock Scales Back

BlackRock planned to shake up the private equity world with a $12bn fund. Now the asset management giant is setting its sights lower. BlackRock’s staffers conceded the target was unrealistic after struggling to meet fundraising goals. The firm’s staffers hope to grow the fund to between $4bn and $6bn in assets over time.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Careismatic BrandsPartners Group-$1.3bn07/01/2020USHealthcare
DWSInflexion-Undisclosed, €1bn EV07/01/2020UKTMT
Liva HealthcareVerlinvest-€24.5m07/01/2020DenmarkSoftware
German logistics assetsCarlyleNuveen, PalmiraUndisclosed07/01/2020GermanyReal Estate
WJ GroupTHI Investments-Undisclosed07/01/2020UKConstruction
ProphixHg-c. $500m06/01/2021CanadaSoftware
WoleselyClayton, Dubilier & RiceFerguson plc£308m04/01/2021UKUtility
PRGX GlobalArdian-$195m04/01/2021USSoftware
Lomond Capital and Linley & SimpsonLDC-£100m04/01/2021UKReal Estate
LSAIK Investment PartnersBlackFin Capital PartnersUndisclosed04/01/2020FranceFinancial Services
Priory GroupWaterland Private EquityAcadia Healthcare£1.08bn30/12/2020UKHealthcare
Valoria CapitalIK Investment Partners-Undisclosed22/12/2020FranceFinancial Services
Lab SpaceBlackstone Group-$3.45bn21/12/2020USLife Sciences
ZipariThoma Bravo-Undisclosed21/12/2020USHealthcare

Movers and Shakers


Europe 

Vincent Gombault has stepped down from his role as head of fund of funds and private debt at Ardian after more than two decades with the firm. Dominique Senequier will take over the role, supported by a management committee of seven senior employees.

TA Associates has promoted its managing partner Ajit Nedungadi to CEO amid a string of global promotions.

Aksia has hired Chris Thorne as a managing directorfor private equity and real assets research.


From the horse’s mouth...

For the private equity industry, ESG will need to become a vital tool for building responsible businesses, rather than being a box-ticking exercise to keep stakeholders happy” – Pawel Gierynski, managing partner of Abris Capital Partners gives his outlook for the industry 

“We only have to look at ourselves to see how intelligent life might develop into something we wouldn’t want to meet.” Stephen Hawking, English theoretical physicist born on this day in 1942