Maitland/AMO Private Equity Monitor – 8 March 2019

8th March 2019

Worth a read


Patisserie Valerie: Back on track?

Causeway Capital, the private equity firm backed by Irish state and EU investment funds, has insisted that it has the skill and money to rebuild Patisserie Valerie, despite sacking top management just days into its buyout. The firm told the Financial Times that it has already turned 96 stores to profit and has capital ringfenced for future acquisitions.

EQT to ESG

Jan Stahlberg, one of the co-founders of Scandinavia’s biggest private equity group EQT, has left the firm to set up his own fund focused on socially responsible investing. He has already raised up to €500m from Nordea, according to the Financial Times, reflecting the recent trend for funds that invest in companies that help to address social or environmental issues.

Minority report

The Financial Times reports that private equity firms are increasingly turning to their rivals to sell down minority stakes in order to raise capital to support acquisitions and fund technology investments. The trend is said to have accelerated as a result of the emergence of players dedicated to buying portfolios of minority stakes.

Regular reviews approach post-Abraaj

The Dubai Financial Services Authority (DFSA) has said that it is reviewing its approach to corporate governance after the well-documented fall of Abraaj Group last year. Private Equity News notes that the the DFSA was criticised after its muted response to dealing with the firm’s issues.


Wall of money


Summit Partners raises $4.9bn for latest flagship fund

Summit Partners has raised $4.9bn for its latest growth fund, Summit Partners Growth Equity Fund X. Summit itself has contributed $400m of its own money, making it the single largest investor. The $4.9bn total exceeded both a $4bn target and the $3.3bn raised for the previous growth fund in 2017. Summit plans to invest between $75m and $300m to take minority or majority positions in North American companies.

Siris Capital closes fund at $3.45bn

Siris Capital Group has closed its latest buyout fund, Siris Partners IV, raising $3.45bn. Siris Partners IV is over 90% larger than the previous fund, $1.8bn Siris Partners III, which closed in 2015.

Providence aiming for $2bn close by March

Providence Strategic Growth (PSG) – an affiliate of Providence Equity Partners – is looking to raise $2bn for its fourth fund, expected to close in March. The firm’s previous fund closed in June 2018 on $1.3bn.

Quinbrook closes low carbon fund

Quinbrook Infrastructure Partners has said that it has closed its Low Carbon Power Fund with more than $1.6bn in investor commitments. Its investors are mainly pension funds from the UK, US and Australia.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Grupo Ibérica de CongeladosPlatinum EquityPortobello Capital€600m07/03/2019SpainFood & Drink
Kempf GroupSteadfast Capital€50-100m07/03/2019GermanyAutomotive
MHB BankRaisinLonestar Private EquityUndisclosed07/03/2019GermanyFinancial Services
Morgan Motor Co.InvestindustrialUndisclosed06/03/2019ItalyAutomotive
MERA GroupOne Equity Partners'Undisclosed06/03/2019SwitzerlandSoftware
Calvi GroupDeA CapitalChini familyUndisclosed06/03/2019ItalyMetals & Mining
WefoxMubadala Ventures$125m06/03/2019GermanyInsurance
Evonik Industries' methacrylatesAdvent International€3bn05/03/2019GermanyChemicals
Inseec UCinvenApex France€800m05/03/2019FranceConsumer
Nordam GroupCarlyle Group$140m05/03/2019United SraresAviation
eSentire IncWarburg Pincus$47m05/03/2019CanadaCybersecurity
CCS Healthcare HoldingKiiltoClean GroupSegulahUndisclosed04/03/2019SwedenHealthcare
SviperModern Times Group/Global Founders Capital£2.8m01/03/2019GermanyToys
Times Higher EducationInflexion Private EquityTPG Capital£80m est01/03/2019UKPublishing

Movers and Shakers


Europe

Brian Saunders has left Cerberus European Capital Advisors and joined Atlas Merchant Capital to lead its UK and European business.

Kartesia has appointed Giuseppe Mirante as its Head of Credit Opportunities for the DACH region. He joins from H.I.G. Bayside.

Holland Capital has hired Margot Engels as a partner to focus on the healthcare sector

Volpi Capital has hired Erik Berggren as a senior associate. Berggrenjoins from Arma Partners.

North America

Sean Epstein has been named SAP‘s global head of private equity. Prior to this, Epstein led SAP’s Private Equity team in EMEA and Greater China as well as the global PE M&A programme.

Other

Kate Richdale, a senior banker at Goldman Sachs, is due to join KKR to lead strategy and business development in Asia.


From the horse’s mouth...

The truth is that a growing number of firms face the challenge of succession planning as founding partners approach retirement” – Hugh MacArthur, head of Bain’s PE practice on succession planning 

“I’m a terrified dinosaur” – Jorge Paulo Lemann, co-founder of 3G Capital, on the company’s change of strategy

“The reason I play so hard is that somewhere out there is some kid who has never seen me play before, and I don’t want to disappoint him” – Joe DiMaggio, US baseball player who died on this day in 1999