Maitland/AMO Private Equity Monitor – 8 November 2019

8th November 2019

Worth a read


PE firms ratchet up ESG recruits

According to Private Equity News, private equity firms are planning to go on a hiring spree to increase the number of responsible investment professionals as pressure piles on to address ESG issues. There’s also a  push to increase diversity which is an ongoing problem within the private equity industry. In a recent survey, only 20% of the GPs’ partners are women.

What goes up...

You know the bit in the nursery rhyme The Grand Old Duke of York – when he marched up to the top of the hill – and he marched right back down again? Well that’s what’s happening in the stock market right about now. The American listed drugstore group, Wallgreens Boots Alliance, has been mulling a possible $70bn buyout. And Private Equity News reports that as the company’s shares soared it gave as clear a sign as any that the current stock market rally is about to march right back down again. The Financial Times that this most ambitious of potential deals between Walgreens Boots Alliance and a private equity titan might just work. Lex opines that it’s just about do-able but not advisable. The challenge for one of the most famous sons of Pescara is to convince both lenders and buyout firms.

Mind the gap: what private equity firms need to do to close the gender gap

According to Private Equity News, improving benefits for women and working mothers is important – but so is creating a balanced and meritocratic work culture. That’s the ticket if women and working mothers are to take – and remain at – senior positions at private equity firms, according to senior executives at Blackstone and Vista.

Just a small piece for me

The Wall Street Journal reports that small investors might yet be able to reach up for a piece of the private equity pie. Certainly in America. The SEC is apparently considering allowing the huddled masses to invest in private equity funds in order to have a seat at the private stocks table. The article notes that a reason for the traditionally strict criteria to institutions or HNWI, is in part due to private equity’s astonishing returns – alongside changes in other financial market regulations.


Wall of money


Brookfield Capital Partners V closes at $9bn

Brookfield Asset Management has closed its fifth buyout fund at $9bn, $2bn over its initial target. The company’s previous fund closed in 2016 with $4bn in commitments.

KKR closes largest Europe fund

KKR has closed its largest fund focused on transactions in Western Europe. European Fund V raised €5.8bn and attracted over 140 limited partners, while KKR pledged $400m from its own balance sheet and as employees’ commitments.

Elliott raises $2bn for buyouts

Wall Street hedge fund and activist investor Elliott Management has announced that it has closed $2bn as it accelerates its push into private equity. The transactions from this fund will include buyouts of publicly traded businesses and carve-outs.

HarbourVest targets Canada growth

HarbourVest has closed HarbourVest Canada Growth Fund II at its hard cap six months after its initial closing. The firm has revealed the fund was oversubscribed and closed at $600m.


Deal chart


Acquisition TargetBuyerSellerValueDate AnnouncedRegionSector
Bruin Sports CapitalCVC Capital Partners, The Jordan Company-$600m07/11/2019USEntertainment
Amulet HotkeyTreun Capital-Undisclosed07/11/2019UKTMT
AmutecAmbienta-Undisclosed07/11/2019ItalyManufacturing
AnticimexGIC-9.9% stake06/11/2019SwedenPest Control
WalmarkStada ArzneimittelMid Europa PartnersUndisclosed04/11/2019CzechiaPharmaceuticals
Intuitus LimitedEndava-Undisclosed04/11/2019UKTMT

Movers and Shakers


Europe

Eurazeo Growth has appointed Nathalie Kornhoff-Brüls and Zoé Fabian as managing directors and Maud Gillot as an associate. They join from KKR, an independent advisory role and Ardian respectively.

Danish pension fund ATP has named Mikkel Svenstrup as its new CIO. Previously, Svenstrup was CIO at P+.

North America

3i has hired Drew Olian as a director based in New York. Previously, Mr Olian was a vice president at Carlyle.

General Atlantic has promoted three executives, Anton Levy, Gabriel Caillaux and Martin Escobari to the new role of co-president.

Other

HQ Capital has appointed Motoya Kitamura as Managing Director in Hong Kong and Tokyo.

Australian impact investor LeapFrog has appointed former Prime Minister Julia Gillard to its global council, also hiring Simon Israel and Jaime Augusto Zobel de Ayala (formerly of Temasek and Ayala Corporation).


From the horse’s mouth...

People are scared to death about the prospect of Elizabeth Warren becoming president. They may dislike the president, but they do not want a president who will destroy their livelihood or attack them personally.” – The general political mood across the pond according to a private equity lobbyist 

“We think it’s one of the best operators in the sector…However we are being hurt by the fact that the UK consumer environment has been hit. And we’re not immune to that.” – Nikos Stathopoulos, BC Partners on Côte Brasserie

“No man knows till he has suffered from the night how sweet and dear to his heart and eye the morning can be.” – Bram Stoker, Irish author of Dracula born on this day in 1847