PE on wealth management hiring spree; bumper year for PE firm listings

S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.

Private equity is on a wealth management hiring spree as the asset class expands efforts to tap the world's retail investors.

The number of hires involving wealth management professionals jumping to private equity houses has increased notably since 2019, according to data from Jensen Partners LLC, an advisory and recruitment firm for alternative investment companies.

Through the first three quarters of 2021, data shows 169 moves by wealth managers to private equity firms in the U.S. and Europe. That compares to about 152 wealth management moves in the industry in all of 2020 and 113 in 2019.

"What you're seeing is a kind of wave," said Sasha Jensen, founder and CEO of Jensen Partners. "Firms are absolutely backing up plans with real hiring."

Large alternatives players like Apollo Global Management Inc., Ares Management Corp. and Blackstone Inc. have been vocal and active in their lofty goals to increase retail investors' ability to access their products. The draw for retail investors is diversification and the potential for public market-beating returns, said Bain & Co. Inc.'s Brenda Rainey, executive vice president of the company's global private equity practice.

But in order for both sides to reap the rewards, there are operational challenges private equity firms face, which they and their new hires will have to address. Read more here.

CHART OF THE WEEK: Private equity firm IPOs on the up

➤ S&P Global Market Intelligence data shows that a total of 20 private equity firm IPOs amounting to about $5.27 billion were completed globally in the 2020-21 period.

➤ The majority of private equity firm IPOs in 2021 were held in Europe, with high-profile listings including Bridgepoint Group PLC, Antin Infrastructure Partners and Petershill Partners PLC.

➤ The S&P Listed Private Equity Index, with constituents including Blackstone, KKR & Co. Inc. and Apollo, has outperformed the S&P 500 year to Nov. 30. During the period, listed private equity firms recorded a total return of 39% compared to 23.2% for the S&P 500.

FUNDRAISING AND DEALS

* Apollo Global Management Inc. will not pursue its plans to buy Metro Bank PLC, following The Carlyle Group Inc.'s withdrawal from the negotiating table with the British bank, Bloomberg News reported. The private equity firm is also seeking to raise $25 billion for its next flagship buyout fund, which is set to launch in early 2022, according to a separate report from Bloomberg.

* Funds managed or advised by Carlyle wrapped up the sale of Valcour Wind Energy to AES Corp.

* Italian telecom company Telecom Italia SpA hired advisers as it evaluates KKR & Co. Inc.'s take-private offer, Dow Jones Newswires reported.

* Funds advised by Permira Advisers Ltd. will buy Mimecast Ltd. in an all-cash transaction that values the U.K.-based email and cloud security company at approximately $5.8 billion.

ELSEWHERE IN THE INDUSTRY

* CDP Equity now holds a 60% stake in Open Fiber Holdings, which directly controls Open Fiber Spa, following the sale of Enel SpA's 50% stake in the latter to Italian investment bank Cassa depositi e prestiti SpA and Australia-based Macquarie Group Ltd.

* CVC Capital Partners Ltd. and other investors are backing the proposed $2.25 billion merger of Iceland-based biopharmaceutical manufacturer Alvotech Holdings SA with Oaktree Acquisition Corp. II, a blank-check company sponsored by an affiliate of Oaktree Capital Management LP.

* Indigena Capital is planning to raise as much as C$250 million for the Indigenous Equity Partnership Fund, which will focus on equity partnerships with First Nation, Inuit and Métis communities in Canada and tribal nations in the U.S.

* Keensight Capital will purchase a majority interest in Buckaroo BV from Blackfin Capital Partners SAS, together with the online payment service provider's management team.

FOCUS ON: HEALTHCARE PROVIDERS AND SERVICES

* TPG Capital LP's Asian unit is considering selling a 20% stake in Pathology Asia Holdings Pte. Ltd. at a possible valuation of about $2 billion, ahead of the pathology business' potential IPO, people with knowledge of the matter told Bloomberg.

* Audax Private Equity invested in Pamlico Capital Management LP-backed Veterinary Practice Partners LLC.

* Quilvest Capital Partners made a substantial growth investment in urgent care clinic operator UrgentMED.