Over $12B raised for climate-focused funds; Europe PE deal volume soars YOY

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

Heavyweights Brookfield Asset Management Inc. and TPG Capital LP both announced July 27 that they had raised a cumulative $12.4 billion in initial closes for funds focused on investments that aim to limit climate change.

The early closes of both vehicles come in the wake of warnings from organizations that global efforts to reduce greenhouse gas emissions and to shift investment away from fossil fuels are moving too slowly, with one research firm, BloombergNEF, stating last week that annual investment in green energy and infrastructure has to more than double to at least $3.1 trillion over the next three decades to achieve net-zero carbon emissions by 2050.

Brookfield reached a $7 billion initial close for Brookfield Global Transition Fund with commitments from Ontario Teachers' Pension Plan Board, or OTPP; Temasek; PSP Investments; and Investment Management Corp. of Ontario. OTPP and Temasek will strategically invest alongside the fund, according to a press release. The fund has a $12.5 billion hard cap and is expected to hold a first and second close across 2021.

The fund is co-led by Brookfield Vice Chair and Head of Transition Investing Mark Carney, former governor of the Bank of England and Bank of Canada and the current UN special envoy for climate action and finance, and by CEO of Brookfield Renewables Connor Teskey.

TPG announced a $5.4 billion first close for its TPG Rise Climate LP fund on the same day, with investors including OTPP, School Employees Retirement System of Ohio, Silk Road Fund, State of Michigan Retirement System, Universities Superannuation Scheme, Washington State Investment Board and others, according to a release. The fund has a $7 billion hard cap and is expected to hold a final close in the fourth quarter.

TPG Executive Chairman and Founding Partner Jim Coulter is managing partner of the fund, with former U.S. Treasury Secretary and former The Goldman Sachs Group Inc. CEO Hank Paulson serving as executive chairman.

Read more about the fund closes and their targets here.

CHART OF THE WEEK

➤ Private equity and venture capital entry volume was up 15.4% year over year with a total of 1,336 deals announced in the second quarter.

➤ Gross transaction value surged 87.4% year over year to €33.63 billion.

➤ As of July 5, private equity firms across Europe had $351.6 billion in dry powder, up from the $305 billion recorded in the same period in 2020, according to Preqin Pro data.

FUNDRAISING AND DEALS

* Thoma Bravo LLC is purchasing customer survey software company Medallia Inc. in an all-cash transaction valued at $6.4 billion.

* CVC Capital Partners Ltd. is in exclusive talks to buy food retailer Panzani SAS from Ebro Foods SA in a €550 million deal. The private equity firm also purchased logistics service provider Worldwide Express Operations LLC from Ridgemont Equity Partners.

* Apollo Global Management Inc. is seeking to collect as much as $1.5 billion for its first impact fund called Apollo Impact Mission Fund LP, Bloomberg News reported, citing people familiar with the matter. Funds managed by the firm's affiliates also agreed to make a $200 million preferred equity investment in fiber-based carrier FirstDigital Telecom LLC.

* Funds managed by The Blackstone Group Inc.'s general partner stakes business are acquiring a minority stake in fellow investor GTCR LLC.

ELSEWHERE IN THE INDUSTRY

* Apollo-affiliated blank-check company Spartan Acquisition Corp. III will take European electric vehicle charging company Allego Holding BV public through a merger with a pro forma equity value of about $3.14 billion.

* Blackstone and Viking Global Investors LP made an $800 million investment in APi Group Corp. perpetual preferred equity to support the latter's proposed acquisition of Chubb Fire & Security Ltd. from Carrier Global Corp. for an enterprise value of $3.1 billion.

* Stonepeak Partners LP agreed to buy the Latin American business of telecommunications operator Lumen Technologies Inc. in a $2.7 billion transaction.

* Antin Infrastructure Partners bought U.K.-based data center and cloud infrastructure company Pulsant Ltd. from Scottish Equity Partners LLP and Oak Hill Capital Partners.

FOCUS ON: RESEARCH AND CONSULTING SERVICES

* Ardian, among other selling investors, wrapped up the sale of a 67% stake in strategy consultancy company FiloBlu SpA to Gradiente SGR SpA.

* Warburg Pincus LLC and Tilia Holdings LLC acquired FlexXray LLC, which offers X-ray inspection services for food safety, from Levine Leichtman Capital Partners LLC.

* Flexpoint Ford LLC and Vestar Capital Partners LLC will purchase data and analytics business Lereta LLC, and the buyout is being supported by a $250 million term loan B due 2028.