Pamplona redeeming oligarch's LP interests; M&A activity slows from 2021 pace

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

Pamplona Capital Management LLP began redeeming the limited partner interests of an investor linked to a Russian oligarch this week as the fallout from Russia's invasion of Ukraine continued to ripple through the private equity industry.

The investor, Letterone Investment Holdings S.A., was co-founded by billionaire Mikhail Fridman. Also a founder of financial-investment conglomerate Alfa Group Consortium, Fridman was among the oligarchs who found himself facing European Union sanctions levied in response to the invasion, which began Feb. 24

Pamplona "will have no direct or indirect exposure to any Russian capital" following the redemption, according to a statement from the firm.

"While Pamplona has received clear guidance that LetterOne is not a sanctioned entity, the ongoing crisis in Ukraine makes such relationships increasingly challenging for our portfolio companies, their management teams, customers, employees, and counterparties throughout Europe and the rest of the world," the firm added in the statement.

Read more about the redemption of LetterOne's LP interests here.

CHART OF THE WEEK: M&A tailwinds fade

⮞ Pent-up demand from pandemic-disrupted 2020 provided a powerful tailwind for global M&A activity last year, with total transaction value topping $1 trillion for five straight quarters as of the fourth quarter of 2021.

⮞ Those tailwinds are fading, and global M&A totals during the first two months of 2022 have tracked behind last year's numbers, according to S&P Global Market Intelligence data. The total value of announced M&A deals was down 25.5% compared to the first two months of 2021, and the number of announcements was down 8.1%.

⮞ But there are still big deals being made, and S&P has tracked six $10 billion-plus M&A deals through the first two months of 2022. There were nine deals that size or larger during all of the first quarter of 2021.

FUNDRAISING AND DEALS

* Eurazeo SE will sell a 47% stake in French independent solar power producer Reden Solar to an investor group led by Macquarie Asset Management Inc. and includes British Columbia Investment Management Corp. and MEAG MUNICH ERGO AssetMgmt GmbH for expected cash proceeds of €632 million.

* EQT AB (publ) agreed to provide a significant minority investment to Special New Fruit Licensing Ltd. and buy International Fruit Genetics through the EQT Future fund. The acquisition of the fruit-breeding company will be made together with existing Special New Fruit shareholders AM Fresh Group and Paine Schwartz Partners LLC. The deal is set to be completed in the fourth quarter.

* Cinven Ltd. will purchase Bayer AG's environmental science business, Environmental Science Professional, in a $2.6 billion transaction.

* Bain Capital LP's venture capital arm Bain Capital Ventures collected $560 million for a cryptocurrency-focused fund called Bain Capital Crypto, according to Bloomberg News, citing managing partner Stefan Cohen.

ELSEWHERE IN THE INDUSTRY

* Searchlight Capital Partners LP is selling London-based independent insurance intermediary Global Risk Partners Ltd. to Brown & Brown Inc. in a deal expected to close in the third quarter.

* Vinci Partners Investments Ltd. will inject fresh capital into Brazilian specialty wine retailer Evino through the Vinci Capital Partners III fund.

* A Clearlake Capital Group LP affiliate signed a deal to buy Intertape Polymer Group Inc.'s outstanding shares for C$40.50 apiece in an all-cash transaction totaling about US$2.6 billion, including net debt. The acquisition is expected to be finalized in the third quarter.

* Lower-middle-market investor Argosy Healthcare Partners recapitalized payor services company Specialty Care Management.

FOCUS ON: INTERNET SOFTWARE AND SERVICES

* Apollo Global Management Inc. and its co-investors will deploy $30 million into the combined entity of Limelight Networks Inc. and Yahoo Inc.'s business unit EdgeCast Inc., which will merge under an all-stock transaction.

* Fortino Capital Partners NV/SA bought a majority stake in Bonitasoft SA from the software company's former investors such as Bpifrance, Auriga Capital, Serena Capital SAS and Ventech SA.

* An affiliate of Clearlake will purchase a majority interest in Discovery Education Inc. Francisco Partners Management LP will retain a minority stake in the global education technology company.