Private equity's Big 4 sentiment dips; consumer electronics investments surge

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

Is private equity at the "end of an era," as Apollo Global Management Inc. CEO Mark Rowan recently declared, or are private equity dealmaking and fundraising finally picking up after more than a year in the doldrums?

Both are likely true, and that may explain the mixed signals that emerged from the four largest publicly traded alternative asset managers when they reported second-quarter earnings in late July and early August. An S&P Global Market Intelligence analysis of the language used by executives and analysts on the calls detected less positivity compared to the tone of the first-quarter earnings calls.

That was despite discussion of emerging green shoots for private equity. The Carlyle Group Inc. CEO Harvey Schwartz described a "marked improvement in sentiment," and KKR & Co. Inc. co-CEO Scott Nuttall's outlook included more new deal activity on the horizon.

Still, any optimism was tempered by a broad acknowledgement that higher interest rates, increased regulatory scrutiny and slower economic growth are likely to make the private equity business tougher ahead.

Read more from our recap of the Big Four private equity firms' second-quarter earnings calls.

CHART OF THE WEEK: Consumer electronics manufacturer investments on pace to exceed 2022 total

⮞ Private equity and venture capital investments in consumer electronics manufacturers are on track for another $1 billion-plus year, according to S&P Global Market Intelligence data.

⮞ Investments in the sector totaled $970 million through July 31, putting 2022's $1.08 billion full-year total well within reach.

⮞ The largest deal of the year so far is The Carlyle Group Inc.'s $749.2 million offer to buy Czech Republic-based Meopta-optika sro, which manufactures optical-mechanical equipment.

TOP DEALS AND FUNDRAISING

– KKR & Co. Inc. agreed to sell a majority interest in A-Gas International Ltd. to TPG Rise Climate, the climate investing strategy of TPG Capital LP's TPG The Rise Fund. KKR will retain a minority stake in the UK-based refrigerant gas supply and life-cycle management company.

– Carlyle will sell upstream oil exploration and production company Assala Energy UK Ltd. Etablissements Maurel & Prom SA will buy Assala for $730 million, according to Market Intelligence data.

– Princeton Equity Group LLC raised $575 million at the final close of its Princeton Equity Partners II LP fund. The oversubscribed vehicle seeks to invest in franchisor and multi-unit companies in various end markets.

– Access Holdings Management Co. LLC raised about $805 million in fresh capital. The fundraising included $525 million for Access Holdings Fund II LP and another $280 million for the fund's coinvestment.

MIDDLE-MARKET HIGHLIGHTS

– Trivest Partners LP closed on its purchase of ABC Amega Inc., which provides commercial debt collection solutions.

– Granite Creek Capital Partners LLC added Salem One Inc. to its portfolio. Patriot Capital LP coinvested in the corporate communication solutions provider with Granite Creek and Salem One's management.

– AGIC Capital led a growth equity investment round for Singaporean medical device contract manufacturer AP Technologies Group Pte. Ltd.

– Coalesce Capital Management LLC made an investment in Examinetics Inc., which provides occupational health compliance testing services. The company's management and existing shareholder, Freedom 3 Capital LLC, invested alongside Coalesce in the transaction.

FOCUS ON: INDUSTRIAL MACHINERY AND SUPPLIES

– Occidental Petroleum Corp. subsidiary Oxy Low Carbon Ventures LLC agreed to buy direct air capture technology company Carbon Engineering Ltd. for total cash consideration of about $1.1 billion. Chevron Technology Ventures LLC is the seller.

– An affiliate of Sun Capital Partners Inc. agreed to buy Koch Separation Solutions Inc., a separation technologies company, from Koch Industries Inc. unit Koch Engineered Solutions LLC. The target will become a stand-alone company following deal completion.

– Thrust Capital Partners, through Thrust Capital Partners Fund I LP, bought a minority stake in Dishon Ltd. The founding Dishy family will continue to own a substantial stake in the Canada-based machined component and assembly-maker.

For further private equity deals, read our latest In Play report, which looks at potential private equity-backed M&A, including rumored transactions, each week.