The infrastructure opportunity; slow start for private equity entries

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

Global infrastructure fundraising took a surprising dive in 2023.

Infrastructure fundraising totaled just $87.75 billion globally, down by roughly half from the 2022 total, according to Preqin data.

That decline may be temporary. Tailwinds are building behind private investment in infrastructure, with artificial intelligence adding to global demand for datacenters and new incentives in the US and Europe expanding opportunities for investment in renewable energy projects.

Institutional investors are beginning to overcome the denominator effect that hit their portfolios when public markets swooned in 2022, a shift that hampered their ability to allocate funds to private investments.

Investors also have a better view on how infrastructure assets fare under higher interest rates, an environment that threatens to erode future revenue streams and valuations. Alex Leung, head of infrastructure research and strategy for UBS, told S&P Global Market Intelligence the asset class avoided significant write-downs in 2022 and 2023, and that show of resiliency should help entice investors back to infrastructure funds in 2024.

Read more about the outlook for infrastructure fundraising in 2024.

CHART OF THE WEEK: Private equity entries dip in January

⮞ The total announced value of private equity- and venture capital-backed investments in January was $24.45 billion globally, down 16.8% from $29.37 billion for the same month a year ago, according to Market Intelligence data.

⮞ The 959 private equity entries announced globally were the lowest total for the month since at least 2019.

⮞ Asia-Pacific claimed the highest share of that total, with 396 deals announced in January.

TOP DEALS AND FUNDRAISING

– CVC Capital Partners Ltd., through its CVC Capital Partners Fund VIII, and Haveli Investments agreed to buy video game publisher Jagex Ltd. from The Carlyle Group Inc.

– L Catterton Management Ltd. plans to buy a 36% stake in Tod's SpA for about €512.3 million. The proposed acquisition is part of a plan to delist the Italian luxury footwear company from Euronext Milan.

– Epiris LLP raised £1.04 billion for Epiris Fund III at final close. The fund has already deployed over 20% of the capital across four investments.

– Core Industrial Partners LLC secured $685 million for Core Industrial Partners Fund III LP, its flagship fund. The firm also raised $202 million for Core Industrial Services Fund I LP.

MIDDLE-MARKET HIGHLIGHTS

– Brightstar Capital Partners LP sold industrial equipment provider Gateway Dealer Network LLC to Tuckahoe Holdings LLC.

– Comvest Advisors LLC made a growth capital investment in debt resolution services provider ClearOne Advantage LLC.

– Varsity Healthcare Partners sold home health services provider Aoc-Dme Corp., or Angels of Care, in a deal with buyer Nautic Partners LLC.

FOCUS ON: FINTECH

– Nordic Capital agreed to buy a majority stake in Canadian banking technology company Zafin Global Holdings Corp. Zafin's founders and management will reinvest in the company.

– Swedish payment services company Kameo Svensk Filial secured £1.1 million from Incore Invest.

– London-based fintech company Navro, formerly known as Paytrix UK Ltd., secured an undisclosed amount in a funding round led by Bain Capital Ventures LP.

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.