S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity dealmaking showed signs of renewed vitality in February.
The announced value of new investments by private equity and venture capital firms globally hit $59.59 billion between Feb. 1 and Feb. 29, doubling the $27.81 billion total recorded for the same month in 2023.
In January, entry activity declined nearly 17% year over year to $24.45 billion, but the relatively strong February numbers put global entry value in the first quarter back on track to meet or exceed the $124.21 billion mark registered in the first quarter of 2023.
For 2024, many observers expect private equity firms to chip away at the mountain of dry powder that grew to record size in 2023. Not all of the headwinds that buffeted dealmaking in 2023 have abated, but the apparent end of the interest rate-hiking cycle is seen as a key factor in restarting private equity investment activity.
Entries were not the only hitch in the private equity investment cycle. An improvement in exit activity, which stalled out in 2023, would send a strong signal that private equity activity has clearly revived.
Read more about global private equity and venture capital entry activity in February.
TOP DEALS AND FUNDRAISING
– KKR & Co. Inc.-managed funds agreed to buy Canada-based digital commerce technology company MDF Commerce Inc. for about C$255 million in an all-cash transaction. MDF will become a privately held company following deal completion.
– Wind Point Advisors LLC, doing business as Wind Point Partners, raised $2.3 billion in capital commitments at the close of its latest fund. The Wind Point Partners X fund, which reached its hard cap, will focus on acquiring middle-market businesses.
– KSL Advisors LLC, or KSL Capital Partners LLC, secured about $2 billion for its KSL Capital Partners VI LP fund at final close. The vehicle will invest in travel and leisure companies.
– Middle-market investment firm Gauge Capital LLC closed its oversubscribed Gauge Capital IV LP fund with $1.4 billion in capital commitments.
MIDDLE-MARKET HIGHLIGHTS
– HCAP Partners LLC acquired Behavioral Medicine Associates, Workers Compensation Psychological Network and Reservoir Health to form behavioral health company PAX Health LLC. Funds managed by Hamilton Lane Inc. coinvested in the transaction.
– Ampersand Capital Partners acquired UK-based spectroscopy accessories and sample prep solutions company Specac Ltd. in a deal with Foresight Group LLP and its Foresight VCT PLC fund.
– Linden Capital Partners bought Alcresta Therapeutics Inc., which focuses on gastrointestinal disorders and rare diseases, from Athyrium Capital Management LP, Bessemer Venture Partners, FraFrazier Healthcare Partners and HealthQuest Capital. Following the deal, HealthQuest reinvested in Alcresta and will remain a minority shareholder and board member.
FOCUS ON: APPLICATION SOFTWARE
– Frazier Healthcare Partners closed its acquisition of communication and payment solutions provider RevSpring Inc. from GTCR LLC.
– Vehicle software supplier Applied Intuition Inc. raised $250 million in a series E funding round. Andreessen Horowitz LLC, General Catalyst Group Management LLC and Human Capital Investment Management LLC participated in the round.
– Software firm Eclipse secured $50 million in a series A round co-led by Placeholder Ventures and Hack VC 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.
For private credit news, see our latest private credit newsletter issued twice per month.
