S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity is a force in wealth management M&A, particularly in the US, where private equity firms have been investing in platforms and acquiring smaller shops across a highly fragmented industry. The consolidation activity has played a role in boosting the value of private equity investments in asset management to $20.29 billion globally in 2024, up 89% from $10.78 billion in 2023, according to S&P Global Market Intelligence data.
But there is another trend at play: strategic acquisitions.
Private equity firms pursuing growth through M&A are targeting firms that specialize in complementary investment strategies such as private credit or infrastructure funds. Deals that merge networks of investors may be especially appealing as private equity's fundraising slowdown enters its fourth year.
Read more about rising private equity investment in the asset management sector.
CHART OF THE WEEK: Consumer sector deals on the upswing
⮞ Private equity and venture capital investment in the consumer sector increased 46% to $81.4 billion in 2024 from $55.82 billion in 2023, according to Market Intelligence data.
⮞ Most of the year-over-year gain came from the consumer discretionary segment, which saw private equity investment climb 53% to $69.58 billion.
⮞ Private equity-backed deal value in the consumer staples segment increased 16% to $11.82 billion.
TOP DEALS
– Blackstone Infrastructure Partners LP agreed to acquire Safe Harbor Marinas LLC from Sun Communities Inc. for $5.65 billion. The transaction is expected to close in the second quarter.
– Apollo Global Management Inc. signed a deal to buy real estate investment manager Bridge Investment Group Holdings Inc. for approximately $1.5 billion.
– Funds managed by Blackstone Inc. agreed to sell a minority stake in India-based plastic packaging manufacturer EPL Ltd. to Indorama Netherlands BV for 19.08 billion Indian rupees.
– KKR & Co. Inc. agreed to acquire a controlling stake in India-based medical facility operator HealthCare Global Enterprises Ltd. from CVC Capital Partners PLC for $400 million.
– Funds managed by The Carlyle Group Inc. and SK Capital Partners LP agreed to acquire Bluebird bio Inc., a gene therapy developer for genetic diseases. The transaction is expected to close in the first half of 2025.
TOP FUNDRAISING
– Thoma Bravo LP raised €1.8 billion for Thoma Bravo Europe Fund LP. The fund will focus on middle-market software companies in Europe.
– GCM Grosvenor Inc. raised $615 million for the GCM Grosvenor Co-Investment Opportunities Fund III. The fund will focus on coinvestments in middle-market growth and buyout transactions.
MIDDLE-MARKET HIGHLIGHTS
– Vestar Capital Partners LLC sold packaged food producer Simple Mills Inc. to Flowers Foods Inc. at an enterprise value of $795 million.
– LongRange Capital LP agreed to acquire polycrystalline diamond cutters and bearings manufacturer US Synthetic Corp. from ChampionX Corp.
– J.F. Lehman and Co. LLC acquired Atomic Transport LLC, a bulk-material transport and transfer station management services provider, through an investment affiliate.
FOCUS ON: Energy transition fund
Blackstone closed Blackstone Energy Transition Partners IV on its hard cap of $5.6 billion. The fund invests in companies focused on delivering clean and affordable energy. It drew commitments from US institutional investors, including $200 million from Teacher Retirement System of Texas and $50 million from the Minnesota State Board of Investment, according to Market Intelligence data.
In 2024, Blackstone's fund invested in UK-based Energy Exemplar Ltd., which provides grid reliability with a software platform to model energy markets. It is in the process of acquiring SEVES Group SARL, a Luxembourg-based manufacturer of electric insulation for power generation.
______________________________________________
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.
