S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Fewer Europe-focused private equity and venture capital funds are actively recruiting limited partners as the slump in global exits for private equity continues.
Europe-focused funds in market totaled 386 in 2024, down 15% from 456 funds in 2023, according to S&P Global Market Intelligence data. The class of Europe-focused funds in 2024 was the smallest since 2020.
An extended exit drought, which has slowed the return of capital to limited partners (LPs), is the main culprit behind the fundraising crunch — a global phenomenon hardly limited to Europe. While private equity (PE) made some progress on its backlog of exits in 2024, the slow pace of distributions has left LPs with less cash to recycle into new fund commitments.
Total fundraising by Europe-focused funds declined in 2024 too, but the $187.36 billion total was still the second-highest in a decade. This is evidence of a flight-to-quality trend that extends well beyond Europe's borders: liquidity-constrained LPs choosing to concentrate their bets on big, brand-name managers at the expense of middle- and lower-middle-market funds.
Read more about fundraising for Europe-focused private equity and venture capital.
CHART OF THE WEEK: Fossil fuel investments rebound in 2024
⮞ Private equity and venture capital investments in the fossil fuels industry jumped 131% year over year to $15.31 billion in 2024, according to Market Intelligence data.
⮞ Private equity and venture capital investments in renewable energy also increased year over year but not as quickly, rising 64% to $25.91 billion.
⮞ One factor driving private equity deals for fossil fuel companies is a wave of divestment by large oil and gas companies focused on paring their portfolios through asset sales.
TOP DEALS
– Clearlake Capital Group LP agreed to buy data and analytics company Dun & Bradstreet Holdings Inc. in a deal valued at $7.7 billion.
– KKR & Co. Inc. signed a memorandum of understanding with the founding family of Fuji Soft Inc. to acquire the Japanese software company. The parties agreed to a share consolidation that will result in KKR affiliate FK Co. Ltd. and NFC Corp. becoming the only shareholders of Fuji Soft.
– Bain Capital LP agreed to buy a controlling stake in Italy-based transaction management software company Namirial SpA from Ambienta SGR SpA.
TOP FUNDRAISING
– Oakley Capital Ltd. raised €4.5 billion at the final close of Oakley Capital VI. The vehicle invests in middle-market technology companies technology, digital consumer, education and business service companies across Europe.
– Olympus Advisors LLC, also known as Olympus Partners, pulled in $3.5 billion for Olympus Growth Fund VIII. The fund seeks to make middle-market buyout investments.
– Falfurrias Management Partners LP secured $1.35 billion in investor commitments at the close of its latest middle-market private equity fund. The Falfurrias Capital Partners VI fund seeks to invest in growth companies in business services, food manufacturing and industrial technology sectors.
MIDDLE-MARKET HIGHLIGHTS
– Agellus Capital LLC acquired fire and life safety service provider Orcus Fire & Risk Inc. Orcus will be integrated with Agellus portfolio company Bluejack Fire and Life Safety.
– Nonantum Capital Partners LLC added MSI Express Inc., a product packaging company, to its portfolio. The seller was HCI Equity Partners.
– AnaCap Financial Partners Ltd. agreed to buy a majority stake in Luxembourg-based accounting services firm Fiduciaire Jean-Marc Faber SARL.
FOCUS ON: PRIVATE EQUITY DEALS IN PIPELINES
Two big private equity deals in the oil and gas pipeline sector were announced recently.
ArcLight Capital Partners LLC agreed to buy an additional 25% stake in NGPL Holdings LLC, the parent of Natural Gas Pipeline Co. of America LLC, from Brookfield Infrastructure Partners LP for over $1.7 billion. Apollo Global Management Inc. agreed to buy a 25% stake in BP Pipelines (Tanap) Ltd. from BP PLC for about $1 billion.
The deals brought private equity investments in the oil and gas storage and transportation companies to $3.59 billion from Jan. 1 to March 26, according to Market Intelligence data. The aggregate amount in the year through March 26 accounted for 65% of the total in 2024, at $5.55 billion.
The other recent deals in the sector include KKR's $615.6 million announced acquisition of an additional 5% stake in Enilive SpA, as well as Lunate's $255.8 million purchase of a 5.88% stake in ADNOC Gas Pipeline Assets LLC.
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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.
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