S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Sales of private equity portfolio companies to strategic acquirers tend to generate more value than any other type of private equity exit. An extended lull in exits is highlighting the resilience of these trade sale exits.
One recent example was London-headquartered private equity firm Triton's planned €1.5 billion exit of datacenter cooling and ventilation specialist FläktGroup Deutschland GmbH via its sale to Samsung Electronics Co. Ltd., announced May 14. Triton formed the business in 2016 by merging two portfolio companies, built it into a market leader and exited at a premium price — well above the median transaction size in the sector this year through May 20 of $10.5 million for private companies and $44.8 million for publicly listed companies, according to S&P Global Market Intelligence data.
FläktGroup attracted bids from two other potential strategic acquirers in addition to Samsung, Michael Gahleitner, managing partner and cohead of industrial technology at Triton, told Market Intelligence. Gahleitner said the firm did not consider exiting FläktGroup through a secondary sale to another private equity firm, a type of transaction that has been on the rise since 2022.
"It was clear to us that the valuation, which we want to get can only be paid by somebody who has strategic rationale and synergies," Gahleitner said.
Read more about Triton's exit from FläktGroup.
CHART OF THE WEEK: Exit value in fossil fuels on the rise
⮞ The value of private equity and venture capital exits from oil and gas industry investments totaled $18.54 billion globally between Jan. 1 and May 21, nearly matching 2024's $19.41 billion full-year total in less than six months, according to Market Intelligence data.
⮞ Seventeen private equity exits from fossil fuel investments were recorded this year through May 21, compared with 40 in all of 2024.
⮞ Most of this year's deal value was generated by transactions in the US and Canada, an activity spurred in part by the Trump administration's focus on boosting domestic energy production.
TOP DEALS
– TJC LP agreed to sell wireless communication company Silvus Technologies Inc. to Motorola Solutions Inc. for an up-front consideration of $4.4 billion. The deal is expected to close in the second half.
– GTCR LLC sold life sciences company Antylia Scientific to Brookfield Business Partners LP and Caisse de dépôt et placement du Québec for roughly $1.34 billion.
– Advent International LP is in exclusive negotiations to acquire French insurance brokerage Kereis from Bridgepoint Group PLC.
TOP FUNDRAISING
– Quadria Capital Investment Management Pte. Ltd. raised $1.07 billion in total commitments for Quadria Capital Fund III LP. The fund comprises more than $954 million in primary commitments and $114 million in committed coinvestment capital. An additional $300 coinvestment capacity is expected during the investment phase, bringing total committed capital to approximately $1.3 billion upon full deployment.
– Cathay Innovation SAS raised $1 billion at the final close of its venture capital fund, Fund III, which will invest in AI startups.
– Main Capital Partners BV raised €520 million in commitments for its first continuation fund. The vehicle seeks to partially buy technology companies SDB Ayton BV, Mach AG and Björn Lundén AB from other Main Capital funds.
– RCP Advisors LLC secured $314 million for RCP Fund XIX LP. The fund of funds will invest with buyout fund managers that make control investments in small to midsize companies.
– Zeal Capital Partners raised $82 million for Zeal Capital Partners Fund II LP. The fund will invest in about 25 early-stage companies over a four-year period.
MIDDLE-MARKET HIGHLIGHTS
– Align Capital Partners LP made a growth investment in commercial landscape services company Strata Landscape Services.
– Sheridan Capital Partners sold a majority stake in healthcare IT company DAS Health Ventures Inc. to Coalesce Capital Management LLC. Following the transaction, Sheridan will retain a minority stake in DAS Health. Houlihan Lokey was financial adviser to DAS Health and its shareholders, while McDermott Will & Emery LLP was their legal counsel. Lazard was financial adviser and Latham & Watkins LLP was legal adviser to Coalesce Capital.
– EagleTree Capital LP made a strategic investment in granola brand Snacks Generation Inc., doing business as NuTrail.
FOCUS ON: L CATTERTON'S INVESTORS
Consumer-focused private equity firm L Catterton Management Ltd. raised a total of approximately $11 billion for several funds that reached final close.
The funds include L Catterton X LP, L Catterton Growth V LP, L Catterton Europe V SLP, and new Japan and China onshore funds.
The recent fundraising cycle included the $6.75 billion final close of the firm's flagship buyout fund, L Catterton X, which secured a $65 million capital commitment from the Missouri Local Government Employees Retirement System and $25 million from the Alaska Permanent Fund, according to Market Intelligence data. Other limited partners in the fund include South Korea's National Pension Service, The Walt Disney Co. Retirement Plan Master Trust and the Intermountain Healthcare Inc. Pension Plan.
The firm's overall investor base numbers 127 active investors. Of the total, 26 are other private equity and venture capital firms, 19 are government pension funds and 14 are corporate pension funds.
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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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