S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
The dry powder held by private equity secondaries funds is at an all-time high, yet secondaries experts say it is still not enough.
Global private equity secondaries dry powder stood at $227.40 billion as of Sept. 30, 2024, the latest estimate available from Preqin Pro. That is less than 1.5x the $155 billion estimated secondaries transaction value recorded in 2024 by advisory firm Campbell Lutyens. Or, to put it another way, enough dry powder for roughly 18 months of secondaries dealmaking.
The result is a cap on growth in the private equity secondaries market, which set a record for transaction value in 2024. More active secondaries dealmaking is being driven by a combination of long-term growth trends, including greater acceptance of secondary sales as a portfolio management tool, and private equity's more recent challenges in producing exits from primary funds, which have sent both fund managers and investors to the secondaries market in search of liquidity.
In a positive sign for the marketplace, secondaries fundraising appears to be picking up steam. The $34.10 billion in fundraising for private equity secondaries that Preqin recorded in the first quarter was the highest quarterly total in two years, and the 215 secondaries funds in market this year through mid-June appear to be a record.
Read more about fundraising and dry powder trends in the private equity secondaries market.
CHART OF THE WEEK: HOLDING PERIODS GROW LONGER
⮞ Average holding periods for private equity buyouts increased between 2020 and midyear 2025 across a swath of economic sectors, according to a Market Intelligence analysis of Preqin Pro data.
⮞ Examples include the industrial sector, where the average hold time was 7.5 years as of June 6, up from 5.5 years in 2020; consumer discretionary, up to 6.6 years from 5.2 years in 2020; and the healthcare sector, where the average investment in a portfolio company grew to 6.4 years from 5.2 years in 2020.
⮞ Those long-held investments were acquired in a lower interest rate environment, and the run-up in rates since then has made exits more challenging by skewing buyer and seller views on fair valuations.
TOP DEALS
– Advent International LP agreed to buy London-based Spectris PLC in a deal valuing the precision measuring company at about £4.4 billion. The £37.63-per-share cash offer represents a premium of roughly 84.6% to Spectris' closing stock price of £20.38 on June 6. Spectris earlier said its board rejected the proposal of KKR & Co. LP to acquire the company.
– General Atlantic Service Co. LP's General Atlantic Credit unit, through an entity controlled by its Atlantic Park fund, agreed to buy web and mobile platform PlanetArt from Claranova SE for $175 million.
– Bain Capital Investors LLC agreed to sell marketing company ADK Holdings Inc. to Krafton Inc. for ¥75 billion.
TOP FUNDRAISING
– Morgan Stanley Capital Partners, the middle-market private equity buyout team within Morgan Stanley Investment Management Inc., raised roughly $3.2 billion at the final close of North Haven Capital Partners VIII LP. The fund seeks to make control investments in the consumer, business, healthcare and industrial sectors.
– Greenbelt Capital Management LP secured $1 billion at the final close of Greenbelt Capital Partners III LP. The firm invests in middle-market energy transition companies.
– Sentinel Global raised $213.5 million at the close of its inaugural fund. Sentinel Fund I will invest in enterprise technology companies.
MIDDLE-MARKET HIGHLIGHTS
– Bregal Sagemount made a significant growth equity investment in scheduling software company Extra Duty Solutions LLC. Capstone Partners and Holland & Knight advised Extra Duty. Massumi & Consoli and Paul Weiss advised the private equity firm, which does business as Sagemount.
– Court Square Capital Management LP bought a majority stake in engineering services firm DCCM LLC from White Wolf Capital LLC. Houlihan Lokey Inc. was Court Square's financial adviser, while Dechert was its legal adviser on the deal. Harris Williams was the lead financial adviser to DCCM and White Wolf, with AEC Advisors serving as co-adviser for DCCM.
– GreyLion Partners LP made a new strategic investment in flooring company Torginol Inc. CIBC was Torginol's financial adviser, while Godfrey & Kahn was its legal counsel. Latham & Watkins was legal counsel to GreyLion on the deal.
FOCUS ON: EUROPEAN PRIVATE EQUITY FUNDRAISING
Marlin Equity Partners LLC raised €1 billion at the final close of Marlin Heritage Europe III SCSp. The fund seeks to invest in European software, technology and services companies.
Ambienta SGR SpA raised about €500 million for its small-cap strategy, which invests in European companies focused on environmental sustainability.
Project A Ventures GmbH & Co. KG closed its Fund V with €325 million in commitments. The fund will invest in pre-seed- and seed-stage technology companies across Europe.
Private equity funds focused on Europe secured $90.15 billion between Jan. 1 and June 26, according to Market Intelligence data. By comparison, Europe-focused funds brought in $137.30 billion in the first six months of 2024.
The number of funds also declined to 124 this year from 230.
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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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