S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Things are looking up for private equity's Big Four.
After dipping in the first quarter, sentiment scores assigned to publicly listed alternative asset managers' earnings calls surged higher in the second quarter, according to an S&P Global Market Intelligence analysis of the language used by executives on the calls. The average transcript sentiment score for the Big Four — Apollo Global Management Inc., Blackstone Inc., The Carlyle Group Inc. and KKR & Co. Inc. — surpassed the average for S&P 500 constituents for the first time in at least a year.
Tariffs likely played a role in the turnaround. When Big Four executives shared first-quarter results, they were still coming to terms with the impact of US President Donald Trump's April 2 "Liberation Day" announcement. Three months later, they described a macroeconomic outlook coming into clearer focus.
"I think now there's a general acceptance that the administration is acting as everybody expected at the beginning of the year, which is very pro-growth," said Carlyle CEO Harvey Schwartz.
Read more about the second-quarter performance of private equity's Big Four.
CHART OF THE WEEK: Oil and gas transportation investment tracks for annual increase
⮞ Global private equity- and venture capital-backed investment in oil and gas transportation totaled $4 billion between Jan. 1 and Aug. 7, exceeding the $3.36 billion total for the first eight months of 2024, according to S&P Global Market Intelligence data.
⮞ Industry consolidation is drawing private equity investment, which is on track to exceed the full-year total of $5.58 billion in 2024.
⮞ US domestic oil and gas pipelines are especially attractive to private equity investors because they are sheltered from international trade risks.
TOP DEALS
– Advent International LP agreed to acquire Israel-based Sapiens International Corp. NV for $43.50 per common share in an all-cash transaction that gives the insurance software company an equity value of approximately $2.5 billion.
– Centerbridge Partners LP agreed to acquire financial software company MeridianLink Inc. in an all-cash deal valued at about $2 billion.
– Apollo Global Management Inc. agreed to buy a majority stake in Kelvion Holding GmbH in a deal with an estimated value of €2 billion. Triton will retain a minority stake in the German heating and cooling company.
– EQT AB (publ) launched a $320 million tender offer to acquire Tokyo-based digital healthcare company CareNet Inc. The target's board and special committee have endorsed the tender offer.
– The Carlyle Group Inc. agreed to divest its stake in Netherlands-based HSO Group BV, a Microsoft services partner, to Bain Capital LP.
TOP FUNDRAISING
– JMI Management LP, doing business as JMI Equity, raised $3.1 billion at the close of JMI Equity Fund XII. The oversubscribed fund targets growth equity investments in the software sector across North America. Proskauer Rose LLP was legal counsel for the fund formation.
– Ridgemont Equity Partners seeks to raise $2.75 billion for the Ridgemont Equity Partners V fund, Buyouts reported, citing Plymouth County Retirement Association documents. The pension fund plans to commit at least $150 million to the fund.
– Pacific Avenue Capital Partners LLC, which focuses on corporate carve-outs and other complex situations in the middle market, raised more than $1.65 billion at the close of Pacific Avenue Fund II. The fund includes a more than €100 million sidecar vehicle to invest in Europe.
– Audax Management Co. LLC's Audax Strategic Capital raised about $1.3 billion at the final close of Audax Private Equity Solutions Fund LP. Ropes & Gray provided legal advice.
MIDDLE-MARKET HIGHLIGHTS
– IK Partners, through IK X Fund, agreed to buy Sweden-based Francks Kylindustri AB, a refrigeration system installation and maintenance company, from Amplio Private Equity AB's Segulah V LP fund.
– Quad-C Management Inc. invested in O6 Environmental LLC, a waste disposal and industrial cleaning company. Harris Williams and Piper Sandler were the respective financial advisers to O6 and Quad-C on the investment.
– Falfurrias Management Partners LP invested in Woven Solutions LLC, a technology and software solutions provider for the national security community. Holland and Knight were legal advisers to Falfurrias in the transaction. Baird and Miles & Stockbridge were Woven's financial and legal advisers, respectively.
FOCUS ON: FAMILY OFFICES' GROWING INTEREST IN ALTERNATIVE ASSETS
Global family offices intend to increase their allocations to alternative assets over the next two years as they seek portfolio diversification, according to a survey commissioned by fund services company Ocorian Ltd.
Of the 200 respondents, 46% expect to grow their allocation to private equity by up to 25% over the next two years, while 21% plan to grow their allocation to the asset class by up to half.
Meanwhile, 64% of the family office fund managers said they expect to grow allocation to infrastructure by up to half, while 32% and 22% of respondents target up to 50% growth allocation to private debt and real estate, respectively.
Diversification was the primary reason behind the family offices' intention to invest more in alternative assets, followed by increased transparency and the ability of some alternative asset classes to provide an income.
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