S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Liquidity pressures and a slow exit market combined to push private equity secondaries to recent record highs.
Themes emerging in the fast-growing secondaries market include the recent supersizing of limited partner stake sales and the industry's growing acceptance of general partner-led secondary transactions, known as continuation vehicles. But secondary buyouts, or sponsor-to-sponsor deals that involve one private equity firm selling a portfolio company to another private equity firm, remain a key piece of the larger secondaries picture.
One example from earlier this year was Audax Management Co. LLC's exit of advisory firm Stout Risius Ross LLC after a 3.5-year investment. The acquirer was another private equity firm, Integrum Holdings LP, which targets investments in the financial and business services sectors.
The deal was one of eight exits Audax has logged since the start of the year, a record that compares favorably to some of the industry's largest players. Secondary transactions appear to be a key element in the firm's exit strategy, accounting for eight of 13 exits announced since January 2024, according to S&P Global Market Intelligence data.
Read more about Audax's exit of its investment in Stout.
CHART OF THE WEEK: Private equity investment in Israel already exceeds 2024 total
⮞ Private equity and venture capital firms' investment in Israel between Jan. 1 and Aug. 14 came to $5.07 billion, already surpassing the $4.79 billion full-year total in 2024, according to Market Intelligence data.
⮞ Businesses in Israel's technology, media and telecommunications sector attracted the bulk of that investment, totaling $3.04 billion across 86 deals.
⮞ The annual value of private equity and venture capital investment in Israel fell sharply year over year in 2023 — declining 57% to $4.43 billion from the $10.27 billion prior-year total — but has risen steadily since then.
TOP DEALS
– Japan-based Sompo Holdings Inc. agreed to acquire Apollo Global Management Inc.-owned Aspen Insurance Holdings Ltd. for $37.50 apiece in cash, or about $3.5 billion in the aggregate. Apollo acquired the company in 2019.
– Thoma Bravo LP agreed to acquire Verint Systems Inc. in an all-cash transaction valued at $2 billion. Verint shareholders will receive $20.50 per share, an 18% premium over the customer engagement software company's 10-day average share price up to June 25.
– The Carlyle Group Inc. agreed to buy UK-based investment technology company Intelliflo Ltd. from Invesco Ltd. for up to $200 million. Carlyle Europe Technology Partners V SCSp, a €3 billion fund focused on technology investments in Europe, will provide the equity for the investment.
– Advent International LP agreed to purchase US-based healthcare content provider PatientPoint Inc. in a deal with private equity sellers L Catterton Management Ltd. and Littlejohn & Co. LLC.
– TPG Capital LP's TPG Growth LLC agreed to buy Irth Solutions LLC, which provides enterprise software to energy and infrastructure companies. Blackstone Energy Transition Partners is the seller.
TOP FUNDRAISING
– Warren Equity Partners LLC seeks to raise at least $2.3 billion for Warren Equity Partners Fund V LP, The Wall Street Journal reported, citing documents prepared for the Los Angeles City Employees' Retirement System. The pension fund committed as much as $40 million to the new fund, while the State Board of Administration of Florida committed about $150 million. The fund will invest in infrastructure assets and services.
– Marondo Capital GmbH aims to raise €250 million for its latest private equity fund, Private Equity International reported, citing the firm's partner and co-founder, Marko Maschek. Fund II will invest in technology, defense and critical infrastructure companies in Germany, Austria and Switzerland.
– Iris Capital Partners is looking to raise $200 million for a new fund, Bloomberg News reported. The vehicle will invest in US and Chinese companies that aim to expand in Malaysia and Indonesia.
MIDDLE-MARKET HIGHLIGHTS
– Vector Capital Management LP agreed to acquire Belgian revenue technology company Showpad NV. Sidley Austin LLP is legal counsel, Alvarez & Marsal is financial adviser and Deloitte LLP is tax adviser to Vector. Cleary Gottlieb Steen & Hamilton LLP is legal counsel and TD Securities is financial adviser to Showpad.
– Nautic Partners LLC agreed to invest in KabaFusion LLC. Novo Holdings A/S will exit its investment in the infusion therapy company as part of the transaction. Houlihan Lokey advised KabaFusion on financial matters, with Goodwin Procter LLP, Linklaters LLP and Epstein Becker & Green PC as legal counsels.
– Mill Point Capital LLC completed a recapitalization of electrical products company Voltaris Power LLC.
FOCUS ON: INTEREST IN PRIVATE EQUITY FROM US RETIREMENT PLAN HOLDERS
There is meaningful interest in investing in private equity and private debt among US retirement plan holders, according to a survey conducted by Schroders PLC.
Of the 1,500 survey participants, 45% intend to invest in private equity and private debt, higher than 36% in 2024.
Among those who would invest, 51% would allocate less than 10% of their plan to private assets, while 36% would commit up to 15%.
Earlier in August, President Donald Trump issued an executive order that opened the $12 trillion 401(k) retirement savings market to alternative asset managers. Prior to the executive order, only institutions and ultrahigh net worth individuals were allowed to invest in private markets.
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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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