S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Co-investments can be a real learning opportunity for private equity limited partners.
Typically touted as a strategy for limiting or avoiding fees, co-investments — when limited partners directly invest in a business alongside a private equity (PE) fund manager, instead of investing via a PE fund structure — are also an opportunity "to understand how the sausage is made," said Zach Jackson, a San Franscisco-based partner with Australian investment manager QIC Ltd.
Working alongside a private equity manager during the co-investment underwriting stage provides insights into the manager's approach to risk and strategy. Gaining that perspective makes a limited partner a savvier private markets investor, honing views on not just asset selection but manager selection, too, Jackson said.
Jackson spoke with S&P Global Market Intelligence on the sidelines of the SuperReturn US West conference, held Sept. 15–17 in Los Angeles. In addition to co-investments and manager selection, the conversation touched on QIC's view of the fast-growing secondaries market and the easing of the distributions drought.
Read more of the Q&A with QIC's Zach Jackson.
CHART OF THE WEEK: Poland leads on central and Eastern European private equity investment
⮞ Poland was the top destination for private equity and venture capital investment in central and Eastern Europe this year through Aug. 31, attracting 41 deals with an aggregate value of $280.4 million, according to S&P Global Market Intelligence data.
⮞ Overall, private equity investment in central and Eastern Europe totaled $702.4 million this year through Aug. 31, down 29% from $989.1 million during the same period a year ago.
⮞ US tariffs and the Russia-Ukraine war are key risks for investors in the region, Marcin Majewski, founder and managing partner of M&A advisory firm Aventis Advisor, told Market Intelligence.
TOP DEALS
– KKR & Co. Inc. and Canada Pension Plan Investment Board agreed to acquire a 45% stake in energy infrastructure company Sempra Infrastructure Partners LP from Sempra for $10 billion in cash.
– Patient Square Capital LP agreed to acquire healthcare improvement company Premier Inc. for $2.6 billion. As part of the deal, Premier stockholders will receive $28.25 per share in cash, representing a 23.8% premium to its 60-day volume-weighted average price as of Sept. 5.
– Novacap Management Inc. agreed to acquire media measurement and optimization platform Integral Ad Science Holding Corp. for around $1.9 billion in an all-cash transaction. Integral shareholders will receive $10.30 per share, representing a 22% premium over Integral's recent closing price.
– Thoma Bravo LP agreed to acquire pricing and selling software platform Pros Holdings Inc. in an all-cash transaction valued at around $1.4 billion. Pros shareholders will receive $23.25 per share, a 41.7% premium to its closing share price prior to the announcement.
TOP FUNDRAISING
– Ridgemont Partners Management LLC raised $3.98 billion at the close of Ridgemont Equity Partners V, The Wall Street Journal reported. The fund seeks to acquire US midmarket companies.
– Frontier Tech Capital seeks to raise $150 million for its maiden fund, Yourstory reported. The fund seeks to invest in 10 to 15 growth-stage technology and tech-enabled companies across Southeast Asia.
– Deutsche Bank AG is set to launch a new evergreen private markets fund in collaboration with DWS Group GmbH & Co. KGaA and Partners Group Holding AG. The fund will invest in Partners-led solutions as well as in opportunities of other private market managers.
MIDDLE-MARKET HIGHLIGHTS
– HCAP Partners LLC invested in diagnostic testing company Realtox Labs LLC. Terms of the investment were not disclosed.
– Dubin Clark & Co. Inc. recapitalized event services company Party Reflections Inc. Latek Capital Corp served as financial adviser to Party Reflections.
– Accel-KKR LLC bought a majority stake in athletic and school operations management software company Arbiter LLC. Serent Capital Management Co. LLC will retain a minority stake in the company.
FOCUS ON: VENTURE CAPITAL GROWTH
The venture capital market worldwide is expected to grow to $1.283 trillion in 2032 from $250.26 billion in 2023, according to a report from market research company Market Research Future.
Technological innovations in AI, fintech, health technology and clean energy are attracting venture capital investments.
The growing participation of institutional and retail investors in venture capital funding is also a main factor in the growth of the market.
Global venture capital funding rose to a five-month high in August at $31.90 billion, boosted by the $13 billion round of AI company Anthropic PBC, according to S&P Global Market Intelligence data.
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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.
For private debt news, see our latest private debt newsletter issued twice per month.
