Two blockbuster deals pushed total private equity and venture capital investment in the environmental and facilities services sector to at least $2.63 billion in the third quarter, according to S&P Global Market Intelligence data to Sept. 28.
The aggregate commitment during the quarter far outpaced the $238.4 million invested in the same period a year ago.
Private equity firms had invested a total of $3.75 billion across 127 deals in the sector in the year to Sept. 28. The annual investment total in the sector for 2022 was $5.07 billion, which came from 190 transactions, including whole-company and minority-stake acquisitions, plus funding rounds.
The largest deal in the third quarter to Sept. 28 was the sale of Heritage-Crystal Clean Inc. by The Heritage Group and ArrowMark Colorado Holdings LLC to JF Lehman and Co. LLC for $1.32 billion. The transaction is expected to close in the fourth quarter of 2023.
The second largest transaction was the $1 billion funding round of Redwood Materials Inc. The equity financing round was co-led by returning investors Goldman Sachs Asset Management LP, Technology Impact Fund LP, managed by Capricorn Investment Group LLC, and funds and accounts advised by T. Rowe Price Group Inc.
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