S&P Global Market Intelligence offers a top selection of global and other private equity news stories published throughout the week.
CEO Partners Group Holding AG David Layton said back in July that he expects the slowdown in private equity-backed M&A activity to “continue through late summer.” That timeline has been extended.
Layton tacked three to six months to the prediction when Partners Group reported its first half earnings on August 30. market volatility since the beginning of the year raised questions about valuations that have not been resolved, he said.
“I wouldn’t say there’s a strong market for buyers and sellers to be on the same page,” Layton said. “I think we are still behind sellers who were able to sell at yesterday’s price because there are still aggressive buyers. But I also don’t think we are far. away from a more reasonable eye-to-eye discussion.”
Layton responded to analysts’ questions about the timing of the new investment, but the disconnect between buyers and sellers also hastened exits, with Partners Group delaying sales of portfolio companies that were due to take place in the first half. That’s hitting the bottom line of Swiss listed asset managers.
Read more about the impact of the M&A slowdown on Partners Group’s performance fees and first-half profits.
PICTURE OF THE WEEK: PE investment in blockchain, cryptocurrency slide
⮞ Cryptocurrency prices and ongoing regulation have dampened private equity activity in the space so far in 2022.
⮞ Global deal value fell by almost half in the second quarter compared to the same period in 2021, to $2.7 billion.
⮞ Private equity and venture capital firms will invest $16.65 billion into cryptocurrency and blockchain in 2021, a record for the industry.
Fundraising and bidding
* Bain Capital Pvt. Equity LP agreed to buy Evident Corp., the life-sciences and industrial solutions business of Olympus Corp., for about $3.11 billion. The deal is expected to close in the first quarter of 2023.
*Funds managed by affiliates of Apollo Global Management Inc. will sell tower platform and build-to-suit provider Parallel Infrastructure LLC to Harmoni Towers LLC, a Palistar Capital LP portfolio company. The deal is expected to close in the third quarter.
* Genstar Capital LLC closed its acquisition of Numerix LLC, a capital markets risk management technology company.
* TPG Capital LP’s The Rise Fund and Norwest Venture Partners led a $110 million series D funding round for Indian consumer lending financial technology group, Early Salary Pvt. Ltd. Piramal Capital & Housing Finance Ltd., an earlySalary investor, also participated in the round.
OTHERS IN THE INDUSTRY
* RedBird Capital Partners LLC completed the acquisition of AC Milan for €1.2 billion. As part of the deal, New York Yankees owner Yankee Global Enterprises LLC took a minority stake in the Italian soccer club.
* Levine Leichtman Capital Partners LLC closed the sale of Monte Nido & Affiliates LLC, which provides treatment programs and services for people with eating disorders, to a fund managed by Revelstoke Capital Partners LLC.
* Blue Point Capital Partners LLC closed on Water Lilies Food LLC, a frozen food manufacturer and distributor.
* Incline Equity Partners acquired NovaVision Inc., a consumable security and authentication products company.
FOCUS ON: EDUCATION
* Thoma Bravo sells Frontline Education, a provider of administration software for K-12 educator, for Roper Technologies Inc. The deal, which values the company at about $3.73 billion, could close in the fourth quarter.
* Discovery Education Inc., a Clearlake Capital Group LP portfolio company, closed its acquisition of Pivot Interactives SBC, which develops cloud-based activities and labs for students.
* Anchorage Capital Partners signed a conditional agreement to buy Lollipops Educare Holdings Ltd from Evolve Education Group Ltd for an enterprise value of approximately NZ$46 million. The deal is expected to close by the end of September.