Good morning, Hubsters. MK Flynn here on the Wire. I just got back from Poughkeepsie, where I spent a wonderful weekend celebrating my college reunion at Vassar with old friends and new. On the Hub today, we’re looking at a couple of themes in PE dealmaking. The environment for PE deals in healthcare has become more challenging, as various government entities and others have put them under the microscope. We’ve got an interview on the topic with Drew Maloney, president and CEO of the American Investment Council. As regulations in general have become more complex, demand for accounting, tax and advisory services has grown. Those trends are fueling PE-backed investments in accounting firms. One of those deals closed on Friday. Details, below. One trend PE Hub has followed closely over the last few years is the rise of employee ownership in PE-backed companies. KKR, a pioneer in the field, is expanding its program, as you’ll read below. Tell your own stories Growing regulatory scrutiny from the federal government and several states has made investments in patient-facing care “more challenging” and has led many PE firms to shy away from these assets all together, said Drew Maloney, president and chief executive officer of the American Investment Council, in an interview with PE Hub healthcare reporter John R Fischer. To read the interview, upgrade to the premium version. For ongoing coverage, see Bill Myers’ stories on affiliate publication Private Funds CFO, including this one. Service providers New Mountain Capital has completed its significant growth investment in Grant Thornton, a provider of audit, assurance, tax and advisory services used by many PE firms. The deal is expected to accelerate the firm’s business strategy. CDPQ and OA Private Capital also made minority investments in the firm.
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“This year, PE Hub has seen a slew of PE investments in accounting firms. PE Hub’s Obey Martin Manayiti recently rounded up a bunch of these deals, including Hellman & Friedman and Valeas Capital Partners investing in Baker Tilly. You can read that story here. Going global KKR is embarking on an ambitious plan to take its employee ownership program worldwide, Pete Stavros, co-head of global private equity, told Kirk Falconer. To learn all about KKR’s plans, subscribe to the premium version. Happy Pride Month June is Pride Month, and we’d love to hear from LGBTQ+ voices in private equity. If you have insights or experiences you’d like to share, please reach out to me at mk.flynn@pei.group. Cheers, MK Read the full Wire commentary on PE Hub ... | 