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Ara buys into renewable fuels infrastructure biz; Hamilton Lane’s Hartley Rogers sees lower deal activity

Morning Hubsters, Craig McGlashan here with the opening Wire of 2024.

I hope you all had a great break and are looking forward to the new year. Some private equity firms have raced straight out the blocks, including in the renewables sector – which sources tip to be a big investment opportunity this year.

Ara Partners has bought a majority stake in a logistics infrastructure developer for renewable fuels, for instance.

We also feature the latest in our outlook Q&A series with senior dealmakers, where Hamilton Lane executive co-chairman Hartley Rogers has a slightly more pessimistic view on when dealmaking will pick up compared to some of our other interviewees.

We then switch back to deal announcements, as Platinum Equity buys an organic milk producer via a corporate carveout – a technique tipped to be in vogue for dealmakers this year.

Green molecules

Ara Partners has acquired a majority stake in a Houston-based developer of logistics infrastructure in North America for the renewable fuels value chain.

Read more in the subscriber version of the Wire.

Plenty of people in private equity are betting on renewables to have a big year in 2024. Find out the thoughts of Gabriel Caillaux, co-president, global head of climate and head of EMEA at General Atlantic over on PE Hub Europe.

Shakeout

While many of the outlook Q&As we’ve been running on PE Hub and PE Hub Europe have struck an optimistic note about dealmaking volumes in 2024, particularly due to the large buildup of dry powder and interest rates seemingly having peaked, the latest instalment has a more pessimistic outlook.

Hamilton Lane executive co-chairman Hartley Rogers told MK Flynnthat macro factors mean we’re going to be stuck in a lower deal environment for some time yet.

Subscribe to the full version of the Wire for more.

Dear dairy

Corporate carve-outs are one area that should provide ample dealmaking opportunities in 2024, PAI Partners managing partner Frédéric Stévenin told me a couple of weeks back over on PE Hub Europe – and we’ve seen some evidence of that already this year in the US.

Platinum Equity has agreed to acquire an organic milk producer.

OK that’s it from me today. Chris Witkowsky will be on Wire Wednesday duty tomorrow.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

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