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Beginnings are hard, and Q1 was really hard for closing deals; Number of companies for sale is also down

Happy May Day, Hubsters! Michael Schoeck here with you from the New York newsroom with the US edition of the Wire.

Further evidence that dealmaking is on pause in the midst of market uncertainty has emerged, as PE Hub reveals in our Q1 2025 quarterly M&A report, based on data from S&P Global Market Intelligence.

Up next is my weekly update on companies for sale, and there’s some good news. This week a couple of deals have emerged involving companies I’ve tracked, including a power services company sold by Investcorp after just three years.

But first let’s take a look at the data.

Lackluster M&A volume

PE Hub has reported on the lull in dealmaking since January, and the first quarter data proves the point. Private equity saw deal activity drop to 18.2 percent fewer transactions than 2024’s buoyant Q4, according to PE Hub’s quarterly M&A deals report, based on data from provided by S&P Global Market Intelligence. The report was written by senior data journalist Rashida Kamal and data journalist Mariam Lobjanidze.

For more insights on Q1 deal activity, including which sectors are managing to deliver deals, sign up for the premium version of the Wire.

And for reaction to all the uncertainty in the market these days, read our special report on tariff turmoil. Our editorial teams at PE Hub, Buyouts and Private Equity International talked to dozens of experts from both LP and GP universes to understand how these key players are approaching this moment – and it is clear that there is both opportunity and challenge.

For highlights and takeaways from our reporting, check out the latest episode of our Spotlight podcast, “How tariff turbulence is hitting private markets.” It features perspectives from our editors, including PE Hub editor-in-chief Mary Kathleen (MK) Flynn.

Tracking the pipeline

One of the ways PE Hub tracks dealmaking activity is through our coverage on companies coming up for sale, based on confidential conversations with sources. This reporting gives us intelligence on the deal pipeline. On Thursdays, I update our readers.

This week’s edition highlights Investcorp’s sale of Resa Power to Kohlberg & Company, and Hillenbrand and Right Lane Industries’ sale of TerraSource to Astec Industries.

Register for the premium version of the Wire to read up on more companies for sale.

Got tips on a company coming to market? Shoot me a note at Michael.S@pei.group.

That’s a wrap for me. Keep an eye out for the Europe edition of the Wire tomorrow from Irien Joseph and the US edition from John R Fischer.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Vista Equity Partners raised nearly $4 billion in a first close on its continuation fund for Cloud Software Group, a deal expected to close in the summer, two sources said. (Buyouts)

The first quarter of 2025 saw the lowest volume of fundraising on a rolling 12-month basis since 2020, as exits continued to remain dry despite some significant exceptions, according to a recent study released by KPMG. (Buyouts)

The latest Infrastructure Investor debt fund ranking – the Infrastructure Debt 30 – reveals that the 30 top debt fund managers raised $153 billion between them from 1 January 2020 until 31 December 2024.

“I have sensed, over the last two or three years, a degree of weariness and loss of momentum in investor climate movements. I think it’s partly down to drowning in data and overemphasising data and reporting, at the expense of decision making and action,” Simon Hallett, partner at Cambridge Associates and head of the firm’s climate strategy, tells New Private Markets.

Heathrow Airport’s recent closure and the Iberian blackout are putting the spotlight on resilience. But who should pay to invest in resilience and who bears the cost of failing to do so? (Infrastructure Investor)

US forest investment and management firm EFM could help manage multiple funds through a new joint venture with Japanese trading company Sojitz Corporation, according to Amrita Vatsal, managing director of business development and carbon market lead at EFM. (New Private Markets)

Private Equity International has a profile of Bart van Dijk, the new Europe head at Institutional Limited Partners Association. Van Dijk, a Dutchman who speaks five languages and enjoys interacting with people, outlines the representative body’s growth plans for the region.

Private Equity International is out with its annual Future 40 list, which sets out to celebrate rising stars making a name for themselves in five categories: dealmakers, investors, fundraisers, operators and lawyers.

Swiss Life Asset Managers has committed up to €125 million to a new joint venture with Planet Farms, an Italian vertical farm developer and operator. (Agri Investor)

Connecticut-based CF Private Equity has deployed almost $25bn since the firm’s inception in 1988. Its real assets leaders Dan Connell and Ethan Levine discuss with Infrastructure Investor how the LP is moving forward in uncertain times.

Deals

They said it

“We believe Resa is exceptionally well-positioned to capitalize on the growing demand for power services, increasing energy usage, aging infrastructure, and the need for greater grid resiliency.”

— Gus Harwood, a partner at Kohlberg, on acquiring Resa Power from Investcorp

Today's letter was prepared by Michael Schoeck

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