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 | PitchBook Newsletter | | Private Equity Edition |
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| Powered by the PitchBook Platform. Learn more» | | 562,632 Deals | 34,963 Funds | 22,667 Limited Partners | 28,798 Advisors | |
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MONDAY, JUNE 27, 2016  | |
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British exposure: The 9 PE investors from the EU most active in the U.K. What many considered unthinkable is now a fact: the U.K. has voted to leave the EU. Surely, it will be some time before the full effects of the Brexit are felt. But in reality, the looming specter of the vote was already influencing PE investor activity coming from the rest of Europe into the U.K.
Deal count in the U.K. for PE investors from EU member states has been on a gradual decline ever since 2Q 2015, according to the PitchBook Platform, dropping from 19 deals down to 12 during 1Q 2016. And so far this quarter, a mere 10 transactions have been executed—quite possibly a result of firms holding off on deals in the face of an uncertain future.
From the need to restructure international trade deals to the likely presence of a new face at 10 Downing Street, Britain’s exit leaves many potential sources of investor anguish. The plunge in the pound that immediately followed the vote could be of particular concern for European firms with British portfolio companies, considering most of those companies are valued in pounds but LP agreements and returns are logged in euros.
To give you an idea of the continental firms that could be most affected by the Brexit’s geopolitical upheaval, here’s a list of the PE investors from EU member states that have been most active in the U.K. since 2011, along with their deal counts (incl. add-ons):
1. AlpInvest Partners (18)
2. Ardian (15)
3. Aurelius (12)
4. PAI Partners (11)
5. Arkéa Capital Investissement (9)
T-6. H2 Equity Partners (8)
T-6. EQT Partners (8)
T-6. CM-CIC Investissement (8)
T-6. BNP Paribas Capital Partners (8)
PitchBook Platform users have access to the full data behind European PE deals in the U.K. Don’t want to miss out on this info? Contact us today. |
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Closing times indicate divergence in company quality  | |
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In the first quarter of 2016, most private equity transactions still took between 10 and 14 weeks to close, accounting for 31% of deals completed during that timeframe. However, the portion of deals that closed in 15 to 20 weeks shot up to near 25% of all activity, while a considerable chunk of transactions concluded in fewer than five weeks. These coincident increases speak to...
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Recommended Reads: Brexit edition Yoni Appelbaum argues that the Brexit, the rise of Donald Trump and other forms of global upheaval can be traced to a lack of imagination from the political establishment. [The Atlantic]
One of the Brexit’s first, most immediate effects: It has imperiled the agreed-upon $30 billion merger between Deutsche Boerse and the London Stock Exchange, with German regulators raising alarms. [Reuters]
A thoughtful piece from Wall Street veteran Chris Arnade on the links between racism, elitism and society’s desire for change. [Medium]
A step-by-step explainer of what comes next for the U.K. in its official withdrawal from the EU. [CNBC] |
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2010 Vintage U.S. Buyout Funds with B2C Investments | | Median IRR: | 13.87% | | Top Quartile IRR Hurdle Rate: | 19.05% | | Median TVPI: | 1.4x | | Average Amount Distributed: | $212.28 million |
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Goode Partners-backed Incipio to add Skullcandy | Consumer technology platform Incipio has agreed to acquire Skullcandy (NASDAQ: SKUL), a provider of audio and gaming products, for roughly $177 million. Goode Partners had closed a minority investment in Incipio in January. | Electronics Park City, UT | |
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Arlington buys EOIR Technologies | EOIR Technologies offers cloud computing, Big Data analytics, advanced visualization and other technology solutions to the U.S. Department of Defense and intelligence community. | Systems Management Fredericksburg, VA | |
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Baring Asia backs buyout of Ujwal Carlyle takes minority stake in NEP | Alongside Crestview Partners and company management, The Carlyle Group has made a significant minority investment in NEP Group, a provider of production services for broadcasting sports and other entertainment events. Crestview has owned a majority interest in the company since 2012. | IT Outsourcing Pittsburgh, PA | |
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Astorg, Autoform said to near $700M+ deal | Astorg has agreed to acquire industrial software group Autoform for CHF700 million (about $721 million), according to a Reuters report. Founded in 1995, Autoform offers software that helps automakers convert sheet metal into new vehicles; the deal reportedly values the company at about 19x EBITDA. | Automation Software Wollerau, Switzerland | | |
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First State Investments to acquire Parkia in SBO | First State Investments has agreed to purchase Parkia from EQT and Mutua Madrileña in a transaction expected to close during 3Q. EQT had acquired Parkia, an operator of off-street parking lots across Spain and Andorra, in 2011. | Commercial Services Madrid, Spain | |
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| EQT has enlisted Deutsche Bank to explore sale options for German utility services provider SAG, according to a Reuters report. EQT acquired the company, which logged EBITDA of roughly €90 million in the past 12 months, from Advent International in a 2007 secondary buyout. | PE/Buyout Stockholm, Sweden |
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Vestar to sell Sun Products in $3.6B deal | Vestar Capital Partners has agreed to offload The Sun Products to Henkel Consumer Goods, a subsidiary of Henkel (ETR: HEN3). Sun Products is the owner of a portfolio of laundry and household brands, including Snuggle, Wisk and Sun. Vestar had formed Sun Products in 2008 by merging Huish Detergents with the North American fabric care business of Unilever (NYSE: UL). | Household Products Wilton, CT | |
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CalPERS to seek investment proposals for $7B program | In July 2017, CalPERS will open a global solicitation process for a new Transition Manager Program. The program will seek investment proposals from eligible mid-size external investment managers and plans to make up to $7 billion in commitments by 2020; commitments range from $50 million to $300 million in the Real Estate and Private Equity programs and from $500 million to $1 billion in the Global Equity program. | Public Pension Fund Sacramento, CA |
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