Private equity deal news and insights from the London newsroom

Eurazeo moves for hospitality back-office tech provider; PE bets big on franchises; Tech set for ‘promising’ 2025

Hello Hubsters,

It’s Irien Joseph bringing you the Europe edition of the Wire from the London newsroom.

We’re kicking things off with an exclusive interview with Edouard Guigou of Eurazeo about his firm entering exclusive negotiations to buy Mapal from another private equity firm.

Sticking with both those themes, we then look into the world of franchising with our latest roundup of 11 deals in the sector since November, many of which are in the hospitality industry.

Next, tech steals the spotlight in this week’s deal roundup. We have insights from McDermott Will & Emery’s Sebastien Bonneau on thekeytrends shaping the industry’s future.

We finish with exciting news, as we start the countdown towards PE Hub’s Deal of the Year winner announcement.

Backing the back office

Private equity firms have spotted an opportunity in the growing hospitality sector, where the back office “is not as technology-driven as it could be,” Edouard Guigou, partner, mid-large buyout at Eurazeo, told PE Hub's Craig McGlashan. The private equity firm has this morning entered exclusive negotiations to take a majority stake in Mapal, an operational management software provider for back-office processes for the food service and hospitality industries.

Read the full story to find out why Eurazeo’s Guigou thinks this sub-sector is so attractive as well as the firm's M&A plans for the company.

Buffet of deals

Private equity dealmakers just can’t get enough of the franchise model, writes my colleague Sophie Rose. PE Hub has spotted 11 deals across Europe and North America since we listed seven private equity deals involving franchises in November.

Check out the premium version of the Wire to find out the key trends driving deals in the sector.

Addressing gaps

The European technology sector is set for a promising 2025, with a notable increase in venture capital and private equity investments, Sebastien Bonneau, private equity partner at law firm McDermott Will & Emery, told PE Hub.

Subscribe to the premium version of the Wire to find out his outlook for the European tech sector.

Here’s a roundup of the tech deals we reported in the US and Europe this week:

Nordic Capital takes controlling stake in Anaquafrom Astorg
PSG to pump capital into Germany’s Checkmk
Rotunda Capital acquires automotive tech biz AirPro Diagnostics
GI Partners, TA invest in Egnyte
Investcorp to sell majority stake in Contentserv
Edison Partners exits public safety platform RapidDeploy

For more on tech, check out this deep dive into Montagu’s global expansion plans for Multifonds following a $400 million carve-out.

Stay tuned

Be sure to tune in on Monday when PE Hub will announce the winners of the 35th annual Deal of the Year Awards, as we honor exceptional buyouts realized in 2024.

Set your reminders – you won’t want to miss the stories featuring winners in all categories, available on the PE Hub website from 11:00 am GMT. US Wire readers will also get highlights from the awards.

That’s all from me. John R Fischer will be with you in the New York morning with the US edition and Nina Lindholm will bring you the Europe edition of the Wire on Monday as usual.

Warmly,

Irien

Read the full Wire commentary on PE Hub ...

Today's must reads

Also of note (may require subscriptions)

LPs mustn’t sleep on geopolitical risk: Attempting to mitigate these risks – particularly in ways that can serve to add value, as well as protect it – could soon become less of a rarity, and more of a fiduciary duty. (Private Equity International)

Arby’s and Subway owner Roark ‘closing on’ $5bn for Fund VII: It is not clear whether the $5bn refers to Roark Capital Partners VII’s target or to capital raised against an unknown target. (Buyouts)

FERC ‘to act and act soon’ on co-location issues in PJM: New rules established as a result of FERC’s rulemaking process for PJM – a region that includes Northern Virginia – could have implications for co-located data centres across the US. (Infrastructure Investor)

Where impact capital is most needed, according to AlTi Tiedemann: The wealth manager has released a social progress report that pinpoints when private equity impact capital is most needed. (New Private Markets)

NAV loans’ role in a fund’s ‘twilight’: Private markets veterans believe debt can help buyout and credit funds late in their life cycle, but argue for caution in the practice. (Private Funds CFO)

Australia accelerates water buyback program with 100GL/year tender: Modelling suggests the Australian government’s move to restore river health in the Murray-Darling Basin could also drive up water prices by 7.2%. (Agri Investor)

“In the past, private equity firms often regarded franchising as a secondary consideration to brand ownership and owned store growth strategies. However, this perspective has evolved dramatically in recent years. Today, the asset-light, low-risk and low-capex nature of franchise networks make them an increasingly attractive model for investors.”

— Sam Fuller, managing director, Houlihan Lokey’s consumer group, on the franchise sector

Today's letter was prepared by Irien Joseph

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