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GTCR on what’s driving appetite for automated software testing; a Harris Williams report on energy efficiency

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom, filling in for Michael Schoeck.

A shift toward automated software testing is widely expected to gain share and take over the manual process that has dominated the industry. We are opening the newsletter today with a deep-dive into GTCR’s recent investment in Tricentis, a continuous testing and quality engineering company. Stay tuned for why GTCR chose to join current investor Insight Partners, and how both firm’s investment playbooks will pan out to scale Tricentis.

Next, confectionary products are selling like hotcakes. We are looking at this morning news that New York- headquartered SK Capital is acquiring a Toronto-based maker of decorative toppings, candy panning, and confectionary products.

Finally, we have a report from Harris Williams’ Energy, Power & Infrastructure Group discussing that the expanding energy demand and increasingly complex supply are powering long-term demand for efficiency initiatives.

Automated testing

Automated software testing is widely expected to gain share and take over the manual process that has dominated the industry, a trend that attracted GTCR to join Insight Partners in investing in Tricentis, according to the firm’s principal Nelson Iginla.

Chicago-headquartered GTCR recently agreed to make a $1.33 billion minority investment in Tricentis, to join the current investor Insight Partner in a deal that values the company at $4.5 billion.

Upgrade to the premium version of the Wire to learn more.

Confectionary products

SK Capital Partners has acquired Spectra Confectionery, a Toronto-based maker of decorative toppings, candy panning, and confectionary products from the company founders Bill and Maureen Georgas and the Georgas family.

Upgrade to the premium version of the Wire to learn more.

And talking about food, my colleague Rafael Canton recently rounded seven PE deals focusing on a wide variety of dishes.

Power up

Due to unpredictable energy costs and rising power demand, energy efficiency programs that lower costs and contribute to eco-friendly goals are increasingly important, senior professionals from Harris Williams Energy, Power & Infrastructure Group, note in a recent report titled CleaResult: An Expanding Need for Energy Efficiency.

The report is based on how Harris Williams’ recent client, CleaResult, exemplifies the sector’s growth potential. Kohlberg & Company recently bought a majority stake in CleaResult, an Austin-based energy efficiency, energy transition and energy sustainability services provider, from TPG. Harris Williams acted as financial advisor to CleaResult.

Premium subscribers to the Wire have access to more on this report.

PE Hub expects to see more PE-backed deals in this sector next year.

That’s it for me today. As always, I’d love to hear from you at obey.m@pei.group.

Irien Josephs will bring you tomorrow’s Europe Wire, while John R Fischer will bring you the US edition.

Cheers,

Obey

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Also of note (may require subscriptions)

As the market looks ahead into 2025, some large secondaries processes are starting to come into focus. One of those will be from the New York City Employees’ Retirement System, which is gearing up for what could be one of the mega-portfolio sales of the year, three secondaries markets sources told Buyouts.

Partners Group aims to capitalize on the fragmented nature of Spain’s hospitality sector to consolidate Bluesea Hotels through M&A, Stephen McCall, managing director, head of real estate platforms and opcos, told PE Hub.

Between the alleged Indian solar bribery scandal CDPQ has found itself swept up in and OMERS Infrastructure’s failed investment in the UK’s largest water utility, it’s hard not to wonder whether a harsh spotlight is about to fall on Canadian pensions’ much-vaunted direct investment model. (Infrastructure Investor)

How far and how fast – all eyes on interest rates. The rate cycle has been a preoccupation of the private debt market for a while now. Initial assumptions of a smooth downward cutting cycle next year are being challenged. (Private Debt Investor)

After interim closes this month, London-headquartered Stafford Capital Partners is about one-third of the way towards meeting its fundraising goal for its fifth infrastructure secondaries fund with a final close in sight. (Secondaries Investor)

Investors need to rethink how they are approaching energy efficiency in data center assets, according to Italian manager Ambienta. Current approaches to energy efficiency are ignoring the most carbon-intensive area of data center operations, according to the environment-focused manager. (New Private Markets)

Private Equity International’s private wealth special report looks at the latest developments in the industry’s push to open up the asset class to a broader range of investors. Articles include:

• • •    • Three key trends in private wealth
    •    • Private markets’ (il)liquidity problem
    •    • Women of Influence on unlocking the private wealth sector

A consortium led by Starwood Capital Group has made a $7 billion takeover bid for Hong Kong-based industrial giant ESR Group, the latest escalation in its months-long quest to take Asia’s largest real estate manager private. (Private Equity Real Estate)

They said it

“Insight plays across a very wide size range, and they see a lot of smaller, sort of venture-backed opportunities, and GTCR plays less in that space. One of the tangible things that Insight brings is that deal flow and being able to find companies that are a good fit for Tricentis.”

— Nelson Iginla, a principal at GTCR, regarding his firm’s investment in Tricentis, along with Insight Partners.