Good morning Hubsters. Michael Schoeck here with the US Wire from the New York newsroom.
With a majority of the country's infrastructure systems like pipelines being over a half-century old, pipeline maintenance is vital to preventing damage or clogged pipelines.
GenNx360 Capital is on the hunt for add-ons to pipeline services provider Shenandoah Industrial Solutions, which it acquired in September. I spoke with a firm partner about the strategy.
Next is my weekly companies for sale update, which highlights two newly announced deals involving portcos from New Mountain Capital and Bain Capital.
And lastly, with the budget bill likely to become law shortly, PE Hub healthcare reporter John R Fischer continues to seek commentary about how Medicaid cuts may affect private equity deals. Below, I’ll share John’s interview with an attorney who advises PE firms on healthcare deals.
Pipeline integrity
GenNx360 Capital Partners sees a resilient and largely untapped pipeline infrastructure maintenance market as fertile ground for geographic market expansion via add-on deals for one of its newest portfolio companies, Shenandoah Industrial Solutions.
PE Hub touched base with GenNx360 principal Pratik Rajeevan to discuss the lower mid-market investor’s outlook on the infrastructure market and how add-on deals fit into the newly acquired company’s growth strategy.
Subscribe to the premium Wire to read more from the discussion, including on the US pipeline infrastructure market and Shenandoah’s growth strategy.
Companies for sale
Company for sale activity has been slow with summer in full swing. From two conversations earlier this week with investment bankers, both said they expect PE sellers to be more willing and fluid in testing the market for “Grade A” value companies in the second half of the year.
Readers of the premium wire can access additional companies for sale content, including weekly scoops and deal announcements.
If you’ve got information to share about companies coming to market, please reach out to me at michael.s@pei.group.
Medicaid cuts
With the budget bill likely to become law shortly, PE Hub healthcare reporter John R Fischer continues to seek commentary about how Medicaid cuts may affect private equity deals.
Today, we hear from Joshua Freemire, a partner at Epstein Becker & Green and an advisor to healthcare investors and their portfolio companies.
How might changes to Medicaid affect PE deals if the bill is passed into law?
That will depend on a lot of factors, especially how much the target depends on Medicaid funds. Overall, companies that are heavily dependent on Medicaid will be less attractive as there will simply be less Medicaid funding.
Upgrade to the premium version of the Wire to see more from the interview.
For more commentary, see John's interview with Reed Smith partner Nicole Aiken-Shaban.
That’s a wrap for today.
Schedule note: There will be no US edition of the PE Hub Wire newsletter on Friday, July 4, in observance of Independence Day. The Europe edition will publish as usual, written by Irien Joseph.
Have a good weekend,
Michael
Read the full Wire commentary on PE Hub ...
