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Independent sponsor Hudson Glade to make first investment; Arcline exits electric infra services platform

Morning Hubs!

This is Chris, on for Wire Wednesday.

• Hudson Glade buys Quality First Home Improvement in debut deal

• Arcline exits electric infrastructure services firm Voltyx

I-sponsor

Here’s something we like to see – a new firm, starting off its life investing deal-by-deal, is announcing its first transaction this morning. Hudson Glade, launched by ex-Littlejohn & Co executive David Simon and Jeff Lowe, who formerly worked at BNP Paribas and Bank of America, is acquiring Quality First Home Improvement, reports Rafael Canton on PE Hub.

Exit

Arcline Investments sold Voltyx, a provider of electric infrastructure services, to Asplundh. The firm created the Voltyx platform in 2021, formed through the acquisition of Electric Power Systems and North American Substation Services from Industrial Growth Partners. At the time, IGP retained a minority stake in the combined company.

Growing

A development we’ve been tracking concerns certain assets run by PE shops that have grown so big the only viable exit option is the public markets. But with that channel being much less active than in the past, (and probably less attractive to many firms) the question is – how does a firm exit an asset that has grown too big to exit? We're seeing some of this come up in secondaries – a few recent deals have included GPs putting partial stakes of large companies into continuation funds, as a way to distribute back to LPs, while still retaining exposure to the investment through the original fund.

That’s it for me! Hit me up with tips n’ gossip, feedback or book recommendations at christopher.w@pei.group or find me on LinkedIn. 

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

In the latest episode of the Decade of Secondaries Investing podcast miniseries, industry veterans Jeremy Coller and Yann Robard sit down with Secondaries Investor senior editor Adam Le to discuss the proliferation of non-traditional strategies and how this will fuel the industry's growth.

US grain exports face uncertain long-term outlook: Crop revenue growth depends on the country’s ability to tap new export markets in a time of growing competition from the Black Sea and Latin America, while reducing a reliance on Chinese buyers. (Agri Investor)

ICG, the 12th-largest secondaries firm by fundraising per the SI 50, looks set to raise its largest-ever GP-led-focused fund when it holds its final close. (Secondaries Investor)

Energy Capital Partners has sealed a final close on its ECP V fund, securing $4.4 billion in commitments and exceeding its $4 billion target. (Infrastructure Investor)

The majority of institutional investors either expect to invest in climate solutions or have already done so, according to a report from Robeco. (New Private Markets)

Geneva-headquartered manager Stoneweg, which invests in real estate across the US, Southern Europe and Switzerland, is set to almost double its assets under management with the acquisition of the European business of Australian manager Cromwell Property Group. (Private Equity Real Estate)

Kroll Bond Rating Agency has concluded, after the study of a large sample of investment portfolios of business development companies, that the valuation of assets is rigorous, reasonable and remarkably consistent throughout the industry. (Private Debt Investor)

They said it

“They’re non-discretionary. If your roof is leaking, you need to fix it. If your windows are broken, you need to fix them. If the masonry work and anything is crumbling, you need to fix it. These are things that really can’t be deferred.”

— David Simon, co-founder of Hudson Glade, talks about investing in essential services.