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MiddleGround puts single-asset CV to work for metals platform; Permira’s Silvia Oteri discusses weight-loss and diabetes treatments

Good morning, Hubsters. Michael Schoeck back with you for the Thursday Wire. It’s a busy morning with a couple of power and energy market deals, and original stories from yours truly and our PE Hub Europe team.

Among original reports, we’ll have a look at my new interview with MiddleGround Capital managing director Ryan McComb, who discussed deal interest for Chicago-based industrial portfolio companies Banner Industries and Castle Metals. PE firms are increasingly turning to single-asset continuation vehicles, and McComb shares some insights on how MiddleGround is leveraging the strategy.

Next up is a new story by my European colleague Nina Lindholm, who interviewed Silvia Oteri, partner and head of Permira’s healthcare group, on private equity interest in the weight-loss and diabetes drug category.

In deal news, First Reserve announced the exit of Gridtek Utility Services to an undisclosed buyer.

And we’ll wrap up today with more energy news, this time from the Permian Basin in Texas where EnCap Investments-backed Ameredev, a light crude oil producer,  announced a sale to Matador Resources in a $1.9 billion transaction.

Metals consolidator

Expansion into aerospace, defense and telecom will drive add-ons for MiddleGround Capital’s Castle Metals/Banner Industries, an entity that combines two portfolio companies. The strategy showcases the power of the single-asset continuation vehicle, an approach private equity firms are increasingly invoking.

Subscribers to the premium version of the Wire can access the full story.

We’ll shift from metal bars to the healthcare market for a moment to have a look at weight-loss and diabetes drugs.

On trend

Glucagon-like peptide 1 (GLP-1) receptor agonists – also known as weight-loss and diabetes drugs – have been in the headlines as the popularity of the commercialized versions has exploded.

These drugs are part of a number of opportunities that Silvia Oteri, partner and head of healthcare at Permira, tells PE Hub Europe’s Nina Lindholm are part of the accelerating healthcare market.

Upgrade to the premium version of the Wire for more details on this healthcare trend.

On the grid

On Wednesday First Reserve announced the sale of GridTek Utility Services, a Melbourne, Florida-based provider of repair, maintenance, installation and upgrade services for electric utility market. No deal terms were disclosed.

Upgrade to the premium version of the Wire for more details on the deal and recent coverage on GridTek’s sale.

Keeping with the energy theme, let’s have a look at a Permian Basin oil and gas deal.

Repeat business

Matador Resources, a Dallas-based oil and gas producer, announced a deal to acquire Ameredev, a portfolio company of EnCap Investments LP, for over $1.9 billion.

Upgrade to the premium version of the Wire for more details on this and a 2023 EnCap deal involving Permian oil and gas.

That’s a wrap for me today. Keep an eye out for the Friday edition of the Wire tomorrow with Obey Martin Manayiti. 

Cheers,

Michael

Also of note (may require subscriptions)

Why India’s vast LP opportunity remains largely untapped: Private equity managers have yet to meaningfully access the $529bn of AUM held by India's insurance companies and National Pension System. (Private Equity International)

Secondaries most interesting risk/reward product ‘in entire financial world’ – AltamarCAM. GP-led market could grow to as much as $500bn 'effortlessly', AltamarCAM chief executive José Luis Molina tells Secondaries Investor.

The EU has an action plan for grids – sort of. While there’s much to applaud in the Commission’s proposed framework, it lacks the bite needed to transform intentions into action in time to meet net-zero goals. (Infrastructure Investor)

NorthWall closes credit opps fund ahead of target on €640m: The firm’s second opportunistic credit fund closed at more than twice the size of its predecessor with backing from LPs across the US, Europe and Asia. (Private Debt Investor)

They said it

“MiddleGround had been chasing Castle for years and decided to pivot from selling Banner to acquiring Castle and merging the business together to recognize the significant synergies the companies presented.”

— Ryan McComb, MiddleGround Capital, about combining Castle Metals with Banner Industries