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MSCP’s Eric Kanter talks add-ons for emissions compliance biz Alliance; Bow River Capital sells roofing company to TopBuild for $810 million

Good morning Hubsters. Michael Schoeck here with the US Wire from the New York newsroom.

Rapidly changing US environmental regulations have caused PE firms to take stock of new investment opportunities among service providers. Today we have a deep dive from Obey Martin Manayiti on a Morgan Stanley Capital Partners-backed company active in the air emissions controls and monitoring market.

And we’ll provide our weekly companies for sale update, which highlights three newly announced exits from this week.

Scaling up air emissions standards

Morgan Stanley Capital Partners-backed Alliance Technical Group has made almost 30 add-ons, and the New York-based firm sees a pipeline for more as many companies navigate the changing environmental regulation landscape in the US.

PE Hub caught up with MSCP managing director Eric Kanter to go over Alliance’s add-on strategy and how air emissions regulations factor into its bottom line.

Subscribe to the premium version of the Wire to learn how MSCP amassed more than two dozen add-ons amid the changing emissions regulation market.

Companies for sale

In a sign of H2 25 deal activity picking up – despite the typical summer slowdown in companies for sale activity – we have three newly announced deals to highlight involving companies that PE Hub has tracked for sale.

On Tuesday, Bow River Capital announced an agreement to sell commercial roofing company Progressive Roofing to listed builder TopBuild for $810 million, representing a 9.1x EBITDA multiple based on 2024 EBITDA.

Readers of the premium version of the Wire can access ongoing companies for sale coverage.

If you’ve got tidbits about companies coming to market, feel free to reach out to me at michael.s@pei.group

That’s a wrap for me. Keep an eye out for the Europe edition of the Wire tomorrow from Irien Joseph and the US edition from John R Fischer.

Cheers,

Michael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Private equity firms are starting to find the European IPO market reopening as an exit route after a long period of quiet, with a handful of listings over the last few weeks. But not all deals are making it over the line – which aside from turbulence in the public markets over the last few months, suggests that some pricing tactics might be working better than others, Christopher Richert, director in Houlihan Lokey’s Equity Capital Solutions practice, told PE Hub.

Renee Hanna, managing director of investments at Baylor University’s endowment, says the institution has built out its private equity program by backing smaller and newer managers, including first-time funds. The endowment expects by backing a manager from the beginning it can grow and cultivate a relationship for years to come. Currently, Baylor’s endowment is looking to build out its exposure to healthcare-related investments. Hanna spoke with Buyouts about the endowment’s approach.

Blackstone is adding new capabilities to its Strategic Partners group, its private markets secondaries unit, to invest in secondary stakes in private debt funds, a source familiar with the matter told Private Debt Investor.

Partners Group has said its infrastructure secondaries strategy is delivering returns more akin to those of a private equity buyout strategy, due in large part to its thematic investing approach. (Secondaries Investor)

New York City’s Bureau of Asset Management is in talks with fund managers and other possible partners to expand place-based investments by the city’s five pension funds, according to Valerie Red-Horse Mohl, deputy chief investment officer for responsible investing at BAM. (New Private Markets)

LPs question GPs on rise of semi-liquids and potential conflicts with funds: The subject has taken priority at recent meetings of trade group Institutional Limited Partners Association, sources tell Private Equity International.

Deals

They said it

“We are pretty hands-on, we don’t run the businesses, but we develop a really specific road map which drives our acquisitions and investment decisions. We have a playbook that includes M&A, integration, pricing, building up a commercial function and the deployment of technology, and at the centerpiece of it all is that we are business builders.”

— Eric Kanter, managing director, Morgan Stanley Capital Partners, on growth pillars for portfolio company Alliance Technical Growth.

Today's letter was prepared by Michael Schoeck

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