New Heritage shops catering biz Continental; Shore Capital talks autism therapy exit; Fisher Investments sells stake to Advent, Abu Dhabi

View this email online

New Heritage shops catering biz Continental; Shore Capital talks autism therapy exit; Fisher Investments sells stake to Advent, Abu Dhabi

New Heritage shops catering biz Continental; Shore Capital talks autism therapy exit; Fisher Investments sells stake to Advent, Abu Dhabi

Good morning, Hubsters. Michael Schoeck here with you for the Monday Wire, filling in for MK Flynn, who’s travelling this week.

We start with my latest scoop on New Heritage Capital-backed Continental Services, a multi-state catering services company recently put in the market that could be sold to another private equity group or a strategic.

Next up is a new story by my colleague John R Fischer, who interviewed Shore Capital Partners founding partner John Hennegan on the lower mid-market sponsor’s recent exit from Behavioral Innovations, an autism therapy provider, to Tenex Capital Management.

Deal news today involves Fisher Investments, which announced the sale of a minority interest to Advent International and a subsidiary of the Abu Dhabi Investment Authority, for up to $3 billion.

Meanwhile, the Juneteenth holiday is upon us this week and deal activity has been slow. We’ll wrap up today with a look at some of the underlying reasons for this slower dealflow.

First let’s start out with a feastful scoop on a Midwest catering company.

Boxed lunch meetings

New Heritage Capital has held discussions in recent weeks for the sale of portfolio company Continental Services, a Compass Group USA franchisee that provides food services and catering to corporate clients, multiple sources familiar with the matter told me.

Subscribers to the premium version of the Wire can access full details on this opportunity.

Autism therapy speaks

Earlier in June, Shore Capital Partners announced the sale of Behavioral Innovations to Tenex Capital Management for undisclosed terms. Shore will retain a minority stake, and BI’s management team will remain in place.

To learn more about the BI sale and trends driving PE investments in the autism and behavioral care sector, upgrade to the premium version of the Wire.

Succession strategy

Fisher Investments, a wealth management firm, announced a deal today to sell a minority interest to Advent International and a subsidiary of the Abu Dhabi Investment Authority for between $2.5 billion and $3 billion deal value.

Upgrade to the premium version of the Wire for more details.

Coming to the market?

Despite sources telling us dealmaking will pick up this year, the pace of private equity-backed M&A still seems pretty slow.

Upgrade to the premium version of the Wire for analysis.

What are you hearing? I’d love to hear your insights and tips on companies for sale. Send me an e-mail at michael.s@pei.group

That’s a wrap for me today. Keep an eye out for the Tuesday edition of the Wire tomorrow with Rafael Canton filling in for Craig McGlashan.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Mutares believes bolt-ons might become a theme for the rest of 2024 as investors look to enhance and expand portfolios, Ivo Hobson, director and head of UK, told PE Hub Europe.

Jefferies is bringing on more secondaries talent in Europe with the hiring of Skip Fahrholz to work on GP-led secondary processes out of London, sources told Buyouts.

LandFund Partners has raised $25.6 million from five LPs for a vehicle called Soil Enrichment Fund Blocker, which the Nashville firm launched in September 2021. LandFund said the vehicle would start with 20,000 cultivated acres in the Mississippi River Valley valued at $128 million. The firm added that its aim was for the vehicle to grow into a $1 billion fund. (Agri Investor)

Revo Capital, a Turkey-based early-stage tech investor, is targeting $100 million for its third fund with a hard-cap of $150 million, Venture Capital Journal has learned. The firm previously closed its oversubscribed second fund at €90 million in 2021, preceded by its $66 million debut fund in 2013.

They said it

“You have to be willing to lose money for a very long time to open a new clinic. All the costs to build a new site, hire employees and train them is very hard for any individual to sustain. Because of Shore Capital’s long-term view, we’re willing to lose money on each of those de novo clinics for a year or more on the belief that eventually it will get to the right place and along the way help many families.”

— John Hennegan, founding partner of Shore Capital Partners, said about the PE firm’s investment outlook for autism therapy facilities.