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New State and Astara-backed companies bulk up on roofing and electrical services; Q1 dealflow ‘not as strong as hoped,’ says KPMG

Good morning, Hubsters. Senior reporter Michael Schoeck here with the US edition of the Wire from the New York newsroom.

First up, we’ll have a look at quarterly M&A activity from KPMG and explore what the busiest sectors were during the first quarter of this year.

Next, we’ll check out a weekly round-up of my companies for sale coverage.

To wrap up, I’ll highlight two new deals involving roofing and electrical services add-ons.

Deal trickle

M&A activity in the first quarter of 2025 saw deals clock in as the second slowest quarter in two years, according to a new report by global consulting firm KPMG.

Upgrade to the premium version of the Wire for more quarterly insight.

Companies for sale

So far this year I’ve been briefed on about 80 private equity-backed, corporate carveouts or founder-owned companies said to be in the market or coming to the market within the next quarter. 

Readers of the premium version of the Wire can access additional companies for sale content each week.

Got tips on companies for sale? Shoot me a note at Michael.S@pei.group.

Raising the roof

Del-Air Plumbing, Air Conditioning and Electric, backed by Astara Capital Partners, announced an add-on deal today for Orlando, Florida-based Keystone Energy & Power, an electrical service provider.

Elsewhere in the Sunshine State, Pax Services Group, a portfolio company of New State Capital Partners, this morning announced the acquisition of Hi-Tech Roofing & Sheet Metal, a roofing services provider based in Lake Worth Beach, Florida.

Access additional HVAC and business services deal content, including an analysis on 80 PE-backed HVAC companies, by subscribing to the premium version of the Wire.

That’s a wrap for me. In case you’re attending PEI Group’s Investor Relations Network’s New York Forum today, introduce yourself to PE Hub editor-in-chief Mary Kathleen (MK) Flynn.

Keep an eye out for the Europe edition of the Wire tomorrow from Sophie Rose and the US edition from John R Fischer.

Cheers,

Michael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Arizona State Retirement System has increased its private equity target allocation to 13 percent, highlighting that it believed the fund’s portfolio was “positioned to capitalize” on private equity market opportunities. (Buyouts)

Level Equity, led by former Insight Partners executives, is seeking $825 million for a sixth flagship technology growth equity offering. (Buyouts)

How does one semi-liquid fund differ from another? As the universe of semi-liquid products continues to expand, this handy chart from Private Equity International details their key traits and differences.

With LP-led deals getting larger and larger, fund managers are having to look into either taking down the whole transaction or picking parts of the portfolio. Today’s market is more conducive to the latter, Ardian senior managing director Wills Small told Madeleine Farman, editor of Secondaries Investor, in a video interview at PEI Group’s NEXUS 2025 conference. He said the firm’s strategy is to identify and cherry-pick the “best assets to lean into at the right time.”

Golding Capital Partners has closed its first private equity impact fund of funds on €115.5 million after four and a half years on the fundraising trail. (New Private Markets)

Sienna Investment Managers has extended the first loan from its Biodiversity Private Credit Fund to regenerative agricultural projects developer GreenPods. (Agri Investor)

Deals

They said it

“Private equity activity in the US was not as strong as we had hoped it would be at the start of the year as the uncertainty over tariffs and the changing outlook for interest rates added extra complications to some deals.”

— Glenn Mincey, US Head of Private Equity, KPMG, on the Q1 2025 PE-backed M&A deal slowdown.

Today's letter was prepared by Michael Schoeck

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