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The Wire April 29, 2021
PE fundraising haul poises industry for big year, Deal multiples continue to climb
Happy Thursday!
Big activity: Considering the Q1 North American fundraising haul was the biggest on record, according to fresh research, it would appear the industry is poised for frenetic activity this year.
All that money will be flowing into a stubbornly expensive market. Despite the slowdown in deal activity last year during the health crisis (which recovered somewhat in the second half), purchase price multiples continued to climb, according to McKinsey & Co’s annual private equity report. The two-year rolling average multiple rose to 12.8x from 11.9x, the report said.
Also, VC-backed G-CON, which builds cleanrooms to support biotech manufacturing, is for sale and getting interest from private equity, writes Sarah Pringle today. The process recently entered the second round, with Jefferies working as sell-side adviser.
And, we’re hearing that Apollo will build out a private equity secondaries strategy focused on GP-led transactions like single-asset deals. The firm this week announced the launch of a credit secondaries business.
Have a great day! As always, hit me up with tips n’ gossip, feedback or book recommendations at cwitkowsky@buyoutsinsider.com, or find me on LinkedIn.
Read the full wire commentary on PE Hub...
Also of note (may require subscriptions) Equity: Apollo Global Management plans to launch a private equity-focused secondaries business focused on GP-led transactions like single-asset deals and fund restructurings. The firm will be out PE secondaries capabilities now that it’s launched its credit secondaries business. Read it here on Buyouts.
Fundraising: Fundraising by North American private equity firms in the first quarter represented the biggest haul ever as the market anticipates a post-pandemic recovery. GPs secured more than $122 billion across 175 buyout, growth equity and other PE vehicles between January and March. Read it here on Buyouts.
Debt fueled: Ares Management closed its fifth European lending fund on 11 billion euros ($13.2 billion), beating its 9 billion euros target in eight months. Read it here on Buyouts.
PE Deals
They said it The central bank intervention “took away an opportunistic moment in time to put money to work in parts of the market that typically would not come to the private markets. There was an opportunity that was there for a little while, and that opportunity went away. But the broad middle market lending opportunity, or lending to companies that are not able to access the capital markets efficiently or are not getting capital from traditional [sources], that did not change.” Mike Arougheti, Ares Management CEO, told the FT about the opportunity for its new fund.
Today's letter was prepared by Chris Witkowsky Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article. FIND OUT MOREPlease visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC.
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