Private equity expects megadeal rise; Pritzker Private Capital, Garnett Station hire operating partners

View this email online

Private equity expects megadeal rise; Pritzker Private Capital, Garnett Station hire operating partners

Morning Hubsters, Craig McGlashan here with the Tuesday Wire.

Will megadeals make a comeback in 2024? That’s certainly the view of the majority of private equity firms and CEOs surveyed by EY in a new report this morning. We dive into the numbers on that one.

Elsewhere we’ve got more private equity firms boosting operations, with Pritzker Private Capital and Garnett Station Partners each hiring operating partners.

Looking in-depth at value creation, Obey Martin Manayiti speaks to Warburg Pincus’ Ashutosh Somani about how the firm grew childcare center software business Procare Solutions before its recent exit.

Finishing up, we take a look at a fresh deal involving CenterOak Partners and Summit Partners in a sector that’s had a busy start to the year – car parts and services.

Megadeals

We’re starting off with some pretty bullish news, with private equity leaders expecting a rise in M&A megadeals, according to a new survey from EY.

Read the subscriber version of the Wire for full details.

Operating moves

Pritzker Private Capital has hired an operating partner, as has Garnett Station Partners.

Find out more in the full version of the Wire.

Payments strategy

Warburg Pincus had the payments business model to thank for helping it grow childcare center management software and payments processing Procare Solutions before selling it for $1.86 billion to Roper Technologies earlier in January, managing director Ashutosh Somani told Obey Martin Manayiti.

Engine of growth

Switching gear to a sector that’s had plenty of traffic, and CenterOak Partners has sold a provider of auto body repair services to Summit Partners.

The car parts and services sector has seen plenty of action in January. For a roundup, check out this listicle from Michael Schoeck, which features deals by Brookfield, CenterGate, Monomoy, MPE and O2.

OK that’s all from me today. Chris Witkowsky will be with you tomorrow.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Washington State’s massive public pension system is shopping a multi-billion dollar portfolio of private equity fund stakes in a re-engagement with the market after pulling a similar sale in 2022, sources told Buyouts.

The secondaries market has hit yet another milestone, with more capital raised for secondaries strategies last year than any other year in the subsector’s history. (Secondaries Investor)

Meanwhile, private equity fundraising fell for the second year in a row last year, reflecting the sluggish market environment that some expect to continue into this year. (Private Equity International)

Pennsylvania Public School Employees’ Retirement System will continue to slow the pacing of its private equity program as it works to shrink its allocation to the asset class as it works to rebuild after the departure of most of its PE team, the system’s chief investment officer told Buyouts.

OceanSound Partners, a Latino-led emerging manager in fundraising mode, hired Julie Marracino in the newly created role of principal of investor relations. (Buyouts)

APG: "We have a new strategy much more explicitly tilted towards net zero." An increased 7% infrastructure allocation and a new mandate will make APG’s commitment to the energy transition even clearer, says asset class chief Jan-Willem Ruisbroek. (Infrastructure Investor)

Blackstone’s Strategic Partners unit has made headway with capital raising (almost $2 billion) for its latest infrastructure program amid heightened interest in the asset class. (Secondaries Investor)

Increased scrutiny from regulators and industry-wide calls for transparency are steps in the right direction for the growing private markets, yet more needs to be done in standardizing fund documents, attendees at the IPEM Cannes conference heard. (Private Equity International)

Women-led funds make up just a sliver of the venture capital market, but they made significant headway in 2023 despite a challenging fundraising environment. (Venture Capital Journal)

Secondaries investors buying into Chinese private equity funds could enjoy some of the market’s best vintages, according to a senior executive at Neuberger Berman. (Private Equity International)

Cabot Properties is benefiting from investor appetite for logistics assets, closing its Value Fund VII above target on $1.57 billion. (Private Equity Real Estate)

Overbay Capital Partners, a Canadian secondaries firm focusing on LP fund portfolios, has added an experienced industry professional with both buyside and advisory-side experience to its senior ranks. (Secondaries Investor)

Tim Eberle, managing director of Citco Fund Services (USA), outlines the firm’s recommended steps to reduce heightened clawback risk. (Private Funds CFO)