Private equity deal news and insights from the London newsroom

PSG, Verdane see cross-border potential in European cybersecurity; Post-Brexit reset provides stability for private equity, says Calista

Good morning, Nina Lindholm here with the Europe Wire from the London newsroom.

Evolving cyber threats are rapidly increasing the demand for better security in Europe. This morning, we delve into a sale in the segment, as Christian Stein, managing director at PSG Equity, and Emanuel Johnsson, partner at Verdane, tell PE Hub why certain cybersecurity companies are commanding premium valuations.

We then explore how the post-Brexit reset might impact the attractiveness of the UK for private capital firms, with comments from Rajaa Mekouar, CEO at Calista Direct Investors.

To finish, we have an update on Triton’s exit from a Danish taxi company. Read further to find out the MOIC the sale generated.

Scale and stability

European cybersecurity companies that scale across borders are not only catching the eye of global acquirers but are also commanding premium valuations, Christian Stein, managing director at PSG Equity, and Emanuel Johnsson, partner at Verdane, told PE Hub’s Irien Joseph.

PSG, Verdane and TA Associates agreed to sell Hornetsecurity, a global provider of AI-powered M365 security, data protection, compliance and security awareness services to Thoma Bravo-backed Proofpoint in May.

To learn the valuation, and why European cybersecurity is a hot ticket right now, take a look at the premium Wire.

I recommend checking out Irien’s full story. It covers how Hornetsecurity capitalized on the broader cybersecurity demand in Europe and more on its value creation journey.

First stop

Not all cross-border activity is smooth sailing, however. But the UK and EU having reached an agreement on areas including some trade and defense last week could provide welcome clarity for private equity investors, Rajaa Mekouar, CEO at Calista Direct Investors, told PE Hub.

To read Mekouar's full commentary, which includes how her firm has found the post-Brexit environment, check out the full Wire coverage.

Wire readers will know London was a topic in yesterday's newsletter, as Craig McGlashan covered several deals involving London-listed businesses.

Extra detail

Before I sign off, we have an update on a deal we covered yesterday.

To learn the MOIC the sale of Dantaxi generated for Triton, check out the premium Wire coverage.

That’s all from me. Keep an eye out for the US Wire later today by Michael Schoeck. Irien Joseph is on Europe duty tomorrow.

Cheers,

Nina

Read the full Wire commentary on PE Hub ...

Today's must reads

Also of note (may require subscriptions)

Chinese GPs need to adapt buyout model, conference hears: China buyouts cannot rely on the same cost-cutting measures or buy-and-build strategies as those in the US, according to CDH managing partner Max Hui. (Private Equity International)

Fubon sells PE, infra fund stakes worth more than $1bn: Part of the portfolio, which includes exposure to Advent International and Antin Infrastructure Partners, was picked up by Hamilton Lane. (Secondaries Investor)

Maryland previews new allocation strategy following CIO departure: The pension fund will aim to increase its exposure to private and public equity assets while eliminating its hedge fund portfolio. (Buyouts)

Will sticky inflation chip away at infra’s diversification benefits? If persistent high inflation were to impair valuations across asset classes, this could make infra correlate. (Infrastructure Investor)

Yeo Valley family office seeks ‘like-minded capital partners’ for food systems impact: Yeo Ventures is raising its first commingled fund. (New Private Markets)

“All else being equal, you can get a higher premium valuation if you manage to internationalize and also have market leading positions in multiple countries. Rather than going to 10 countries with a small market share, it is often better to become a true leader in a few markets.”

— Christian Stein, managing director, PSG Equity, on scaling European cybersecurity companies

Today's letter was prepared by Nina Lindholm

Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article.

London | New York | Hong Kong | Tokyo | Sydney

PEI Group Ltd is registered in England no.6135779

Registered office: 5th Floor, 100 Wood Street, EC2V 7AN

To update your PE Hub email preferences, or to unsubscribe, click here.