Reuters sells RegTech business to Hg-backed Cube; Goldman Sachs and SkyKnight seek buyers for MedVet

View this email online

Reuters sells RegTech business to Hg-backed Cube; Goldman Sachs and SkyKnight seek buyers for MedVet

Good morning, Hubsters. Michael Schoeck back with you for the Thursday Wire.

This morning we’re highlighting Cube, an Hg portfolio company, which has announced the acquisition of Thomson Reuters’ regulatory intelligence business. And the second new deal is in German industrial, with US-based KPS Capital Partners’ announced acquisition of Siemens subsidiary Innomotics, a manufacturer of electric motor and large drive systems.

Next up is a veterinary services scoop by yours truly as Goldman Sachs’ Merchant Banking group and SkyKnight Capital are vetting buyout interest in MedVet Associates.

And last on deck today is an S&P Global Market Intelligence report highlighting that corporate bankruptcy filings among private equity-backed companies are on the rise this year.

Reuters RegTech carveout

Regulatory technology is a hot market for PE-backed buyers. Cube, which is backed by Hg, this morning announced the acquisition of Thomson Reuters’ regulatory intelligence business for undisclosed terms.

Upgrade to the premium version of the Wire for more details on this and other recent Cube acquisitions.

Electric drive

In a cross-border corporate carveout, New York-based KPS Capital Partners announced the acquisition of Siemens subsidiary Innomotics, a German manufacturer of electric motor and large drive systems, for €3.5 billion ($3.75 billion).

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

Barking for buyers

The veterinary services market is grabbing the attention of PE buyers amid high valuation deals. Goldman Sachs’ Merchant Banking division and SkyKnight Capital are exploring strategic options, including a potential sale of MedVet Associates, a veterinary hospitals operator, sources briefed told me.

Upgrade to the premium version of the Wire to read more on this and additional scoops.

Getting reorg ready

Switching gears slightly to highlight a new report highlighting that bankruptcy filings by US private equity-backed companies are on track to exceed the rate of filings in 2023, with inflation and higher interest rates the culprits for PE-backed financial distress.

Read more in the premium version of the Wire.

That’s a wrap for me this week. Stay tuned for the Friday Wire edition tomorrow from Obey Martin Manayiti.

Cheers,

Michael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Stellex Capital Management is expected to raise a big chunk of its third flagship offering’s target in a first close, sources told Buyouts.

AgriVest avoids delisting amid Arkansas ESG pushback: Arkansas' ESG Oversight Committee has the power to force the state's Teacher Retirement System to divest from private investment funds managed by GPs deemed to be discriminating against companies on ESG grounds. (Agri Investor)

Biden’s LNG pause creates further uncertainty for investors: The ramifications of the LNG moratorium will likely be short term – for the most part – but it still fogs up a thriving market. (Infrastructure Investor)

How CalSTRS tracks PE managers’ net-zero progress: The California pension has been monitoring GPs’ efforts to reduce carbon emission through an annual survey and a colour-coded system to categorise private equity-owned assets. (Private Equity International)

Eldridge Industries, a holding company based in Greenwich, Connecticut, with nearly $80 billion in total assets across its insurance and investment subsidiaries, involved in both private equity and private debt, has entered into a joint venture with Raymond James to offer private credit solutions to sponsor-backed portfolio companies. (Private Debt Investor)

Number Crunch: How private equity and venture capital are adapting to new technology. (Private Equity International)

TrueBridge racks up $1.6bn across five funds: LPs in TrueBridge's eighth fund of funds include the City of Tampa General Employees' Retirement Fund, Oklahoma Law Enforcement Retirement System and the University of New Hampshire Foundation. (Venture Capital Journal)

Permira’s head of investor relations and fundraising is leaving by the end of the year, after nearly two decades at the London-headquartered firm, Private Equity International has learned.

They said it

“We see these acquisitions as enabling further innovation in the regulatory intelligence and change management sector, leading to strengthened demand for these quality solutions across the globe.”

— Thomas Martin, a principal at Hg, on portfolio company Cube’s acquisitions of Thomson Reuters’ regulatory intelligence business and Reg-Room