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Riverside, Butterfly, Wind Point bet on healthy eating habits; Saothair goes sailing

Wire 9.01.2023

Riverside, Butterfly, Wind Point bet on healthy eating habits; Saothair goes sailing

Good morning dealmakers, thank goodness it’s Friday!

It’s Obey Martin Manayiti here with the Wire.

As we enter the long holiday weekend, I am planning to indulge in more tennis at the US Open and spot the best shots.

Today we are capping off the week with a look at PE investments in the food sector, particularly looking at the “organic, healthy food and nutrition” space that has gained so much traction in the last few years.

I will also look at a recent survey from Grant Thornton, which forecasts that, after a lengthy period of respite, M&A activity is expected to rebound in the second half of this year.

But first, to get us in the mood for a nice summer weekend, let’s look at a boating deal from Saothair Capital Partners.

Cool breeze

Saothair Capital Partners, based inRadnor, Pennsylvania,announced yesterday the acquisition of MJM Yachts through its newly formed affiliate Seolta Holdings.

Founded in 2002 by Robert Johnstone and based in Washington, North Carolina, MJM is a designer and builder of Carolina Downeast-style luxury yachts.

Please subscribe to the premium version of the Wire to learn more on this deal, including the company’s growth prospects.

Organic and healthy

Even as the current climate has been tough for private equity, certain recession-resistant sectors have emerged as havens for risk-averse dealmakers. One of these is the organic, healthy food and nutrition space, a specialty niche that gained momentum during lockdown, when more consumers turned to healthier and more sustainable food diets, writes my colleague Iris Dorbian.

Deal volume in the healthy food and nutrition sector continues to be brisk in the post-covid era. Examples include Butterfly Equity’s acquisition of Milk Specialties, a maker of nutrition products, and Riverside Company taking a controlling stake in BioDue, an Italian manufacturer of supplements.

Consider the following: in 2021, when covid restrictions were still in place, the capital raised from agribusiness-related funds, which also invested in the food and nutrition sector, soared to a whopping $7.3 billion, as per PEI research.

Upgrade to the premium version of the Wire to get more insights into opportunities that PE investors are taking in this sector.

Survey says…

A new Grant Thornton survey of M&A professionals found that after a lengthy period of respite, M&A activity is expected to rebound in the second half of this year.

Read more on this forecast in the premium version of the Wire.

That’s it for me today. Note: There will be no Wire on Monday. MK Flynn will be back with the newsletter on Tuesday.

Have a nice long weekend,

Obey

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Also of note (may require subscriptions)

Mid-market GP-led secondaries heat up: As GP-led dealflow continues to outstrip available capital, there has been a flight to quality and a flight to the mid-market, say Tim Toska of Alter Domus and Brian Mooney of Portfolio Advisors. (Private Equity International)

Cross fund trades may provide an out for mandatory fairness opinions: A footnote in the US Securities and Exchange Commission's new rules suggests continuation funds structured as cross fund trades won't be subject to third-party fairness opinion and valuation letters. (Secondaries)

KKR’s inaugural climate strategy is ‘industrials with an infra approach’: The firm has hired three new partners to its infrastructure platform, and registered the KKR Global Climate Fund, to kick off its unorthodox climate business. (New Private Markets)

Private Funds Leaders Survey: Most PE firms not in a rush to adopt AI. However, the survey found that nearly half of managers agree that AI will be the most significant technology shaping businesses and industries over the next decade. (Private Funds CFO)

Views diverge as SEC rules sink in: To some, the rules are simply a means of ensuring private fund managers apply the same principles as other asset managers. To others, they demand a strong defensive response. (Private Debt Investor)