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Roark’s deal for Dave’s Hot Chicken underscores PE’s franchising focus; AI powers CapVest’s Datasite deal for Grata

Good morning, Hubsters! Rafael Canton here with a second appearance this week for the US edition of the Wire from the New York newsroom.

I cover the sectors of consumer, technology and sports private equity deals. We’ll kick off the Wire with a couple of deals that caught my eye from this week in two of those sectors: In franchising, Roark Capital made an investment in fast food hot chicken chain Dave’s Hot Chicken for a reported $1 billion.

And in the second deal involving technology, CapVest-backed Datasite acquired Grata, a New York City-based private market intelligence company for dealmakers.

We’ll wrap up with the Disruption Matters podcast miniseries, which is back for its fourth season. The debut episode of the new season tackles how private markets can still deliver “weatherproof growth,” despite the headwinds of a revolution in tech, geopolitics and global markets.

Spicy hot

Let’s start with a restaurant deal. On Monday, Roark Capital announced an investment in Dave’s Hot Chicken. Several media outlets reported the value of the deal was for $1 billion. Founded in 2017, Dave’s Hot Chicken is a fast-food chain headquartered in Pasadena, California.

Franchising has remained an evergreen investment strategy for PE firms. In February, PE Hub’s Sophie Rose spotted 11 deals from PE firms involving franchises from November to February.

Subscribe to the premium version of the Wire to learn more about PE Hub’s franchising and consumer coverage.

AI enhanced dealmaking

Let’s move over to technology.In a deal announced on Tuesday,CapVest-backed Datasite acquired Grata, a New York City-based private market intelligence company. Grata uses AI technology to help dealmakers source deals, streamline diligence, and connect with other dealmakers.

Upgrade to the premium version of the Wire to learn more about the acquisition of Grata.

Year of disruption

The Disruption Matters special podcast miniseries is back for its fourth season. The inaugural episode of this new season begins by acknowledging the unique pressures of the moment, as well as what they have in common with covid and how they differ.

Premium Wire subscribers can listen to experts’ 100-day response plans in the podcast’s latest episode.

That’s it for me. If you have any questions, thoughts, or want to chat about deals in the tech, consumer or sports sectors, please email me at rafael.c@pei.group.

Tomorrow, Nina Lindholm will be with you for the Europe edition of the Wire and Michael Schoeck will bring you the US edition.

Cheers,

Rafael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

A new season of the Disruption Matters Podcast has launched, delving into how private fund managers are driving ‘weatherproof growth’ and thriving in a turbulent world amid macroeconomic uncertainty, political upheaval and the AI revolution. (PE Hub)

HIG Capital is ramping up its focus on small-cap buyout deals, for companies in the range of $5 million to $15 million of EBITDA, to capture opportunities out of the scope of its larger funds, a person with knowledge of the firm told Buyouts.

SQ Capital, founded earlier this year by former Blackstone senior executive Mustafa Siddiqui, has brought on a pair of top advisers, sources familiar with the firm told Buyouts. The New York manager appointed Mark Epley as a senior adviser supporting secondaries investment origination and sponsor coverage, and Mark Nevins as a senior adviser supporting the development of organization, culture and talent.

Tether’s ag investments: Quirky move or the start of a new role for farmland? The issuer of the USDT stablecoin cryptocurrency has leaned on agricultural assets as a means of reinforcing its self-styled role as a stabilizing force in financial markets. (Agri Investor)

The proportion of start-up companies that measure carbon emissions declined for the first time in 2024, possibly an effect of the “noisy debate” that surrounds climate issues, according to Henry Philipson, co-founder of industry group ESG_VC. (New Private Markets)

The Kentucky Public Pensions Authority went against the advice of its investment counsel and elected against extending the life of a fund, citing the continued extraction of management fees as a concern, highlighting LPs’ continued frustration with private equity fees. (Buyouts)

Zeal Capital Partners, a venture capital firm based in Washington DC, talked about its commitment to “inclusive investment” in conversations with prospective limited partners, but steered clear of the word “impact” while raising its latest fund, said founder and managing partner Nasir Qadree. (New Private Markets)

Mirova, the impact-focused subsidiary of Natixis, is ‘wrapping up’ a single-asset continuation process for clean energy company TagEnergy, a source with knowledge of the situation has told New Private Markets. Mirova invested €150 million into TagEnergy in 2022, through its €1.6 billion Mirova Energy Transition 5 Fund. TagEnergy develops wind, solar and storage projects. (New Private Markets)

Evercore has hired a senior executive from Blackstone to focus on the growing opportunity for private credit secondaries. Mike Addeo will join the investment bank’s private capital advisory group as a senior managing director, according to a statement shared with Secondaries Investor. He will be based in New York. 

Private equity specialist Zohair Tariq has left UBS’s private funds advisory team to join Raymond James in New York, a source with knowledge of the matter told Secondaries Investor. He takes on the role of managing director.

Deals

They said it

“Obtaining accurate, real-time data on private markets will further enable enterprises and investors to execute their strategic priorities. We welcome Grata to the Datasite Group and look forward to bringing unique insights to the M&A community.”

— Christopher Campbell, Partner at CapVest, on portfolio company Datasite’s acquisition of Grata.

Today's letter was prepared by Rafael Canton

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