| | | GP strategies, LP expectations and more: Sixpoint Partners on PE fundraising |
| | We recently caught up with Eric Zoller, founder and partner at Sixpoint Partners, to discuss trends in private equity fundraising. Here's a highlight from the interview:
Given todayâs high-multiple environment, should LPs be targeting a lower return profile than in years past?
"While EBITDA multiples are indeed high, LPs donât necessarily need to change their targets. The best-performing funds are still targeting the same returns they always have, high teens to 20%+ IRRs and 2x+ money multiples, and are continuing to deliver. Although, if multiples stay this high for a sustained period, we may see more pressure on IRRs, as it will take longer to generate those returns; money multiples should not be affected as much." |
|
| | | | | | Doughty Hanson reaps $1.65B for turbine maker |
| | Doughty Hanson has agreed to sell LM Wind Power, a Danish manufacturer and supplier of rotor blades for the wind industry, to GE (NYSE: GE), which will absorb the company into its renewable energy business. LM Wind Power operates 13 factories on four continents; the $1.65 billion sale price represents 8.3x EBITDA, and the deal is expected to close during 1H 2017.
For Doughty Hanson, an investor in the upper end of the European middle market, the transaction will mark an exit after an elongated holding periodâthe firm first backed LM Wind Power back in 2001. The sale is the latest step in Doughty Hansonâs ongoing transformation after the surprising death of co-founder Nigel Doughty in 2012.
Shortly after Doughtyâs passing, the firm, which was founded in 1985, ceased its venture and real estate operations to focus instead on private equity. Last April, though, the firm canceled its PE fundraising efforts and announced plans to focus on realizing its portfolio. Last August, Doughty Hanson revealed plans to close four of its seven offices in Europe and that five senior partners were leaving the firm. |
|
| | | | | | | | Thereâs a real chance Donald Trump is the next president of the US. If that fate comes to pass, how can traders make money off it? [Quartz]
>From vision to governance to incentives, one private equity pro delves into the nuts and bolts of his approach to turning around a company. [McKinsey]
After two canceled public offerings in Europe, maybe that IPO window isnât as open as most hoped. [Reuters]
With evermore private equity funding flooding into the region, it seems countries in Central and Eastern Europe are among the early beneficiaries of Brexit. [Forbes] |
|
| | | | | |
|
| |  | Since yesterday the PitchBook Platform added... | 124 Deals | 370 People | 94 Companies | 8 Funds |
| |
|
| | | | | | | | 2007 Vintage US Buyout Funds ($1B - $5B) |
| | Median IRR | | Top Quartile IRR Hurdle Rate | | 1.52x Median TVPI | $1.69B Average Amount Distributed |
| | *IRR: net of fees | 27 Funds in Benchmark » |
| | | | | |
|
| | | Deals in Play & Announcements |
| | I Squared Capital dips into Duke Energy |
| | Energy Infrastructure | Charlotte, North Carolina | Buyout |
I Squared Capital has agreed to acquire full control of the Latin American businesses of Duke Energy International, an affiliate of Duke Energy (NYSE: DUK), for an enterprise value of $1.2 billion. The deal does not include DEI’s operations in Brazil; however, the acquired portfolio still represents more than 2,300 MW of hydro and thermal generation in addition to 730 KM of transmission lines and natural-gas processing facilities. |
|
| | | | | |
|
| | | | NGP invests $524M in Luxe Energy |
| | Energy Exploration | Austin, TX | PE Growth |
NGP has deployed its NGP Natural Resources XI fund to make an equity investment in Luxe Energy in conjunction with company management. NGP previously invested another $500 million in the business in May 2015. Luxe is an acquirer of unconventional oil properties in oil & liquids-rich basins in the US. |
|
| | | | | | Great Point-backed Aris Radiology acquires US Teleradiology |
| | Healthcare Services | Atlanta, GA | Add-on |
Radiology services provider Aris Radiology, a Great Point Partners portfolio company since 2011, has acquired US Teleradiology. Founded in 2001, the company is a physician-owned provider of professional radiology services to hospitals and other medical facilities across 25 US states. |
|
| | | | | | Hargett Hunter takes bite out of Ruggles Green |
| | Food Products | Houston, TX | Buyout |
Hargett Hunter Capital Partners has acquired a majority stake in Ruggles Green, a fast-casual restaurant operating five restaurants in the Houston area that use local, organic and seasonal items. The deal follows Hargett Hunter's July acquisition of the Original ChopShop, another fast-casual restaurant serving fresh and organic salads, sandwiches and juice. |
|
| | | | | | Palladium Equity backs Del Real Foods |
| | Food Products | Mira Loma, CA | PE Growth |
| | | | | | | | Commercial Services | Odessa, TX | Recapitalization |
Clearlake Capital Group has led a recapitalization of Light Tower Rentals in partnership with company management. LTR emerges from Chapter 11 bankruptcy protection, for which it filed in August, as part of the deal. Founded in 1994 and operating primarily in the Permian Basin in Texas, the company rents specialty equipment used in oil & gas operations. |
|
| | | | | | DTI Management secures $75M funding |
| | Platform Software | Alexandria, VA | PE Growth |
| | | | | |
|
| | | | Cinven, CVC, Värde strike NewDay pact |
| | Specialized Finance | London, UK | Secondary Buyout |
Cinven and CVC Capital Partners have agreed to acquire specialty finance business NewDay from Värde Partners at a reported enterprise value of around £1 billion. The company is a provider of branded credit cards and boasts more than five million customers in Europe. |
|
| | | | | | Navya picks up â¬30M round |
| | Automotive | Paris, France | Growth |
Founded in 2014, driverless electric vehicle company Navya creates solutions designed for the intelligent transport of people and goods. The company will use the funding primarily for international expansion throughout Europe, the US and the Gulf Region. As part of the deal, Navya has signed several strategic agreements with its investors that will help the company gain access to new technology and increase its shuttle-deployment capabilities. |
|
| | | | | |
|
| | | | New Mountain to exit AmWINS at $2.6B valuation |
| | Insurance Brokers | Charlotte, NC | Secondary Transaction |
| | | | | |
|
| | | | Bridge Growth Partners hires chairman, closes debut fund |
| | Bridge Growth Partners has named Joseph M. Tucci chairman. Tucci was formerly chairman and CEO of EMC and has served on the firm’s advisory board since Bridge Growth Partners was founded in late 2013. The firm has also announced the close of its first fund on $410 million. Bridge Growth Partners invests primarily in the tech and tech-enabled financial services sectors. |
|
| | | | | |
|
| | | |
| | | | | | | | | | Who's in the newsletter today? | Investors | | Companies | | People | | Service Providers | | |
| | | | | | | | | | | |
|
|