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TPG continues PE’s attraction for software take-privates; Swander Pace goes private label with Maple Donuts deal

Happy Monday, Hubsters! Rafael Canton with you filling in for MK Flynn with the US edition of the Wire from the New York newsroom.

We’ll begin the Wire with a look at the software sector. Software take-private deals from PE firms have been a regular occurrence in 2025 dealmaking. Let’s dig into why take-private deals in software have been attractive to PE firms like Vista Equity Partners and Thoma Bravo.

Next, we have insights from S&P Global’s Q1 2025 M&A Equity Offerings Market Report.

Then, we have a deal from this morning. Swander Pace Capital has acquired Maple Donuts.

Finally, we have the announcement that Taylor Swift has regained ownership of her master recordings from Shamrock Capital.

Going private

Throughout 2025, PE Hub has seen a steady flow of take-privates in software.

In May, TPG and Corpay announced that they acquired AvidXchange, a Charlotte, North Carolina-based provider of accounts payable automation software and payment solutions, in a $2.2 billion take-private deal. In April, HIG Capital completed its take-private acquisition of Converge Technology Solutions, a Canadian services-led, software-enabled IT and cloud services provider. The all-cash deal valued Converge at an enterprise value of about C$1.3 billion.

In April, I looked into why PE firms are attracted to take-private deals in software.

If you want to learn more about the AvidXchange take-private deal from TPG, read my conversation with TPG partner Tim Millikin about why TPG was interested in AvidXchange and how the firm is looking to grow the company.

Subscribe to the premium version of the Wire to learn why PE firms are attracted to take-private deals in software.

Large-cap deals

Speaking of take-private deals, one of the largest M&A deals of Q1 2025 involved Sycamore Partners acquiring pharmacy chain Walgreen Boots Alliance in a $23.7 billion deal.

Despite market volatility and economic uncertainty, the first quarter saw an increase in global M&A activityaccording to S&P Global’s Q1 2025 M&A Equity Offerings Market Report.

Upgrade to the premium version of the Wire to gain access to the report and see key learnings that I took from it.

Frozen sweets

Let’s look at a sweet deal from this morning. Swander Pace Capital has acquired Maple Donuts. Headquartered in York, PA, Maple Donuts is a manufacturer of frozen bakery products including private label donuts. Partners Capital and Constitution Capital Partners served as lead co-investors for the transaction.

Subscribers of the premium version of the Wire can learn more about the deal.

Swift regain

After a long battle - and the re-recording of several early albums - Taylor Swift has regained ownership of her master recordings from Shamrock Capital, the private equity firm that purchased them from Scooter Braun’s Ithaca Holdings in late 2020. Shamrock sold Swift’s catalog back to her for an amount reportedly close to what they paid for it — which sources told Billboard was around $360 million.

PE Hub’s Iris Dorbian has covered a wave of PE deals involving music rights. Subscribe to the premium version of the Wire for more entertainment deal analysis.

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, Craig McGlashan will be with you for the Europe edition of the Wire and Obey Martin Manayiti will bring you the US edition.

Cheers,

Rafael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Private Equity international is out with its annual PEI 300, tracking the world’s largest private equity firms. The 300 firms on this year’s list raised a collective $3.29 trillion during the counting period, marking a 0.37 percent rise on last year. This is a new record for the industry. However, it is also a flatline: for comparison, throughout the history of the PEI 300, the capital-raising total has risen 11 percent on average each year. The report looks at which firms have bucked the plateau, which regions are facing the hardest battles in a bid to attract investor attention, how the private wealth trend is boosting fundraising totals, and more.

Independent sponsors are having their moment in the sun: In an era of anemic fundraising, hanging up a shingle and going deal by deal is working quite well for these managers. (Buyouts)

In its annual review, Buyouts features 10 emerging managers that stand out, in part because they reflect important trends happening in the market.

Farm Credit Canada has committed to invest C$2 billion ($1.5 billion; €1.2 billion) in Canadian agtech by 2030. Capital will be deployed from FCC Capital, which is the federal corporation’s new investment arm that was launched in 2024. (Agri Investor)

From Infrastructure Investor's annual Digital Infrastructure Report: "Accelerated adoption of artificial intelligence is revolutionising digital infrastructure, from data centres to fibre to towercos. While AI itself is not new, many of its applications are, and demand for data centres is rocketing as providers look to support those applications. Thankfully, while AI is causing this increased demand, it may also be helpful in managing it, making businesses and assets more efficient. AI’s rapid development really does herald a new era. The future is here."

In its latest Private Debt Mid-Market Lending Report, Private Debt Investor examines the competitive dynamics at work in the direct lending space, why some investors are turning their attention to new strategies, and the impact that tariffs might have on mid-market companies in the months ahead.

Deals

They said it

“There are some really high-quality revenue software companies in the public markets. These companies grow more quickly than non-software companies and have higher gross margins but have lower EBITDA margins or profitability.”

— Tara Gadgil, partner at Thoma Bravo, on why take-privates in software are attractive to PE firms.

Today's letter was prepared by Rafael Canton

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