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TPG loves talent; Harris Williams sees intense competition for 'must-have' healthcare IT

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter.

Stellex Capital Management said it rapidly grew a material handling conveyor systems company in three years. I had an interesting conversation with a managing director at the firm who detailed the opportunities that helped Stellex achieve that feat.

Next, we are looking at the growing popularity of “athleisure” and “fanwear” with a handful of recent PE-backed deals.

Also, we have some analysis from KPMG and EY on the first half of 2024. Deals are picking up, albeit at a slower-than-expected pace. More on that below.

And finally, we note a milestone for an advisory firm.

Strong future

Stellex Capital Management rapidly grew Continental Global Material Handling’s revenue during its three-year hold, buoyed in part by increased demand for automation, Michael Livanos, a managing director at the New York firm, told me in an in-depth interview about the portfolio company.

Earlier in June, Stellex announced the sale of Continental, a Winfield, Alabama-based manufacturer of material handling conveyor systems, to Precision Pulley & Idler. The company helps businesses transport bulk goods, such as gravel, sand, iron ore and agricultural products.

Premium subscribers of the Wire have access to more, including opportunities that pushed Continental’s growth.

Athleisure

Comfortable clothing, especially with a sports theme, is on trend these days, and private equity firms are playing the game, writes Rafael Canton.

Rafael rounded up five deals involving athletic apparel, and premium subscribers have access to all the deals in this story.

Survey says

We are halfway through the year, and it’s time to take stock.

Upgrade to the premium version of the Wire to learn about KPMG and EY’s analysis, including 2024 first half performance.

Celebrate good times

Shoutout to Monument Group, a Boston-based capital advisory firm, that is celebrating its thirty year anniversary this week.

Founded in 1994, Monument Group has grown into a global firm with more than 50 professionals and offices in the US, Europe and Asia, the firm said in its celebratory statement.

That’s it for today. You can always reach me at obey.m@pei.group for news tips.

MK Flynn will be back with the newsletter on Monday.

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

BlackRock has agreed to acquire Preqin, an independent private markets data provider, for £2.55 billion ($3.2 billion; €3 billion) in cash. (PE Hub Europe)

Out today is the annual Buyouts 100, ranking the largest private equity firms in the US & Canada. As was the case last year behemoths Blackstone and KKR take the top spots, while TPG slides into the number three slot, up from number five.

Also out today is Private Equity International's Global Investor 150, ranking the world’s largest private equity investors. The top 100 investors on this year’s ranking had allocated $2.3 trillion to the asset class as of December, marking an 8.5 percent increase from a year prior.

Buyouts also has a four-pack on investing in technology:

• Capturing tech growth in a difficult landscape

• Baker McKenzie: Driving value during extended hold periods

• Most appealing opportunities for tech investors

• Managers hold their own in scaling climate tech

Livingbridge sees a big opportunity for growth in North America for Quorum Cyber in a continuously evolving cyber-threat landscape that even affects private equity portfolio companies, partner Matthew Jacobs told PE Hub Europe.

Infrastructure Investor has a special report on the transport sector, which it says that, despite fundraising woes, shows no signs of slowing.

Funds managed by Blackstone have acquired hospitality owner and operator Village Hotels from KSL Capital Partners for around €800 million, according to an announcement from the firms and a source close to the matter. (Private Equity Real Estate)

They said it

“There’s a limited supply of truly exceptional healthcare IT businesses. That’s leading to intense competition for ‘must-have’ businesses, which typically demonstrate superior revenue retention, more profitable growth and stronger cross-selling capabilities.”

— Sam Hendler, Harris Williams, on healthcare IT opportunities for private equity