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| This week’s top Private Equity news |
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| Here are this week's biggest news in the private equity and venture capital markets. Feel free to email me directly if you think we missed important news about you or something equally important: simon@pe-insights.com. |
1. Carlyle, KKR, and CVC among bidders for Rolls-Royce's ITP Aero |
PE-firms Carlyle, CVC Capital Partners, and KKR & Co. Inc. are reportedly among the bidders for engine maker Rolls-Royce’s Spanish business, ITP Aero. According to sources, bidders will be selected this week for the auction, which is valued at around €1.5bn. Also, TowerBrook Capital was also among the bidders. Read more
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2. BlackRock is forcing finance to take climate risk seriously |
BlackRock will put sustainability at the center of its investment strategy, according to CEO Larry Fink. He states that BlackRock, will stop investing in companies that “present a high sustainability-related risk.” It will also introduce new products make sustainability “integral to portfolio construction". Read more
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3. Apax-backed ThoughtWorks gets $720m investment |
Apax-backed software consulting firm ThoughtWorks said it received a $720m investment at a $4.6bn value from new investors, including a pair of sovereign wealth funds. In addition to Singapore’s GIC Private and Abu Dhabi’s Mubadala, the new investors include Siemens and mutual fund giant Fidelity Management. Read more
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4. PE deal activity to set a new high as Spacs arrive in Europe |
PE-deal activity in Europe will set a new high this year and top €480bn, as record dry powder, tepid inflation and low interest rates drive activity. Many private equity managers have indicated robust deal pipelines coming into the year, and those that were not able to deploy capital in 2020 are ready to pull the trigger. Read more
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5. Private Equity Insights is eyeing a 2021 with growth and expansion |
London-based PE Insights hires for entrepreneurial talent, hard-working business development professionals and creative content and marketing associates. With conferences, webinars, magazines and news, PEI helps Investors, Fund Managers and CXOs rethink what it takes to fundraise, invest, operate and exit in PE. Read more
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6. IPO Values Thoma Bravo SPAC At $900mn |
Thoma Bravo, a private equity firm focused on the software and technology-enabled services sectors, has completed its special purpose acquisition company (SPAC) that has been valued at $900mn. By raising a blank-check company, it can buy a minority stake in a promising tech firm and help it go public. Read more
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7. M&A valuations boom in the second half of 2020, despite Covid-19 impact |
M&A valuations are soaring, with rich valuations and intense competition for many digital or tech-based assets driving deals activity. Dealmaking jumped in the second half of 2020 with total global deal volumes and values increasing by 18% and 94%, respectively compared to the first half of the year. Read more
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8. Footwear giant Birkenstock explores a PE-sale at $5 billion |
German footwear giant Birkenstock is exploring a sale that could value it at more than $4.85 billion, according to sources. The company is exploring a sale to Luxembourg-based PE-firm CVC Capital Partners, the sources said, but has attracted interest from Permira and at least one other private equity firm. Read more
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9. Audax Announces Successful Closing of $1.7 billion Continuation Fund |
Audax Private Equity announced the successful completion of its first Continuation Fund. The fund is comprised of $1.7 billion in capital commitments, which funded the purchase of portfolio companies from Audax Private Equity Fund IV, a vintage fund with $1.25 billion. This is Audax Private Equity’s first GP-led secondary fund. Read more
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10. Goldman CEO Says SPAC Explosion ‘Unsustainable’ |
Goldman Sachs CEO David M. Solomon said he doesn’t think the current SPAC-boom is sustainable. The tool was used last year to raise almost $79 billion from investors. “The ecosystem is not without flaws,” he said, and added: “things that the market will have to wrestle with". Read more
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11. Blackstone brings in over $3.1bn for first dedicated growth capital fund |
Global buyout giant Blackstone has scored more than $3.1bn of LP capital for its debut fund dedicated to growth capital investing. The firm has picked up commitments from 88 investors to date. LPs backing the fund to date include The Minnesota State Board, which revealed a $250m commitment last year. Read more
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12. Blackstone Passes $2.8 Billion for Latest Credit Fund |
Blackstone has closed on more than $2.8 billion so far for a new vehicle that invests in mezzanine debt, an area of private credit that has boomed since the coronavirus pandemic struck. The firm disclosed its fundraising progress for Blackstone Capital Opportunities Fund in a Securities and Exchange Commission filing. The previous fund in the series closed with $6.5 billion in 2016. Read more
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13. Sequoia Could Put $7.2 Billion Into Auto1 With IPO Approaching |
Sequoia has agreed to invest in AUTO1 Group before the online car trading platform's IPO. The deal makes the company worth around $6 billion. Germany-based Auto1, backed by SoftBank Group, has seen popularity as of late, as rival U.S. fund Lone Pine Capital reached a preliminary deal to buy around 50 million euros of Auto1 stock from DN Capital, an early investor. Read more
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14. CVC’s Six Nations investment gets French Rugby approval |
The French Rugby Federation has approved the Six Nations Rugby investment offer from PE-firm CVC. The deal, initially believed to be worth US$408 million for a 14.5 per cent stake in the Six Nations, was put on hold due to Covid-19, with reports last July suggesting CVC looked to halve its offer. Read more
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15. Dating app Bumble reveals steady revenue growth and losses in IPO filing |
Dating app Bumble, which is backed by private equity firm Blackstone, made public its regulatory filing for an IPO, revealing steady revenue growth and higher operating costs that resulted in a loss. Bumble filed for an IPO of up to $100 million, although that is a placeholder amount and is expected to change. Companies raised a record $168 billion through IPOs on U.S. stock exchanges in 2020. Read more
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16. Blackstone set for £900m bet on Butlins |
Blackstone is closing in on a stake in the owner of Butlin's holiday resorts as it looks to cash in on higher demand for staycations after the pandemic. The investment giant is in advanced talks with Bourne Leisure Ltd over acquiring a significant holding in a deal that values the company at roughly £3bn. Read more
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17. 10 big things: Affirm leads a feeding frenzy for fintech |
PE-backed Affirm, Inc. closed its first day as a public company at $96.36, up nearly 100% from that already-elevated IPO price. That resulted in a market cap of some $23 billion for Affirm. Even after increasing its IPO's initial price range of $33 to $38 per share to a new range of $41 to $44 the offering soared. Read more
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18. Blackstone looking to sell its stake in waste management firm Beauparc |
The largest waste company in the Ireland, Beauparc, has attracted takeover approaches from dozens of PE-firms after its shareholder, Blackstone, set about putting its stake on the market. This may result in an outright purchase of the owner of the Panda and Greenstar waste firms for €1 billion. Read more
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19. Private Equity Firms Wade Into Suez-Veolia Takeover Battle |
Two PE-firms waded into the bitter takeover battle between Suez France and Veolia Environnement, but there was little indication that their involvement would break the stalemate. Ardian and Global Infrastructure Partners said they’re prepared to make a friendly, $13.6 billion offer for French water utility Suez, which is trying to fend off a takeover attempt by arch rival Veolia. Read more
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20. Pizza Hut aims to topple Domino's in Australia as owners mull IPO |
Fast-food chain Pizza Hut has declared ambitions to unseat rival Domino's as the nation's dominant pizza chain, as its PE-owner Allegro explores a possible ASX float. The chain's Australian operations were sold by US-based Yum! Brands in 2016 to Allegro, which made major changes to the business. Read more
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