Private Equity
Global private equity firms are sitting on more than $2.1 trillion in “Dry Powder.” Their investment decisions and purchasing power will shape the public and private investment markets in ways that shape the future of the global economy. DailyAlts provides constant updates and insights on deal-making, regulatory shifts, global capital flows, and more.
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The monthly transaction report from the $280 billion New York State Common Retirement Fund showed an investment outlay of more than $4 billion in June. Significantly, and in a sign of the times, more than 75% of that was plowed into alternatives such as real estate ($2.2 billion) and private equity funds (over $1 billion).
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More Stories on Private Equity
Private Equity: Manulife Investment Management Closes $1.5 Billion PE Fund
Manulife Investment Management has closed $1.5 billion in commitments for a new fund, Manulife Private Equity Partners (MPEP). MPEP is the company’s first fund-of-funds product. It is part of the firm’s shift toward specialized asset management solutions for global investors.
Private Equity: Insight Partners To Buy Cloud Giant Veeam in $5 Billion Deal
Insight Partners announced plans to purchase Swiss data management firm Veeam Software. The private equity shop plans to purchase the company for $5 billion. Insight will make the purchase about a year after investing roughly $500 million into the firm. The private equity firm has about $20 billion in AUM and has investments in roughly 300 companies. This is a sizeable investment for Insight Partners.
Private Equity: Shoreline’s Inaugural Private Equity Fund Raises $300 Million
Private equity firm Shoreline Equity Partners, LLC began raising funds for its maiden buyout fund in March. It announced Tuesday the final closure of the fund at its hard cap of $300 million. Shoreline had set an initial target of $250 million for the fund.
Private Equity: Platinum Equity Partners Raises $10 Billion for Fifth Flagship Fund
Platinum Equity Partners has joined an exclusive group of alternative investment firms. The private equity shop has raised $10 billion for its latest fund. The firm had raised $7 billion for its Platinum Equity Capital Partners V fund by July 2019. It raised the final three with ease over the last half of the year.
Private Equity: Final Close of Platinum Equity Capital Partners V at $10 Billion
Platinum Equity, the private equity firm founded in 1995 by billionaire Tom Gores, announced Tuesday the close of its fifth global buyout fund with commitments totaling $10 billion.
The interest in Platinum Equity Capital Partners V can be gauged from the extent of its oversubscription – it had a target of $8 billion and a hard cap of $10 billion.
The Private Equity Dilemma: There’s Simply Too Much Money on the Sidelines
The private equity industry has a problem. A big one. Dry powder, or uninvested cash, at private equity firms, totaled $1.45 billion at the end of 2019.
Byron Wien And Joe Zidle Release Their Ten Surprises for 2020
Byron Wien, Vice Chairman of Blackstone Group, and Joe Zidle, Chief Investment Strategist in the Private Wealth Solutions group, released a list of “Ten Surprises for 2020.”
Bernhard Capital Partners to Invest in Ascension Wastewater Treatment
Bernhard Capital Partners will invest in Ascension Wastewater Treatment, the largest private sewer utility operator in Louisiana. The private equity firm specializes in services and infrastructure.
Private Equity, Venture Capital Investor Alan Patricof Bundles for Joe Biden
Alan Patricof, the founder of Apax Partners, sits among a very powerful list of bundlers for potential Democratic nominee Joe Biden. Over the weekend, Biden released the list of bundlers, who will raise at least $25,000 on his campaign. Patricof is also the founder and managing director of Greycroft, which has $1 billion under management.
Private Equity: KKR Buys Overdrive in Latest Digital Media Push
Private equity investor KKR will purchase OverDrive Inc in a deal that will alter the future of digital reading. The Rakuten subsidiary is a widely used digital reading platform in schools and libraries. The firms did not disclose the deal terms. However, this could be a significant win for Rakuten, which purchased OverDrive for $410…
Private Equity: KKR Earns 5X on Divestment of Locomotive Leasing Company
Infrastructure investments can deliver solid returns judging from private equity giant KKR’s sale of European Locomotive Leasing (ELL) last week. ELL is a leading provider of electric locomotive leasing solutions across Europe. The buyer was a consortium of AXA Investment Managers – Real Assets, acting on behalf of its clients, and Crédit Agricole Assurances.
Private Equity Firm Lone Star Looking to Buy Unizo Holdings?
Unizo Holdings, the Japanese hotel company, said this weekend that a new bidder has emerged with a friendly offer. U.S. investment fund Lone Star is expected to launch a tender offer this week as part of a friendly bid to acquire the chain.
Adams Street Partners Raises $740 Million for 2019 Global Fund Program
Adams Street Partners announce the final closing of the Adams Street 2019 Partnership Fund Program. The firm locked up roughly $740 million in capital commitments.
The global fund program received strong demand from investors worldwide. In a press release, the firm said new and existing investors came from the United States, Europe, the Middle East, and Asia.
Its investor base included public and corporate pension plans, high net worth individuals, foundations, and endowments. Adams Street Partners currently manages $40 billion in assets.
Private Equity Firm Lone Star Buys BASF Chemical Business
Lone Star, the Dallas-based PE shop, has purchased the Construction Chemicals business of BASF. The $3.51 billion deal will likely close in Q3 2020. The deal comes as BASF attempts to focus on more profitable operations after this deal, according to a press release. Reuters had reported that a deal was likely last month after Lone Star aligned itself with several firms seeking a deal. The PE shop had walked away from a bid, but returned after invitation.
Dealbook: Private Equity Fundraising to Drop in 2020
Private equity fundraising is set to decline next year, according to Pitchbook. In a report, the research firm projected that PE capital raising would slow down in the European and American markets as companies look to deploy capital. The slowdown would follow what has been a record year for capital raising in the sector.
Private Equity Giant Apollo Global Management-Backed Airline to Fuel Amazon Shipping
Sun Country Airlines is steaming up with Amazon.com to boost its package-delivery business. The low-cost airline – based in Minneapolis – will fly 10 Boeing 737s during the second quarter of 2020. The news is part of a deal to expand Amazon Air, according to company reports.
ICANN Pauses Sale of PIR to Ethos Capital for 30 days
ICANN, the internet registration firm, announced it will pause its sale of the .org domain registry to the private equity firm Ethos Capital. The delay will last 30 days as stakeholders investigate the planned deal.
Francisco Partners and Evergreen Take LogMeIn Private
LogMeIn announced it has sold itself for $4.3 billion. The agreement allows the firm to go private thanks to a deal with Francisco Partners and Evergreen Coast Capital. The all-cash deal puts shares at $86.05 each.
Private Equity: Global Infrastructure Partners to Invest $3 Billion in Indonesia
According to Indonesia’s Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, private equity fund Global Infrastructure Partners (GIP) could invest up to $ 3 billion in the country. He said GIP was interested in investing in three projects, and that the Indonesian President had given his green signal, according to TheJakartaPost.
Luhut added that President Joko “Jokowi” Widodo was favourably disposed to the investment because former World Bank President Jim Yong-kim, currently heading GIP, was a good friend.
Private Equity: Nobody Thought What Nancy Pelosi’s Drug Price Plan Would Do To Small Biotechs
With all the drama around Pelosi’s proposed drug pricing plan focused on the large pharma companies, nobody thought of the small guy.
In fact, small biotechs are responsible for 7 out of 10 clinical trials, as per data from Biotechnology Innovation Organization (BIO), a biotech trade association. The drug pricing under Pelosi’s plan would drive investors away from the small biotech companies.
Private Equity Firm Leonard Green and Partners Closes Two Offerings
Leonard Green and Partners announced that it has closed two flagship private equity fund offerings. The firm’s eighth flagship private equity investment fund, Green Equity Investors VIII, raised a total of $12 billion of committed capital.
Goldman’s Private Equity Clients All Fear a Recession
Goldman Sachs clients are hunkering down for a recession, but are still looking for multi-billion dollar investment opportunities.
Speaking on a Bloomberg interview, Alison Mass, Goldman Sachs Group Inc.’s chairman of investment banking, said: “Our clients are looking to put large amounts of capital to work.”
She added that 30 billion dollar deals were doable – even as high as $80 billion if a strategic partner came in alongside the PE firm.
But what about the risk of a recession?
Apollo Global Management Expands Japan Operations, Appoints Partner
Apollo Global Management is expanding its private equity business in Japan. The firm has also appointed Tetsuji Okamoto as a Partner, Head of Japan, to lead its efforts. His role will center around originating and executing new deals and identifying cross-platform ideas.
Melvin: Private Equity Firms Struggle to Deploy Capital – Now What?
Fundraising by private equity funds will set a record in 2019. As of last month, PE funds have raised $248 billion of new commitments. There were still two months left in the year. Blackstone (BX) had the most substantial raise at $27 billion for its latest fund that closed in September. Advent International raised a $17.5 billion fund that closed in June. And Brookfield (BAM) just announced the closing of a $9 billion fund.