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AMERICAS
Officials from seven US states wrote to US antitrust enforcers to ask for Kroger's proposed $24.6bn acquisition of Albertsons to be stopped, Reuters reported.
In a letter to Federal Trade Commission Chair Lina Khan, the secretaries of state said that the deal would give a combined Kroger/Albertsons nearly a quarter of the US food retail market.
Albertsons is advised by Credit Suisse, Goldman Sachs (led by Timothy Ingrassia), Debevoise & Plimpton (led by Ted Hassi), Fried Frank Harris Shriver & Jacobson (led by Philip Richter), Jenner & Block, Wachtell Lipton Rosen & Katz (led by Zachary Podolsky and Adam Emmerich), White & Case (led by George Paul) and Brunswick. Financial advisors are advised by Alston & Bird (led by Stuart Rogers), Cravath Swaine & Moore (led by Robert I. Townsend and Sanjay Murti) and Davis Polk & Wardwell (led by Phillip R. Mills and Cheryl Chan). Kroger is advised by Citigroup (led by Brian Anton and David Finkelstein), Wells Fargo Securities, Arnold & Porter Kaye Scholer, Weil Gotshal and Manges (led by Michael J. Aiello) and Joele Frank (led by Tim Lynch and Steve Frankel). Cerberus is advised by Dechert (led by Eric Siegel and Mark Thierfelder) and FGS Global (led by Ronald Low).
General Atlantic, a private equity firm, and Dragoneer Investment, a public and private investor, agreed to acquire Arco Platform, a developer of educational software, for $1.5bn.
The purchase price represents an about 55% premium over the closing price on November 30, 2022, when the company disclosed the bidders for its acquisition proposal. General Atlantic and Dragoneer had initially proposed a deal to take Arco private last year.
Bain Capital, a private investment firm, agreed to acquire Fogo de Chão, a restaurant brand, from Rhône Capital, a global private equity firm. Financial terms were not disclosed.
“Barry and his team have done an impressive job building on the brand’s differentiated concept, strong value proposition, and rich Brazilian heritage. Fogo is the clear market leader, and we believe the business is poised to continue its rapid growth as consumers increasingly seek unique and authentic dining experiences,” Adam Nebesar, Bain Capital Partner.
Fogo de Chão is advised by Deloitte, Morgan Stanley, Sullivan & Cromwell and ICR (led by Anton Nicholas). Bain Capital is advised by PricewaterhouseCoopers, Deutsche Bank, Kirkland & Ellis and Stanton PRM (led by Charlyn Lusk). Debt financing is provided by Deutsche Bank. Rhône Capital is advised by Brunswick Group (led by Alex Yankus).
IBM, an American multinational technology corporation, completed the acquisition of Apptio, a provider of financial and operational IT management and optimization software, from Vista Equity Partners, a private equity firm, for $4.6bn.
"Our journey with Apptio is a testament to Vista's ability to create consistent outcomes that drive value for our stakeholders. We are proud of our continued momentum, even amidst these challenged market conditions, and look forward to seeing how Apptio's technology will bolster IBM's IT automation and AI capabilities in the years ahead. It's been an honor to partner with a visionary founder like Sunny and we wish the entire Apptio team the best in the next phase of their growth with IBM," Robert F. Smith, Vista Equity Founder, Chairman and CEO.
Align Capital Partners, a private equity firm, completed the investment in Global Guardian, a comprehensive provider of security, medical and travel-related services to a global base of clients. Financial terms were not disclosed.
“Global Guardian’s differentiated model has led to strong client adoption and driven tremendous growth over the past decade. As we planned for future expansion, it was the right time in our Company’s evolution to find a strategic growth investor. Our partnership with ACP will allow for on-going investment in the resources and technology needed to support our clients with the highest degree of care to safeguard their assets from continually evolving global threats," Dale Buckner, Global Guardian Co-Founder and CEO.
Global Guardian was advised by Piper Sandler and Skadden Arps Slate Meagher & Flom (led by Richard Oliver). Align Capital was advised by Calfee Halter & Griswold.
Truelink Capital, a private equity firm, agreed to acquire Flipp, a retail technology company. Financial terms were not disclosed.
"Today is an exciting day in the history of Flipp. Truelink is an accomplished partner and we feel humbled by the partnership. Looking forward, we see considerable opportunity and we plan to leverage this investment to drive greater innovation and accelerated growth. Our retail and CPG partners rely on Flipp to provide unparalleled digital distribution tools and we are devoted to ensuring we continue to deliver innovative solutions at a blistering pace. Our proprietary distribution platform offers our customers the scale and ROI they need to drive critical objectives. Truelink has validated our place in the market and will allow us to drive forward as a market leader. We are proud to be on this journey and excited to partner with Truelink," Michael Silverman, Flipp CEO.
Truelink is advised by RBC Capital Markets. Flipp is advised by Stifel and Stikeman Elliott.
Thermo Fisher Scientific, a scientific instrumentation supplier, completed the acquisition of CorEvitas, a provider of regulatory-grade, real-world evidence for approved medical treatments and therapies, from Audax Private Equity, an investment firm, for $913m.
“We are very excited to welcome our new CorEvitas colleagues to Thermo Fisher. CorEvitas expands our clinical research business with highly complementary real-world evidence solutions, which is an increasingly important area and will help to enhance decision-making as well as the time and cost of drug development. We are excited by the opportunity to further accelerate innovation and advance productivity for our pharma and biotech customers in their work to deliver new medicines and therapeutics to benefit patients,” Marc N. Casper, Thermo Fisher Chairman, President and CEO.
Sun Capital Partners, a global investment firm focused on leveraged buyouts, equity, debt, and other investments, agreed to acquire Koch Separation Solutions, a provider of synergistic technology such as membrane filtration, ion exchange, evaporation, drying, and more, from Koch Industries. Financial terms were not disclosed.
“Sun Capital and KSS share a common vision of innovation and continuous improvement to best serve our customers. KSS has an established history in the separations space, with over half a century’s worth of experience providing innovative solutions to customers worldwide. We are excited about this opportunity as it positions KSS to build upon longstanding relationships while growing our capabilities as a complete solutions provider. We remain committed to delivering the same level of service that our customers expect when working with us,” Manny Singh, Koch Separation Solutions President.
Sun Capital Partners are advised by Stanton PRM (led by Matthew Conroy).
Kian Capital Partners, a private equity firm, completed the acquisition of Meineke, a franchise-based international automotive repair chain. Financial terms were not disclosed.
“We are excited to launch the PARC Auto platform, furthering Kian’s experience in the automotive space alongside Kian portfolio companies T Sportline, Eastwood and Driven Lighting Group. Bryan Brown has an impressive team that has built a commanding presence across the Louisville market, and we look forward to expanding that leadership into new markets through new store openings and acquisitions. Meineke is well-positioned to be an industry consolidator with its highly recognizable and trusted brand supported by best-in-class franchisee resources provided by Driven Brands,” Caldwell Zimmerman, Kian Principal.
Kian Capital was advised by MiddleM Creative (led by Allie Gamble).
GM, a company that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, led the $60m Series B round in Mitra Future Technologies, a lithium-ion battery materials manufacturing company, with participation from Social Capital, Fontinalis Partners, Earthshot Ventures, The Keffi Group, Boutique Venture Partners, GS Futures, Bricks Capital Management, Zeon Ventures, Scribble VC, WovenEarth Ventures and Bonds Investment Group.
"This is a strategic investment that will further help reinforce GM's efforts in EV batteries, accelerate our work on affordable battery chemistries like LMFP and support our efforts to build a North America-focused battery supply chain. GM is accelerating larger investments in critical subdomains of battery technology, like cell chemistry, components and advanced cell production processes. Mitra Chem's labs, tools and talent will fit well with our own R&D team's work," Gil Golan, GM Vice President of Technology Acceleration Commercialization.
PSP and OTPP explore a $6bn sale of renewables firm Cubico.
Two of Canada's biggest pension funds are exploring options including a sale of Cubico Sustainable Investments that could value the renewable energy firm at about $6bn or more, including debt.
Montreal-based Public Sector Pension Investment Board and the Ontario Teachers' Pension Plan are looking to appoint a financial advisor in the coming weeks, the sale could take several months to complete.
The potential sale of Cubico comes at a time when renewable power developers and other service providers focused on energy transition have become attractive acquisition targets for infrastructure investors and corporate utilities, Reuters reported.
Warburg, Kelso make a bid for Femsa’s $5bn envoy unit.
Mexican Coca-Cola bottler Femsa is in talks to sell a US packaging and food services business to private equity firms Warburg Pincus and Kelso for about $5bn.
Kelso would do the deal through portfolio company BradyIFS. Femsa shares led gains on the Mexbol index. The stock rose as much as 3.5% in trading in Mexico City in their biggest intraday gain since the end of May, on pace for a record high.
Apollo to loan over $4bn to struggling buyout firms.
Apollo Global Management is poised to sign more than $4bn in so-called NAV loans, as the asset manager steps up unorthodox lending to private equity firms looking to raise cash in a challenging high-cost environment, Bloomberg reported.
Some of the transactions include multiple loans of more than $1bn each. Net asset value financing allows PEs to borrow against a pool of their portfolio companies, and helps them to return money to investors.
Madison Dearborn explores a $1bn sale of Intermedia's communications services firm.
The private equity owner of Intermedia Cloud Communications is exploring options including a sale that could value the communications services provider at more than $1bn.
Buyout firm Madison Dearborn Partners is working with investment bank Evercore on a sale process for Intermedia, which is expected to start in the coming weeks. Intermedia is aiming for a valuation of more than 20 times its 12-month earnings before interest, taxes, depreciation, and amortization of about $50m, Reuters reported.
Buffett’s Berkshire cuts Activision, unveils homebuilder bet.
Warren Buffett’s Berkshire Hathaway slashed its stake in Activision Blizzard by 70% during the second quarter amid the video-game maker’s prolonged effort to merge with Microsoft and disclosed a bet on the housing market, Bloomberg reported.
The conglomerate also exited its position in insurance broker Marsh McLennan, and trimmed positions in other companies including Chevron. Berkshire reported new holdings in homebuilders D.R. Horton, NVR and Lennar.
Cyxtera Technologies draws interest from Brookfield, Digital Realty.
Cyxtera Technologies, the bankrupt data-center operator, has drawn interest for its assets from multiple parties including Brookfield Infrastructure Partners and Digital Realty Trust.
Cyxtera has been looking at a dual-track process as it seeks to wrap up its Chapter 11 case. That includes weighing a sale of its business or a debt recapitalization in which lenders would take control of the firm.
The company said earlier this week that it has received multiple qualified bids, and final offers are due August 18. Deliberations are fluid and there is no certainty that the parties will proceed with a final bid, Bloomberg reported.
Investors wary of commercial-property risks hold back on loans.
Lending for commercial real estate in the US has plunged — and it isn’t just banks that are holding back, Bloomberg reported.
Funds affiliated with major investors such as Blackstone, KKR, and Starwood Capital Group also have reduced originations, even as rising interest rates offered the opportunity for fatter returns.
Access raises $805m for build and buy mid-market investments in essential.
Access Holdings, a digitally-enabled middle market investment firm based in Baltimore, announced it has raised approximately $805m in new capital, including $525m for Access Holdings Fund II and an additional $280m for Fund II co-investment.
This capital will be used for middle-market buyouts and growth capital investments in the US. The fund exceeded its target of $500m amid strong headwinds in the private equity fundraising market. Access now manages more than $2.7bn in assets.
Angeles Equity Partners closes Fund II above $540m.
Angeles Equity Partners, a private investment firm focused on value creation through operational transformation, announced the final closing of Angeles Equity Partners II and its parallel funds with total capital commitments exceeding its target of $500m.
“We are incredibly grateful for the strong support and partnership of our Fund II investors and feel it is a true recognition of our investment strategy, ability to deliver value across the industrials landscape, and the institutional-quality firm we have thoughtfully constructed to capitalize on the incredible opportunity in the industrial sector,” Timothy Meyer, Angeles Equity Partners Co-Founder and Managing Partner.
IRA Capital launches $500m Healthcare Real Estate Fund.
IRA Capital, a private equity firm based in Southern California, has recently announced the launch of the IRA Healthcare Real Estate Fund. The closed-end fund, with a total capitalization of $500m, will focus on acquiring medical properties and senior housing assets across the United States.
With an impressive track record in healthcare real estate, IRA has achieved an average annualized return of 48% and a net equity multiple of 1.7x for its investors.
TCW closes a $400m CLO fund.
Global asset management company, the TCW Group, has closed a $400m Collateralised Loan Obligation fund, TCW CLO 2023-2, which is secured primarily by broadly syndicated first lien loans. CLOs are managed within TCW's $70bn integrated global credit platform, and this new fund will be managed by Senior Portfolio Managers Drew Sweeney and Ken Toshima, PrivateEquityWire reported.
TCW recently entered into a strategic CLO equity investment partnership with Lakemore Partners, a private credit investment firm, to support the growth of its CLO platform. Jefferies served as placement agent and structuring agent.
MetLife Investment Management announces final close of Single Family Rental Fund at $390m.
MetLife Investment Management, the institutional asset management business of MetLife, announced that it has successfully closed the MetLife Single Family Rental Fund with $390m in capital commitments.
"We have a high level of conviction in the demand for single family rentals, and we see this fund as a natural extension of our experience investing in other housing segments, where our perspective as a leading institutional investment manager has served clients well. We believe there’s a significant and sustained opportunity to give renters access to well-located units designed specifically for their use,” Robert Merck, MIM Global Head of Real Estate and Agricultural Finance.
GEF fuels Brazil’s green future with a $214m climate solutions fund.
Global private equity firm GEF Capital Partners has announced the successful final close of the GEF LatAm Climate Solutions Fund III, raising BRL1.05bn ($214m).
The substantial funding was raised specifically for their Brazil-focused climate solutions-focused fund. GEF’s new growth fund targets innovative solutions to climate and pollution control, investing in lower-middle-market companies across Brazil.
EMEA
Endless, a private equity firm, completed the acquisition of Asco Group, a global provider of multi-site integrated supply base operations to the energy industry. Financial terms were not disclosed.
"ASCO is a fantastic business servicing a blue-chip customer base across its global operations with great potential for further growth," Andrew Ross, Endless Partner.
Asco Group was advised by Deloitte, Piper Sandler, Ashurst and Burness Paull. Endless was advised by PricewaterhouseCoopers, Lodestone, Walker Morris, KPMG and JacksonBreen.
TPG Rise Climate, an infrastructure fund, agreed to acquire a majority stake in A-Gas, a company that is focused on supply and lifecycle management of refrigerants and associated products and services, from KKR, a global investment firm, and LDC, a private equity firm. Financial terms were not disclosed.
“We are thrilled to be taking the next step of our sustainability journey, and to be further scaling our Lifecycle Refrigerant Management operations, with the backing of TPG Rise Climate. We have a long history of being at the forefront of refrigerant gas recovery and reclamation, effectively lowering potential emissions to the atmosphere, and this investment from TPG is validation of our growth strategy and the quality of our products and services. We look forward to building on our success by executing a number of organic and inorganic growth initiatives,” Jack Govers, A-Gas CEO.
TPG Rise Climate is advised by Citigroup and Greenbrook (led by Michael Russell). A-Gas is advised by Goldman Sachs. KKR is advised by Simpson Thacher & Bartlett.
Exor, the Netherlands-based diversified holding company, completed the acquisition of a 15% stake in Philips, an electronics company that focuses on healthcare and lighting, for $2.84bn.
“Exor’s investment in Philips, their long-term outlook and increased focus on healthcare and technology, fit well with our strategy and substantial value creation potential. With our market leadership positions and people-centric innovation capabilities, Philips is well positioned to deliver on our purpose to improve the health and well-being of people, creating value for all stakeholders," Roy Jakobs, Philips CEO.
Philips was advised by Goldman Sachs, Allen & Overy, and De Brauw Blackstone Westbroek (led by Arne Grimme).
Maurel & Prom, an oil company specialising in the production of hydrocarbons, agered to acquire Assala Energy, an upstream oil exploration and production company operating in Gabon, from Carlyle, a private equity firm. Financial terms were not disclosed.
“We want to thank Carlyle for its financial and strategic support throughout Assala’s growth journey, from the initial carve out from Shell in 2017 to the successes of higher production and reserves growth, which were delivered to best practice and international ESG standards by our exceptional team. We also want to thank the Government of Gabon for the support it provided throughout this intensive investment and redevelopment period. We are proud of our accomplishments so far and look forward to our business’s next stage of growth. The combination with M&P will create a great platform, with its business anchored in Gabon and a continued focus on creating value for its employees, local communities, governments and shareholders," David Roux, Assala CEO.
Carlyle is advised by Citigroup and Latham & Watkins. Maurel & Prom is advised by Morgan Stanley.
Private equity firms Abu Dhabi Investment Authority and CapitalG, agreed to acquire a minority stake in TeamSystem, a software developer, from Hg Capital, a private equity firm. Financial terms were not disclosed.
“We firmly believe that TeamSystem is well positioned to continue to grow in both existing and new markets. This investment aligns with our approach of supporting market-leading software businesses that offer mission-critical solutions to their customer bases," Hamad Shahwan Aldhaheri, ADIA Executive Director of the Private Equities Department.
TeamSystem is advised by Barabino & Partners. Hg Capital is advised by Brunswick Group (led by Azadeh Varzi). Hellman & Friedman is advised by FGS Global (led by Chris Ryall and Alastair Elwen).
Haveli Investments, a technology and gaming-focused private equity firm, completed a $100m investment into Candivore, an independent mobile gaming studio based in Tel Aviv, Israel.
"Candivore's Match Masters is a clear category leader with a rapidly growing user base and a talented, entrepreneurial leadership team. We are excited to partner with them on our first investment in the mobile gaming space and look forward to collaborating with Gal and the team at Candivore to capitalize on their success to date and help take the business to new heights," Ophir Lupu, Haveli Investments Senior Managing Director.
Haveli Investments was advised by Reevemark (led by Hugh Burns).
Accel-KKR, a private equity firm, agreed to acquire a minority stake in Ocuco, an optical retail software company, for €60m ($65m).
"We are excited to partner with Accel-KKR, given their expertise in practice management software and proven track record in scaling vertical SaaS companies in the US and globally. Accel-KKR's investment is not only a testament to our strong performance but a powerful endorsement that enhances our financial standing. We are well positioned to serve the full range of eyecare practices from independents to global chains that require a partner with the ability to deliver at scale," Leo Mac Canna, Ocuco Founder and CEO.
Impilo, a private equity firm, completed the acquisition of VaccinDirekt, a vaccination provider, from SEB Private Equity, a private equity firm. Financial terms were not disclosed.
“VaccinDirekt is the leading vaccination provider in a winning channel enjoying strong underlying growth, primarily driven by increased public awareness for vaccines, the enhanced focus on preventive healthcare, and a steadily growing pipeline of new vaccines. The Company is well-positioned to extend its leadership, leveraging its unparalleled quality, know-how, and customer focus, coupled with a large physical footprint in central locations, offering superior convenience and availability to its growing base of more than 1.4m registered customers. As a long-term and dedicated healthcare investor, Impilo is excited to support VaccinDirekt in driving a customer focused expansion of the platform as the company continues to increase availability of high-quality preventive healthcare services in the Nordics," Victor Steien, Impilo Partner.
Impilo was avised by SEB Corporate Finance.
Macquarie Group, a private equity firm, agreed to invest £550m ($698m) in Southern Water, a private utility company.
"We would like to thank Macquarie for its continued support, which will enable us to increase investment per household to more than £1.5k this regulatory period and manage the impact of cost inflation and higher funding costs on our business. Macquarie's additional investment is a strong vote of confidence in our operational transformation. It will help us to deliver on our ambitions to customers and position Southern Water well for our upcoming regulatory determination," Lawrence Gosden, Southern Water CEO.
Basalt, a dedicated infrastructure investment firm, agreed to acquire Reconor, a Denmark-based environmental services specialist, from Agilitas, a pan-European mid-market private equity firm. Financial terms were not disclosed.
Reconor helps its customers meet Denmark's high standards of responsible and environmentally safe recycling, and helps municipalities with waste collection.
EY rejects TPG plan to break up Big Four firm.
US buyout group had proposed to take a stake in consulting arm. EY has rejected a proposal from US private equity group TPG to break up the Big Four firm and take a stake in its consulting business. TPG wrote to EY in late July outlining its plan for a debt-and-equity deal to separate its consulting arm from the audit business, FT reported.
The pitch came just months after EY's own attempt to spin off the consulting business and seek a $100bn enterprise value for it in a stock market listing collapsed. The Financial Times on August 14 revealed the details of the approach, which offered to revive the break-up plan, code-named Project Everest, in a revised form. "We frequently receive inquiries from private equity firms and other investors expressing interest in parts of EY businesses. This was the case before Everest and will continue into the future," partners were told.
SoftBank is in talks to buy Vision Fund's 25% stake in Arm.
SoftBank Group is in talks to acquire the 25% stake in Arm it does not directly own from Vision Fund 1, a $100bn investment fund it raised in 2017, potentially delivering a win for investors who have waited years for strong returns, Reuters reported.
The discussions come as SoftBank, which currently owns 75% of Arm, is preparing to list the chip designer on Nasdaq next month at a valuation of $60bn to $70bn.
Record $4.8bn private loan refinances Vista’s Finastra.
Private credit behemoths including Blue Owl Capital and Oak Hill Advisors are providing a record $4.8bn fully funded direct loan as part of Vista Equity Partners’ refinancing of fintech firm Finastra Group's debt, Bloomberg reported.
The private loan is structured as a unitranche, a blend of senior and subordinated debt. The deal will be the largest such direct loan when it closes. Last year saw a $4.95bn private financing for Zendesk, but that included a $850m delayed-draw term loan component.
ABN Amro CFO says stake sale to proceed despite political crisis.
The collapse of the Dutch government is unlikely to derail plans for a partial sale of the state's stake in ABN Amro Bank, according to the lender's head of finance.
Dutch state-holding company NLFI said in February it was planning to reduce its stake in ABN Amro to under 50% through a sale of depositary receipts, ending a five-year hiatus in the disposal of the lender's shares.
NLFI held a 56.3% stake at the time of the publication of ABN Amro's 2022 annual report in March, Bloomberg reported.
Daily Mail in talks with investors over potential bid for Britain's Telegraph.
The Daily Mail and General Trust has registered its interest with British bank Lloyds for a potential bid for The Telegraph.
However, while it has been engaging with several parties, DMGT does not yet have any formal plans, and there is no consortium, Reuters reported.
Ares weighs loosening Crystal Palace ties to focus on Chelsea.
Ares Management is considering loosening ties with Crystal Palace as it explores an investment in rival British football club Chelsea, Bloomberg reported.
US-based Ares is in discussions about changing the structure of its investment in Eagle Football, the vehicle that owns roughly 40% of south London-based Crystal Palace. This could see Ares relinquishing its position on Eagle Football’s board.
Dubai-based Shuaa Capital’s top investors are exploring sale.
Shuaa Capital's main shareholders are in early-stage talks to sell down their stakes in the Dubai-based investment bank, offering potential buyers access to one of the Gulf region’s oldest financial institutions.
As part of the plans, the bank’s Managing Director Jassim Alseddiqi — one of the top shareholders with about a 25% stake — plans to pare down his holdings and step down to focus on a career in technology, research, and academia. Other major holders are also in talks to sell down their stakes.
Burger King UK owner eyes Whopper with new franchise deal with PE firm.
The owner of Burger King’s UK operations is in advanced talks about a new franchise deal that will cut the number of new restaurants it is obliged to open each year.
Sky News has learned that Bridgepoint, the London-listed private equity firm, is close to striking a long-term deal with Restaurant Brands International, the US-based owner of the Burger King brand.
Kretinsky to team up with RAG foundation for Steag bid.
Daniel Kretinsky plans to team up with Germany’s RAG-Stiftung foundation to make an offer for utility Steag, a move that may hand the Czech billionaire an edge over rival bidder Asterion Industrial Partners, Bloomberg reported.
“We can confirm that the RAG-Stiftung is in advanced negotiations to form a consortium with EPH,” RAG-Stiftung.
Silver Lake to explore the sale of tax-free shopping firm Global Blue valued at around $1bn.
Private equity firm Silver Lake is preparing to explore a sale of Global Blue Group, a company that enables retailers to offer tax-free shopping after receiving expressions of interest from potential acquirers.
The deliberations come as Global Blue recovers from the air travel slump caused by the Covid-19 pandemic, which weighed on duty-free shopping. It still faces headwinds, including price inflation and the prospect of an economic recession in Europe, which the company says it can tackle.
Dalian Wanda weighs sale of Olympics media rights manager Infront.
Dalian Wanda Group, owned by China's once-richest man Wang Jianlin, is seeking to sell its sports marketing unit Infront as financial pressure mounts on the property developer to shore up its finances. China's largest commercial property group has tapped Deutsche Bank for advice on the sale of Infront Sports & Media, adding the process is in the early stages and could take months to complete, Reuters reported.
Private equity firms are looking at Infront. The successful buyer is likely to be an investor with deep pockets because of the minimum guarantees the company is required to pay for sports rights. Headquartered in Switzerland, Infront's businesses include managing Italy's Serie A and the UK Premier League's international media rights, as well as event operations, media rights distribution and sponsorship sales. In June, Infront was awarded broadcast rights in 22 countries in Central and South East Asia for the Olympic Games from 2026 through 2032.
CVC Capital Partners revives stock market listing plan.
CVC Capital Partners, one of Europe's largest buyout investment firms, is again looking at a multibillion-euro stock market listing that could happen before the end of this year.
The Luxembourg-based firm, which has around $140bn of assets under management, paused plans for an IPO last year following Russia's invasion of Ukraine which sent global markets into a tailspin.
CVC Capital bags $4.45bn so far for sixth Asia-focused fund.
CVC Capital Partners, a private equity firm, has raised over $4.45bn so far for its new Asia-focused fund, its latest regulatory disclosure showed.
CVC is targeting to raise $6bn for the fund, its sixth and largest to date for the region. The firm did not disclose when it will finalize the fundraising in the Tuesday filing to the US Securities and Exchange Commission. Investors in CVC's new Asia investment vehicle include the Canadian Pension Plan Investment Board and The Oregon Public Employees Retirement System, DealStreetAsia reported.
Credit Suisse secondaries exec to lead Eaton's new GP solutions business. (People)
Eaton Partners has expanded its private capital advisory business with the recruitment a four-strong team from Credit Suisse led by Dirk Jonske, who will head up the capital placement agent and fund advisory firm's new GP solutions division. Prior to joining Eaton Partners as a Managing Director, Jonske was in Credit Suisse's Private Fund Group, where he was responsible for the origination and evaluation of private equity primary, secondary, and co-investment transactions, with a focus on providing strategic advice regarding continuation vehicles.
Before joining Credit Suisse, Jonske was an Executive Director in the Private Fund Group at UBS and a Senior Associate on the Private Equity Investment team at Landmark Partners, PrivateEquityWire reported.
APAC
Bain Capital, a private investment firm, agreed to acquire the remaining 57.8% stake in Chindata, a carrier-neutral hyperscale data center solution provider, for $1.8bn.
Bain Capital will pay $4.30 per ordinary stock and $8.60 per American depositary share. The offer represents a 7.5% increase from the proposed purchase price when the firms first templated a takeover.
Chindata is advised by Citigroup, Gibson Dunn & Crutcher, Haiwen & Partners and Maples Group. Citigroup is advised by Weil Gotshal and Manges. Bain Capital is advised by Morgan Stanley, Conyers Dill & Pearman, King & Wood Mallesons and Kirkland & Ellis. Debt financing is provided by Industrial Bank and Shanghai Pudong Development Bank.
India approved the merger of a local unit of Japan's Sony and India's Zee Entertainment, granting a key regulatory approval and clearing the
way for a $10bn TV tie-up, DealStreetAsia reported.
Zee Entertainment's shares were up 10% after the National Company Law Tribunal cleared the deal. The merger was announced in 2021 but has been delayed for multiple reasons.
Morrison & Co, a private equity firm, agreed to acquire a 50% stake in the crate pooling business of Pact Group, a packaging and material holding company, for $160m.
“We’ve been seeing increased demand from customers for a rapid scale up of our Crate Pooling offering as they look to operate more efficiently and sustainably in the circular economy. This new strategic partnership with Morrison & Co is a great outcome for our customers as it will accelerate the growth of the business and offer an expanded range of products and service, with Pact sharing in the upside," Sanjay Dayal, Pact CEO and Managing Director.
Pact Group is advised by Citigroup.
GQG Partners, an investment firm, completed the acquisition of an 8.1% stake in Adani Power, a power and energy company, for $1.1bn.
Adani Power is the largest private sector thermal power company in India and has one of the youngest and state of art fleet. About 80% of its capacity is super critical and latest units are ultra super critical.
CITIC Securities, a Chinese full-service investment bank, and Costone, an investment firm, led the $137m Series A round in Jiangsu Guoqiang Singsun Energy Technology, a Chinese developer of advanced tracking technology for intelligent solar plant applications, with participation from CMB International and Zhongtai Ventures.
As a subsidiary of China's Jiangsu Guoqiang Group, the startup claims to have an annual shipment capacity of 45 gigawatts of solar tracker equipment and software. It has delivered products and services to China's five largest state-owned electricity generation groups, with overseas clients across Europe, Latin America, Southeast Asia, and the Middle East.
Temasek, an investment company, and TPG, a private equity firm, completed the $80m investment in Dr. Agarwal's, a chain of eye specialty hospitals.
Dr. Agarwal's will invest over INR12bn ($145m) to set up new hospitals in India and 10 centers in the African countries of Kenya, Zambia, and Tanzania.
Blackstone eyes Japan property after selling $4.5bn.
Blackstone is exploring more acquisitions in Japanese real estate after selling about $4.5bn worth in the past year to capitalize on high international interest in property in the island nation.
The world’s largest alternative asset manager is working on more acquisitions with several bids out and properties like hotels and data centers in the pipeline, according to Blackstone’s head of Japan real estate Daisuke Kitta.
Temasek weighs $2bn Pavilion Energy asset sale.
Singapore’s Temasek is considering selling some of Pavilion Energy's assets and seeking a valuation of at least $2bn.
The city-state’s investment firm is working with Barclays on a potential sale that would exclude the gas pipeline business, which Singapore considers a strategic asset. Temasek has started gauging interest from potential buyers for the assets of the liquefied natural gas company.
Australian $100bn pension fund targets private assets with London launch.
Australia's third-largest pension fund will officially open its first overseas outpost in London in November pushing for more private market investments as the sector outgrows the confines of home. Aware Super, with $102bn in assets, will set up in the district of St. James, popular with hedge funds and private equity firms, and plans to have a team of 14 by year end, according to Deputy Chief Investment Officer and Head of International Damien Webb, who will relocate to London in October.
Forecast to hit $162bn in assets by 2026, the fund plans to funnel "substantial" billions through the new office, which will initially focus on private equity, property and infrastructure in the UK, Europe and North America, Reuters reported.
Neon to consider a $200m funding round.
Neon is considering raising about $200m in fresh capital as the immersive entertainment group looks to expand its business.
The Singapore-based company is working with advisers on the fundraising. A new round would follow an $115m investment last year by 65 Equity Partners, which is owned by Singapore state investment firm Temasek Holdings, Bloomberg reported.
Zhongrong Trust's missed payments trigger fears among Chinese investors.
Anxious Chinese retail investors are bombarding listed companies with questions about their exposure to Zhongrong International Trust after missed payments by the trust company triggered fears of contagion across the country's financial system.
Investors had submitted more than 100 questions to dozens of Shanghai- and Shenzhen-listed companies via investor relation platforms asking whether they had bought Zhongrong's products, after two listed firms disclosed that they had not received payment on maturing trust products from Zhongrong, Reuters reported.
Chinese asset manager eyes restructuring to ease liquidity crunch amid contagion fears.
Faced with a liquidity crisis, Zhongzhi Enterprise Group will conduct a debt restructuring, the Chinese asset manager has told investors, as a deepening property sector downturn raises fears about spillover risks to the broader financial sector. Beijing-based Zhongzhi, which has sizable exposure to real estate, has stopped payment to investors in all investment products, its management told investors in a meeting on August 16, Reuters reported.
Zhongzhi's financial trouble is the latest challenge for Chinese authorities as they battle to contain a worsening property sector crisis and revive a faltering recovery in the world's second-largest economy. Morgan Stanley has become the latest among some of the major brokerages to cut China's growth forecast for this year. It now sees China's gross domestic product growing 4.7% this year, down from an earlier forecast of 5%. Asset managers like Zhongzhi raise hundreds of billions of dollars by selling shadow banking-linked and high-yielding investment products through trust and wealth management units, and have strong linkages with banks and other financial firms.
Australia's Telstra shelves InfraCo stake sale plan.
Australia's Telstra shelved plans on August 17 to sell a stake in its physical infrastructure unit, sending its shares about 2.5% lower, even as the telecom firm forecast higher underlying core earnings after a 14% jump in fiscal 2023 profit. The country's largest telecoms firm decided against selling a stake in InfraCo Fixed, saying the unit "plays an important role" in achieving its long-term goals, Reuters reported.
Shares of Telstra fell about 2.5% to AUD4.15 ($3), with Marcustoday Financial Newsletter analyst Henry Jennings saying the market was disappointed with the decision. "After thoroughly examining alternatives, we have concluded that the greatest value to be created for shareholders is by maintaining the current ownership structure of InfraCo Fixed, for at least the medium term," Vicki Brady, Telstra CEO.
CapitaLand raises $950m from global investors for three private funds.
CapitaLand Investment Limited has raised an additional $950m from global institutional investors for three private funds.
The fresh capital will be distributed across the three funds as follows: $650m will go to CapitaLand China Opportunistic Partners Programme, $100m will be for CapitaLand Open End Real Estate Fund, which is CLI's flagship regional core-plus fund and $197m will be for its new India business park development fund, CapitaLand India Growth Fund 2, DealStreetAsia reported.
Singapore's Growtheum Capital closes debut fund at $567m, a tad below target.
Singapore-based private equity firm Growtheum Capital Partners has secured the final close of its debut fund at $567m, just shy of its initial target of $600-800m. The fund close takes place amid a trying time for fund managers globally, who are receiving a cold reception from limited partners who have turned cautious since US public markets reversed last year, DealStreetAsia reported.
This has led to fund close delays and smaller fund sizes for many general partners in Asia and around the world. Growtheum's managing partner Amit Kunal acknowledged that its initial target of $600m was overly optimistic given the market conditions. "We were aggressively stupid when we started because we had never raised funds in our career. We are experienced dealmakers. Our last investment was our 35th or 36th. We have invested one-to-one in a company without a partner. (All) that comes naturally to us, but fundraising did not," Amit Kunal, Growtheum Managing Partner.
Private equity firm KV Asia closes second fund below target at over $200m.
Southeast Asia-focused private equity firm KV Asia Capital might have closed its second fund at slightly over $200m, even as the firm had set a target of $300m for the vehicle. Asia II raised $202m in May this year, according to a transaction logged by placement and advisory group Asante Capital on its website.
In February, the fund was likely to be closed in Q2 2023 at about $230-240m, after receiving commitments from several global fund-of-funds, endowments, family offices, and institutions from the US, Europe, and Asia, DealStreetAsia reported.
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