Editor’s note: Private Equity Pulse will not be published on December 30th. The next release will be January 6th.
S&P Global Market Intelligence presents our top picks for global private equity news and more released throughout the week.
After private equity funds saw record inflows of investors in 2021, fundraising quickly becomes more complex in 2022. Change could be on the way in 2023.
First, a summary. The year began with a large number of private equity fund managers entering the market, adding pressure to investors. This pressure only increased when a bear market hit, driving down the value of public market holdings in the portfolios of university endowments, public pension funds and other institutional investors and creating a denominator effect that reduced any room for maneuver in asset allocation plans. Some investors have had to reduce their commitments or delve into an uncertain secondary market.
Now the pressure can ease.
In a recently released five-year outlook report, private equity market data source Breckin expects fundraising to slow significantly in 2023, citing the effects of slower economic growth and lower transactions on private equity fundraising cycles. Breckin added that risk-averse investors can move money out of private equity.
Others look for an opportunity and take action to seize it.
It is a popular belief that times of economic turmoil also produce some of the best private equity firms, Bart Molloy, A Monument Group partner, in a recent conversation with S&P Global Market Intelligence. And from his seat at the Private Equity Underwriting Agent, a firm that connects investors with private funds, Molloy sees change. A small, but no small portion of institutional investors are making room for more private equity in their portfolios.
“I don’t want to He says this is next to the board, But This big Appropriate if This 25% to the People we incident the sound Say they go you have a Few Few Next space Next General, “ Molloy He said.
Learn more about the top 100 employers from 2022-15 December.
Chart for the week: Dry powder hovers near a record
⮞ Blackstone Inc. The global private equity market was worth more than $43.92 billion in dry powder as of mid-December, according to data from S&P Global Market Intelligence supplemented by Preqin.
The dry powder of global private equity and venture capital has reached a record $1.96 trillion as of Dec. 15, according to a preliminary estimate from Preqin.
⮞ In its latest five-year Outlook for Alternative Assets report, the forecast for Breckin’ Dry Powder will drop to 25.3% of private equity assets under management in 2027, from 28.3% in 2021, in part due to a slower rate of fundraising.
Presentations and fundraisers
* Approved by KKR & Co. Inc. to acquire Bushu Pharmaceuticals Ltd. Ltd., a Japan-based contractual development and manufacturing organization. The transaction with vendor EQT AB is expected to close in the first quarter of 2023.
* Funds administered by Ares Management Corp. She and other investors invested in Eagle Football Holdings Ltd. The investment as part of the acquisition process Major acquisition of French media and entertainment Olympique Lyonnais Groupe SA by an entity affiliated to Eagle Football Holdings.
* Investcorp has acquired a majority stake in Eficode Oy, a Finland-based company that provides software development, IT operations consulting, and managed services. The transaction is expected to close in the first quarter of 2023.
* Raised General Atlantic Approximately $3.5 billion in capital commitments to Closing the first climate-focused fund. The fund is called Beyond NetZero, You will invest in startups.
The latest in the industry
* Keensight Capital has agreed to acquire Quanos Solutions GmbH from IK Partners. Quanos is a German aftermarket developer of industrial digital technical documentation software.
Main Street Capital Corp. A co-investor purchased a minority stake in electronic parts and components for World Micro Components. Main Street invested $18.1 million in a mix of debt and equity investments.
* A subsidiary of Peak Rock Capital LLC has acquired Seagull Scientific Inc. Inc., a company that provides software designed to support the production of labels, barcodes, documents, and radio frequency identification tags.
* Funds affiliated with Madison Dearborn Partners LLC have agreed to purchase the mutual fund business of Wilmington Trust NA in a transaction It must close no later than mid-2023. Wilmington Trust is a unit of M&T Bank Corp.
Focus on: renewable energies
* EQT Infrastructure VI, a subsidiary of Swedish private equity firm EQT, has agreed to purchase Madison Energy Investments LLC from subsidiaries of Stonepeak Partners LP. Madison Energy owns and operates solar and energy storage projects in the United States. The transaction is expected to close in the first quarter of 2023.
* Great Bay Renewables LLC, a subsidiary of Altius Renewable Royalties Corp. It will purchase an existing equity agreement for a portion of an operational wind power project in Texas from Apex Clean Energy Inc. For $18 million. Great Bay is jointly controlled by funds managed by affiliates of Apollo Global Management Inc. and Altius Renewable.
* Rezolv Energy s.r.o. and Low Carbon plan supported by Actis LLP to develop a pair of onshore wind farms in Romania with a combined capacity of up to 600MW. The financial closure of the facilities is expected to take place in the second half of 2023.