Private Equity News: Investment Trends and Fundraising

Private equity firms are increasingly focusing on sustainable investments, with 60% of funds now considering ESG factors in their investment decisions.

Investors are also seeking more control and flexibility in their investments, driving the growth of secondary market transactions. This trend is expected to continue, with secondary market deals projected to reach $150 billion by 2025.

The private equity industry has seen a significant increase in fundraising, with $1.1 trillion raised in 2020 alone. This surge in fundraising is largely driven by the growing demand for private equity investments from institutional investors.

Investors are increasingly seeking to invest in private equity funds that have a strong track record of delivering returns, with 80% of investors prioritizing fund performance when making investment decisions.

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India is a key market for private equity investments, with nearly two-thirds of respondents seeing an improving risk to reward balance in the country.

Gaja Capital is looking to buy early-stage companies and accelerate their growth, highlighting the potential for private equity firms to make a significant impact in India.

Private equity firms are increasingly investing in single-specialty hospitals, as patients are showing a marked preference for treatment in these facilities, even in smaller towns and cities.

This shift in patient preference has excited private equity investors, who see an opportunity to invest in a growing market.

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Private equity firms are exploring various financing options to support their deals. Blackstone Inc. is in talks with banks for a five-year loan of about A$5.5 billion to back its bid for AirTrunk.

A $1 billion private credit loan was provided to Logan Group Co by a consortium of private credit and private equity firms, including Davidson Kempner Capital Management and RRJ Capital. This loan will help the company in a distressed situation.

Vista is seeking $1 billion to help fund its deal for Jaggaer, but it's still deciding on the financing route. The company is discussing terms with competing groups of lenders.

Hargreaves Lansdown's £5.4 billion bid for a FTSE 100 fund manager was backed by a private equity consortium. This deal will end the company's time as a listed entity.

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Private equity firms are aggressively expanding their portfolios through strategic acquisitions. Warburg Pincus and Lendlease Group acquired a US$1.23 billion portfolio of Singapore assets in one of the largest deals.

Several notable acquisitions took place in the energy sector, with Devon Energy buying certain assets of Grayson Mill Energy for $5 billion. This deal highlights the significant investments being made in the energy industry.

Private equity firms are also exploring the sale of their portfolio companies, with Vista Equity Partners considering the sale of Finastra's capital markets division for $2 billion.

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Devon Energy has entered into a deal to acquire certain assets of Grayson Mill Energy, a Bakken-focused energy producer owned by private equity firm EnCap, for $5 billion.

The acquisition involves the Williston assets of Grayson Mill Energy, which Devon Energy is purchasing for $5 billion.

Devon Energy is a major player in the energy industry, and this acquisition is a significant move for the company.

The deal is valued at $5 billion, a substantial investment in the energy sector.

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Finastra is considering a sale of its capital markets division, which could be worth around $2 billion. This move is being explored by Vista Equity Partners, the private equity firm with over $100 billion in assets under management.

The sale could be a significant one for Vista Equity Partners, which has a long history of investing in the technology and software sectors. Vista Equity Partners has made several high-profile investments in recent years, and this sale could be another example of the firm's ability to generate returns for its investors.

Finastra's capital markets division is a key part of the company's business, providing software and services to banks and other financial institutions. The division has a strong reputation in the industry, and its sale could be attractive to a range of potential buyers.

The potential sale of Finastra's capital markets division comes at a time when the private equity market is highly active. Several large private equity deals have been announced in recent weeks, including the acquisition of ICBPI by Advent International, Bain Capital, and Clessidra for €2.15 billion.

The sale of Finastra's capital markets division could be completed in the coming months, although no timeline has been announced. The deal could be worth around $2 billion, although the final price will depend on a range of factors, including the level of interest from potential buyers.

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Private equity firms are increasingly investing in single-specialty hospitals, with many patients showing a preference for treatment in these smaller hospitals, even in tier-II cities and smaller towns. This has excited private equity investors.

Several private equity firms, including Avendus Future Leaders Fund, are making investments in healthcare companies, such as La Renon Healthcare, which has a significant presence in the nephrology and chronic therapy segments. Avendus Future Leaders Fund acquired a minority stake in La Renon for Rs 160 crore.

Private equity firms are also investing in technology companies, with Insight Partners and Sixth Street Growth making a $450m growth-equity investment in Kiteworks, a US provider of secure content communications.

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Multiples PE has acquired a majority stake in QBurst, a global digital product engineering platform with a presence in North America, Japan, the Middle East, Europe, and India. QBurst offers services in Digital Product Development, Enterprise Digitalization, Data Analytics, Cloud Services, AI & Generative AI Services, and Digital Marketing Enablement.

This acquisition is a significant move by Multiples PE, a private equity firm that invests in growing businesses across various sectors. QBurst's global presence and diverse service offerings make it an attractive investment opportunity for Multiples PE.

Multiples PE has likely identified QBurst's potential for growth and expansion, and is positioning itself for a strong return on investment. By acquiring a majority stake, Multiples PE will have significant control over QBurst's operations and decision-making processes.

Apax Partners LLP, another private equity firm, has also made a significant acquisition in the tech sector, acquiring a controlling stake in Veriforce, a global provider of supply chain risk management solutions. This deal highlights the growing interest in the tech sector among private equity firms.

Private equity firms like Multiples PE and Apax Partners are increasingly looking to invest in growing businesses with strong potential for expansion. This trend is expected to continue, as private equity firms seek to capitalize on the growth opportunities in various sectors.

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Value creation in financial sponsors has become a pressing concern in recent years, particularly with increased financing costs and economic uncertainty reducing exit opportunities. This has led to elongated holding periods for financial sponsors, necessitating a shift in their value creation strategies.

Financial sponsors are now focusing on portfolio value creation, with a growing emphasis on operational improvements and strategic initiatives. As seen in the acquisition of QBurst by Multiples PE, a global digital product engineering platform, financial sponsors are recognizing the importance of investing in digital transformation and innovation.

One key area of focus for financial sponsors is operational efficiency. By streamlining processes and reducing costs, financial sponsors can unlock value in their portfolio companies. For instance, the acquisition of Hargreaves Lansdown by CVC, Nordic Capital, and Platinum Ivy for £5.4 billion highlights the potential for operational improvements to drive value creation.

Another critical aspect of value creation is strategic initiatives. Financial sponsors are investing in initiatives that drive growth, such as digitalization and innovation. The acquisition of Vantive by Carlyle for $3.8 billion, a kidney care segment of Baxter International, demonstrates the potential for strategic initiatives to drive value creation.

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In addition to operational improvements and strategic initiatives, financial sponsors are also focusing on talent development and retention. By investing in their people and creating a culture of innovation, financial sponsors can unlock value in their portfolio companies. The acquisition of PropertyGuru by EQT for $1.1 billion highlights the importance of talent development and retention in driving value creation.

Overall, value creation in financial sponsors requires a multifaceted approach that encompasses operational improvements, strategic initiatives, and talent development. By focusing on these areas, financial sponsors can unlock value in their portfolio companies and drive long-term success.

Eversource Capital's new $1-billion fund has received a commitment from the US DFC.

This significant investment will enable Eversource to focus on energy storage as the next major opportunity.

CEO Dhanpal Jhaveri has identified energy storage as a key area of focus for the company.

He believes it has the potential to drive growth and innovation in the sector.

The US DFC's commitment to Eversource's fund demonstrates its support for investment in energy storage.

This partnership is expected to have a positive impact on the industry.

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OpenAI is in a bit of a tricky situation due to Sebi's regulations regarding preferential treatment of large investors. This is posing a dilemma to private equity (PE) and venture capital (VC) firms.

Sebi's regulations are making it difficult for PE and VC firms to navigate the market. PE and VC firms are known to give preferential treatment to large investors, but this is no longer allowed.

This change in regulations is causing a stir in the industry, with many firms struggling to adapt. The rules are creating uncertainty and making it harder for firms to operate.

The impact of these regulations is being felt across the board, with many firms re-evaluating their strategies. This is a challenging time for PE and VC firms, and it will be interesting to see how they adapt to these new regulations.

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