EQT targets €20B flagship PE raise; VC funding in H2'21 surges YOY

A number of private capital firms are starting the new year on the fundraising trail with news of target-setting and final closes coming in this week.

EQT AB (publ) announced it is targeting €20 billion for its 10th flagship private equity fund, a jump from EQT IX's final close of €15.6 billion in April 2021, the largest European private equity fund closed in 2021. It has also set a €900 million target for its third venture fund and €5 billion for its newest long hold strategy EQT Active Core Infrastructure.

In terms of final closes, digital infrastructure investor DigitalBridge Group Inc.'s platform, DigitalBridge Investment Management, surpassed its $6 billion target to raise $8.3 billion for its second flagship fund, DigitalBridge Partners II LP. Midmarket investor Monomoy Capital Partners raised more than $1.1 billion in commitments for its fourth private equity fund, Monomoy Capital Partners IV LP.

Elsewhere, BlackRock Inc. is renewing fundraising efforts for its long-term private equity fund after falling short of its lofty original $12 billion target on an initial close, Bloomberg News reported, citing people with knowledge of the matter. The firm is looking to bring in $2 billion to $3 billion for its Long Term Private Capital strategy, which held a $3.44 billion initial close in January 2021, the outlet said.

Investec Bank PLC announced it has upsized its inaugural debt fund, Investec Private Debt Fund I, by €85 million, increasing the fund size to €250 million. Energy Impact Partners LP has obtained $200 million for its climate technology investment vehicle and is looking to raise a further $150 million in 2022, Bloomberg reported, citing an interview with fund partner Shayle Kann.

The rush of fundraising news follows a bumper year for private equity. A total of $780.97 billion was raised by 2,337 private equity funds as of Dec. 13, 2021, up 10% from $709.67 billion raised by 2,161 funds in 2020, according to Preqin Pro data.

CHART OF THE WEEK: Largest VC funding round could be canned

⮞ Venture capital investment totaled $57.1 billion globally in December 2021, compared to $39.9 billion in December 2020, according to S&P Global Market Intelligence data. But totals could see an adjustment after a key investor announced it would not proceed with the month's largest deal involving Chinese consumer finance company Chongqing Ant Consumer Finance Co. Ltd.

⮞ Global venture capital deployments over the entire second half of 2021 totaled $327.8 billion on 11,110 transactions, representing a greater than 78% increase over the $183.9 billion raised on 8,209 transactions in the second half of 2020.

⮞ The technology, media and telecommunications sector soaked up 39.7% of all venture capital deployed in December 2021 funding rounds, followed by financials at 17.2%, healthcare at 14.4% and consumer at 11.6%.

FUNDRAISING AND DEALS

* KKR & Co. Inc. bought Merchants Mortgage & Trust Corp. LLC through its private credit funds and accounts. The real estate lending platform will also purchase the outstanding interests in its affiliate, Orchard Funding, as part of the deal.

* Funds managed by Blackstone Inc.'s Blackstone Infrastructure Partners LP acquired a 35% stake in private cell tower platform provider Phoenix Tower International LLC from Manulife Financial Corp. unit Manulife Investment Management.

* The Carlyle Group Inc. is closing in on a deal to sell outsourcing company VXI Global Solutions LLC to Bain Capital LP at a potential valuation of up to $2 billion, Bloomberg reported, citing people familiar with the matter. Separately, Carlyle's funds will provide capital to support NineDot Energy's development of more than 400 MW of battery storage projects by 2026.

* Bain is close to buying French IT service provider Inetum SA from Mannai Corp. QPSC in an approximately $2.27 billion transaction, sources familiar with the matter told Reuters.

ELSEWHERE IN THE INDUSTRY

* Clinigen Group PLC accepted a sweetened and final £1.3 billion buyout offer from Triton.

* EIG Global Energy Partners provided $400 million of capital to 8minute Solar Energy LLC to support its operations and expand its renewables portfolio.

* Hotel software provider MyDigitalOffice Holdings Inc. secured a strategic investment from Cove Hill Partners LP.

FOCUS ON: PHARMACEUTICALS

* Advent International Corp.-backed Zentiva is the target of a takeover by Polish drugmaker peer Polpharma SA Pharmaceutical Works that could be worth up to €3.5 billion, Reuters reported. Polpharma enlisted the help of JPMorgan in choosing possible investors to join its bid, the news outlet said, citing three sources.

* CVC Capital Partners Ltd. is working with Rothschild & Co. as it weighs a possible sale of Theramex that could value the women's health business at more than $1 billion, people familiar with the matter told Bloomberg Markets.

* Capiton AG is evaluating a possible IPO or sale of omega-3 fish oil company KD Pharma Group in a transaction that could generate as much as €1 billion, Bloomberg reported, citing people familiar with the matter.