Behind the surge in take-privates; PE investment in EU healthcare fades

S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.

Public markets wilted in 2022 under the heat of rising interest rates and simmering inflation, helping to spark a surge in take-private deals by private equity firms.

Take-privates typically account for about 20% of private equity deal value, but that share doubled to about 40% in 2022 and has gone as high as 70% in the first weeks of 2023, according to Pete Witte, global private equity lead analyst for research and consulting firm EY.

Witte called the surge "the most interesting statistic in private equity right now."

Take-private deals are driven by lower public company valuations, as well as another trend shaping private equity activity in 2023: the rise of private credit.

Read more about the key role private credit consortiums are playing in private equity-backed take-private deals.

CHART OF THE WEEK: PE investments in European healthcare tailed off in 2022

⮞ Private equity- and venture capital-backed investments in Europe's healthcare sector started out strong in 2022, with a nearly 33% year-over-year increase to $7.5 billion in the first quarter, but dealmaking faded as the year went on.

⮞ Private equity-backed investments in the European healthcare sector ultimately ended down close to 27% year over year at $18.88 billion.

⮞ The healthcare services segment attracted the most investment, followed by pharmaceuticals and biotechnology companies.

TOP DEALS AND FUNDRAISING

* A partnership between Silver Lake Management LLC and Canada Pension Plan Investment Board agreed to acquire Qualtrics International Inc., a cloud-native software provider, in an all-cash deal valued at roughly $12.5 billion.

* Funds managed by affiliates of Apollo Global Management Inc. signed an all-cash transaction to buy Univar Solutions Inc., a specialty chemical and ingredient distributor, for approximately $8.1 billion. The deal includes a minority investment from a subsidiary of Abu Dhabi Investment Authority.

* An affiliate of private equity funds managed by Blackstone Inc. reached an agreement to acquire Cvent Holding Corp., a provider of meetings, events and hospitality technology, at an enterprise value of about $4.6 billion.

* Adept AI Labs, a machine learning and artificial intelligence specialist, raised $350 million in a series B funding round led by General Catalyst Group Management LLC and co-led by Spark Capital Partners LLC.

MIDDLE-MARKET HIGHLIGHTS

* Baker Brothers Investments-managed funds will divest biotechnology company Seagen Inc. to Pfizer Inc. for a total enterprise value of approximately $43 billion.

* A consortium led by Symphony Technology Group LLC agreed to buy Momentive Global Inc., the maker of SurveyMonkey, in a transaction worth roughly $1.5 billion.

* Bridgepoint Advisers Ltd. will invest in Monica Vinader Ltd., a luxury jewelry brand. Piper PE LLP and Winona Capital Management LLC will exit their interests in Monica Vinader as part of the deal.

* School Specialty LLC, which provides learning environments, curriculum and supplies to the pre-K-12 education market, sold its literacy and math solutions unit to middle-market private equity firm Excolere Equity Partners.

FOCUS ON: APPLICATION SOFTWARE

* PYMWYMIC is exiting Augmenta Agriculture Technologies PC by selling its interest in the farming solutions company to CNH Industrial NV-owned industrial technology company Raven Industries Inc.

* Norway-based Viking Venture AS became a new shareholder in Agillic A/S by acquiring a 20.48% stake in the Danish software company.

* Long Ridge Equity Partners LLC-backed Broadway Technology LLC, a provider of front-office financial technology solutions, agreed to be sold to Bloomberg Inc.

For further private equity deals, read our latest In Play report, which looks at potential private equity-backed M&A, including rumored transactions, each week.