S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
The more than $12 trillion Americans hold in their 401(k) accounts represents a potentially huge new pool of capital for private equity. Tapping it poses hazards for both retirement savers and the industry.
Historically, access to private equity (PE) funds has been reserved for institutional investors such as pension funds and university endowments. Institutional investment portfolios are managed by experienced investment teams who understand the risks of long-term, illiquid investments in alternative assets such as private equity.
That is a tall hurdle for retirement plan administrators to clear, and it is just one of many. For the private equity firms developing products for the market, the potentially huge inflow of capital may increase pressure to find suitable investments amid heightened competition, resulting in suboptimal deals.
Regulators at the SEC have in recent weeks removed some barriers between the retail investor market and private equity funds, citing the benefits of portfolio diversification and increased access to the expanding universe of private markets. Ultimately, the Labor Department must weigh in on private equity in 401(k) plans.
Read more about private equity's push into US retirement plans.
CHART OF THE WEEK: PE-backed deal value surges in Japan
⮞ The value of private equity- and venture capital-backed investments in Japan totaled $14.28 billion between Jan. 1 and May 27, up from the $2.7 billion recorded during the first five months of 2024, according to S&P Global Market Intelligence data.
⮞ Deal value is on track to surpass the full-year 2024 total of $18.85 billion well before year-end.
⮞ US-based private equity and venture capital firms are leading the charge, having made $12.97 billion in investments in Japanese companies this year through May 27.
TOP DEALS
– Advent International LP offered to buy UK-based precision measurement company Spectris PLC for £3.9 billion in cash. The offer includes cash of £37.35 per share and a proposed interim dividend of 28 pence per share.
– The Carlyle Group Inc. agreed to buy Tokyo-based job placement company TRYT Inc. from Life Science & Digital Health Co. Ltd. and EQT AB (publ)'s EQT Private Capital Asia for ¥88 billion.
– Bain Capital LP made a new strategic growth investment in workforce management company Arcos LLC.
TOP FUNDRAISING
– Churchill Asset Management LLC raised $1.5 billion for Churchill Co-Investment Fund II at final close. The fund will make equity coinvestments alongside private equity sponsors in US middle-market businesses.
– BharCap Partners LLC raised $652 million at the final close of BharCap Partners Fund II LP. The vehicle seeks management buyouts of asset-light financial services businesses.
– Geodesic Capital secured $250 million at the first close of Geodesic Alliance Fund LP, a venture fund mainly targeting early-stage US startups in national security sectors.
– Hypax GmbH raised €120 million for the European Investment Development GmbH und Co. KG fund. The evergreen fund targets underperforming European companies.
MIDDLE-MARKET HIGHLIGHTS
– Exagon Impact Capital LLC acquired a controlling stake in SunRoof, a clean energy solutions company operating in Chile and Mexico.
– Flexpoint Ford LLC made a strategic growth investment in accounting and advisory firm Elliott Davis LLC. Guggenheim Securities LLC and Koltin Consulting Group advised Elliott Davis, with legal counsel provided by Nelson Mullins Riley & Scarborough LLP and Vedder Price PC. William Blair & Co. LLC advised Flexpoint Ford, with Simpson Thacher & Bartlett LLP and Hunton Andrews Kurth LLP providing legal advice.
– 3 Boomerang Capital LP added Matrix Plastic Products LLC, a plastic molding company, to its portfolio.
FOCUS ON: PRIVATE EQUITY ACTIVITY IN US OIL AND GAS
The reelection of President Donald Trump has renewed private equity interest in the US oil industry, Troutman Pepper Locke LLP said in a report.
"Some investors are favoring infrastructure and service companies over drilling, betting on the sector’s resilience and demand in developed markets," the law firm said.
Interest in natural gas as a key transitional fuel away from coal is increasing, driven by strong export potential and domestic demand. Investment is shifting to midstream assets, including storage, LNG and processing.
Private equity- and venture capital-backed investments in US oil and gas dropped to $1.01 billion in the first five months of 2025 from $2.81 billion for the same period in 2024, according to Market Intelligence data.
The largest private equity investment in the sector between January and May was Kayne Anderson Capital Advisors LP's $400 million equity commitment in oil and natural gas company South Wind Exploration & Production LLC.
Exits in the sector have been buoyant this year, with global transaction value at $18.54 billion through May 21, compared with $19.41 billion in full year 2024.
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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.
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