Private equity and venture capital firms are increasingly targeting the Middle East and Africa for investment opportunities, deploying capital sourced from sovereign wealth funds flush with cash. Register now for our April 5
S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity's relatively modest exposure to the banking industry is on track to fall further in 2023 after declining by more than half in 2022. The year's largest deal in the sector so far is capped at $50 million, with first-quarter preliminary numbers showing a sharp decline in total deal value and volume.
The first quarter follows bleak deal numbers in the second half of 2022, with total investment under $150 million in the third quarter and $240 million in the final three months. A TCMI Inc.-led funding round for Allica Bank Ltd. amounted to more than half of the fourth-quarter total.
Similar trends prevailed for overall private equity and venture capital entries, which plunged globally by more than half in February compared to a year earlier.
The possibility of increased bank regulation following the collapse of Silicon Valley Bank earlier in March has the potential to spark bank sector M&A, although private equity is more likely to seek opportunities with less stringent regulatory scrutiny.
Read more about private equity investments in the banking sector.
TOP DEALS AND FUNDRAISING
– EQT AB (publ), through its EQT Infrastructure VI fund, agreed to buy outsourced yard management and trailer spotting services company Lazer Logistics Inc. from Harvest Partners LP.
– Bain Capital LP made a nonbinding proposal to buy Australian aged care homes company Estia Health Ltd. Under the terms of the offer, Estia shareholders would receive A$3 per share in cash.
– TA Associates Management LP will acquire a minority stake in Germany-based insurance broker MRH Trowe from AnaCap Financial Partners Ltd. and the company's founding managers.
– STG secured $4.2 billion in capital commitments at the final close of its STG VII LP fund. The vehicle seeks to invest in the software industry.
MIDDLE-MARKET HIGHLIGHTS
– Orangewood Partners LLC invested in internal audit and accounting advisory firm DLA LLC.
– Actis LLP signed a deal to buy 11 datacenters across Latin America and the US from Nabiax, which is backed by Asterion Industrial Partners and Telefónica SA. Telefonica will continue as an anchor tenant under a long-term contract.
– Hull Street Energy LLC divested renewable project developer Foundation Solar Partners LLC in a deal with Birch Creek Energy LLC.
– Ardian agreed to buy a stake in software development and consulting company Mimacom Flowable Group.
FOCUS ON: HEALTHCARE
– Guardian Capital Partners Investment Management LP sold its stake in emergency medical kit maker Tactical Medical Solutions Inc. via a sale to middle-market private equity firm CNL Strategic Capital Management LLC.
– An investor group including PremjiInvest and Tube Investments of India Ltd., agreed to buy Lotus Surgicals Pvt. Ltd., which makes surgical sutures and other medical devices, from lndia Medical Consumables Holdings Ltd. for 3.48 billion Indian rupees. PremjiInvest, through its PI Oppurtunities Fund I Scheme II, is set to buy a 33% stake in the healthcare supplies company.
– Adamas Asset Management (HK) Ltd. and Adamas Ping An Opportunities Fund signed a nonbinding letter of intent to sell London-based biotechnology company Aptorum Group Ltd. to URF Holding Group Ltd. for $40 million in a reverse merger transaction. The parties aim to close the transaction by Sept. 30.
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.