S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
While 2023 was a down year for global private equity and venture capital transactions, the value of coinvestments made by institutional investors working alongside private equity fund managers showed an annual increase.
Chalk it up to tight financing markets. With debt for buyouts more expensive and harder to come by, fund managers invited key limited partners to coinvest in deals.
"The deals that are getting done, you need more equity to complete them, and so we are seeing increasing coinvest as a percentage of the overall deal sizes," Maurice Gindi, a partner at Cleary Gottlieb, told S&P Global Market Intelligence.
Even with debt markets loosening, coinvestments remain attractive, helping fund managers solidify fundraising relationships with key limited partners while offering those investors a break on fees.
Coinvestment value appears to be tracking lower in 2024, based on data recorded through mid-July. But with overall private equity deal activity picking up, Gindi said it is likely coinvestments will accelerate, too.
Read more about private equity coinvestment activity in the first half of 2024.
CHART OF THE WEEK: Funding round values up in July
⮞ Compared with the same month in 2023, the value of global venture capital rounds in July was up more than 20% to $21.18 billion globally, according to Market Intelligence data.
⮞ The number of funding rounds during the month dipped slightly compared with the year-ago period, falling 5% to 1,211 rounds.
⮞ The aggregate value of July funding rounds was also down nearly 7% from the previous month, while the number of rounds was up about 2%.
TOP DEALS AND FUNDRAISING
– Funds managed by The Carlyle Group Inc. agreed to sell independent power producer Cogentrix Energy Power Management LLC to Quantum Capital Group and its affiliates for about $3 billion.
– An affiliate of Veritas Capital Fund Management LLC agreed to buy the digital banking business of NCR Voyix Corp. for $2.45 billion in cash and future contingent consideration of up to $100 million.
– Bansk Group LLC agreed to buy pet medication, health and wellness company PetIQ Inc. in an all-cash transaction valued at about $1.5 billion.
– Bernhard Capital Partners Management LP signed a deal to buy New Mexico Gas Co. Inc. from Emera Inc. for roughly $1.25 billion, including about $500 million in assumed debt.
– KKR & Co. Inc. agreed to purchase an additional 50% stake in communications and public affairs consulting firm FGS Global Inc. from WPP PLC for $775 million in cash.
– KKR plans to make a tender offer to buy Japanese systems software company Fuji Soft Inc. for ¥8,800 per share.
– Thrive Capital Management LLC raised $5 billion for two of its venture capital funds, The Wall Street Journal reported. The firm secured $4 billion for its later-stage investment fund and $1 billion for its early-stage venture fund.
MIDDLE-MARKET HIGHLIGHTS
– Vestar Capital Partners LLC and coinvestors made a significant growth capital investment in fine ingredients company Roland Foods LLC.
– One Equity Partners closed the sale of ORS Medco unit ORS Nasco Inc., which distributes industrial maintenance, repair and operations products.
– Consello Capital added EHE Health, a preventive healthcare network provider, to its portfolio.
FOCUS ON: AEROSPACE AND DEFENSE
– Defense hardware and software provider Anduril Industries Inc. raised $1.5 billion in a series F funding round jointly led by The Founders Fund LLC and Sands Capital Management LLC.
– Space systems provider Muon Space Inc. secured $56.7 million in a series B round led by Activate Capital Partners.
– High power density electric motor manufacturer H3X Technologies Inc. obtained roughly $20 million in a series A round led by Infinite Capital Partners LLC.
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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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