S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity and venture capital investments in electric vehicles consistently fall short of their investments in non-EV automobile businesses.
The gap, however, is narrower than it has been in years, thanks to China's world-leading EV industry.
Asia-Pacific drew 97% of the $3.32 billion of private equity investment in EV companies this year through Sept. 30, according to S&P Global Market Intelligence. This trend was driven by EV-makers based in China, Leonard LaRocca, US automotive industry leader at KPMG, told Market Intelligence.
By comparison, private equity firms invested $4.03 billion in non-EV automobile companies over the same period, or about 21% more than the capital directed to EV companies. You have to go back to 2017 to find a year when the gap between the two totals was that narrow.
The impact of the reelection of former US President Donald Trump on EV trends is unclear, particularly since the US has attracted just a small fraction of the private equity investment in EVs this year. An opponent of the Paris Agreement on climate change who has suggested eliminating a tax credit on EV purchases, Trump also enjoyed support for his campaign from the face of the US EV industry, Tesla Inc. co-founder and CEO Elon Musk.
Read more about private equity investment in the EV industry.
CHART OF THE WEEK: Private equity-backed funding round activity drops
⮞ The private equity-backed funding round value in October declined more than 10% from September to $18.80 billion globally, while the number of rounds slipped 12% month over month to 1,151, according to S&P Global Market Intelligence data.
⮞ Global funding round activity remains on track for a down year in 2024, with $230.91 billion raised in 12,666 funding rounds through Oct. 31, compared with $238.49 billion raised in 14,615 rounds during the same period in 2023.
⮞ The $900 million series A round for fusion power startup Pacific Fusion, led by General Catalyst Group Management LLC, was the largest round of the month.
TOP DEALS AND FUNDRAISING
– Stonepeak Partners LP agreed to buy Air Transport Services Group Inc. in an all-cash transaction, valuing the aircraft leasing company at about $3.1 billion. Air Transport shareholders will receive $22.50 per share, an about 29.3% premium over the company's closing stock price on Nov. 1.
– The Carlyle Group Inc. added Kyoden Co. Ltd., a printed-circuit-board maker based in Japan, to its portfolio.
– Shamrock Capital Advisors LLC raised $1.6 billion in capital commitments at the final close of Shamrock Capital Growth Fund VI LP and Shamrock Capital Clover Fund I LP. The funds will make buyout and later-stage growth equity investments in middle-market companies.
– Saw Mill Capital LLC secured $435 million for its Saw Mill Capital Partners III fund at final close. The vehicle will invest in lower-middle-market businesses.
MIDDLE-MARKET HIGHLIGHTS
– Monomoy Capital Management LP acquired food packaging systems and bakery equipment company Oliver Packaging And Equipment Co.
– OEP Capital Advisors LP, doing business as One Equity Partners, sold Dragonfly Financial Technologies Corp., a digital business banking and cash management solutions provider. The buyer was Fidelity Information Services LLC.
– Renovus Capital Partners made a majority investment in managed IT services provider Performive LLC.
FOCUS ON: APPLICATION SOFTWARE
– Paris-based food industry marketplace platform Alpagga SAS raised €6 million in a funding round. 50 Partners Gestion SARL and Ring SAS participated in the round.
– Arbor and landscape business software company SingleOps LLC, as part of its merger with Landscape Management Network Inc., secured a growth equity investment from FTV Capital and Five Elms Capital Management LLC.
– UK-based risk and threat intelligence solutions technology provider Ripjar Ltd. secured a majority growth investment from Long Ridge Equity 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.
For private credit news, see our latest private credit newsletter issued twice per month.