S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity fundraising is stuck in a rut.
We heard it last week on Blackstone Inc.'s second-quarter earnings call, and it came up again this week when it was time for Ares Management Corp. and The Carlyle Group Inc. to face analysts' questions. All three reaffirmed what they reported last quarter: The spigot has not run dry, but it definitely is not gushing like it did in 2021, a record fundraising year for the industry.
"No doubt the fundraising market is challenging right now, and this could persist for a bit as [limited partners] adjust to market dynamics. And it's most challenging in the corporate private equity segment of the market," said Carlyle CEO Kewsong Lee.
Carlyle's corporate private equity strategy saw inflows totaling $16.1 billion in 2021. Halfway through 2022, it has raised $5.8 billion, just over one-third of last year's total.
Read more about Carlyle's second-quarter earnings report.
CHART OF THE WEEK: Private equity's share of terminated M&A deals grows
⮞ Fifteen percent of terminated M&A deals in the second quarter involved private equity or venture capital, the highest rate in at least six quarters.
⮞ As recently as the third quarter of 2021, the rate was less than half as much, at just 6%.
⮞ It is not conclusive evidence that macroeconomic turbulence is making it harder for private equity to close M&A deals, but the data point is one to watch, said Cameron Joyce, deputy head of research insights at Preqin.
FUNDRAISING AND DEALS
* Ardian agreed to buy a majority stake in French energy services provider GreenYellow SAS. The deal, which values the company at €1.4 billion, is expected to close during the fourth quarter.
* KKR acquired a majority stake in supplier management platform company apexanalytix. Carousel Capital Partners LP will retain a minority stake in apexanalytix. Separately, the Canadian Competition Bureau approved the proposed joint venture between Pembina Pipeline Corp. and KKR, whereby the duo's infrastructure funds will divest their 50%, nonoperated interest in the Key Access Pipeline System and contribute it into the new venture.
* Advent International Corp. agreed to buy a 65% stake in Neoris, an IT consulting company, from CEMEX. The deal is expected to close in the second half of 2022.
* Bain Capital Pvt. Equity LP agreed to a joint ownership agreement with BC Partners for Fedrigoni SpA, which produces self-adhesive labels and fiber-based packaging products. The transaction could close by year-end.
ELSEWHERE IN THE INDUSTRY
* TA Associates Management LP and Fisher Funds Management Ltd. are in talks to buy New Zealand-based investment manager Kiwi Wealth Ltd., The Australian Financial Review's Street Talk blog reported, citing sources.
* LLR Partners Inc. agreed to sell its stake in post-transaction fraud mitigation solution provider Midigator LLC to Equifax Inc. The deal is expected to close in the third quarter.
* One Equity Partners will acquire Clayens NP Group from an investor group led by Siparex. Siparex will remain a minority stakeholder in the polymer, composite and precision metal company.
* Ambina Partners LLC sold its stake in PHP Agency Inc., a life insurance field marketing group, to Integrity Marketing Group LLC.
FOCUS ON: BAKERY
* Unigestion SA, alongside Afinum Management GmbH, invested in German organic bakery chain Zeit für Brot GmbH.
* Entrepreneurial Equity Partners LP added Roskam Baking Co., a contract manufacturer for food brands and companies, to its portfolio.
* An affiliate of New Water Capital LP's New Water Capital Partners II LP fund closed the acquisition of bakery product company Klosterman Baking Co. Inc.