S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
The portfolios of European private equity firms are starting to feel the impact of an inhospitable exit environment.
Based on 2023 data through Sept. 1, European private equity firms' average holding period for a portfolio company nudged up to 5.89 years. The average was 5.62 years in 2022, according to an S&P Global Market Intelligence analysis of Preqin Pro data.
Longer hold periods for private equity firms globally were an outcome expected amid an extended slowdown of IPOs and dealmaking. M&A activity is still facing the headwinds that gathered in 2022, including inflation, interest rate hikes that made deal financing more expensive and a stubborn gap between buyer and seller views on valuations.
The 2023 year-to-date average hold period for portfolio companies held by European private equity firms remains slightly below the average for the prior decade — above six years on average between 2013 and 2022 — but it is a data point to keep an eye on. Longer hold periods, especially at a time of slower global economic growth, test firms' ability to execute value-creation strategies for their investments.
Read more about the European private equity firms' lengthening hold periods for portfolio companies.
TOP DEALS AND FUNDRAISING
– KKR & Co. Inc. and Everstone Capital Asia Pte. Ltd. exited their investment in Slayback Pharma LLC. The pharmaceutical research and development company was acquired by specialty drugmaker Azurity Pharmaceuticals Inc.
– Arlington Management Employees LLC signed a deal to buy Exostar LLC, a support services provider to the defense and biopharmaceutical sectors, from Thoma Bravo LP.
– Keensight Capital, which specializes in European growth buyouts, raised €2.8 billion in funds to invest in technology and healthcare companies.
– Paine Schwartz Partners LLC raised $1.7 billion for Paine Schwartz Food Chain Fund VI LP at final close. The fund will invest across the food and agribusiness value chain.
MIDDLE-MARKET HIGHLIGHTS
– L Catterton Partners will sell specialty cooling and ventilation solutions provider AirX Climate Solutions Inc. to Gryphon Investors Inc. The transaction is set to close during the fourth quarter.
– Audax Management Co. LLC partnered with the management of Oakbridge Insurance Agency LLC to invest in the company. Corsair Capital LLC divested its stake in the independent insurance and risk management company as part of the transaction.
– NewSpring Capital LLC closed on a controlling investment in Green Home Solutions, a mold remediation and indoor air quality services provider.
– Regeneron Pharmaceuticals Inc. acquired Decibel Therapeutics Inc. in a deal valued at $4 per share. The selling investors included Schroders Capital, Deer Management Co. LLC, OrbiMed Advisors LLC, Third Rock Ventures LLC, GV Management Co. LLC, Casdin Capital LLC and Foresite Capital Management LLC.
FOCUS ON: HEALTHCARE
– EQT AB (publ) will sell Limacorporate SPA, an Italian manufacturer of orthopedic implants, to Enovis Corp. The transaction is likely to be finalized in early 2024.
– Alfasigma SpA reached a deal to acquire Intercept Pharmaceuticals Inc. from an investor group including Genextra SpA, KCK Group and Samsara BioCapital LLC.
– Walnut Venture Associates sold Healthjump Inc., which provides a technology platform for sharing patient medical records, to Datavant Inc.
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.