S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Private equity investment in the global metals and mining industry is set for a big year-over-year drop in 2024 after peaking in 2023.
The value of private equity- and venture capital-backed transactions in the industry announced in the first nine months of 2024 totaled $4.76 billion, less than half of 2023's full-year total of $10.52 billion, according to S&P Global Market Intelligence data.
The decline is due in part to the broad pullback in venture capital deployment and the effect of elevated interest rates on the cost of financing private equity deals, Antti Gronlund, managing director of private equity at UK-based Appian Capital Advisory LLP, told Market Intelligence.
Private equity investing in the metals and mining industry is challenging because the sector is working capital intensive. But with the industry expected to require roughly $2.1 trillion by 2050 to support net-zero goals, there is definitely a role for private markets to play.
Read more about private equity and venture capital investments in metals and mining.
CHART OF THE WEEK: UK outpaces US on PE-backed renewables investment
⮞ Private equity- and venture capital-backed investments in the UK renewables sector jumped to $7.96 billion through the first three quarters of 2024, up from just $1.24 billion in all of 2023, according to Market Intelligence data.
⮞ The UK renewables sector also drew more private equity investment than the US renewables sector, which recorded just $1.08 billion in private equity-backed transactions between Jan. 1 and Sept. 30.
⮞ The difference largely comes down to one outsized deal: Energy Capital Partners LLC's planned $7.87 billion acquisition of Atlantica Sustainable Infrastructure PLC, announced in May.
TOP DEALS AND FUNDRAISING
– A consortium including EQT AB (publ), Neuberger Berman Group LLC and Canada Pension Plan Investment Board agreed to buy international schools operator Nord Anglia Education Ltd. for an enterprise value of $14.5 billion. Existing owners EQT and Canada Pension Plan Investment Board will remain shareholders in Nord Anglia Education through a new fund investment and reinvestment, respectively.
– Truelink Capital agreed to buy Global Experience Specialists Inc. from Viad Corp. The transaction is expected to close by the end of 2024.
– I Squared Capital Advisors LLC agreed to buy oil storage facility operator Philippine Coastal Storage & Pipeline Corp. from Keppel Infrastructure Trust and Metro Pacific Investments Corp. for an enterprise value of $460 million, including debt.
– EnCap Investments LP raised $5.25 billion in capital commitments at the close of its EnCap Energy Capital Fund XII LP. The fund has already invested in 12 companies across US oil and gas basins.
– Mubadala Capital secured $3.1 billion in total commitments at the close of its MIC Capital Partners IV Fund. The vehicle will invest in middle-market companies.
– Trivest Partners LP closed its Trivest Growth Investment Fund III with $730 million in total capital commitments. The vehicle will focus on noncontrol investments in founder-led and family-owned businesses.
MIDDLE-MARKET HIGHLIGHTS
– BP Energy Partners LLC made a growth investment in inline pipeline inspection technology and data analytics company Novitech Inc.
– Snow Peak Capital LLC acquired aircraft auxiliary power unit maintenance, repair and overhaul service provider TurbineAero Inc. Financial terms of the deal were not disclosed.
– Branford Castle Partners LP acquired night vision solutions provider Hoffman Engineering Corp. from Trident Maritime Systems LLC. Terms of the transaction were not disclosed.
FOCUS ON: EDUCATION
– Oakley Capital Investments Ltd., through its Oakley Capital Private Equity III fund, agreed to sell its majority stake in tutoring services provider Schülerhilfe to Levine Leichtman Capital Partners LLC. Completion of the deal is subject to regulatory approval.
– Temasek Holdings (Pvt.) Ltd. invested an additional $60 million in higher education and upskilling company upGrad Education Pvt. Ltd., The Economic Times reported Oct. 21, citing people directly briefed on the matter. The investment values upGrad at $2.25 billion.
– Cybersecurity awareness training company Cyber Guru Srl raised $25 million in a series B funding round led by The Riverside Co.'s Riverside Acceleration Capital.
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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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