S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
Executives at TPG Inc. called out a swift and significant shift in the investment landscape on the private equity firm's first-ever earnings call since a $1 billion IPO on the Nasdaq Composite in January, with CEO Jon Winkelried saying things have become "far more uncertain and volatile" just since the start of the year.
Winkelried cited the combined effects of several macroeconomic trends, including widespread inflation and rising interest rates, ongoing supply chain disruptions and war in Ukraine. "Choppier markets" will likely contribute to multiple compression, Todd Sisitsky, the firm's president, added.
Sisitsky said the firm anticipated a downturn and planned for lower multiples when exiting investments in portfolio companies. That scenario also opens opportunities for new investments, he added.
"We find ourselves in a very good position where capital has become more scarce again, which is, of course, a very positive thing for us," he said.
Read more about TPG executives' 2022 forecast here.
CHART OF THE WEEK: Venture capital's biggest February in 4 years
⮞ Venture capital investments totaled $44.13 billion globally in February, the highest total for that month in at least four years.
⮞ Leading the way was global wealth management platform FNZ (UK) Ltd. with its $1.4 billion mature funding round, for a post-money valuation of $20 billion.
⮞ The second-largest funding round of February was claimed by Securonix Inc., a security and operations management platform, raising $1 billion in a mature round.
FUNDRAISING AND DEALS
* An investor group led by Evergreen Coast Capital Corp. and Brookfield Business Partners LP signed a deal to acquire measurement and data analytics company Nielsen Holdings PLC for approximately $16 billion, including debt. The transaction is expected to close in the second half of 2022.
* EQT AB (publ) will divest most of its stake in cloud software vendors IFS and WorkWave LLC to Hg, with TA Associates Management LP also selling some of its minority stake, according to Dow Jones Newswires. The EQT VIII and EQT IX funds will continue to own voting control as the largest shareholder in the companies. The deal is set to wrap up in the third quarter.
* KKR & Co. Inc. provided significant investment to Canadian maker of beauty products Knowlton Development Corp. Following the transaction, Cornell Capital LLC will continue as the company's biggest shareholder, with its existing investors remaining owners.
Oaktree Capital Management LP is interested in acquiring a 40% stake in Australian accounting and advisory firm Findex Group Pty. Ltd. from KKR, The Australian Financial Review's Street Talk blog reported.
* Bain Capital LP obtained the support of Toshiba Corp.'s biggest shareholder, Effissimo Capital Management Pte. Ltd., for the potential buyout of the Japanese conglomerate, The Wall Street Journal reported. The firm is also purchasing a 9.8% stake in IIFL Wealth Management Ltd. from Fairfax India Holdings Corp. subsidiary FIH Mauritius Investments Ltd. for 14.49 billion Indian rupees.
ELSEWHERE IN THE INDUSTRY
* PAG filed for an IPO in Hong Kong, and a market source told the South China Morning Post that the public listing could bring in much as $2 billion.
* Intermediate Capital Group PLC raised €1.5 billion for its first infrastructure fund, dubbed ICG Infrastructure Equity 1.
* Yellow Wood Partners LLC reached its hard cap of $750 million for the Yellow Wood Partners Fund III LP fund.
* Accel-KKR LLC collected about $1.77 billion for the Accel-KKR Capital Partners CV IV LP continuation vehicle, Dow Jones reported.
FOCUS ON: INSURANCE
* The Carlyle Group Inc. entered into a new advisory agreement with Fortitude Re and raised $2.1 billion for the reinsurer from the latter's existing investors. The firm will commit as much as $150 million from its balance sheet toward the total funding, according to Dow Jones.
* A Centerbridge Partners LP affiliate acquired title insurance underwriter Title Resources Guaranty Co. from Realogy Holdings Corp. for $210 million in an all-cash deal.
* Connection Capital LLP exited U.K.-based online temporary insurance platform Tempcover Ltd. to RVU.