Stabilizing outlook boosts private equity deals; Asia-Pacific PE activity fades

S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.

Private equity-backed deal value surged in April as an apparent stabilizing macroeconomic outlook boosted investor sentiment.

The value of global private equity and venture capital deals jumped 65% year over year to $65.1 billion in April, according to S&P Global Market Intelligence data. Accounting for nearly one-third of that total was Silver Lake Technology Management LLC's agreement to take sports and entertainment company Endeavor Group Holdings Inc. private in a transaction valued at $21.1 billion, the largest global M&A deal announced that month.

More deals will likely be on the way later in 2024 if macroeconomic headwinds show clear signs of subsiding, said Harvey Schwartz, CEO of The Carlyle Group Inc., when his firm reported first-quarter earnings May 1.

Interest rates and inflation "have generally stabilized. These are clear improvements from this time last year, which is driving increased investor confidence. And if sentiment continues to improve, we expect a higher level of deal activity," Schwartz said.

Read more about private equity deal value in April.

CHART OF THE WEEK: Asia-Pacific sees Q1 2024 plunge in private equity deal value

⮞ The announced value of private equity-backed deals in Asia-Pacific, excluding Japan, declined about 85% year over year in the first quarter to $1.20 billion, according to Market Intelligence data.

⮞ By a wide margin, it was the lowest quarterly total for private equity-backed dealmaking in the region since at least 2021.

⮞ The Asia-Pacific decline occurred against a backdrop of generally improving global private equity deal activity, which climbed more than 5% year over year in the first quarter to $130.61 billion.

TOP DEALS AND FUNDRAISING

– EQT AB (publ)'s BPEA Private Equity Fund VIII agreed to buy Perficient Inc. in an all-cash deal valuing the digital consultancy at about $3 billion.

– A consortium led by CVC Capital Partners Ltd. is set to buy a 65% stake in Indonesian hospital chain PT Siloam International Hospitals Tbk for roughly $1.6 billion, DealStreetAsia reported May 7, citing sources familiar with the matter.

– TPG Inc. secured about $5.3 billion in capital commitments for its TPG Asia VIII fund at final close.

– Vance Street Management LLC raised $775 million at the first and final close of its Vance Street Fund IV fund. The vehicle will invest in business-to-business manufacturing companies.

MIDDLE-MARKET HIGHLIGHTS

– Tide Rock Holdings LLC acquired contract packaging company Premier Packaging Inc.

– L2 Capital Partners LP completed the acquisition of spice mix manufacturer Kosmos Q LLC.

– Wynnchurch Capital LP added hydrochloric acid distributor Reagent Chemical & Research to its portfolio.

FOCUS ON: CONSTRUCTION AND ENGINEERING

– Round Table Capital Management LLP sold a majority stake in environmental science, engineering and consulting services provider Verdantas LLC to Sterling Investment Partners Advisors LLC. Round Table will retain a significant equity interest in the company following the deal.

– Monomoy Capital Management LP made a majority investment in residential exterior building product installer Southern Exteriors. The Halifax Group will keep a minority stake in the business.

– Basic Capital Management Ltd. acquired Japan-based construction company B I Tech KK, according to Market Intelligence data.

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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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