PE Firms Take Stake in Renault's F1 Team, Vista Equity Sells Apptio for $4.6B, Blackstone Offloads $3.1B of Warehouses
Private equity news for the week of June 26th, 2023.
Insights
Chart of the Week: Technology is the most-active sector in private equity at the moment, accounting for 39% of all buyouts and 29% of all exits in Q1 2023. But on a dollar-basis, healthcare exits have been 3.5x larger than technology exits recently.
Private equity firms exited 26 healthcare companies globally in Q1 amounting to $28.4 billion. The next largest sectors were energy and technology, with $8.5 billion and $8.1 billion worth of exits, respectively. In fact, healthcare accounted for 47% of all portfolio dollars exited by private equity in Q1. (Read More)
New Research Report: The State of Private Equity Exits (Read)
Don't Miss: The State of Private Equity Buyouts (Read)
Deal News
RedBird Capital Partners, Otro Capital, and Maximum Effort Investments (actor Ryan Reynolds’s investment firm) have acquired a 24% stake in Renault’s Alpine F1 team for $218 million at a $900 million valuation. Otro Capital’s Alex Scheiner, who is a former executive in the US’s National Football League, will join Alpine’s board and advise the team about ticketing, hospitality, sponsorship, licensing, merchandising, and content. RedBird capital will also likely be an active advisor to the F1 team given its stakes in Fenway Sports Group, Yankees’ YES Network, and the Italian soccer team A.C. Milan. (Source)
IBM has agreed to acquire software company Apptio for $4.6 billion from Vista Equity Partners. The company provides IT management tools that help companies operate large-scale IT departments including cost management, resource management, and service performance. It’s a solid exit for Vista Equity Partners, which acquired Apptio for $1.94 in a 2018 take-private deal. At that time, Apptio’s annual revenue was $233 million, but has increased at an 11%-13% compound annual growth rate through 2022. (Source)
Blackstone has agreed to sell 14 million square feet of warehouse space to Prologis for $3.1 billion. Prologis, one of the world’s largest operators of warehouses for retailers, will now own approximately 1.3 billion square feet of warehousing and logistics real estate across 19 countries. The deal helps Prologis expand its footprint around New York, New York and Atlanta, Georgia. (Source)
Software company Enfusion is attracting buyout interest from Vista Equity Partners, Francisco Partners, and Irenic Capital Management at a $1 billion valuation. The company provides software solutions that help investment professionals with portfolio construction, risk management, trading, and other activities. Enfusion went public in 2021 but has since lost more than half its market value. Tech is a rare bright spot for take-private deal activity at the moment given the decline in valuations over the past 18 months. (Source)
India’s largest fertility clinic chain IVF Hospital Pvt. Ltd is entertaining offers from buyout firms. Blackstone, BPEA EQT, CVC Capital Partners, and General Atlantic are reportedly finalizing the first round of bidding. The company is seeking a valuation at 10x revenue, or $1 billion. IVF Hospital was founded in 2014 and is co-owned by the Murdia family and TA Associates. (Source)
Industry News
French investment manager Ardian has raised $20 billion for a private equity secondary fund. The firm came up slightly short of the $25 billion it was targeting to raise initially. Abu Dhabi’s sovereign wealth fund ADIA put in $6 billion for the fund, further strengthening ties between the two firms. Ardian manages Mubadala Capital, ADIA’s asset management arm and recently opened a dedicated office in Abu Dhabi. (Financial Times)
California’s state pension fund, known as CalPERS, will increase its allocation to private equity according to its CIO Nicole Musicco. The $457 billion pension fund currently has $136 billion invested in private markets — and of that, $55 billion is invested in private equity. Musicco expects to allocate an additional 1% toward private equity — specifically, venture capital. (Pensions & Investments)
Swedish PE firm EQT AB has raised $19.6 billion for a new fund, but will extend the fundraising deadline from August 2023 to February 2024 in an effort to close an additional $4 billion. It’s a relatively large fund already, considering today’s fundraising environment. (Bloomberg)
Peter Gibbs has been named worldwide general counsel of buyout firm Permira. He will succeed Ulrich Gasse, who plans to retire at the end of this year. Gibbs has been with Pereira since 2001, and most recently served as its chief counsel of fund operations. (Law.com)
Questions? Email us at news@valueaddpe.com
