S&P Global Market Intelligence offers our top picks of global private equity news stories and more published throughout the week.
The accumulation of private equity dry powder accelerated in the first half of the year, pushing further into record territory.
Global private equity and venture capital dry powder hovered around $2.62 trillion as of July 10, with funds adding $49.44 billion to their collective stockpile since the start of the year, according to S&P Global Market Intelligence data. That six-month increase in dry powder easily outpaced growth through all of 2023, when dry powder levels increased just $27.97 billion in 12 months.
Capital inflows for private equity funds have slowed in recent years — fundraising sank to a six-year low in 2023 — but a sluggish M&A environment has limited dry powder spend, with fewer opportunities for private equity to invest in buyouts and other deals.
The dynamic could be changing. Although global private equity entry value fell year over year in January, it ended the first quarter up more than 5% over the same three-month period in 2023. The upward trend continued in April and May.
Read more about private equity dry powder trends.
CHART OF THE WEEK: Pension fund deployment falls short
⮞ Global pension funds — a key group of private equity investors — fell just short of their target allocation to private equity in the second quarter, according to Market Intelligence data.
⮞ Mexican pension fund Afore XXI SA de CV was $9.27 billion below its $12.36 billion target allocation to private equity at the end of the second quarter, giving it the largest net underallocation among its peer group.
⮞ At the opposite end of the spectrum was New York State Common Retirement Fund, which ended the quarter above target by $12.31 billion.
TOP DEALS AND FUNDRAISING
– Blackstone Inc.'s Blackstone Infrastructure Partners LP agreed to buy a controlling stake in Tallgrass Energy LP for a total cash consideration of about $3.3 billion.
– Advent International LP and Generation Investment Management LLP offered to buy Oslo, Norway-based technology company Volue ASA for 42 Norwegian kroner per share. The potential deal would see Advent and Generation buying respective stakes of about 43% and 17% in Volue, which is majority-owned by Arendals Fossekompani ASA.
– Monomoy Capital Partners raised $2.25 billion for its fifth private equity fund at final close. The Monomoy Capital Partners V LP fund will invest in companies focused on manufacturing, distribution and business services.
– Avesi Partners LLC closed Avesi Partners Fund II LP with $1.35 billion in capital commitments.
– AE Industrial Partners LP secured $1.28 billion at the close of its third flagship private equity fund. AE Industrial Partners Fund III LP will make control investments in aerospace and defense companies.
– Manulife Investment Management raised about $810 million for its Manulife Private Equity Partners II LP fund.
MIDDLE-MARKET HIGHLIGHTS
– Upper Bay Infrastructure Partners exited Infiniti Energy Services LLC, a solar contractor company, via a sale to Aggreko Energy Transition Solutions Inc.
– West Lane Capital Partners LLC added cosmetic line company Beauty Bakerie Cosmetics Brand Inc. to its portfolio.
– Boyne Capital Management LLC sold intravenous therapy provider Infusion Associates Management Inc. in a deal with Vivo Infusion.
FOCUS ON: FOOD
– Grounded Capital LLC invested $22.5 million in Lotus Foods Inc., an importer and distributor of organic rice.
– Iceland-based fish farm and hatchery operator Laxey raised €6 million in a funding round, with participation from Norway-based family offices Farvatn Private Equity AS and Kontrari AS.
– Fondo Italiano Agri & Food, managed by Fondo Italiano d'Investimento SGR SpA, agreed to buy a majority stake in Italian cured meats producer Trinita SpA - Industria Salumi. The transaction is expected to be finalized by August.
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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.
For private credit news, see our latest private credit newsletter issued twice per month.