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Advent powers up data centers, single-asset CVs continue, and PE Hub takes a close look at Sterling’s $1.3bn sale of ADG to Lowe’s

Good morning, Hubsters. MK Flynn here in New York with the US edition of the Wire.

Today marks the last day of the first half of the year. At the risk of dating myself, I’ll quote Jerry Garcia and his bandmates: “What a long, strange trip it’s been.”

Despite the many uncertainties dealmakers faced, some folks managed to close deals. In the coming weeks, PE Hub will be highlighting the completed deals from H1 that we found significant. We’d love to get your input: What are the most important completed deals of the year so far? Send me your thoughts at [email protected]

A couple of deals were announced today that highlight some of the themes that have been playing out in the market: the proliferation of data centers, and the increasing popularity of single-asset CVs in a challenging exit environment. We’ll take a quick look at those, below.

Speaking of exits, PE Hub reporter Iris Dorbian took a close look at the Sterling Group’s sale of Artisan Design Group, a provider of flooring, cabinets and countertops, to retailer Lowe’s for $1.3 billion.

We’ll start with that inside the exit story.

One-stop shop

The dealmaking climate may be sluggish right now, but for the Sterling Group, 2025 has been a whirlwind of exits, writes PE Hub reporter Iris Dorbian.

Among Sterling’s recent exits, one stands out for its scale, strategic buyer and price: the early June sale of Artisan Design Group, a Dallas-based provider of flooring, cabinets and countertops, to retailer Lowe’s for $1.3 billion.

Premium subscribers to the Wire may learn all about the deal based on Iris’ conversation with Sterling partner Kent Wallace, including how uncertainty around tariffs played a role in Lowe’s winning the deal over private equity would-be buyers.

Data center power move

Advent International has agreed to acquire a majority stake in LayerZero Power Systems, an Aurora, Ohio-based manufacturer of static transfer switches, power distribution units and other power management products for data centers and other applications.

Premium subscribers to the Wire will find out about the factors fueling the deal.

Exit strategy: Single-asset CV

We’re continuing to see more single-asset continuation vehicles in today’s challenging exit environment. Earlier today, DevCo Partners announced it has closed a €521 million single-asset continuation vehicle to support Vexve. Headquartered in Sastamala, Finland, Vexve offers valve services for energy infrastructure.

Upgrade to the premium Wire to find out more.

Coming up: NEXUS 2026

Before signing off, I’d like to mention that we’re already hard at work on NEXUS 2026, which will be held February 22-25 at the JW Marriott Orlando, Grande Lakes, and we’d love to receive your input on who you’d like to see on stage for keynote speakers? Send your ideas to me at [email protected]

Tomorrow, Craig McGlashan will bring you the Europe edition of the Wire, and Obey Martin Manayiti will bring you the US edition.

Happy dealmaking,

MK

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

AIP Management expects Europe to remain a “core focus” for the second half of the year, with strong potential across transmission, energy storage and localized decarbonization infrastructure, Greg Falzon, partner and co-head of investments, told PE Hub.

26North Partners, led by Apollo Global Management co-founder Josh Harris, could be nearing a final close for its debut private equity offering. As of March, the firm had secured more than $3 billion for 26N Private Equity Partners Fund I, putting it within close reach of its $4 billion target, sources familiar with the fundraising told Buyouts.

LGT Capital Partners and BlackRock have emerged as buyers in a €400 million multi-asset continuation fund from Paris-headquartered private equity firm Seven2. (Secondaries Investor)

AEW, a global real estate asset manager headquartered in Boston, has launched a new infrastructure debt fund that will provide direct lending to infrastructure projects in Asia, Infrastructure Investor has learned.

Novacap is running a single-asset continuation fund process on its portfolio company Revau – a managing general agent that specializes in property and casualty insurance – to, in part, raise capital for a strategic acquisition the company announced in March, a person with knowledge of the process said. (Buyouts)

Emerging markets impact firm LeapFrog Investments is proactively considering alternative ways to generate liquidity for its 2013-vintage second flagship fund, partner Pranav Kumar said after the firm announced it latest exit – Indian financial inclusion business Fincare – earlier this month. (New Private Markets)

AXA IM Alts, the alternative investment arm of French insurer AXA Group, has made changes to its regional real estate leadership to support the growth of its real estate businesses in North America and Asia-Pacific. (PERE)

Saudi Arabia has set its sights on becoming a global leader in food security and the Kingdom is doing so by investing billions into permanent crops and cold-chain infrastructure. At the center of this ambition is a new joint venture between Aram Palms Company and asset manager Cordiant Capital. (Agri Investor)

Deals

They said it

“The data center industry is at an inflection point, with an unprecedented demand for resilient, high-performance infrastructure.”

— Annette Clayton, operating partner, Advent International, on the firm’s investment in LayerZero Power Systems

Today's letter was prepared by MK Flynn

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