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AXA IM’s acquisition of W Capital reflects rise of GP-led secondaries; plus Matt Leeds discusses first deal

Good morning, Hubsters. MK Flynn here with today’s Wire.

We’ve got a lot of original reporting on a wide range of PE deals this morning for you.

First up is an in-depth look at AXA IM’s acquisition of W Capital Partners, announced earlier in April. The transaction reflects big themes in today’s private equity landscape, including the challenging exit environment and the rise of GP-led secondaries.

We’ve also got an interview with former L Catterton dealmaker Matt Leeds about his new firm’s debut deal.

And we’ll look at the contest heating up for Hipgnosis, a music catalogue including the likes of rock-funk band the Red Hot Chili Peppers, pop singer Shakira and singer-songwriter Neil Young.

Last but not least, there’s a people move that underscores PE’s interest in private wealth.

Contracting exit market

The distribution challenges facing private equity firms led AXA Investment Managers and W Capital Partners to join forces, writes Secondaries Investor’s Hannah Zhang. AXA IM agreed to acquire US-based secondaries shop W Capital Partners in early April, as PE Hub reported previously.

Upgrade to the premium version of the Wire to read the analysis of the deal – and to find out which other PE firms have made acquisitions of secondaries firms or business units in the past few years.

Debut deal

Forward Consumer Partners, the new consumer products-focused private equity firm founded by former L Catterton dealmaker Matt Leeds, closed its debut deal, acquiring Firehook Bakery, earlier in April. Headquartered in Chantilly, Virginia, Firehook is an artisan baking business with three locations in Virginia and Washington, DC; a wholesale business; and a website that sells products directly to consumers. To learn more about the transaction, PE Hub’s Rafael Canton spoke with Leeds.

Subscribers may read the interview.

Red Hot

For the latest moves on the battle heating up for London-listed Hipgnosis, which owns rights to songs by artists including the Red Hot Chili Peppers, Shakira and Neil Young, upgrade to the premium version of the Wire.

Private wealth

Reflecting PE’s increasing interest in wealth management, EQT has named Peter Aliprantis as partner and head of EQT’s private wealth management business in the Americas, writes Iris Dorbian. Upgrade for more details.

That’s it for today. Craig McGlashan will be with you tomorrow.

As always, you can reach me at [email protected]. I’d love to hear from you.

Finally, I’m wishing a Happy Passover to all who celebrate,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Exiting Nalanda but retaining a minority stake was a good opportunity to return capital to PSG Equity’s investors at a time that LPs are thirsty for liquidity while keeping “a big chunk” of the remaining potential upside, PSG managing director Dany Rammal told PE Hub Europe.

Growth-focused shop Declaration Partners is exploring a GP-led secondary on several assets to generate liquidity for the firm’s anchor limited partner, Carlyle Group co-founder David Rubenstein, sources told Buyouts.

Private equity funds gathered $176.7 billion in the first quarter of 2024, a drop of roughly 10 percent from the $195.5 billion recorded in the same period last year, according to preliminary findings from PEI data. (Private Equity International)

In the second episode of the Decade of Secondaries Investing podcast miniseries, Blackstone's Verdun Perry and Evercore's Nigel Dawn look at how the continuation fund market has evolved over the last decade and how it may evolve in the years to come. (Secondaries Investor)

SBVP turns to secondaries to satisfy LPs’ thirst for liquidity: The late-stage software investor managed to produce three exits in four weeks to end Q1 2024 even as exits via traditional routes drop quarter-on-quarter. (Venture Capital Journal)

They said it

AXA IM and W Capital Partners’ “shared view that GPs need more options for managing their portfolio and controlling their exits is what brought us together.”

— David Wachter, managing partner and co-founder of W Capital Partners on the firm’s being acquired by AXA IM