Better balance between buyers and sellers in 2025; Arctos, Ares get in the NFL game

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Better balance between buyers and sellers in 2025; Arctos, Ares get in the NFL game

Good morning, Hubsters. Senior reporter Michael Schoeck here with the US edition of the Wire from the New York newsroom.

Today on the hub we’ve got a Year-End piece I wrote about industrials M&A, which saw an uptick in private equity-backed and strategic acquisitions this year.

Next up we’ll provide an update on my latest data effort tracking companies for sale, or coming to the market in a matter of months, as briefed by confidential sources.

In deal news, the Buffalo Bills and Miami Dolphins announced separate agreements to sell a limited stake in the respective organizations to Arctos Partners and Ares Management, respectively.

And we’ll wrap up with a 2025 deals outlook from consulting firm PwC, which today is publishing an M&A and IPO market outlook.

Revving up M&A engines

Industrials and manufacturing has been a safe sector for private equity-backed consolidation. Dealflow in the market is expected to be even busier in 2025, deal advisers tell PE Hub.

PE Hub has tracked the large dealflow as part of ongoing coverage of companies for sale, as well as public company carve-out opportunities.

Sign up for the premium version of the Wire for more insight.

Companies for sale

PE Hub tracked more than 200 companies that sources said were coming to the market this year or by early 2025 across all industry verticals. Of those companies and corporate carve-out assets in play, less than 30% were announced in deals involving a private equity exit or add-on of a carve-out asset.

Sign up for the premium version of the Wire to access companies for sale coverage.

Got tips on companies for sale? Shoot me a note at [email protected] to connect.

NFL deal blitz

PE Hub has been following growing private equity interest in professional sports, including the National Football League.

In August, the NFL made the widely anticipated decision to allow PE firms to become part owners of its teams. An initial list of preferred PE firms included Ares Management, Sixth Street and Arctos Partners, among other firms.

In the first NFL deal announced this week, on Wednesday the Buffalo Bills announced an agreement in which Arctos will acquire an undisclosed limited interest in the organization, which as of press time was first in the AFC East with 10 wins and 3 losses.

The Miami Dolphins announced the second NFL private equity deal this week, also on Wednesday, with Ares agreeing to acquire a 10 percent minority stake in the Dolphins while Brooklyn Nets owners Joe Tsai and Oliver Weisberg will hold a 3 percent interest in the Dolphins.

Sign up for the premium version of the Wire for more football franchise coverage.

Bright spots for dealmaking

PwC today is releasing its annual M&A and IPO market outlook, which paints an upbeat picture for dealmaking and public markets in 2025 after subdued 2024 activity.

Sign up for the premium version of the Wire for more insight from the outlook.

That’s a wrap for me today. Stay tuned for Irien Joseph bringing you the Europe edition of the Wire tomorrow and John R Fischer delivering the US edition.

Cheers,

Michael

Also of note (may require subscriptions)

Inflexion aims to make Finanzen a top player in Germany through M&A and integrating its three core services, Andrea Bertolini, a partner at the London-based mid-market private equity firm, told PE Hub.

Seven key findings that every emerging manager should know from the 2024 Buyouts Emerging Manager Survey conducted in partnership with Gen II Fund Services, LLC.

In the latest episode of the Second Thoughts podcast from Secondaries Investor, CVC's Carlo Pirzio-Biroli and Kirkland's Ted Cardos literally peel back the onion on the year that was and look forward to what they believe will shape the secondaries market in 2025. (There's a basket of onions and ... well, just listen.)

Turn/River Capital is in the market with a sixth flagship software buyout offering as investing in technology seems poised for a rebound. The San Francisco firm is seeking $2 billion for Turn/River Capital VI, Massachusetts Pension Reserves Investment Management documents said, up 48 percent from the $1.35 billion raised by its predecessor in 2022. (Buyouts)

Pantheon is in market with what could be its largest credit secondaries vehicle, and Secondaries Investor understands the firm is looking to close the fund in the new year.

Montreal-headquartered Cordiant Capital has acquired London-listed HydrogenOne Capital Growth plc’s management team, HydrogenOne Capital LLP, the GP announced on Wednesday. The deal will bring about co-investments and secondary opportunities, and could be a harbinger of more deals in the same vein. (Infrastructure Investor)

Is America’s energy transition safe in Trump’s hands? In the latest episode of the Infrastucture Investor Podcast, Don Dimitrievich of Nuveen and John Ma of Igneo Infrastructure Partners consider the potential impact of the US’s new political landscape on the asset class.

What are the words or phrases that will have LPs rolling their eyes or regulators asking questions? New Private Markets editor Toby Mitchenall discusses the phrases you should axe from your pitch deck.

Next up in Private Equity International's 'Story of the Year' series: how many large private equity investors have been diversifying beyond traditional buyouts to pursue more attractive returns.

StepStone Group has backed a unique deal involving two continuation vehicles from the same GP in which one CV has an additional asset to the other. (Secondaries Investor)

While continuation funds are increasingly common liquidity solutions, not all of them are delivering the appropriate returns, according to Cari Lodge, head of secondaries at Commonfund. (Private Equity International)

They said it

“A fair amount of due diligence goes into evaluating a carve-out as a standalone business or platform for a private equity firm. They have to negotiate transitional services such as financial management, IT support and infrastructure.”

— Andrew Petryk, managing director of Brown Gibbons Lang & Company, on the strategic carveout market, which was a large component of industrials PE dealmaking this year.