Brookfield, Fidelity, Sequoia join Musk in Twitter takeover; Bain Capital Credit likes the mid-market

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Brookfield, Fidelity, Sequoia join Musk in Twitter takeover; Bain Capital Credit likes the mid-market

Good morning, dealmakers. MK Flynn here with the Wire.

Ponying up. Elon Musk has raised $7.1 billion for his takeover of Twitter from a slew of private investment firms, including Brookfield, Fidelity and Sequoia, and wealthy individuals, including Oracle co-founder Larry Ellison and Prince al-Waleed bin Talal of Saudi Arabia, according to a Wednesday filing with the SEC.

Ebb and flow. With the Federal Reserve’s move Wednesday to raise its benchmark interest rate by half a percentage point, the biggest hike since 2000, PE Hub checked in with Michael Ewald, global head of private credit, Bain Capital Credit.

“The prospect of inflation and rising interest rates, presumably even above the Fed’s latest hike, hasn’t changed how we think about investing capital nor our investment approach,” Ewald said.

Read my full Q&A here.

For more on the lending perspective in PE-backed deals, see my recent Q&A with Randy Schwimmer, co-head of senior lending at Churchill Asset Management and founder and publisher of The Lead Left.

And for ongoing coverage, see our affiliate publication Private Debt Investor.

Secondaries sale. “Connecticut’s state pension system is gearing up for a sale of fund stakes out of its private equity portfolio, following the path of several other large state plans using the secondaries market to rebalance their allocations,” reports Buyouts’ Chris Witkowsky. Read more here.

Tech and healthcare deals. Welsh Carson Anderson & Stowe collected an initial $4 billion-plus for a 14th flagship buyout offering, reports Buyouts’ Kirk Falconer. Fund XIV is expected to make 14 to 16 investments, a Connecticut Retirement Plans and Trust Funds report said. In March, the firm said it agreed to acquire a majority stake in Liberty, a dental benefits administrator, alongside Anthem as a minority partner. Earlier, it invested in Linq, a K-12 operations tech provider, joining existing backer Banneker Partners.

Read the whole story.

That’s all for now. I’ll be back with tomorrow’s Wire.

Until then,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Buyouts’ latest Off-duty column — which provides a snapshot of top investors, including a few details about what they do when not chasing deals — spends time with Advent’s John Maldonado, who talks about open kimonos, building Genoa and calling Mom.

J-STAR, a Japanese buyout firm, is exploring whether the GP-led secondaries market could help it to avoid overstepping concentration limits during an “aggressive” program of buy-and-builds. (Private Equity International)