Carlyle’s Stephen Wise feels ‘very good about the investmen t environment for 2025’; why h ealthcare deals soared in 2024

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Carlyle’s Stephen Wise feels ‘very good about the investment environment for 2025’; why healthcare deals soared in 2024

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

We’re opening the Wire today with an Outlook Q&A with Carlyle’s Stephen Wise, who discussed dealmaking trends expected under the incoming administration.

Healthcare deal value soared in 2024, finds a report out today from Bain & Company. PE Hub has an exclusive interview about the forces driving healthcare deal activity.

There’s a flurry of new deals announced this morning, including a trio from the industrial sector, in line with PE Hub’s 2025 Outlook for increased deal activity in the segment.

And we’ll wrap up with an update on January deal announcements involving companies for sale covered by PE Hub over the past year.

Don’t forget to send in your nominations for PE Hub’s Deal of the Year Awards. The deadline is tomorrow.

Smooth dealmaking

As part of PE Hub’s ongoing series of Q&As with PE thought leaders, we turned to the Carlyle Group’s Stephen Wise, who was promoted from global head of healthcare to co-head of Americas corporate private equity in June of 2024. Wise shared insight on the 2025 dealmaking environment.

Sign up for the premium version of the Wire to read the full Q&A.

Healthcare dealmaking review

Despite high borrowing costs and extended hold times in 2024, global dealmaking in the healthcare sector soared to $115 billion, marking the second-highest year on record for deal value, according to Bain & Company’s 2025 Global Healthcare Private Equity Report, which will be released later today.

Sign up for the premium version of the Wire to read the full interview from John R. Fischer.

Manufacturers trade hands

Over the past week alone PE Hub has seen a flurry of industrials deals. That is in line with an anticipated ~25% increase in deal activity expected this year, bankers told me in December.

Just this morning, Arcline Investment Management, BluePoint Capital Partners and Lion Equity Partners announced new deals and portfolio company add-ons.

Companies for sale

Among more than 210 companies for sale tracked by PE Hub in 2024, three deal announcements were made over the first week of January:

On January 8, listed consumer products company Flower Foods announced the acquisition of Simple Mills, a producer of healthy snack products, from Vestar Capital Partners.

Sign up for the premium version of the Wire for more Companies for sale content.

Before I sign off, I want to remind everyone that nominations for PE Hub’s Deal of the Year Awards are due tomorrow.

That’s a wrap for me. Tomorrow, Sophie Rose will be with you for the Europe edition of the Wire and John R. FIscher will bring you the US edition.

Cheers,

Michael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Epiris is eyeing a strong pipeline of deals in the coming year but remains mindful of potential risks, Owen Wilson, chief investment partner, told PE Hub in the latest of its 2025 Outlook pieces.

In March, London-based infrastructure GP Equitix will gain two new employees. GLIL Infrastructure’s now former chief operating officer, Ted Frith, will take up a new position, as will Local Pensions Partnership Investments’ head of real assets, Simon Davy, sources close to proceedings confirm to Infrastructure Investor.

Niobrara Capital Partners, led by veteran technology dealmaker Paul “Chip” Schorr, is seeking $750 million for its debut tech buyout offering. (Buyouts)

Blackstone’s former global head of GP stakes has launched a secondaries shop focused on mid-market opportunities. Mustafa Siddiqui, who departed Blackstone early last year, has launched SQ Capital, according to a statement seen by Secondaries Investor. The firm will invest across LP-led and GP-led opportunities focused mainly on the US and Europe.

A report by the US Department of Energy highlights the unknowns that investors face in the next three years as they tackle the hype and reality of AI. (Infrastructure Investor)

Private markets firms Apollo Global Management and BC Partners have struck a deal to each acquire a 28 percent share in the environmental services business of Canadian waste management business GFL Environmental, according to a statement. (New Private Markets)

In the latest episode of the Infrastructure Investor Podcast, Don Dimitrievich of Nuveen and David Scaysbrook of Quinbrook discuss the tech innovations, regulatory changes and upsides for investors in the renewables industry as we head into 2025.

Private markets offer institutional investors a smaller, but mightier, way of investing in climate solutions than public markets, according to a report from research company MSCI. (New Private Markets)

New York-based Bonaccord Capital Partners announced that it has held a final close for its Bonaccord Capital Partners II fund, a GP stakes fund targeting private market sponsors that include private debt, with $1.6 billion of capital raised. (Private Debt Investor)

Trinity Ventures has closed its first continuation fund, which carves out 15 assets from a 13-year-old flagship fund, Trinity Ventures XI. (Venture Capital Journal)

Deals

They said it

“The economic and financial markets are in good shape. Inflation and interest rates are lower, the labor market is in good shape, credit spreads are at historic lows, valuations are robust and the equity markets have opened for IPOs. So, we think the market is set up well for exits and financing new deals.”

— Stephen Wise, co-head of Americas corporate private equity, the Carlyle Group, on the firm’s outlook for the deal environment this year.

Today's letter was prepared by Michael Schoeck

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