CD&R, EQT, KKR bring back Tech Tuesday; MSCP bets on energy efficiency

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CD&R, EQT, KKR bring back Tech Tuesday; MSCP bets on energy efficiency

Morning Hubsters, Craig McGlashan here with the Tuesday Wire.

Tech Tuesday is back. We’ve got three PE-to-PE deals in the sector to report this morning, adding to a take-private that came in yesterday.

Today’s crop sees Clayton Dubilier & Rice signing a deal for a tech company from BC Partners; EQT agreeing to buy a supply chain risk management software company from Welsh, Carson, Anderson & Stowe; and KKR acquiring a software provider in the insurance and health plan markets from Stone Point Capital.

They follow Advent International yesterday announcing a take-private deal for a Montreal-based fintech business.

Elsewhere we feature another of the Deals of the Year 2023, this time the winner of the International Deal of the Year.

But we start things off with a scoop involving Morgan Stanley Capital Partners.

Exclusive

We’re opening with a scoop by Obey Martin Manayiti, who revealed that Morgan Stanley Capital Partners has acquired a company that provides services aimed at helping clients use energy more efficiently.

Find out more in the subscriber version of the Wire.

Big deals

Clayton Dubilier & Rice has entered into a definitive agreement to acquire a majority stake in a tech company from fellow private equity firm BC Partners.

EQT has agreed to acquire a supply chain risk management software company from Welsh, Carson, Anderson & Stowe.

Read the full version of the Wire to find out the valuations on each deal.

KKR has acquired a software provider for the insurance distribution and health plan markets, from Stone Point Capital.

Those deals added to yesterday’s news that Advent International has agreed to acquire Nuvei, a Montreal-based fintech company, in a take-private deal for $34 per share.

PE Hub’s Rafael Canton spoke with Stephen Leitzell, a partner at Dechert, last week about why PE dealmakers are pursuing public targets.

We’ve also noticed a spike in take-privates over on PE Hub Europe, although some of the drivers are a little different.

Passing the sniff test

Today we’re featuring another of the winners from our Deals of the Year for 2023 package with affiliate title Buyouts. This time it’s the International Deal of the Year.

Read more in the full version of the Wire.

OK that’s it from me today. Chris Witkowsky will be in the chair tomorrow.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Mike Catts, a partner at Hollyport Capital, spent some time chatting with Buyouts about legacy secondary sales, the rise of GP-led opportunities, including those in the legacy space, and how recruiting has changed over the years.

Warren Equity Partners, an investor in infrastructure and facility solutions, closed a second offering under its ELIDO lower mid-market strategy at $550 million.

How the love-hate relationship between banks and private funds is shaping the credit market: They co-operate but also aggressively compete with each other. But what exactly are they compromising on and fighting over? (Private Debt Investor)

Infrastructure Investor is out with its 2024 Impact Investing report, exploring the rise of social impact and how the infrastructure sector is becoming increasingly focused on creating a cleaner, greener planet.

Default risk in the multifamily sector is growing, catching out some managers and their investors – while creating opportunities for others. (Private Equity Real Estate)

GPs are looking at ways to ensure their operating models and processes are fit for purpose both now and going forward. A new report from Private Funds CFO explores how managers and providers are keeping pace with change across areas such as fund formation, reporting, compliance, talent management and cybersecurity.

Intermediate Capital Group has raised $1 billion for its debut LP-led secondaries fund. ICG LP Secondaries Fund I was “significantly oversubscribed”, according to a statement seen by Secondaries Investor.

Tiger Global, which has roared through the fundraising market for the past 10 years, was only able to muster a meow with its latest fund. The New York firm closed on $2.2bn for Private Investment Partners XVI, making it the smallest fund it has raised since April 2014. (Venture Capital Journal)

They said it

“Utilities in certain states are required by their regulators to achieve specific levels of energy savings on an annual basis. Achievement of these savings is tied to receiving requested rate increases, where under-performance can carry financial penalties to the utility and over-performance versus targets can lead to additional profit opportunity.”

— Eric Kanter, a managing director at MSCP, on the acquisition of Resource Innovations