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Deal volume declined 34% in May; The Raine Group’s Erik Hodge eyes entertainment opportunities in Europe and YouTube

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom.

The Hollywood strikes of 2023 may feel like a long time ago, but private equity investing in the film and TV production sector hasn’t fully recovered, and new challenges have emerged, including an overall dealmaking lull and higher interest rates. As part of our ongoing Q&A series with PE thought leaders, we will start with an interview with Erik Hodge, a partner at The Raine Group, who shared his thoughts on the current state of PE investments in the entertainment sector, President Trump’s proposed foreign film tariff, and more.

Next, global private equity deal value declined by 34 percent year-over-year, according to S&P data released yesterday. Stay tuned as we analyze the data, highlight the top performing sector as well as spotlight the biggest deals in May.

And to today’s deal news, Angeles Equity Partners acquired a majority stake in Solid Surface Care, a Charlotte, North Carolina-based provider of self-performed surface care, maintenance, and restoration services for commercial facilities. I will highlight our past coverage of the sector, including what’s shaping dealmakers’ appetite in restoration services.

World of entertainment

As part of PE Hub’s ongoing Q&A series with thought leaders, reporter Iris Dorbian spoke with Erik Hodge, a partner at The Raine Group, where he leads the firm’s Los Angeles office and its entertainment and media efforts, to discuss several topical themes in the sector.

Raine was launched in 2009 by Joe Ravitch, a former co-head of Goldman Sachs’ media banking division, and Jeff Sine, an ex-vice-chairman and head of TMT banking at UBS. The firm is more than a TMT-focused merchant bank.

Upgrade to the premium version of the Wire to read an excerpt.

Lackluster numbers

The uncertainty shaking the private equity sector continued last month as the global private equity deal value declined 34 percent year-over-year, according to the S&P data released yesterday.

Premium subscribers can read the report highlights.

Restoration services

This morning Angeles Equity Partners announced theacquisition of a majority stake in Solid Surface Care, a Charlotte, North Carolina-based provider of self-performed surface care, maintenance, and restoration services for commercial facilities.

Late last year, reporter Iris Dorbian looked at 11 deals in this sector.

Premium subscribers have access to our wide ranging coverage in this sector.

That’s it from me today. Craig McGlashan will bring you the Europe edition tomorrow, while Rafael Canton will write Wednesday’s US Wire.

Cheers,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

US private equity’s European love affair is blossoming to such an extent that even GPs without a physical presence on the continent are trying to woo businesses. Europe’s stability relative to the US and improvements in areas such as deal closing times are driving the region’s attractiveness, sources told PE Hub. But Europe isn’t immune to the impact of US tariffs, while the continent’s idiosyncrasies mean those without local offices may struggle to seal deals.

Brian Neider, managing partner at Lead Edge Capital, is the subject of Buyouts' latest "Off-duty" column. He talks about his summer bliss in Margate, New Jersey, his avocation as an Uber driver, and why he hates the phrase, "It’s a nice little business."

After three years as head of real estate for the Alberta Investment Management Corporation, Paul Mouchakkaa is headed to Crow Holdings as senior managing director responsible for the firm’s core and core-plus strategies, PERE can reveal.

After launching its first evergreen fund in 2023, Ardian’s 2024 Integrated Report shows the firm is planning to charge further into the private wealth market, establishing three more evergreens this year. (Secondaries Investor)

A&M Capital is building out its secondaries unit with another veteran hire shortly after making its first known senior appointment to the team. Jeremy Weisberg, managing director at CPP Investments, left the Canadian pension giant last Friday, three sources told Secondaries Investor. He’s joining A&M Capital as a managing partner and will oversee the firm’s new secondaries strategy.

SWEN Capital Partners has held a €160 million first close for its SWEN Blue Ocean 2 fund, according to a statement. New Private Markets first reported that the French sustainability-focused firm was in market with the strategy in February this year. At the time, the firm was gearing up for a first close on €150 million. 

French natural capital asset manager France Valley has taken more than €600 million in capital commitments for its evergreen forestry fund. (Agri Investor)

While Japanese investors have a growing interest in European property markets, the US continues to dominate as their preferred destination for real estate investments. (PERE)

Deals

They said it

“There are a lot of positive trends on YouTube – ad growth, linkage of content and commerce and the fact that viewership on YouTube TV has increased for the platform. The growth rate is now increasing for older demographics and that’s really important.”

— Erik Hodge, a partner at The Raine Group, in a wide-ranging interview where he discussed the state of PE investments in the entertainment sector.

Today's letter was prepared by Obey Martin Manayiti

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