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Egg farms on the block; Oaktree’s Milwood Hobbs Jr discusses 'higher-for-longer' interest rates in preview of NEXUS Fireside Chat

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

In the Wire today we’re featuring my latest “On the block” series update about family-run chicken farms.

Next up we’ll have a look at my weekly wrap on companies for sale.

Wrapping up today we have a Q&A piece with Oaktree Capital’s Milwood Hobbs Jr oncredit costs and restructuring themes. Hobbs will be a featured speaker at PEI Group’s NEXUS 2025 conference in Orlando next week.

Selling the farm

Egg prices have shot up more than $5 per pound since September, according to S&P Global. Supermarkets are often sold out of eggs as regional and national farms undertake chicken containment measures for the bird flu.

Over the past few weeks, confidential sources have flagged two large-scale egg producers that have taken on investment banks to navigate the process of finding new sources of capital, including mid-market private equity backing, amid challenging market dynamics.

Upgrade to the premium version of the Wire to read more on the farms for sale.

Click here to read more from this month’s On the block series story. For previous installments, check out the February issue on freight, transport and logistics, and the October 2024 issue on automotive services.

Companies for sale

With dealmaking starting off 2025 at its slowest volume in more than a decade, deal announcements that have emerged from late 2024 companies for sale covered by PE Hub have started to line up.

Upgrade to the premium version of the Wire to access Companies for sale content.

Credit-worthy investments

Amid uncertainty about the economy and markets, pressure continues to build on companies in a high interest rate environment. Although concerns are rising about the credit quality of private borrowers, this is the type of environment in which Oaktree Capital, a long-time investor in distressed loans and opportunistic lending, thrives.

Affiliate title Private Debt Investor recently caught up with Milwood Hobbs Jr, managing director and head of sourcing and origination at Oaktree. PDI will be conducting a fireside chat with Hobbs on these subjects and more at PEI Group’s NEXUS 2025 conference in Orlando on March 10-12.

Upgrade to the premium version of the Wire to read the full interview.

PE Hub editor-in-chief Mary Kathleen (MK) Flynn ([email protected]) and reporter Rafael Canton ([email protected]) will be attending NEXUS 2025, so be sure to reach out to them if you’d like to meet up.

That’s a wrap for me.  Keep an eye out for the Europe edition of the Wire tomorrow from Irien Joseph and the US edition from John R Fischer.

Cheers,

Michael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Citation Capital, based in Dallas, is one of the new managers Buyouts has followed since inception. The firm, led by managing partner Tiffany Hagge and president Lydie Hudson, backs founder and family-owned businesses in the services, industrials and select consumer sectors. It was formed in 2023 and is in market with its debut fund. Buyouts recently chatted with Hudson on the firm’s approach to the market and the opportunities it is finding in the changing environment. Hudson is one of the featured speakers at PEI Group’s NEXUS 2025 conference next week.

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Integrum, led by former KKR, BC Partners and Xerox executives, is in the market with a second fund to invest in technology-enabled services companies. (Buyouts)

Fund manager Eurazeo has held a €300 million first close on its Planetary Boundaries Fund, which has a €750 million fundraising target. (Agri Investor)

As infrastructure changes and evolves as an asset class, we often discuss whether it’s become riskier. But what does “risker” actually mean? In the latest episode of The Infrastructure Investor Podcast, editor-in-chief Bruno Alves, Americas editor Zak Bentley and senior reporter Anne-Louise Stranne Petersen debate what asset class characteristics are falling by the wayside, which new risks investors need to be aware of these days – particularly in the burgeoning energy transition arena – and whether a riskier asset class is still something most people would call infrastructure.

Richard Hope, co-head of investments at Hamilton Lane, discusses the cash drag issue that evergreen funds face and why semi-liquids aren't appropriate for every GP, in the latest episode of Private Equity International's Spotlight podcast.

New York-headquartered TowerBrook Capital Partners is back in the secondaries market running a multi-asset process valued upward of €1 billion. (Secondaries Investor)

Inflation, interest rates and supply-chain disruptions were the triple-threat risk that emerged out of the covid-19 era. While inflation and interest rates remain a worry, they have to whatever extent stabilised, giving investors assurance, if not relief. Supply-chain woes, though, have only grown and evolved from production and delivery troubles to geopolitical tensions and the financial troubles of various EPC contractors. (Infrastructure Investor)

Deals

They said it

“While we aren’t macro forecasters at Oaktree, we have been in the higher-for-longer camp for some time now and expect this interest rate regime to drive a bigger portion of the return pie to credit investors overall.”

— Milwood Hobbs Jr., managing director and head of Oaktree Capital’s sourcing & origination group, on the firm’s credit market outlook.

Today's letter was prepared by Michael Schoeck

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