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EY increasingly optimistic about pharma M&A; Pelican Energy Partners acquires CTI

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

The traditional January pause in dealmaking is in evidence this morning, with more People Moves than transaction announcements in my inbox.

Despite a slow start to the year, most dealmakers predict dealflow will pick up soon.

“We are getting increasingly optimistic about the M&A market,” EY’s Arda Ural says in a thought leader Q&A we’re featuring today, as EY releases its 2024 M&A Firepower Report today.

Before we get to that interview, there’s an energy deal that caught my eye.

Renewable energy

As oil and gas investors expand into clean energy, Pelican Energy Partners said this morning that it has acquired Container Technologies Industries, a Helenwood, Tennessee-based manufacturer of containment products for the nuclear power industry.

Upgrade to the premium version of the Wire for more details.

M&A Firepower

The 2024 EY M&A Firepower Report is out this morning, and I touched base with Arda Ural, EY Americas industry markets leader, health sciences and wellness, to get his take on biopharma and medtech dealmaking.

To read the interview, upgrade to the premium version of the Wire.

For more of PE Hub’s ongoing series of Q&As with PE thought leaders, see:

• Hamilton Lane’s Hartley Rogers: Private equity will separate into winners and losers

• Cambridge Associates’ Andrea Auerbach: Rate cuts in 2024 may break the transaction logjam and spur activity

• Vista’s Patrick Severson: Promising enterprise software sectors in 2024 include cybersecurity, energy transition, healthcare IT

• Blackstone’s Verdun Perry: ‘GPs are choosing to hold on to their best quality assets longer’

Dear Reader

I’d love to hear from you. What are you working on these? Any deals you’d like to tell me about? How do you think 2024 will compare with 2023? Shoot me an email at [email protected].

And, finally, if you’re interested in the new hires and promotions I mentioned at the top, go to the People page of PE Hub, where Iris Dorbian covers the latest announcements.

Craig McGlashan will be with you tomorrow.

Cheers,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Liquidity issues facing LPs and GPs alike are expected to spur further secondaries activity this year, according to market participants who provided Private Equity International and affiliate title Secondaries Investor with their predictions for 2024.

An interesting situation is happening in Texas, where one of the largest public pension systems in the US has pivoted down market to target smaller private equity funds. (Buyouts)

NEPC projects a big rebound in distributions for San Bernardino County Employees’ Retirement Association’s private equity program, suggesting it will generate $800 million in distributions for the year ending June 2024. (Buyouts)

GPs are more likely to use NAV financing and preferred equity this year despite more than half of LPs believing them to be poor liquidity tools, according to data from Capstone Partners. (Private Equity International)

Blackstone, the world’s largest real estate manager, executed more than half of its total real estate investments for 2023 in Europe. According to James Seppala, head of real estate for the region, the firm – which consistently ranks number one on the PERE 100 manager ranking by capital raised – could be even more active in Europe in 2024.