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The Wire Sept. 10, 2021
Digging into Patient Square's $1.3bn deal for Summit BHC, Francisco Partners continues string of exits with Dynamo Software, NMI
Happy Friday, everybody!
What’s going on? Following up on yesterday’s news, I’ve gathered quite a few details around what marks the first traditional buyout deal for Patient Square, the firm launched by ex-KKR chief Jim Momtazee joined by various investors coming out of prominent firms like Ares Management and Golden Gate Capital.
The headline: The healthcare-focused firm’s all-cash acquisition of Summit BHC, a substance abuse treatment and psychiatric services company, commanded an enterprise value of $1.3 billion, people familiar with the deal terms said. The two existing PE owners -- FFL Partners and Lee Equity -- are poised to make out well, too. The equal shareholders each expect to reap a 4x gross MOIC and approximately 42 percent gross IRR, the people said.
The deal multiple varies, depending upon which EBITDA multiple you’re considering. Read my full story on PE Hub for those details and others around the process.
Tech: If you’re tired of reading about healthcare deals, take a look at the two partial stake sales produced by Francisco Partners this week, which add to its string of 10-plus exits since the start of the year. It’s portfolio company Dynamo Software added Blackstone (through its growth arm) as an investor, while another platform, NMI -- which Great Hill Partners also backs -- grew its shareholder base with an investment from Insight Partners.
According to a Wall Street Journal report, Dynamo, a provider of cloud software for the alternative management industry, was valued at around...
Read the full wire commentary on PE Hub...
That’s all I got! Have an awesome weekend, and in the meantime, reach me with tips n’ gossip, feedback or anything else at [email protected].
Also of note (may require subscriptions) Closing in: Avance Investment Management, launched by former Palladium Equity Partners executives, is closing in on the $1 billion hard-cap set for its debut buyout offering. Avance had originally eyed an $850 million hard-cap for the fund, Buyouts reported in March. The increase may owe to demand from limited partners. Read it here.
Going green: SER Capital Partners, formed by an ex-Energy Capital Partners executive with a focus on energy sustainability, collected about $250 million for a first close on its debut fund, according to a person with knowledge of the firm. SER is part of a burgeoning community of fund managers focusing on sustainability strategies that includes some of the biggest private equity managers in the world. Read more on Buyouts.
Secondaries: Manulife Investment Management is set to come to market with its debut secondaries fund. The investment unit of Canada’s largest insurer is targeting $750 million for the vehicle, with Manulife committing up to $200 million, according to two sources with knowledge of the matter. Read it on Secondaries Investor.
PE Deals
They said it “Given the continuing boom in private markets, and the wide appetite for secondary buying and selling, nothing we see in today’s market makes us think its growth is going to slow.” Jeremy Coller, chief investment officer and managing director at Coller Capital, tells Private Equity International, speaking to the growth of the secondaries market.
Today's letter was prepared by Sarah Pringle Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article. FIND OUT MOREPlease visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC.
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