General Atlantic and Stone Point Capital to take HireRight private; plus 6 PE-backed edtech deals

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General Atlantic and Stone Point Capital to take HireRight private; plus 6 PE-backed edtech deals

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter this morning. Let me remind you that the deadline for Deal of the Year is today! I have more on that at the end.

But let’s start with this morning’s deal news that General Atlantic and Stone Point Capital have agreed to take HireRight Holdings Corporation private in a deal worth approximately $1.65 billion.

Up next, we have news of a partial exit by Siris Capital Group of a cloud-based marketing software platform.

And for our Friday listicle, we’re rounding out the week with a look at six PE-backed edtech deals.

Background screening

General Atlantic and Stone Point Capital have agreed to take HireRight Holdings Corporation private in a transaction worth approximately $1.65 billion. The transaction is expected to close in mid-2024.

Upgrade to the premium version of the Wire to get more on this deal.

Done deal

Siris Capital Group yesterday said it completed the sale of its 50 percent stake in Constant Contact, a Waltham, Massachusetts-based provider of a cloud-based marketing software.

As a result of this transaction, Clearlake Capital Group and other Constant Contact investors have increased their ownership.

Premium subscribers of the Wire have more on this deal.

In the classroom

The education sector took a hit during the covid-19 outbreak as schools shifted from in-person classes to virtual sessions. To compensate for that new reality, a profusion of edtech services was introduced to the mainstream to streamline teacher training and student comfort. The market became hot and then not so hot, writes my colleague Iris Dorbian.

Lately, dealmakers have become bullish again, particularly when it comes to the transformative effects of technology on the space. The global education market is estimated to soar to $8 trillion in value by 2030, according to Morgan Stanley research.

Iris rounded up six deals, and for more on those deals, upgrade to the premium version of the Wire.

Deal of the Year

Also: A quick reminder that time is running out to send your nominations for Deal of the Year . We're looking for the top exits of 2023. Winners are chosen in seven categories: Deal of the Year, Large Market Deal of the Year, Mid-Market Deal of the Year, Small Market Deal of the Year, Turnaround of the Year, International Deal of the Year and Secondaries Deal of the Year.

Visit here for contest rules and other information, including lists of past winners. The deadline is February 16.

That’s it for today. MK Flynn will be back with more on Monday.

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Private equity fundraising is slow – but it’s also at record levels. The $559bn secured in 2023 is the third-largest infusion of capital into the North American private equity industry on record. (Buyouts)

Los Angeles Fire and Police Pensions plans to commit $800 million to private equity funds this year, an increase of nearly $300 million over the previous year. (Buyouts)

The numbers are good, but not the whole story :It’s a rewarding time to be invested in private debt, but no one should get too carried away by the hype around the asset class. (Private Debt Investor)

Secondaries roar out of the gates on strong pricing for LP stakes: Smaller discounts to NAV mean there is a potential window of opportunity that some LPs want to take advantage of before market dynamics change. (Secondaries Investor)

Freeze on growth funds starts to thaw: For LPs with little or no exposure to growth funds, now may be a good time to try to get in under more favorable terms than those available in recent years. (Venture Capital Journal)

The Alberta Investment Management Corporation has created a new C$1 billion ($738 million; €688 million) funding pool to invest in a range of energy transition fund managers. (Infrastructure Investor)

In a highly illiquid private real estate market, investors will need to get comfortable with longer deployment periods – and managers will need to contain any adverse impact. (Private Equity Real Estate)

They said it

“We believe that innovative education technology companies, like Branching Minds, that enable concrete improvements in educator practice and student achievement will continue to thrive as districts look to address learning loss and expand access to education thereby improving outcomes.”

— BCDI partner Iain Ware, regarding the edtech investment by his firm.