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GPs can’t just sell products anymore, says Nicole Musicco; Argand eyes international growth for Capezio

Happy hump day, Hubsters! Rafael Canton here with the US edition of the Wire from the New York newsroom.

This Wire will take on the LP-GP relationship and the consumer sector. Let’s start with a look at how the rise of evergreen vehicles will change the LP-GP relationship. Nicole Musicco, the former chief investment officer of the California Public Employees’ Retirement System, spoke at PEI Group’s third annual Women in Private Markets Summit North America with PE Hub editor-in-chief Mary Kathleen Flynn about the topic.

Then, we have a consumer deal. Argand Partners acquired dancewear brand Capezio in April, and we have a deep dive into the transaction from PE Hub’s Iris Dorbian.

Finally, let’s look at PE interest in car washes. Convenience stores  and car washes M&A dealmaking have remained resilient according to Houlihan Lokey’s recent market update.

Embracing the relationship

The rise of evergreen vehicles will change the LP-GP relationship, the former chief investment officer of the California Public Employees’ Retirement System says.

Speaking at PEI Group’s third annual Women in Private Markets Summit North America on Tuesday, Nicole Musicco, who launched an opportunistic credit fund this year, warned that such products which feature lower fees and can provide higher liquidity may lead to a more transactional dynamic between manager and investor.

Subscribe to the premium version of the Wire to get Musicco’s thoughts on the LP-GP relationship.

Inflection point

Argand Partners’ growth plans for iconic dancewear brand Capezio include a push into Europe, alongside potential add-ons to target strategic gaps and product innovation, Joyce D Schnoedl, partner at Argand, told PE Hub’s Iris Dorbian.

When Argand acquired Capezio last month, it marked the first time that the 138-year-old family-owned and operated business had secured an outside institutional investor.

Premium subscribers of the Wire can pick up why Argand invested in Capezio and the firm’s potential add-on strategy.

Checking the PE boxes

Let’s shift to consumer services. Convenience stores and car washes have remained resilient despite consumer uncertainty and ongoing inflation according to Houlihan Lokey’s convenience store and car wash update.

The interest in car wash businesses has been consistent. In 2024, PE Hub reporter Obey Martin Manayiti tracked six deals involving car washes.

Subscribe to the premium version of the Wire to gain insights from Houlihan Lokey on why car wash deals are attractive to PE firms and recent deals in the subsector.

That’s it for me. If you have any questions, thoughts, or want to chat about deals in the tech, consumer or sports sectors, please email me at [email protected].

Tomorrow, Nina Lindholm will be with you for the Europe edition of the Wire and Michael Schoeck will bring you the US edition.

Cheers,

Rafael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Simplifying payroll management offers a “massive” value creation opportunity in HR tech, particularly in the intricate German market, Fabian Heitfeld, principal in Hg’s Saturn team, told PE Hub. This potential has kept Hg and Permira invested in Personal & Informatik, an HR software provider, for a long time, passing the majority stake torch back and forth many times over the years.

Nexa Equity has exceeded the target it set for a second technology-focused fund despite brutal market conditions for emerging managers. In April, Nexa closed Nexa Equity Fund II at its $392 million hard-cap, ahead of a $275 million target, managing partner Vlad Besprozvany told Buyouts. Further, at a time when many GPs are taking longer to raise funds, the firm did this in roughly six months.

Global Infrastructure Partners, part of BlackRock, is preparing the launch of a new energy transition vehicle, sources have told Infrastructure Investor. The manager is looking to raise $10 billion for the effort, it is understood. GIP is believed to be in the pre-marketing phase, with a view to officially launching later in the year.

Speaking at PEI Group's Women in Private Markets Summit, representatives from investors including NYCRS and Resolution Life US expressed caution about the rise of continuation vehicles on continuation vehicles (a phenomenon dubbed “CV squared”), saying such practice could make GPs appear 'desperate.' (Private Equity International)

DOGE casts long shadow over US farmer support: The Department of Government Efficiency’s cost-cutting specter has clouded otherwise straight-forward expectations for ad-hoc payments that have already helped shape regional farmland markets. (Agri Investor)

Canadian private equity exits were “muted” in the first quarter of 2025 as a “growing caution among buyers” spread across the economy, according to an analysis by the Canadian Venture Capital and Private Equity Association. (Private Funds CFO)

Beyond the political noise, investment fundamentals are looking good, says Brookfield's Natalie Adomait ahead of the Impact Investor Global Summit in London in the latest episode of The New Private Markets Podcast.

Houlihan Lokey has hired a senior investment professional from Metlife Investment Management as it continues to grow its secondaries advisory team. Yugveer Singh, a director responsible for the management of the insurer arm’s equity co-investment and special situations portfolios, will join the investment bank as a director in around two weeks, Secondaries Investor understands.

Deals

They said it

“We love leading brands in their respective spaces. When we heard last year from one of our apparel industry advisers that there was a potential opportunity to invest in the business and partner with this particular brand, we were very excited about the opportunity. This was a nice fit.”

— Joyce D Schnoedl, partner at Argand Partners on the firm’s investment in Capezio

Today's letter was prepared by Rafael Canton

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