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Gryphon scaled Potter Global’s fire systems offering before KKR exit; Fengate buys cell tower portfolio

Morning Hubsters, Craig McGlashan here with the Tuesday Wire.

The exit environment looks to be getting better as we close in on the year end – something that will be welcome news for GPs fielding calls from end-investors looking for liquidity.

First up today, Obey Martin Manayitispeaks to Gryphon Investors’ Mark Fuller about his firm’s sale of Potter Global Technologies to KKR.

Such sponsor-to-sponsor deals are likely to pick up in 2024, particularly in the software sector, BC Partners’ Mark Fariborz told me in a Q&A over on PE Hub Europe.

We then turn to wireless towers, a sector that has also been the focus of several deals this year, as Fengate Asset Management acquires a portfolio of sites from TowerCom.

Lastly, we’ve got yet another add-on for a company that’s done plenty this year – Oak Hill Capital- and Genstar Capital-backed wealth management company Mercer Advisors.

Exits open

The health of the exit market has been a big theme here on PE Hub as well as over on PE Hub Europe but we’re hearing plenty that sales could open up next year – returning much needed liquidity to LPs.

Obey Martin Manayititook a deep dive into one of the deals that made it out before the end of the year, as he spoke to Mark Fuller, a managing director in Gryphon Investors’ Industrial Growth Groupabout his firm’s November exit from Potter Global Technologies to KKR.

Check out the full version of the Wire for more.

‘Bullish’ on financial exits

Such sponsor-to-sponsor exits are likely to pick up in 2024, particularly in the tech sector, BC Partners’ partner and management committee member Mark Fariborz told me over on PE Hub Europe.

Tower talk

Fengate Asset Management has added to a list of deals in the wireless towers sector this year after acquiring a portfolio of sites across nine states from TowerCom.

Read more in the subscriber version of the Wire.

Other private capital interest in wireless tower business this year includes Development Partners International and Verod Capital’s acquisition of Pan African Towersin November.

Ten count

Rounding out the Wire today is the latest example of another strong trend we’ve seen this year – add-on acquisitions – by a company that has been particularly busy on that front.

Private equity-backed wealth management firm Mercer Advisors has made its 10th add-on of the year, acquiring Paragon Wealth Strategies, a peer located in Jacksonville, Florida.

OK that’s all from me today. Chris Witkowsky will be on Wire Wednesday duty tomorrow.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Meet the ‘oldest GP stakes firm you’ve never heard of’: Australia-listed Pacific Current Group made headlines this year after receiving a takeover bid from one of its own portfolio companies. (Private Equity International)

Against the backdrop of COP28, Copenhagen Infrastructure Partners has launched the Growth Markets Fund II, targeting $3 billion. The fund is Article 9 under the EU’s SDFR framework and could be the largest-ever fund focused on greenfield renewable energy investments in growth markets. (Infrastructure Investor)

JPMorgan Asset Management has forecast that core infrastructure returns will improve in 2024, increasing to 6.8 percent on an annual basis from 6.3 percent in 2023. (Infrastructure Investor)

Rising interest rates, recession and inflation have had a chilling effect on private markets and are set to remain the major challenges facing alternative investments in the year ahead. According to Venture Capital Journal‘s LP Perspectives 2024 Study, LPs expect these three macroeconomic themes to continue having the biggest impact on their private markets portfolios over the next 12 months.