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The Wire

Private equity deal news and insights from the London newsroom

Jan 2, 2025

 

Hg’s Alan Cline on opportunities in the ‘AI revolution’; PE Hub look-back round-up

Morning all, Craig McGlashan here with the first Europe Wire of 2025 from the London newsroom.

 

I hope you all had a good break and are looking forward to what most sources have been telling us should be a busier year for dealmaking than 2024.

 

Something that is likely to touch many deal pitches this year is artificial intelligence, and this morning Hg’s Alan Cline talks us through how his tech-focused firm is navigating what he calls the “AI revolution.”

 

Next, we round up the articles we wrote in December looking back at some of the big themes in dealmaking in 2024.

 

We then close with a scheduling note for the Europe Wires in 2025.

 

AI push

Hg has around 250 AI projects underway across its portfolio and is already seeing benefits in cost efficiencies and revenue acceleration, Alan Cline, head of North America, told PE Hub's Irien Joseph in the latest of our 2025 Outlook pieces.

 

Find out more in the premium version of the Wire.

 

In case you missed it

We ran a series of articles in December looking back at the year in dealmaking in 2024. In case you missed any of them, here’s a roundup of those from the London newsroom:

  • AI, payroll automation and employee benefits digitization spark PE interest in 2024
  • Grid upgrades, digitalization and energy efficiency drew PE interest in 2024
  • European PE exits in 2024: IPO rebound, LP pressure, secondary sales drive activity
  • Food and beverage M&A fed by consumer demand for healthy, convenient choices
  • Private equity buys into European services with a global outlook
  • Private equity European office push pays off with UK, Germany and France deals
  • Private equity snaps up listed UK companies, but premiums in line with US
  • Skincare deals on the rise despite customers tightening purse strings
  • Travel industry attracts PE interest amid AI boom and post-covid holidays

 

Schedule note

We’re updating the Europe Wire author schedule from next week.

 

Nina Lindholm will write to you on Mondays and Thursdays, while I’ll be in the chair on Tuesdays and Wednesdays. Irien Joseph will remain on Friday Wire duty.

 

Right, that’s a wrap. Michael Schoeck will be on US duty later today and Irien Joseph will bring you the Europe Wire tomorrow.

 

Cheers,

Craig

 

Read the full Wire commentary on PE Hub ...

Today's must reads

> Hg's Alan Cline: Around 250 AI projects underway across portfolio More...
> Private equity buys into European services with a global outlook More...
> Private equity snaps up listed UK companies, but premiums in line with US More...
> Clarion Capital sees 'enormous momentum' in legendary Arthur Murray dance franchise More...
> David von Rosen builds firm’s presence from gambling to real estate More...

Also of note (may require subscriptions)

 

Demand for talent drives people moves across PE strategies: People moves have been on the rise in the wealth and secondaries space. (Private Equity International)

 

Why 2025 will be a good year for alternatives: Heitman executive vice-president Blaise Keane offers insight on macroeconomic factors and investment trends likely to impact the sector in 2025. (PERE)

 

Politicians to take notice of private debt in 2025: As the world awaits Donald Trump’s second term, private credit is set to become a major force in markets and that will attract the attention of politicians. (Private Debt Investor)

 

LPs raise the bar on ESG reporting: Investors are getting more sophisticated when it comes to environmental, social and governance considerations as they look to future-proof their portfolios. (Private Funds CFO)

 

Meet venture capital’s 2025 Rising Stars: We are proud to present Venture Capital Journal’s sixth annual list of 40 Rising Stars under the age of 40.

Deals

> One Equity Partners wraps up acquisition of Italy’s Comau More...
> Butterfly Equity completes $1.95bn take-private buyout of luxury wine company Duckhorn More...
> NEA to take healthcare firm NeueHealth private for $1.3bn More...
> Mutares agrees to buy GDL Anläggning & Miljö from GDL Transport More...
> PE-backed Coralogix acquires AI observability platform Aporia More...
> Guardian Capital snaps up tech infrastructure services provider Team Linx More...
People
> O2-backed Azureon taps Todd as chief integration and development officer and Ordonez as HR director More...
> Health Enterprise Partners promotes Rauber to VP More...
> David von Rosen builds firm’s presence from gambling to real estate More...

They said it

“The future, once again, is ripe for the specialist and will be harder for the generalist within the software world – all investments will not be created equal in 2025 and beyond.”

— Alan Cline, head of North America, Hg

 

Today's letter was prepared by Craig McGlashan

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