KKR backs strategic communications specialist FGS Global; PE deals plummeted last month

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KKR backs strategic communications specialist FGS Global; PE deals plummeted last month

Good morning, dealmakers. MK Flynn here with today’s Wire.

Here’s a deal to start your day: KKR just announced a growth investment in FGS.

But, yes, it’s slow out there. And now we’ve got the numbers to prove it. See below for data on March dealflow.

One silver lining: it’s a great time to attend conferences and network with colleagues.

Next week, I’ll be interviewing a Blackstone exec at a PEI Group conference in New York. Details below.

First up, a “boardroom issue”

This morning, KKR announced a growth investment in FGS Global, a strategic advisory and communications firm headquartered in New York with offices all over the world.

For details on the deal, see the premium version of the Wire on our website.

Way down

“Global private equity deal value and volume tumbled year over year in March and in the first quarter,” finds new S&P Global Market Intelligence data and analysis.

Tech remains bright

The technology, media and telecommunications sector continued to receive the most capital from investors during the month, bringing in $32.97 billion in total transaction value, up slightly from $32.16 billion in the same period in 2022.

The largest PE transaction announced in March was Silver Lake and Canada Pension Plan Investment Board's agreement to buy experience management (XM) specialist Qualtrics International from SAP America for about $10.44 billion in an all-cash take-private deal.

As I mentioned yesterday, PE Hub’s Obey Martin Manayiti is working on a story about what’s driving PE-backed enterprise software deals. Look for that later in the month.

Want more details on dealflow in March? Visit pehub.com for the premium version of the Wire.

Conference time

One deal announced in March suggests the events industry is back: Blackstone is buying Cvent from Vista Equity Partners for $4.6 billion in a take-private deal.

Speaking of Blackstone and conferences….

On Wednesday, April 19, I’ll be conducting a Fireside Keynote Chat with Arielle Gross Samuels, managing director, global head of marketing for Blackstone, at PEI Group’s 18th annual Investor Relations, Marketing & Communications New York Forum. (Note: PEI is the owner of PE Hub.)

We’ll be discussing “future-proof marketing” for private markets.

Before joining Blackstone, Samuels worked at Meta (Facebook), serving as the global head of ESG business and previously business lead of global business marketing. Prior to Meta, Samuels worked at Deloitte in engineering consulting.

It should be a very interesting conversation, and I hope to see you there!

That’s it for today. Tomorrow, Buyouts’ Chris Witkowsky will write the Wire, as per usual on Wednesdays. I’ll be back on Thursday.

Until then, happy dealmaking,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

California Public Employees’ Retirement System will select consultants for its general pension fund and several investment categories including private equity at an upcoming meeting. (Buyouts)

Venture capital specialist S2G Ventures has launched a $300 million credit vehicle that will invest across the capital spectrum through debt, equity and hybrid investments. (Agri Investor)

Lenders have an opening to offer GPs NAV loans, as well as a form of sub line/NAV hybrid, to fill funding gaps in their new continuation funds, which are caused by differences between the vehicles’ deal sizes and ticket amounts from secondaries investors. (Private Funds CFO)

Swiss asset manager Partners Group made a splash recently with two major renewable energy deals in APAC. Its penchant for transforming single projects into platforms could see it make more. (Infrastructure Investor)

Sabina Sammartino, Mercury Capital Advisors’ former head of secondaries, has joined the advisory unit of Japanese financial services conglomerate Daiwa Securities Group. (Secondaries Investor)

Increasing ESG data collection requirements are causing a divide among GPs between those that are willing to bear the additional cost, and those looking to pass it on to their LP base. (New Private Markets)

A roadmap for strategically defaulting has been laid out with PIMCO-backed Columbia Property Trust’s February default on $1.7 billion of debt tied to seven higher-profile office assets. (Private Debt Investor)

"HPS Investment Partners has raised $12bn for a new junior credit fund, pushing the private credit firm’s assets under management to nearly $100bn as it becomes an increasingly formidable player across debt markets." (Financial Times)

"The founder of Tonal Systems Inc. is stepping down as chief executive after the at-home fitness company completed its latest funding round at a fraction of its prior valuation." (Wall Street Journal)

"Private equity firms are buying up stakes in Washington lobbying and public affairs shops in a bid to cash in on boom times for the strategic communications industry." (Politico)

"A growing number of institutional investors seek to gain leverage in their relationships with fund managers by using a difficult private-equity fundraising market as a way to pry open contract terms." (Wall Street Journal)

"Los Angeles Fire & Police Pensions rehired Portfolio Advisors as its core and specialized private equity investment consultant ... for its $4.9 billion portfolio. LAFPP has a 14% private equity target allocation." (Pensions & Investments)