KKR details The Spot Parking deal; Allied scoops up JCL Energy; Leeds Equity acquires OffSec

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KKR details The Spot Parking deal; Allied scoops up JCL Energy; Leeds Equity acquires OffSec

Good morning dealmakers, it’s Obey Martin Manayiti with the US edition of the Wire from the New York newsroom.

Some of you might have traveled during the long weekend and got firsthand experience of the hassles of airport parking. We are opening with my deep dive of KKR’s The Parking Spot recent investment. Partner Dash Lane told me what’s driving demand for parking lots near airports.

Next, we have a few deals announced this morning touching on various sectors.

First, Allied Industrial Partners has invested in JCL Energy, a distributor of pad-mounted transformers and associated electrical equipment. Stay tuned for what Allied Industrial co-founders say about this deal.

Next, we have the news that Leeds Equity Partners acquired OffSec, a cybersecurity training company. Cybersecurity continues to attract PE investors. We have more below.

Finally, Sound Growth Partners acquired Stueve Construction, a provider of engineering, design and construction services for bulk fertilizer storage facilities.

The Parking Spot

A secure, reliable parking spot is every driver’s dream when going to an airport. And it turns out that such certainty is also on the wish list for private equity firms. KKR last week acquired The Parking Spot, a Chicago-based company that operates parking assets near large airports in the US.

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Allied Industrial Partners invested in JCL Energy, a Sharon, Pennsylvania-based distributor of pad-mounted transformers and associated electrical equipment.

Premium subscribers to the Wire can learn more on this deal, including what Allied co-founders have to say.

Cybersecurity

Leeds Equity Partners has announced the acquisition of OffSec, a New York City-based cybersecurity training company from Spectrum Equity.

Upgrade to the premium version of the Wire for more.

At PE Hub, we have seen a slew of cybersecurity focused deals this year. We recently rounded up seven.

Construction

Sound Growth Partners has acquired Stueve Construction, an Algona, Iowa-based provider of engineering, design and construction services for bulk fertilizer storage facilities in the US.

For more details, please upgrade to the premium version of the Wire.

That’s it for me today. As always, I’d love to hear from you at [email protected].

Craig McGlashan, Europe editor, will bring you tomorrow’s Europe Wire, while Rafael Canton will bring you the US edition.

Cheers,

Obey

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

HSBC’s private banking arm targets global GPs with co-investment financing product: The credit advisory unit is seeking to fill a void by offering financing for PE employees who need assistance in meeting co-investment obligations, head of origination Mathieu Rabiller tells Private Equity International.

Lower-rated, private equity-backed companies have had an outsized effect on the default rate of US corporate defaults for the two-year period ending August 2024, according to a report by Moody’s Ratings. (Private Debt investor)

"Private equity groups TPG and Blackstone have teamed up to work on a joint bid for eyecare company Bausch + Lomb, according to people familiar with the matter." (Financial Times)

"3i searches for next ‘gem’ as short seller circles: The UK’s oldest buyout group has become heavily dependent on Dutch retailer Action that makes up two-thirds of its portfolio by value." (Financial Times)

"Fuji Soft said it would sincerely consider Bain Capital’s tender offer, which beat private-equity firm KKR’s offer, possibly setting the stage for a bidding war for the Japanese software developer." (Wall Street Journal)

"Britain's finance minister Rachel Reeves said she would 'catalyze' billions of pounds of investment into growth sectors, such as gigafactories, green hydrogen and carbon capture, through a new wealth fund and partnerships with pension funds." (Reuters)

"Female board and leadership representation at European companies plunges whens private equity firms invest, according to a study by consultancy LCap Group. The average percentage of women in leadership positions tumbles to 16% by the end of the private equity investment holding period, down from an average 20% before they invest, the study of 1,424 European companies showed." (Bloomberg)

"Nails.Inc has been acquired by Pacific World Corporation to fuel the British nail care company's North America expansion plans." (Cosmetics Business)

"Warburg Pincus appointed two senior advisers to its European business and global health care group as the private equity firm beefs up its dealmaking capability in the sector. Axel Herberg, a board member at Gerresheimer AG and a former Blackstone Inc. partner, has become a senior adviser. ... Venture capital firm 3B Future co-founder Francesco Granata is also joining as a senior adviser." (Bloomberg)

They said it

“This investment is in our infrastructure strategy where we look for assets that have very predictable and stable demand. There is predictable demand for parking services around airports, and the Parking Spot is the best recognized brand that owns facilities near large airports in the United States.”

— Dash Lane, a partner at KKR regarding the firm’s investment in The Parking Spot.