KKR reportedly buying stake in FGS Global; Audax veterinary deal embodies PE trends

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KKR reportedly buying stake in FGS Global; Audax veterinary deal embodies PE trends

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

While many people are focused on the holidays this week, there’s at least one large deal reportedly in the works:

KKR is “nearing a deal to buy a large stake in FGS Global that will value the WPP-backed financial communications company at about $1.4bn, according to people with knowledge of the matter,” reported the Financial Times earlier this morning.

FGS, KKR and WPP aren’t commenting, but we’ll be on the lookout for an announcement, which could come as soon as next week.

Speaking of KKR….

Earlier this week, PE Hub and Buyouts announced our Deals of the Year.

KKR took away the overall Deal of the Year award for its purchase of CHI Overhead Doors, as I wrote about in Monday’s Wire.

KKR won another category too. More on that, below.

But first, let’s take a look at a deal announced this morning that embodies several trends.

Keep on adding on

This is the year of the add-on, sources tell us. And while some of the deals are too small to warrant a lot of attention, every now and then one comes along that catches my eye.

This morning, a deal made by a portfolio company of Audax Private Equity is particularly interesting, because it reflects several trends in private equity dealmaking, including: PE interest in the popularity of pets, which continues post-pandemic; the role women are playing in veterinary care; and the rise of employee ownership in PE-backed companies.

For more, read the premium version of today’s Wire on PE Hub.

Secondaries success

KKR “pulled a rabbit out of a hat in its syndication of Internet Brands during a brutal market climate,” writes Buyouts’ Chris Witkowsky.

The move earned KKR our award for Secondaries Deal of the Year.

Read all about it on PE Hub.

That feels like a fitting end to today’s newsletter.

PE Hub’s Obey Martin Manayiti will be back with tomorrow’s Wire, and I’ll see you on Monday.

Until then, I’m wishing you a happy season, whether you’re observing Passover, Ramadan, Easter or Spring!

Cheers,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Hg to build out dedicated wealth team. Martina Sanow – former deputy COO at the London-headquartered firm – leads the unit, which was set up over the past year. (Private Equity International)

GDA Luma Capital, led by veteran distressed investor Gabriel de Alba, is getting ready to raise a debut fund anchored by two high-profile billionaires. (Buyouts)

US needs a jolt in regulatory reform: While the country’s grid is in need of upgrades and modernization, a heavily regulated market and the associated risks have kept private capital at bay. (Infrastructure Investor)

Martis Capital has hit its target and is heading for its hard cap on what it’s calling Fund IV, a source told Buyouts.

In the pecking order of roles at private real estate firms, acquisitions people have long received top billing. But the once supporting role of asset management is now getting its time in the spotlight. (PERE)

Fresno County Employees’ Retirement Association investment staff withdrew a recommendation to pause new commitments to private equity in the second half of the year. (Buyouts)

The fight to attract and retain talent shows no sign of abating, not only because of the macroeconomic environment, but because the industry continues to grow, according to Crestbridge’s first Alternative Managers’ Mood Index. (Private Funds CFO)

London-headquartered pan-European manager Inflexion Private Equity has sold a passive minority stake in the firm to GP stakes investor Hunter Point Capital. (Private Equity International)

"Fuel station operator TravelCenters of America is seemingly at a happy crossroads: Not only has oil supermajor BP agreed to buy it for a healthy premium, but a second suitor has emerged with an even higher offer price and bigger sweeteners. TravelCenters, though, wants to stick with BP’s lower bid." (Wall Street Journal)

"Temenos AG asked for fresh expressions of interest from potential suitors in recent weeks after takeover talks fell apart last year over price, people with knowledge of the matter said." (Bloomberg)