Leonard Green to acquire minority stake in HUB; plus Investcorp, Sound Partners, Odyssey invest in HVAC

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Leonard Green to acquire minority stake in HUB; plus Investcorp, Sound Partners, Odyssey invest in HVAC

Good morning dealmakers, thank goodness it’s Friday!

It’s Obey Martin Manayiti here with the newsletter.

To cap off the week, I am looking at seven HVAC deals that have caught PE investors’ attention as hot temperatures beckon.

But first let’s look at deals announced this morning.

Insurance brokerage

This morning, Leonard Green & Partners (LGP), a Los Angeles-based private equity firm has announced plans to take a minority investment in Hub International Limited (HUB), a global insurance brokerage headquartered in Chicago. The deal is expected to close in the third quarter of 2023.

Hellman & Friedman will retain the controlling interest.

For more on the deal, including additional investors and details on the valuation, subscribe to the premium version of the Wire.

Artificial intelligence

Also this morning, Bethesda, Maryland-based iLearningEngines, which is a provider of AI-powered learning automation and information intelligence for corporate and educational use, has agreed to merge with Arrowroot Acquisition Corp, a blank check company backed by Arrowroot Capital.

Cooling off

For many, the spring season is one of the best times of the year because of its moderate temperatures. But it is also a reminder that summer is around the corner, so it serves as a prompt to kick-start preparations for the upcoming hot temperatures, including acquiring, testing, repairing and installing AC units and other air conditioning equipment. The fast-growing HVAC business is increasingly regarded as a non-discretionary expenditure, the sector is highly fragmented, and its business model generates recurring revenues, PE firms have told us.

To find out who’s investing, read the premium version of the Wire.

That’s it for me today. You can reach out to me at [email protected].

PE Hub editor-in-chief Mary Kathleen (MK ) Flynnwill be back with the Wire on Monday.

Have a great weekend.

Cheers,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Private markets are at an inflection point and should expect more public scrutiny. A confluence of events points to one obvious fact: the private equity industry could do a better job of telling its story. (Private Equity International)
Real estate’s great renovation is likely to be a private affair: A white paper from Swiss alternatives manager Partners Group overlooks the nature of listed real estate earnings, but its central declaration that private markets are overtaking their public counterparts still rings true. (Private Equity Real Estate)
CPP Investments, the world’s biggest investor in private equity according to the GI 100, is losing its head of funds and secondaries, Private Equity International has learned.
Oaktree Capital Management has held a final close of its latest European capital solutions fund with €1.2 billion of commitments. (Private Debt Investor)
LP-led mosaic transactions appear to be a common feature in the market today; expect them to remain for the foreseeable future. (Secondaries Investor)
Progress is being made in encouraging borrowers to take their ESG responsibilities seriously, but is it being made by private lenders? (Private Debt Investor)