View this email online 

Littlejohn buys RailPros from Court Square as infra services heat up; how PE healthcare investors are handling tougher M&A regs in some states

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

First, we have an exclusive that Littlejohn & Co acquired RailPros, a Irving, Texas-based rail infrastructure service provider, from Court Square Capital Partners. We have some details below on the expected exit multiples.

Next, we have some fresh insights into how dealmakers are navigating different regulatory terrains both at the federal and state level in healthcare M&A. My colleague John R Fischer spoke with Brian Bewley, a partner at law firm Reed Smith, on the subject and I will share some excerpts from the interview.

Railway infrastructure

Littlejohn & Co acquired RailPros, a rail infrastructure service provider based in Irving, Texas, from Court Square Capital Partners for undisclosed terms. Our senior reporter Michael Schoeck was the first with an exclusive this morning.

PE Hub learned from three confidential sources over the past few weeks that Court Square had been finalizing deal terms with Littlejohn after a sale process initiated in the first quarter of 2025.

Upgrade to the premium version of the Wire to learn more.

Over the past year, PE Hub has covered transportation, infrastructure, power and utilities service providers for sale that have traded between PE firms and other investors. These include Resa Power, GridTek Utility Services, Global Critical Logistics and Lanter Delivery Services.

Healthcare M&A regulations

Regulations regarding healthcare M&A on the federal level are expected to loosen under the new administration, but regulations in several states are tightening. PE Hub’s healthcare reporter John R Fischer spoke with Brian Bewley, a partner at law firm Reed Smith, to learn more about how private equity dealmakers are navigating the regulatory landscape at the state level.

Upgrade to the premium version of the Wire to read the excerpts.

For more coverage on healthcare M&A, see:

• More states could scrutinize PE healthcare deals, says McDermott’s Kitchell
• A shift in how healthcare mergers are reviewed is still expected, says Reed Smith’s Michelle Mantine

That’s it from me today. Craig McGlashan will bring you the Europe edition tomorrow, while Rafael Canton will write Wednesday’s US Wire.

Cheers,

Obey

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Triton Partners believes that there is still plenty of opportunity in the data center service provider sector, Michael Gahleitner, managing partner and co-head of industrial technology, told PE Hub.

US-based fund manager LS Power is in pre-marketing with its sixth fund, with a view to targeting $3 billion, Infrastructure Investor understands. The firm is believed to be preparing the official launch of LS Power Equity Partners VI in the second half of the year, while it speaks to initial potential LPs. (Infrastructure Investor)

Julius Baer, a 130-year-old private bank with SFr497.4 billion ($602.7 billion; €531.7 billion) of assets under management, is exploring ways to incorporate more private markets exposure into discretionary client mandates. (Private Equity International)

Lewis & Clark AgriFood has launched the third iteration of its growth equity fund focused on food- and ag-related technology. (Agri Investor)

Impact verification firm BlueMark has placed nine first-time entrants on its Practice Leaderboard, a list of impact investors who rank in the top quartile across eight categories of impact management. (New Private Markets)

Deals

They said it

“I’m finding that dealmakers are adapting to this increased regulatory scrutiny by considering different deal structures to avoid certain regulatory triggers, adjusting due diligence processes, focus and timelines, and engaging directly with regulators at the state, when needed.”

— Brian Bewley, a partner at law firm Reed Smith, on how healthcare investors are navigating M&A regulations state by state.

Today's letter was prepared by Obey Martin Manayiti

Did someone forward you this email? Subscribe now to get full, unlimited access to all PE Hub content, including every PE Hub Wire article.

Please visit Buyouts for the latest insight into LP activity and Venture Capital Journal for comprehensive coverage and analysis of what’s happening in VC. 

London | New York | Hong Kong | Tokyo | Sydney

PEI Group Ltd is registered in England no.6135779

Registered office: 5th Floor, 100 Wood Street, EC2V 7AN

To update your PE Hub email preferences, or to unsubscribe, click here.