PE-backed companies turn waste into energy; BPOC buys time for 5 healthcare service providers

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PE-backed companies turn waste into energy; BPOC buys time for 5 healthcare service providers

Good morning dealmakers, thank goodness it’s Friday.

It’s Obey Martin Manayiti here with the newsletter. To cap off the week, I have two interesting trends that caught our attention here at PE Hub this week.

I will start with three deals that are converting waste to renewable energy, a market that is expected to grow rapidly as the US moves to cut carbon emissions and bring a variety of renewable energy sources online.

Then, I’ll share Irien Joseph’s roundup of nine PE-backed deals in the education sector.

And I’ll share some news this morning about BPOC closing its first continuation fund. The deal involves five healthcare service providers.

Trash or treasure

Private equity firms are increasingly picking up investments in waste management and leveraging opportunities to turn waste into renewable energy, teeing off an additional revenue stream on top of waste management.

The sector is high growth and resilient, and it offers stable cashflow, sources told me.

Let’s look at some of the deals:

PurposeEnergy

Earlier this week, Quinbrook Infrastructure Partners acquired PurposeEnergy, a Windham, New Hampshire-based company that specializes in turning waste food into biogas for use in industrial processes, conversion to renewable electricity, or refinement to Renewable Natural Gas.

(Upgrade to the premium newsletter to read about the rest of the deals.)

Back to the books

With global demand for accessible education on the rise, private equity firms are increasing their engagement in the education segment, with a flurry of deals since the beginning of 2023 in Europe and the US.

After initially hitting a pause in 2022, there now seems to be a pickup in activity in the education sector with PE firms targeting online learning services and technical education companies, reported my colleague Irien Joseph.

Here's one of the deals Irien covered:

• New York City-based Coursedog, an academic operations platform for higher education, secured $90 million from JMI Equity in March.

Coursedog was founded in 2018 by Columbia University students Justin Wenig and Nicholas Diao.

In March, Carnegie, which is backed by New Heritage Capital, acquired Clarus Corporation, a provider of community college marketing.

Based in Westford, Massachusetts, Carnegie is a higher education enrollment marketing and strategy firm.

Healthcare services

Chicago-based healthcare-focused PE firm BPOC announced the closing of its first continuation vehicle, a $425 million transaction co-led by investment funds from Apollo S3, Blackstone Strategic Partners and Five Arrows.

(Upgrade to the premium newsletter to read more on this.)

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

MK Flynn will 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)

Alaska Permanent Fund will stop making new commitments to its in-state private equity investing program due to concerns about reputational risk and governance. (Buyouts)

KKR Ascendant Fund, unveiled last year by KKR to invest in North American mid-market businesses, raised just over $1.9 billion of initial commitments. (Buyouts)

A first-of-its-kind water PPP in Florida funded by Ridgewood Infrastructure may well hold the key for successful projects in the future. (Infrastructure Investor)

Impact and sustainability remain high on LP wish lists, but a heterogeneous investor universe makes fundraising a difficult exercise. (New Private Markets)

Fidelity’s first BDC has begun operations and will direct lend to mid- and upper-mid-market private companies. (Private Debt Investor)

When it comes to family offices, a tailored approach may pay dividends. One extra step from GPs on the fundraising trail might prove a giant leap into Asia’s growing private wealth market. (Private Equity International)

Coller Capital's founder said in 2017 his firm would only become multi-shareholder when he has grey hair; its deal with Hunter Point this week shows the firm is moving to its next stage of ownership (and that he may have a few strands of white showing). (Private Equity International)

FT's Alphaville column parses a report out from Jeffries titled, "Alts: The Next Shoe to Drop?" Of the positive spin from Jeffries, the column notes that "[i]t may not surprise you to learn that private equity firms in particular are mammoth fee-payers to investment banks." But it continues: "However, the report does a good job of running through a lot of the interesting issues that confront private, unlisted markets and the firms that invest in them. And there are a LOT of things going on right now."

"An auction of the Subway sandwich chain is heating up as suitors head toward a second round of bidding, people familiar with the matter said." (Wall Street Journal)

"Shares in Dechra Pharmaceuticals soared on Friday after the UK veterinary medicine group said it was in takeover talks with Swedish buyout firm EQT, as the private equity industry seeks a bigger share of the booming petcare market." (Financial Times)

"Wellington Management Co., an investment manager for pensions, insurers and other firms, is seeking to be a larger player in biotechnology venture capital." (Wall Street Journal)