Roofing companies on th e block; how organic gro wth drove LLCP’s exit o f Tropical Smoothie Cafe

View this email online

Roofing companies on the block; how organic growth drove LLCP’s exit of Tropical Smoothie Cafe

Hello, Hubsters. Rafael Canton here with today’s Wednesday Wire.

Opening up we have my deep dive into the exit of Tropical Smoothie Cafe by Levine Leichtman Capital Partners.

Then, PE Hub senior reporter Michael Schoeck has a look at roofing businesses that are on the block.

In other news, KKR and HASI have formed a new vehicle to invest in US-based climate positive projects. In another deal, TPG Rise Climate agreed to acquire Olympus Terminals.

Finally, we have a peek into the latest on the NFL’s ownership rule changes and what role private equity will play.

Organic growth

Beverly Hills-based private equity firm Levine Leichtman Capital Partners announced in April that it had sold Tropical Smoothie Cafe for $2 billion, according to reports. Founded in 1997, the Atlanta-based Tropical Smoothie Cafe chain sells smoothies, wraps, sandwiches and flatbreads.

I spoke with managing partner at LLCP Matthew Frankel about the exit, how the firm grew the company and why franchising is so popular among PE firms.

Subscribe to the premium version of the Wire read more about the exit.

Raising the roof

Interest in home improvements and repairs has led to a significant amount of private equity dealmaking. PE Hub senior reporter Michael Schoeck highlighted a couple of portfolio companies that are available as PE firms look to exit investments to redistribute capital.

Upgrade to the premium version of the Wire learn more about what roofing companies are up for sale.

Going climate positive

KKR and Hannon Armstrong Sustainable Infrastructure Capital have agreed to form CarbonCount Holdings 1. The newly formed outfit will invest in US-based climate positive projects.

Subscribe to the premium version of the Wire learn more about this partnership.

Climate-based deal

In another deal, TPG Rise Climate agreed to acquire Olympus Terminals. Based in Long Beach, California, Olympus Terminals is a storage provider for renewable fuels and refined products.

Upgrade to the premium version of the Wire learn more about this deal.

NFL one step closer to private equity

Private equity has stepped into pro sports and it isn’t leaving. Over the past several months, there’s been talk of how the NFL will allow institutional investors, including private equity, to invest in NFL franchises. We’re starting to have a clearer picture, according to a Bloomberg report.

Find out where the NFL is in terms of private equity by upgrading to the premium version of the Wire.

That’s it from me today. If you have any thoughts, questions or want to chat, please email me at [email protected]

Michael Schoeck will be on wire duty tomorrow.

Cheers,

Rafael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Mesirow Financial Services wants to raise a combined $1.4 billion across two vehicles, including one focused on co-investments. (Buyouts)

Large global tech companies moving their delivery and support centers to Poland, paired with central Europe’s promising GDP growth forecasts and skilled workforce, make the region ripe for private equity investment, Marek Rodak, principal at MidEuropa, told PE Hub Europe.

Export finance is an integral part of global supply chains and long predates the concept of impact investing, but the way the credit tool has evolved and the nature of the market’s funding gaps present institutional investors with an opportunity to unlock more than $5 for every dollar spent, said Acre Impact Capital founding partner Hussein Sefian. (Agri Investor)

Private debt secondaries take their place in the mainstream: A new survey suggests private debt secondaries have continued their ascent with more deals, stiffer competition and a wider group of participants. (Private Debt Investor)

Macquarie’s quest to become an energy transition champion: The Australian manager was an early mover in the energy transition and feels well placed to profit as the market matures and becomes more complex. (Infrastructure Investor)

EverBank’s fund finance arm is hitting its stride just over six months since it began lending operations and despite a slow fundraising environment, and is building a syndication desk and looking to offer new products. (Private Funds CFO)

Manager Stoneshield Capital, which invests in real estate across Southern Europe, has completed a final close for Stoneshield Opportunity Fund III with €750 million in commitments, PERE can reveal.

They said it

“The headline was that the markets were still a little soft for M&A. It was our viewpoint that for an A-plus asset like a Tropical Smoothie Cafe, the markets would be really receptive and value the company at a premium multiple as there was a lack of great assets available for both private equity and strategic buyers.”

— Matthew Frankel, managing partner at LLCP, about the exit of Tropical Smoothie Cafe