SEC's Gensler talks PE transparency, Five Arrow's Stepping Stones hits the market

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The Wire

Nov. 11, 2021

SEC's Gensler unveils potential agenda for path to greater transparency in PE, Five Arrow's Stepping Stones starts sale process, Orangewood buys Taco Bell franchisee

Good morning!

It's Veteran's Day. Thank you, veterans, for your service.

Top financial regulator Gary Gensler is advancing options his agency can take to introduce greater transparency and a level playing field in private markets, writes my colleague Kirk Falconer for Buyouts. Gensler said he has tasked regulatory staff with assessing, and preparing recommendations on, key issues of interest to general partners and limited partners alike. They include the transparency of fees and expenses; how side-letter provisions might benefit from increased transparency or whether certain varieties should be prohibited; performance metrics and suggest ways for improving transparency, among other things. Read Kirk’s full report on Buyouts.

Healthcare: Five Arrows Capital Partners is seeking a buyer for Stepping Stones Group, a behavioral health platform focused on providing comprehensive services to school-age children, according to sources familiar with the firm’s plans.

Check out my full report on PE Hub.

First-mover: Elsewhere, US Oral Surgery Management this week emerged as the target of the first secondary PE transaction involving a practice management platform dedicated to the oral surgery market. Oak Hill Capital Management’s recently completed acquisition of USOSM valued the Irving, Texas-based business between $700 million and $750 million, according to sources familiar with the deal terms. Good fundamental growth trends are supporting what one source called a “rising tide” around this specialty. Read all the deets in my full report.

Tacos for life: Long-life investor Orangewood Partners has acquired Pacific Bells, a leading Taco Bell franchisee in the United States, from Partners Group, writes Aaron Weitzman for PE Hub. Alan Goldfarb, who founded Orangewood after a five-year tenure at Senator Investment Group and a previous stint at Carlyle, called Pacific Bell a “prized asset within the Taco Bell system” that it will look to build upon. Read more on PE Hub.

That’s it for me! Have a great day, and as always, write to me at [email protected] with any tips, gossip or feedback.

Read the full wire commentary on PE Hub...

Also of note (may require subscriptions)

Growth: General Atlantic has amassed $7.8 billion for its sixth flagship growth fund, GA 2021 – its largest vehicle – securing capital commitments from a wealth management channel for the first time. The New York-headquartered growth fund had a target of $5 billion, according to a statement. The fund received commitments from new and existing LPs, including family offices, endowments, foundations and institutional investors. Read more on Buyouts.

Increasing allocation: After hitting most of its goals in 2021, Los Angeles City Employees’ Retirement System has approved and adopted a strategic private equity plan for 2022, as it is trying to reach its new private equity allocation of 16 percent. The plan was put together by Aksia, LACERS’ PE consultant. LACERS is riding a trend as pension plans across the country are increasing their allocations to PE. Read it on Buyouts.