Single-assets CVs provide exits for energy investors, plus environmental services providers on the block

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Single-assets CVs provide exits for energy investors, plus environmental services providers on the block

Happy Monday, Hubsters. MK Flynn here with today’s Wire.

This morning, we’re featuring a pair of stories by PE Hub senior reporter Michael Schoeck.

Michael joined the Hub last year and covers the energy beat, among other sectors.

Lately, he’s been talking with dealmakers, investment bankers and other advisers in the energy sector about the appeal of single-asset continuation vehicles, an increasingly popular strategy in this era of elusive exits. I’ll share an excerpt from his story on that trend, below.

Outside of sector beats, Michael covers companies coming to market, delivering frequent scoops in his regular On the blockcolumn. He’s had a lot of experience revealing sales processes through relationships with confidential sources that he’s developed over the course of his career.

Here are some highlights from his latest column.

Waste not, want not

We’ve seen a wave of private equity investments in waste management and other environmental service providers this year.

Michael has heard that three more may be in the works. Upgrade to the premium edition of the Wire to read all about them.

And for recent deals in the subsector, see PE Hub reporter Obey Martin Manayiti’s roundup of PE-backed waste management deals.

For previous installments of On the block, check out our report from May on roofing services companies, our report from April on the industrial process and manufacturing market, and our report from March focused on the freight, logistics and transportation market.

Grooming a company for sale? Got tips or scoops? Send an e-mail to Michael at [email protected].

No exit

“There’s no exit market right now in oil and gas, and GPs have struggled to provide liquidity for investors,” Matt Swain, head of direct placement and secondaries at investment bank Houlihan Lokey, told PE Hub. “The M&A market and price support is not there. A number of fund managers need liquidity after being in these energy investments for well over the investments’ expected life. Continuation vehicles are very often the best solution.”

Premium subscribers may read Michael’s story for examples of the trend.

Tune into the Wire on Thursday’s for more of Michael’s work.

That’s it for today. PE Hub Europe editor Craig McGlashan will be back with more tomorrow.

All the best,

MK

Read the full wire commentary on PE Hub ...

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They said it

“There’s no exit market right now in oil and gas, and GPs have struggled to provide liquidity for investors.”

— Matt Swain, head of direct placement and secondaries at investment bank Houlihan Lokey, on single-asset CVs in the energy sector