Hello, PE Hubsters! Rafael Canton back in the chair for a second time this week with the US edition of the Wire from the New York newsroom.
TPG, which announced earnings this morning, madea pair of deal announcements yesterday after the stock markets closed: TPG and Corpay have agreed to take private AvidXchange, an accounts payable software provider, in a cash transaction that values the target at $2.2 billion. And TPG agreed to acquire Peppertree Capital Management, a firm that invests in digital infrastructure.
We’ve also seen a few recent deals involving tax software providers. Thoma Bravo and Great Hill Partnershave made some transactions. We’ll dig into why PE firms find the subsector appealing.
Finally, we have an exclusive look at DC Advisory’s US Private Equity Mid-Market Monitor: Q1 2025 & Outlook. The investment bank expects measured recovery in dealmaking for the second half of the year.
Let’s start with TPG.
Interesting investment opportunities
“TPG’s investment performance and financial results for the first quarter continued to demonstrate the strength and durability of our business,” said CEO Jon Winkelried in the PE firm’s Q1 earnings announcement earlier this morning. “As we look ahead, our experience has been that periods of dislocation often create some of the most interesting investment opportunities, and with $57 billion of dry powder across the firm, we are in a strong position to take advantage of this environment,” he said, echoing comments he made in PEI Group’s special report on PE reactions to tariff turmoil.
Proving his point, TPG announced two deals late yesterday afternoon.
TPG and Corpay have agreed to take AvidXchange private in a cash transaction that values AvidXchange at $2.2 billion. TPG also agreed to acquire Peppertree Capital Management a digital infrastructure investment firm.
Premium subscribers of the Wire can learn more about TPG’s acquisitions.
Improving efficiency
Tax season is over, but tax PE deals are evergreen. Earlier this week, we saw two deal announcements involving tax software. Thoma Bravo invested more than $100 million in HubSync. Based in Franklin, Tennessee, the company is an all-in-one tax and accounting business.
In another deal, Great Hill Partners made an investment in Vision Government Solutions Inc, a Hudson, Massachusetts-based tax software provider. As part of the deal, Rubicon Technology Partners, which invested in Vision in March 2021, has exited its stake in Vision. In October, PE Hub editor Craig McGlashan highlighted six deals in the accountancy sector which includes a couple of deals involving tax preparation.
Subscribers of the premium Wire can learn more about why tax PE deals are attractive to PE firms.
Slowly improving
As PE Hub has been reporting – and as we highlighted in our recent Q1 report – dealmaking has stalled this year, but many observers are suggesting activity will pick up later in the year. To that end, we got an exclusive early look at DC Advisory’s European Private Equity Mid-Market Monitor: Q1 2025 & Outlook.
Upgrade to the premium version of the Wire to gain insights and thoughts from DC Advisory on dealmaking activity.
That’s it for me. If you have any questions, thoughts, or want to chat about deals in the tech, consumer or sports sectors, please email me at [email protected].
Tomorrow, Nina Lindholm will be with you for the Europe edition of the Wire and Michael Schoeck will bring you the US edition.
Cheers,
Rafael
Read the full wire commentary on PE Hub ...
