Vista to launch single-asset continuation fund, sources say; Vista and Blackstone discuss energy transition

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Vista to launch single-asset continuation fund, sources say; Vista and Blackstone discuss energy transition

Good morning, Hubsters. Hope you had a nice long weekend.

MK Flynn here on the Tuesday Wire, filling in for Craig McGlashan, who has the week off.

Exits have become elusive in today’s market, prompting many private equity firms to seek single-asset continuation funds. Vista Equity Partners is reportedly considering the strategy for one of its big enterprise software companies.

We’ll also take a close look at an acquisition Vista recently closed in partnership with Blackstone. PE Hub interviewed both firms about the deal, which is focused on the global energy transition.

Add-ons have become more important in the deal slowdown, as PE Hub has reported. Today, several PE firms announced add-ons. I’ll highlight a couple of interesting ones, including a transaction from Core Industrial Partners, below.

Let’s kick things off with today’s news.

Adding on

Core Industrial Partners has unveiled another deal for its portfolio company PrecisionX Group. The company is buying National Manufacturing Co., a provider of specialty deep and shallow drawn stamping.

For more on Core’s strategy with PrecisionX, upgrade to the premium version of the Wire.

Modern times

Bernhard Capital Partners’ government services platform has acquired Apogee Engineering, a government technology solutions provider, for undisclosed terms.

Subscribers to the premium version may learn more.

For ongoing coverage of daily deals, see the News Briefs landing page of PE Hub, led by Iris Dorbian.

Too big to digest

Vista Equity Partners is reportedly exploring a single-asset continuation fund process to extend its hold of a portfolio company it acquired a decade ago, Hannah Zhang and Chris Witkowsky are reporting.

To learn all about the move, upgrade to the premium version of the Wire.

Collaboration and complementary skillsets

Vista and Blackstone recently completed the acquisition of Energy Exemplar, an Australian-based provider of energy market simulation software, from the Riverside Company. Earlier this month, Energy Exemplar announced its first add-on deal for Adapt2Solutions, a Houston, Texas-based provider of power market operations.

PE Hub’s Obey Martin Manayiti interviewed Patrick Severson, a senior managing director and co-head of Vista’s Foundation Fund, and Bilal Khan, a senior managing director at Blackstone Energy Transition Partners, about their partnership.

Subscribers may read the interview here.

Reach out

Before I sign off, I want to encourage PE Hub readers to reach out to me with story ideas and suggestions of dealmakers you’d like us to profile.

And, as Pride Month approaches, we’re looking for insights from the LGBTQ+ private equity community. As always, you can reach me by email at [email protected].

Chris Witkowsky will be with you tomorrow.

All the best,

MK

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

ICG is joining the growing host of alternatives managers wanting to raise more private wealth capital via non-closed-end funds. (Private Equity International)

Houlihan Lokey’s supply chain software pipeline is “much larger than last year,” Tim Macholz, a director in the investment bank’s technology group, told PE Hub Europe. A drop in interest rate volatility is bolstering deal supply, while on the demand side investors like private equity are attracted to the sector’s strong fundamentals, convergence with industrial software and healthy strategic buyer pool.

An increasing percentage of GPs are offering management fee discounts, extending fund offering periods, and providing flexibility on recycling provisions, according to a study by law firm Paul, Weiss, Rifkind, Wharton & Garrison, which was shared exclusively with Private Equity International.

Europe’s ageing onshore wind farms are ripe for replacement and infrastructure investors are taking note. (Infrastructure Investor)

Forty women-led venture funds raised a combined $708 million from January 1 to May 22, according to exclusive research by Venture Capital Journal.

They said it

“We are cautiously optimistic – we are anticipating lower interest rates over time and seeing a reacceleration in deal flow. Our approach to investing remains consistent: we seek to identify long-term, secular themes and act on ‘winners’ in those areas, seeking companies that can continue to grow regardless of the macro environment.”

— Bilal Khan, a senior managing director at Blackstone Energy Transition Partners, about partnering with Vista on the Energy Exemplar deal