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Apax to take Thoughtworks private; Bain Capital on market ‘bifurcation;’ Sandy Robertson passes away

Good morning, Hubsters. MK Flynn here with today’s Wire.

Today’s dealmaking landscape is “bifurcated” between pristine assets and challenging assets, according to Bain Capital’s Nigel Walder. We’re featuring an H2 Outlook piece with Walder on the Hub today.

We’ll share some more thoughts on the state of PE dealmaking from Debevoise & Plimpton’s 2024 Private Equity Midyear Outlook, released today.

And we’ll take a close look at emerging manager Snowhawk’s second deal.

We’ll also take a moment to remember Sanford ‘Sandy’ Robertson, the co-founder of Francisco Partners, who has passed away.

But first, a deal announced this morning that caught my eye.

Deal of the day

The uncertainty of the public markets has made take-private deals especially attractive this year. Earlier this morning, Apax Partners announced it has agreed to acquire Thoughtworks, a Chicago-based global technology consultancy that integrates strategy, design and engineering, in a take-private deal for $1.75 billion.

Subscribers to the premium version of the Wire will learn details of the deal.

Tale of two markets

For our ongoing H2 Outlook series, Nigel Walder, the London-based partner who leads the UK coverage team at Bain Capital, spoke with PE Hub Europe editor Craig McGlashan about the bifurcation in the market.

Upgrade to the premium version of the Wire to read the interview.

PE Hub is running H2 Outlook pieces with senior private equity dealmakers through August. The previous installment was with Schroders Capital’s Tim Creed.

Guarded optimism, still

And for more market analysis, premium subscribers will gain insights from Debevoise & Plimpton’s 2024 Private Equity Midyear Outlook, released today.

Fiber all the way

Rising demand for fiber services at vacation rentals and other multi-unit buildings fueled emerging manager Snowhawk’s interest in SecureVision. In July, the two-year-old firm acquired a majority interest in the fiber service provider. The deal represents the first outside equity raised by SecureVision.

To learn more about the deal and the New York-based PE firm that’s backing companies involved in the digital transition, PE Hub’s Rafael Canton caught up with Robert Reid, a founding partner at Snowhawk.

Premium subscribers may read the story.

In memoriam

All of us at PE Hub extend our condolences to the family, friends and co-workers of Sanford ‘Sandy’ Robertson, the co-founder of Francisco Partners and a pioneer in technology investing, who has passed away. He was 93 years old.

That’s all for today. As always, you can reach me at mk.flynn@pei.group.

Craig will be with you tomorrow.

All the best,

MK

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Ares Management raised nearly $1 billion for secondaries in the last quarter alone. The largest proportion – $400 million – came from private equity secondaries, according to the presentation. Infrastructure and credit secondaries raised $200 million each, with the remainder for real estate. (Secondaries Investor)

Riverside Company has beefed up the executive-level talent on its newer special situations strategy with the hiring of Craig Kahler, formerly of ORIX Capital Partners, as a partner. (Buyouts)

Quinbrook Infrastructure Partners has reached a $2 billion final close on its Net Zero Power Fund, while also securing $1 billion in co-investment capital. (Infrastructure Investor)

Venture Capital Journal is out with the first of a five-part series looking at the challenges presented by the rapidly growing data center industry, which will require a host of new technologies – and substantial venture capital investment – to meet the demands of AI.

The amount of time spent raising a North American private equity fund is one of the best indicators of where the market is – and where it is going. (Buyouts)

The insurer’s guide to infrastructure investing: Alexander Gramann, Munich Re's senior investment manager for renewables and infra, spots opportunity in the US and sub-IG debt. (Infrastructure Investor)

Legal advisers on the future of funds regulation: The SEC’s recently vacated Private Funds Rules have moved the needle on market practice regardless of their withdrawal – and there is no going back. (Private Funds CFO)

They said it

“For the best assets, buyers are being given license to stretch by investment committees that are very focused on buying pristine assets in this environment. On the tougher assets, buyers are not stretching and those exits remain somewhat challenging.”

— Nigel Walder, Bain Capital, on his H2 Outlook