View this email online 

Audax looks to countersue HIG over Mobileum deal; Nuveen shares insights on private credit

Good morning, Hubsters.

It’s Rafael Canton filling in for Obey Martin Manayiti on this Friday edition of the Wire.

Let’s kick things off with some news. PE Hub editor-in-chief MK Flynn was the first to report last night that Audax plans to countersue HIG in the increasingly bitter dispute over the firms’ co-investment in Mobileum. We’ve got the details below.

Private credit is having its day in the sun. Earlier in the week, I attended a media roundtable that shined a light on the sector. It was hosted by private asset manager Nuveen Private Capital, and I’ll share a couple of points that stood out.

These days, it’s all about value creation. We’ve got a report from private equity-focused advisory firm BluWave that highlights how PE firms are investing in their portfolio companies.

Plus, we’ve got a couple of new deal announcements from Sheridan Capital and Wind Point Partners.

First, let’s dig into this countersuit.

“Completely surprised”

It’s rare for private equity companies to sue each other. The industry is known for its collegiality. If anything, it’s too chummy. So it’s noteworthy to witness the acrimony being expressed by mid-market PE firms Audax Private Equity and HIG Capital over their co-investment in telecom software developer Mobileum. After HIG filed its complaint this week, Audax told MK it now plans to countersue, with both claiming the other destroyed Mobileum’s value.

Upgrade to the full version of the Wire to read more.

Golden era of private credit

The role of private credit in PE dealmaking has been growing. Nuveen Private Capital Co-CEO Ken Kencel said the private credit market is currently worth $1.6 trillion this year and is projected to be worth $2.5 trillion over the next five years.

Kencel and fellow Nuveen Private Capital Co-CEO Anthony Fobel spoke at a media roundtable event hosted by Nuveen in New York earlier this week. To find out the latest trends, I attended the roundtable.

Subscribers to the premium version of the Wire may read more from the roundtable.

Value created

As dealflow has declined, PE firms have increasingly focused on optimizing their existing portfolio companies. I saw that up close and personal last week at PEI’s Operating Partners Forum New York 2023, which 700 people attended.

Private equity-focused advisory firm BluWave has a Q3 2023 trends report about how the PE industry is focused on value creation with their portfolio companies as dealflow is expected to increase.

Upgrade to the premium version of the Wire to read more from the report.

Morning deals

Sheridan Capital Partners has formed Ascend Plastic Surgery Partners, an Atlanta-based plastic surgery physician practice management firm.

Also in the news this morning is Chicago-based Wind Point Partners. The PE firm acquired Central Moloney, a Pine Bluff, Arizona-based maker of critical infrastructure products for the U.S. electrical grid.

Subscribers to the premium version of the Wire may read more about these deals.

That’s it from me today. If you have any thoughts, questions, or just want to chat, please email me at rafael.c@pei.group. MK will be back with the Wire on Monday. Have a nice weekend.

Cheers,

Rafael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

After two years of fundraising, Carlyle Group held a final close on its eighth flagship fund on around $14.8 billion in August, below its initial $22 billion goal and less than the firm raised for its prior main private equity fund. (Buyouts)

New Jersey Division of Investment plans on committing at least $1.6 billion to private equity funds in FY 2024. (Buyouts)

Mega-fundraises obscure growing LP appetite for smaller buyouts: More capital is going into the hands of the biggest funds, and yet according to research shared with Private Equity International, LPs are turning their attention to the lower end of the market.

Alpine Investors has closed on a banner continuation fund at a time when the secondaries market has favoured smaller GP-led transactions. (Secondaries Investor)

AnaCap is near to finalizing a continuation fund deal involving assets it agreed to partially exit via M&A processes this year, Secondaries Investor has learned.

No sector appears to be immune from the slowdown in venture capital fundraising. We thought this week’s announcement by OrbiMed that it had raised $4.3 billion across three funds might be a sign that healthcare-focused funds were defying the pullback. Alas, that’s not the case. (Venture Capital Journal)

London CIV has appointed consultant Redington to support its launch of a natural capital investment vehicle. (Agri Investor)

Although more managers are mapping the physical risk of climate change in their real estate portfolios, it is still rare for these factors to have a material impact on investment decisions, said panelists on a webinar hosted by the Urban Land Institute Europe this week. (Private Equity Real Estate)