Good morning, Hubsters. MK Flynn here with today’s Wire. There’s lots going on this morning, including a big financial services deal announcement and a potential bid for an energy-focused private equity firm. And we’ve got an interview with The Riverside Company about a recent Italian acquisition and highlights from Buyouts’ new fundraising report. Let’s start with a big deal announcement. O Canada. Royal Bank of Canada has just agreed to buy HSBC’s banking business in Canada for $10.1 billion. "HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value given our financial strength and award-winning service," said Dave McKay, president and CEO, RBC. "This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities. It will help us better serve global clients looking to invest and grow in Canada." Accounting for about 2 percent of Canadian deposits and mortgages, HSBC Canada has $134 billion in assets as of September 30, 2022, approximately 130 branches and 4,200 full-time equivalent employees. The financial sector is highly competitive in Canada, with 50 banks and hundreds of credit unions and fintechs competing to serve Canadians, RBC’s press release points out. Energy transition. One potential private equity deal we’re keeping tabs on: Bridgepoint Group in London said it is evaluating a possible bid for Energy Capital Partners, the Wall Street Journal reported. PE Hub hears the talks are "quite preliminary." We've reached out to both firms to find out more. ECP founder and senior partner Doug Kimmelman declined to comment. We'll keep you posted if anything further develops. Nutraceuticals. Prolific lower mid-market PE firm The Riverside Company agreed earlier this month to aquire a controlling stake in BioDue, a Sambuca, Italy-based company that develops, manufactures and commercializes food supplements, medical devices and cosmetics. PE Hub Europe’s Nina Lindholm spoke to Riverside partner Damien Gaudin about the deal. “Italy is at the forefront of the industry in Europe,” Gaudin told Nina. “It has the highest consumption per capita of nutraceuticals in Europe. Therefore, it’s no surprise that you have some significant players in terms of size and technology active in the sector, BioDue being one of them.” Read Nina’s interview on PE Hub Europe, which includes info on the type of add-ons Riverside is considering for BioDue, as well as its geographical plans and Gaudin’s thoughts on the broader nutraceuticals sector. Don’t miss. Are you signed up for PE Hub Europe? We recently launched the new website, which provides in-depth coverage and exclusive insight on European private equity deals. Look to PE Hub Europe for: - The latest deal terms and pricing to bolster your negotiations - Deal trend analysis to know if a sector is hot or overheated - Relevant and accurate intelligence on fund manager activity - Rare insight about fresh investment opportunities & pending deals We are offering complimentary access to PE Hub Europe for a limited time. Sign in or register to start reading today! Fundraising dip. Private equity fundraising declined in the third quarter, as overstretched LPs continued to erect supply barriers to proliferating funds, according to Buyouts’ Q3 2022 fundraising report. Some 252 buyout, growth equity, venture capital and other PE vehicles in North America secured $111 billion between July and September, down 20 percent from the second quarter. This marks the second consecutive quarterly dip in capital inflows this year. To discover more, read the full story and download the report. Today is GivingTuesday. At PEI Group this month, we’ve been contributing to a Holiday Food Drive for City Harvest, a food rescue organization that helps feed New Yorkers who are struggling to make ends meet, and raising money for men’s health, including suicide prevention, prostate cancer and testicular cancer, through Movember. Big thanks to Real Estate Capital USA’s Samantha Rowan and Buyouts’ Karl Shmavonian for organizing our efforts. Tune in tomorrow for Wire Wednesday with Buyouts’ Chris Witkowsky, and PE Hub’s Aaron Weitzman will take the helm on Thursday and Friday. I’ll be back on Wire duty on Monday. In the meantime, you can reach me, as always, at mk.flynn@peimedia.com. Cheers, MK Read the full wire commentaryfull wire commentaryon PE Hub …
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