Morning Hubsters, Craig McGlashan here with the Tuesday Wire.
Today we’re getting insights from Cambridge Associates’ Andrea Auerbach about the outlook for 2024. Auerbach talks us through how rising rates have changed dealmaking over the last couple of years – and how “the possibility of rate cuts in 2024 may well break the transaction logjam.”
We then switch to risk management, an area where we’ve seen plenty of deals this year, as Carlyle and Insight Partners agree to make a majority investment in Exiger, an enterprise software company.
Reinvestment
Before we turn to the day’s news, here’s an announcement of our own.
Bridgepoint today announced that it will reinvest in PEI Group, the leading international provider of information, insights and events for the global alternative private assets market. Following five years of support from BDC, Bridgepoint’s small mid-cap fund, PEI has grown substantially in the period, tripling revenue and quadrupling EBITDA, to a scale where it can now attract further funding from Bridgepoint’s larger buyout fund, Bridgepoint Europe VII. PEI is the publisher of PE Hub and PE Hub Europe.
The new investment is being committed alongside a meaningful reinvestment from existing investors, management and BDC and will fund both organic and acquisitive growth of the business.
PEI Group chief executive Tim Mcloughlin said: “Bridgepoint’s backing of PEI since 2018 has been a highly supportive and culturally well-matched partnership. Now with renewed sponsorship at such larger scale, we can continue PEI’s excellent growth journey – enhancing and expanding its position as the leading insight partner to private asset investors and responsible investment practitioners, globally.”
Bridgepoint said: “Our initial investment in 2018 via our small mid-cap fund has been highly successful and we’re delighted that Bridgepoint will be able to continue working with management and provide additional investment for the next stage of growth of PEI. It is a premium information services platform in a wider sector we have followed closely for years, with multiple opportunities for further growth and an exciting future ahead.”
Financial details of the transaction are not disclosed. The transaction closes in January 2024.
Rates rates rates
Cambridge Associates is optimistic that 2024 will be better than 2023 for private equity, particularly if central banks start to cut rates, Andrea Auerbach, head of global private investments and partner at the Boston-based investment firm, told PE Hub.
Read more in the full version of the Wire.
A shift away from being able to “employ leverage at will” as Auerbach put it was in keeping with an interview with PAI Partners managing partner Frédéric Stévenin on PE Hub Europe today.
Enterprising
We finish up with a deal in an area that we’ve seen plenty of action – supply chain risk management.
Carlyle and Insight Partners have agreed to make a majority investment in Exiger, an enterprise software company.
Subscribe to the full version of the Wire for more.
For more on why private equity likes enterprise software, check out this piece by Obey Martin Manayiti, one of PE Hub’s most popular stories of the year.
OK that’s all from me today. Chris Witkowsky will be with you tomorrow for Wire Wednesday.
Cheers,
Craig
Read the full wire commentary on PE Hub ...
