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Carlyle joins tech run as rates consensus helps sector valuations; Private equity cosmetics rundown

Morning Hubsters, Craig McGlashan of PE Hub Europe here.

I hope you had a good Thanksgiving and are suitably stuffed today. As an extra treat while the US team is on holiday, we’re sending you today’s edition of the Dealflow (PE Hub Europe’s version of the Wire), written by Irien Joseph.

Please enjoy. MK Flynn will be back on Wire duty on Monday.

Over to Irien…

Technology, a sector that dominated this week’s private equity activity, is today’s opening topic. Yesterday, we reported a deal in which Carlyle agreed tobuy a majority stake in a business software provider.

Then, I will turn your attention to some comments from Eric Sanschagrin, head of tech coverage for Europe at investment bank William Blair, on the attractiveness of the technology sector. I’ll also briefly summarize five tech deals we reported this week.

Lastly, I will switch sectors to highlight Craig McGlashan’s listicle on five private equity-backed cosmetics deals.

Tech dominance

Technology was the busiest sector by our reckoning in the second half of the year.

Adding to the list, yesterday we reported that Carlyle Group will acquire a majority stake in a business process management and governance, risk and compliance software provider.

Clearer signs

A growing consensus that interest rates have peaked for this cycle is benefiting the technology market, Eric Sanschagrin, head of tech coverage for Europe at investment bank William Blair, told me.

Check out the full version of Dealflow to know more.

Here’s a roundup of some of this week’s other tech deals:

Morgan Stanley Investment Management will acquire a 70 percent majority stake in a newly established data center company.

Partners Group has agreed to sell a cloud software service provider for the public sector.

Bregal Unternehmerkapital has acquired a majority stake in a Swiss cloud-managed service provider.

Astorg has signed an agreement to acquire a 51 percent stake in a European software products and service provider to the automotive leasing and mobility industry.

Volpi Capital has invested in an ERP software vendor and system integrator.

Beauty at play

Our shopping list is already in the works as the holiday season draws closer. Cosmetics are at the top of my list because what better way to pamper ourselves and others.

Private equity is also taking particular interest as we reported five cosmetics deals since the beginning of 2023.

Check out the full listicle to pick your favorite from the lot.

Warmly,

Irien

Read the full Dealflow commentary on PE Hub Europe ...

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PIMCO’s Murray: It ‘isn’t about value-adding anymore’. PERE America’s keynote speaker told members capital market dislocation means managers need to prioritize conversations with their lenders.  

GPs will need to raise their standards. Fund managers may be making claims about unprecedented opportunity, but LPs have a close eye on reporting and investing processes. (Private Debt Investor) 

Investors slam ISS for not heeding climate concerns. Investors have called on the influential proxy adviser to consider climate-related improvements before it announces its final benchmark policy changes. (Responsible Investor)