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Churchill remains bullish on junior capital; Genstar eyes M&A and organic growth for Aperture

Good morning, PE Hubsters! Rafael Canton here with the US edition of the Wire from the New York newsroom. As we’ve reached the middle of the week, let’s look at what’s going on in private equity.

First, let’s start off with thoughts from Churchill Asset Management’s Anne Philpott on the role of junior capital in buy-and-build strategies as we continue on with PE Hub’s ongoing series of Q&As with private equity thought leaders.

Then, we have a couple of deals from this morning. Genstar Capital made a majority investment in Aperture, a provider of forensic expertise and litigation dispute support services.

In another deal, Vestar Capital Partners has agreed to sell Simple Mills to Flower Foods Inc for $795 million.

Finally, we also have a look at interest in HR software deals. Apax Partners agreed to sell its majority stake in Paycor HCM to Paychex Inc for $4.1 billion.

Seeking growth and flexibility

Junior capital remains a priority for Churchill Asset Management.To learn more, PE Hub editor in chief MK Flynn asked Churchill managing director Anne Philpott about the topic in the latest of our 2025 Outlook pieces.

Premium subscribers to the Wire can read Anne Philpott’s insights on junior capital.

Forensic expertise

In a deal from this morning, Genstar Capital has made a majority investment in Aperture, an Arlington, Texas-based provider of forensic expertise and litigation dispute support services.

Subscribe to the premium version of the Wire to learn more about the deal and how Genstar plans to grow Aperture.

Better for you

Vestar Capital Partners has agreed to sell Simple Mills to Flower Foods Inc for $795 million.

Premium subscribers to the Wire can learn more about this morning’s deal.

Digitizing payroll

Private equity interest in the HR software sector surged in 2024, fueled by advancements in AI, payroll automation and the digitization of employee benefits, as Irien Joseph wrote in a recent piece for PE Hub.

Subscribe to the premium version of the Wire to see how this trend has continued into 2025 with a recent deal this week.

That’s it from me today. If you have any questions, thoughts, or want to chat, please email me at rafael.c@pei.group.

Tomorrow, Nina Lindholm will be with you for the Europe edition of the Wire and Michael Schoeck will bring you the US edition.

Cheers,

Rafael

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

In the latest of its 2025 Outlook series, PE Hub spoke with Richard Sanders, founder and managing partner of Sullivan Street Partners, about the highlights and biggest challenges with completing deals in 2024, as well as his outlook for the year ahead ("We are very optimistic about 2025").

Mark Carney, chair of Brookfield Asset Management, is contemplating a run to succeed Justin Trudeau as prime minister of Canada. (Buyouts)

Europe’s continued (and prolonged) low demand for power is bad news for investors committed to adding more green generation to the European grid. (Infrastructure Investor)

Natixis subsidiary Flexstone Partners has reached its target for its first standalone flagship secondaries vehicle, closing on €200 million. (Secondaries Investor)

GPs should be open and careful when using continuation funds or NAV loans if they want to maintain good relationships with LPs, according to Teia Merring, senior investment director at the £80 billion ($99.9 billion; €96.5 billion) Universities Superannuation Scheme, who was speaking on a panel at PEI Group’s Women in Private Markets summit in London. (Private Equity International)

Trump looms large for North American secondaries in 2025: The incoming administration is taking center stage when it comes to events expected to shape the North American secondaries market this year. (Secondaries Investor)

Northwestern Mutual has become the latest insurance giant to throw its hat into the private credit ring, taking a minority stake in Sixth Street and giving the manager $13 billion of its $320 billion of institutional investment portfolio to manage, with the potential to up the ante. (New Private Markets)

Landon Merrill, who was recently promoted to partner at Genoa Ventures, shares his journey from late-night bread maker to scientist to company founder to venture capitalist. (Venture Capital Journal)

Deals

They said it

“We are bullish on junior capital. The asset class has grown in popularity due to its demonstrated durability through market volatility. We estimate that private credit will continue to dominate buyout financing and take market share from traditional bank lending.”

— Anne Philpott, managing director, Churchill Asset Management on the firm’s commitment to junior capital

Today's letter was prepared by Rafael Canton

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