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Dealmaking optimism emerges amid falling activity; Knox Lane brings Fund II to market

Morning Hubskis!

This is Chris, on for Wire Wednesday.

While deal numbers have been falling, I am hearing more optimism around dealmaking, (including secondaries), mostly because of ample uncalled capital just waiting to be spent. While lending hasn’t recovered, GPs are out seeking deals and the expectation is that activity will continue to strengthen into the second half.

Of course, this precludes some exogenous shock like the US defaulting on paying debts it’s already incurred, for example. And as always, GPs are in need of more exits, more exits, more exits …

Wealth management

Bain Capital made a minority co-investment of $1 billion in CI Financial Corp’s US business, as a way to seize on opportunities around wealth management, writes Obey Martin Manayiti on PE Hub today.

Falling

While dealmakers appear to be more optimistic, numbers have definitely been lagging this year. The number of announced deals in April plunged 40.5 percent year-over-year to 843 from 1,416, according to fresh research from S&P Global Market Intelligence. Total deal value through April 30 was $148.1 billion, down from 53.9 percent year-over-year.

Coming back

Knox Lane, a firm formed in 2019, is back in market with its second fund. KLC Fund II is targeting $850 million and has reached more than halfway toward that goal, sources told Buyouts. Read more here.

That’s it for me! Hit me up at cwitkowsky@buyoutsinsider.com or find me on LinkedIn with tips n’ gossip, feedback or The Drama, which we love.

Read the full wire commentary on PE Hub ...

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