Happy Friday, Hubsters. MK Flynn here with today’s Wire.
Antitrust alert. The SEC isn’t the only government agency intensifying its scrutiny of the private equity industry. The DOJ is taking a closer look at PE-backed deals too.
“Sometimes [the motive of a private equity firm is] designed to hollow out or roll up an industry and essentially cash out,” Jonathan Kanter, head of the DOJ’s antitrust unit said in an interview with the Financial Times. “That business model is often very much at odds with the law and very much at odds with the competition we’re trying to protect.”
I’d love to know your thoughts on this. Will the DOJ’s stance stymie any deals you’re working on? Send email to me at mk.flynn@peimedia.com.
Energy transition. Earlier in May, Blackstone announced its investment in Geosyntec Consultants, an environmental engineering and design consulting firm. Geosyntec offers technical expertise in energy transition, water quality and supply, coastal, infrastructure and environmental restoration. PE Hub’s Obey Martin Manayiti caught up with Blackstone Energy Partners global head David Foley and managing director Darius Sepassi to learn more about the deal and how the private equity firm is planning to deploy Geosyntec’s expertise in the energy transition space.
With a team of more than 1,700 engineers, scientists, and other technical personnel, Geosyntec operates from more than 90 offices across the US, Canada, Europe, Australia, and the Middle East.
Check out the whole story here.
Healthcare consumers rule. “In today’s healthcare world, whether it’s dermatology, dental, or primary care, you have to provide a very strong patient experience, which is now more of a consumer experience – clean and up-to-date waiting areas, minimal wait times, a good relationship with the provider and appropriate follow-up,” Daniel Florian, managing director, Sun Capital Partners, told PE Hub’s Aaron Weitzman. “We want people coming into our dermatology practice to have a similar experience they would have at an Apple Store – efficient, clean, and cutting edge.”
Aaron profiled Sun Capital as part of our ongoing series on private equity firms investing in healthcare.
For more on Sun Capital’s healthcare strategy, read the full story.
Weekend reading. Buyouts’ Off-duty provides a snapshot of top investors, including a few details about what they do when not chasing deals. Chris Witkowsky caught up with Rich Caputo, CEO of The Jordan Company.
Caputo joined the firm in 1990, prior to which he worked in high-yield at Prudential-Bache. TJC is one of the oldest PE firms in the business, having started as a private investment partnership in 1982. It raised its first institutional capital in 1986 and its Fund I in 2002. In 2012, Caputo became co-CEO alongside founder Jay Jordan, who retired in 2016.
What advice would you give a young person interested in a PE career?
“When looking for a job in PE do not obsess about a firm’s brand or AUM,” Caputo said. “Find a firm with good people, low turnover and a growth mindset, where you can see yourself ultimately making an impact and having a long-term career. And don’t be afraid to take a little risk for that type of opportunity.”
To find out more, including Caputo’s favorite musician (also a favorite of mine), read the whole interview.
On that note, here’s wishing you a great weekend. If you’re in the Northeast, look out for a heat wave. Make sure your AC is working!
All the best,
MK
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