The Wire

Oct 25, 2022

EIP spies innovation drive with RS Technologies investment; Cyber deals stack up

Good morning Hubsters, Craig McGlashan here filling in on the Wire for MK Flynn.

Energy and cybersecurity are the two big focuses of the newsletter today – as they have been for much of our coverage of late – so let’s dive right in.

Powering up. PE Hub’s Obey Martin Manayiti has been fueling the site with energy-related stories and he filled up the coverage a little more today.

The ability to drive innovation against increasing threats of severe weather and other factors that are pounding the energy grid will determine the success of investors in the utilities sector, Steven Kantowitz, partner at Energy Impact Partners (EIP) told Obey.

RS designs, engineers and manufactures composite utility poles and other products for the electric transmission and distribution sectors and the communications sector. Its products are distributed across North America, Europe and the Caribbean, among other regions.

You can check out the full story here.

Also make sure you read Obey’s story on Centerbridge’s purchase of a majority stake in MacLean Power Systems from last week.

Cyber. Israeli security software company Cybereason has reportedly ditched its plans for an IPO and has instead hired JPMorgan to help it find a buyer.

The report in The Information cited a person familiar with the matter who said that the firm, valued at $2.5 billion by investors like Google, SoftBank and former US Treasury secretary Steve Mnuchin’s private equity firm Liberty Strategic Capital, canceled its plans to IPO due to the sluggish performance of the stock market this year.

Several private equity firms will likely be eyeing the company, which is in a sector that has been very popular with PE funds.

Just yesterday, PE Hub reported that SilverEdge Government Solutions, which is backed by Godspeed Capital, had acquired Reston, Virginia-based Counter Threat Solutions, a cybersecurity firm. No financial terms were disclosed.

Other recent cybersecurity deals include Thomas Bravo taking Ping Identity private for about $2.8 billion in mid-October.

Cross-Atlantic. I always like to include a plug for PE Hub Europe when I’m on Wire duty, so I’ll sneak in a mention of a deal that had an element of Europe and North America.

Symeres, a Keensight Capital portfolio company, announced the acquisition of Exemplify BioPharma, a provider of integrated end-to-end CMC drug development deliverables to pharmaceutical and biotech firms.

European prescription. If you’d like to know more about what’s happening in European healthcare deals, and particularly pharmaceuticals, then check out PE Hub Europe’s roundup, courtesy of Nina Lindholm.

Deals include TPG buying Diocle Topco from ICG and Mérieux, as well as Astorg-backed OPEN Health acquiring the CM Group.

Read the full round-up here.

That’s it from me today. Chris Witkowsky will be on Wire duty tomorrow.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

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BlackRock Alternatives secures a $4.5 billion first close for its Global Infrastructure Fund IV, raising 60 percent of the $7.5 billion target. (Infrastructure Investor)

Limited partners should begin thinking about exposure to natural assets now to capture early-mover benefits, according to investment consultant StepStone. (New Private Markets)

Nordic Capital has held a final close for its 11th flagship fund on its €9 billion hard-cap, just five months after its first close. Fund XI is the largest fund raised in the firm’s history, raking in about €3bn more than its 2020-vintage predecessor. (Private Equity International)

Australia’s sustainable finance taxonomy will likely include a transition category with criteria that will ramp up over time, according to the head of the country’s sustainable finance body. (Responsible Investor)

Report says LPs should question GPs on asset valuations. 'There are enough yellow and orange flags, if not red flags, that show valuations may not reflect what an orderly market transaction should reflect,’ says the executive director of the Equable Institute. (Venture Capital Journal)

"Like many investors, [PE firm] Taurus Investment Holdings is taking it slow in Europe because of market volatility and repricing. 'We are being very cautious everywhere,' Taurus CEO and managing partner Peter Merrigan said in an interview. 'We are doing some industrial and office developments in Germany but yields are very tight, and the exit yield has become quite challenging.'" (CoStar)

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"Ridgemont Equity Partners has collected $2.35 billion for its latest midmarket growth fund just as the environment for overall private-equity fundraising is getting tougher." (WSJ Pro)

“We were fortunate that they chose us because they believe that we bring a lot of non-financial benefits to this business. The ability to help drive innovation in this space is an important part of what we are doing here.”

— Steven Kantowitz, partner, at Energy Impact Partners

Today's letter was prepared by Craig McGlashan

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